ISLAMABAD (July 15 2003) : The Central Board of Revenue (CBR) has rescinded a letter issued by Custom House, Peshawar, which was hindering the new reporting system of revenue collection by National Bank of Pakistan (NBP).
Sources said that the CBR and State Bank of Pakistan (SBP) have implemented a new methodology for reconciliation of revenue receipts from July 1, 2003, for streamlining bank branches' tax collection reporting. This system is instrumental in eliminating any variation in tax collection reported by CBR and banks.
But, Custom House, Peshawar, issued a letter to NBP, which not only created accounting problems for the collectorates and NBP, but also confused CBR's Directorate of Research and Statistics.
However, it is yet to be ascertained whether the said letter, dealing with the sensitive issue of tax collection, was issued by Chief Accounting Officer, Custom House, Peshawar, after getting approval from the CBR/Directorate of Research and Statistics (DRS) before dispatching to NBP.
Sources said that on timely intervention by Umar Wahid, a senior tax official of CBR Directorate of Research and Statistics (DRS), the matter was resolved amicably.
The CBR has conveyed to National Bank of Pakistan (NBP), Peshawar, that under the new system the 'custom treasuries' will deposit the NBP pay order in the SBP on daily basis along with a statement showing tax-wise bifurcation.
The SBP will treat the statement as final challan and will record tax-wise collection, accordingly.
Similarly, NBP will deposit tax collection in the nearest SBP branch within 24 hours and 48 hours as per agreement with the NBP, rather than transmitting it to the NBP Headquarters, Karachi.
Some misunderstanding crept in between the Collectorate of Custom Peshawar and NBP, Peshawar due to a letter issued by the Chief Accounts Officer, Custom House, Peshawar to NBP asking for daily tax-wise certified figures along with pay order, which created accounting problems both at the Collectorate and the NBP.
The factual status is that SBP and not NBP is required to certify tax-wise collection figures as per statement filed with pay order.
Under CBR directive, a delegation comprising tax officials from DRS visited Peshawar to meet Chief Accounts Officer, Custom House, Peshawar, Assistant Collector Dry Port Peshawar, Chief Account Officer, Sales Tax and Central Excise, Peshawar and Manager NBP, Custom House, Peshawar.
It was decided in the meeting that the letter issued by the Chief Accounts Officer, Custom House Peshawar would be withdrawn.
The NBP will provide pay order on daily basis as usual to the Custom Treasury.
However, NBP will ensure that the amount in the pay order shall not carry previous clearance / amount to be cleared.
The Chief Accounts Officer, Custom House, Peshawar will submit pay order with SBP along with five copies of the statement showing tax-wise bifurcation of the amount given in the pay order on daily basis.
The SBP will return a certified copy of the statement to the custom treasury as per agreement with the SBP/NBP. One copy of the certified statement shall also be sent to the AGPR by SBP.
The Chief Accounts Officer and Manager NBP, Peshawar will closely co-ordinate to provide tax-wise bifurcation regularly provided to the SBP.
In case of difficulties/problems arising in accounting/reporting of tax collection, it was decided that these would be brought to the notice of DRS for appropriate action, sources added.