ISLAMABAD: The Federal Board of Revenue (FBR) will grant relaxation of the filing and audit of declarations/declarations to withholding agents, manufacturers, dealers, distributors, wholesalers and retailers, who will integrate to the new FBR systems.

Sources told Business Recorder here on Saturday that the Digital Billing and Analytics Branch and the Synchronized Withholding Agent System will integrate the Sales Tax Supply Chain and Withholding Agents, respectively. The FBR will provide incentives for withholding agents as well as the entire supply chain to report their sales and withholding data online under the new FBR system.

Under the proposed Synchronized Withholding Agent Program (SWAP), withholding agents would receive various incentives that would synchronize with the FBR and report their data online with the SWAP. Whether the withholding agent is a government department, agency, or private company, similar types of incentives would be extended to all types of withholding agents. The department/company that would make the withholding, the same data would be reported online to the SWAP system offered by the FBR. These included Ministries, Engineering Services, Registrar of Properties, Registry, Registration or Certification of Transfer of any real estate, Motor Vehicle Registration Authorities, AGPR and private sector companies, and other categories of withholding agents.

FBR is ready to consider “halving” the audit period

SWAP-integrated withholding agents may not be required to file the quarterly withholding statement. At the same time, this category of retainers would not be subject to control.

As the FBR would be able to obtain agents’ detention data online, there would be no need to audit these agents.

The system will link sales data from manufacturers, resellers, distributors, wholesalers and retailers to the FBR system. Monthly sales tax information, including sales tax payments, would be made available to the FBR under the new system. Due to online data availability, sales tax evasion would not be possible.

The FBR should waive the major requirement of monthly filing of sales tax returns and audits for manufacturers, dealers, distributors and retailers, which would be tied to the DG Digital Invoicing and Analytics system.

In the presence of the availability of online data, the FBR will grant concessions to the entire supply chain due to the submission of electronic information on a monthly basis. The RBF system would itself generate monthly sales tax returns from said supply chain categories, which would be integrated into the Digital Billing and Analytics Branch.

Audit exemption is also being considered by the FBR for manufacturers, resellers, distributors, wholesalers and retailers, who would be tied to the FBR digital invoicing system.

These are very big incentives for manufacturers, resellers, distributors, wholesalers and retailers, who would be integrated into the new FBR system to be launched.

The FBR POS system would also fall under the Digital Billing and Analytics Branch. The data of these taxpayers is regularly entered into the FBR system and there would be no need to submit monthly sales tax returns or audits.

Recently, the FBR transferred Asem Iftikhar, a BS-20 agent with the Inland Revenue Service (IRS) to the position of General Manager, Digital Billing and Analytics Branch.

A new Directorate General for Digital Invoicing and Analytics has been provided for in the 2021 finance law.

Under the new provision, the Digital Billing and Analytics Branch is made up of the General Manager and as many managers, additional managers, assistant managers and assistant managers and any other officers as the board may, by notification in the official journal, appoint .

Copyright Business Recorder, 2022

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