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Bajwa to meet provincial revenue heads on 23rd

Bajwa to meet provincial revenue heads on 23rd

ISLAMABAD: Federal Board of Revenue Chairman Tariq Bajwa will meet heads of provincial revenue authorities of Punjab, Sindh and Khyber Pakhtunkhwa to discuss issue of federal excise duty and sales tax on identical services. The meeting is scheduled to be held on April 23, 2014 at FBR House.

The services include telecom, franchise, royalty and other certain services. The meeting will discuss in detail the implementation of the Memorandum of Understanding (MoU) on formation of joint and audit committees, data sharing mechanism, verification and cross-matching of inputs.

In addition to this, the transfer of amounts erroneously deposited in wrong heads of accounts, issue of federal excise duty and sales tax on identical services, toll manufacturing, taxability of the restaurants, taxability of the franchise services and inter-provincial sales tax issues (principle of origin vs. termination) shall also be brought under discussion.

Sources said that the joint committee would be established following signing of the MoU between the FBR and provincial authorities. Joint Committee shall comprise of officials from federal and provincial revenue bodies. Within 30 days of the end of each quarter, the Joint Committee shall retrieve data from the computerised systems of each tax administration showing the amount of sales tax adjusted by persons working under their respective law against goods/services received from persons working under the other law.

On the basis of such data, the Joint Committee shall prepare a statement showing the net effect of the cross-adjustments made during the quarter, which shall be sent to the Federal Finance Division, and also to the finance department of the provinces. In case there is a difference or non-agreement in the Joint Committee about the figures, the Joint Committee shall constitute an Accounting Committee, comprising audit officers of both federal and provincial revenue authorities to reconcile the figures provided by PRAL with the returns filed by the taxpayers.