The Federal Board of Revenue (FBR) has taken a major step to refund 2 percent Workers Welfare Fund (WWF) to the industrial undertakings, which was collected in excess amount.
In this connection, the FBR has issued instructions to the Member Inland Revenue (Operations) and Member Legal.
The FBR’s instructions revealed that the Workers Welfare Fund (WWF) is collected by the officers of Inland Revenue from the industrial establishments at the rate of 2 percent whose total income is not less than Rs. 500,000.
The FBR said that the mode of payment and recovery from the industrial undertaking is mentioned in section 4 of the Workers Welfare Fund Ordinance 1971. The said amount is paid by the industrial establishment on or before the date prescribed for filing of return and proof of payment is furnished to the concerned officer.
If the officer does not agree with the working of the industrial establishment, shall pass an order by taking into account the amount paid by the industrial establishment and the industrial establishment shall pay the amount on or before the date specified in the order, FBR maintained.
Similarly, the excess amount shall be refunded by the concerned officer to the industrial establishment.
The FBR added that the amount of tax and WWF should be bifurcated. The WWF that is refundable should be refunded from the WWF account only, FBR’s instructions added.
