The Directorate General of Intelligence and Investigation Inland Revenue (IR) Lahore has detected non-payment of withholding tax of Rs 876 million by Pakistan Railways on contracts with various firms/companies for operating passenger trains. Sources told Business Recorder here on Friday that Khawaja Tanveer Ahmed Director General Directorate General of Intelligence and Investigation Inland Revenue has submitted a report to the FBR Chairman.

According to the details, on the basis of credible information the Directorate of Intelligence & Investigation-IR, Lahore had learnt that M/s Pakistan Railways has entered into agreement with various firms/companies since the year 2006 whereby contracts for operating Passenger trains were awarded through open auction, however, due withholding tax u/s 236A of the Income Tax Ordinance, 2001 has not been collected/deposited by the Pakistan Railways from the contractors.

An inquiry/investigation has been conducted in this regard and default u/s 161 of the Income Tax Ordinance has been ascertained to the tune of Rs 876 million excluding default surcharge u/s 205. It is, however, pertinent to mention here that default surcharge u/s 205 of the said Ordinance, comes to Rs 410 million up to 13.01.2017. Accordingly Investigation Report has been sent to Chief Commissioner-Inland Revenue, Large Taxpayers Unit, Lahore.

Copyright Business Recorder, 2017