ISLAMABAD (July 25 2005): The Central Board of Revenue (CBR) has decided to devise a 'centralized registration system of withholding tax agents' for their effective monitoring. The Board will also put in place a separate system to ascertain contribution of income tax made by different sectors of the economy.
Official sources told Business Recorder on Sunday that CBR would devise the new system with the assistance of Commissioner of Income Tax, Special Zone, Karachi, and other officers interacting with the withholding tax agents.
The centralized system will ensure that quarterly statements submitted by withholding tax agents are consolidated regularly at the Board.
The CBR has also directed Regional Commissioners of Income Tax (RCITs) to ensure that tax deducted by the withholding tax agents should be accounted for in the individual accounts of those on whose behalf it is deducted.
To compile database on withholding agents, the income tax zones and regions will develop the same methodology for subsequent transmission to the Board.
Officials said that the Director General, Large Taxpayer Unit (LTU), Karachi, and the concerned Regional Commissioner of Income Tax (RCIT) would mutually sort out the issue pertaining to the jurisdiction of Medium Taxpayer Unit (MTU) and LTU at Karachi for monitoring of withholding taxes deduction. Training workshops will also be arranged by the Directorate of Training for officers at Karachi, Lahore and Islamabad to train them on monitoring of withholding taxes and improve their professional audit skills.
Officials said that CBR would also develop an information system to figure out the amount of income tax contributed by different sectors of the economy. The data will be compiled with the help of 'Business Codes' specified in the return form for the corporate sector. Field formations will coordinate with CBR for compilation of the database.