This is in spite of the fact that a joint committee of the FBR and provincial revenue authorities/boards has been set up to explore the possibility of a single portal/single sales tax return for taxpayers registered with the FBR as well as provinces to avoid filing of multiple returns by taxpayers.
Sources however told Business Recorder here on Monday that so far the meeting of the joint committee has not been convened. The decision to constitute a joint committee was taken during the last advisory meeting to discuss various sales tax related issues with the provincial Revenue Authorities/Board.
The objective was to take viewpoint of FBR/provinces on a single portal/single return to facilitate taxpayers as well as to ensure transparency in input tax adjustment. Presently, taxpayers have to get registered in multiple jurisdictions, and have to file multiple returns.
There is also the possibility of a claim of the same input tax from multiple jurisdictions because of lack of checks on such adjustments. Single portal would ensure that taxpayers are facilitated by uploading data on a single portal. The portal would also ensure quick reconciliation of cross-adjustment of input tax.
The provincial authorities including Punjab Revenue Authority (PRA) and Khyber Pakhtunkhwa Revenue Authority (KPRA) have already consented to the single portal. The Sindh Revenue Board (SRB) and Balochistan Revenue Authority (BRA) have also expressed their consent.
Sources said that the FBR and SRB are in the process of reconciling data of cross input tax adjustment. The exercise is in full swing and authorities are hopeful that the FBR and SRB would be able to fully reconcile the data in the near future.
FBR authorities told this correspondent that reconciliation of cross-adjustment with PRA for one year was almost complete; and added that it has been agreed that the reconciliation should be completed on priority. The reconciliation with KPRA has recently begun and data of domestic input/output for the period 2016-17 have been shared with the KPRA. The KPRA has requested sharing of import data for the same period.
Sources further revealed that FBR has signed MoUs with three provincial authorities, ie, PRA, KPRA and SRB for reconciliation of cross-adjustments of input tax and payment of net amount by the beneficiary agency to the other. However, the Balochistan Revenue Authority (BRA) still has not entered into any agreement with the FBR on this issue.