ATL removal, a CPR dated 28 February, and a 2% gap
A commercial importer files a GD on 3 March for 500 cartons of ceramic tiles (HS 6907.23) with an assessed customs value of PKR 12.5 million. Advance income tax under section 148 is to be collected at the import stage. The rate card in force for the tax year provides 1% for industrial undertakings importing inputs and machinery, 2% for commercial importers, and double the applicable rate for a person not on the Active Taxpayers List. The importer's name was removed from the ATL on 15 February for non-filing of the return for tax year 2024. At the counter the clearing agent produces a CPR showing that the return was e-filed on 28 February, and asks that the 2% rate be applied because 'the return is now filed'. The GD system has computed 2%, but the bank has not yet credited the amount and the CPR status shows 'pending'. The importer's registration profile describes it as a commercial importer. The consignment is incurring demurrage and the agent wants release today.
1. Which rate applies on 3 March and why? Explain how you verify ATL status and what evidence you retain.
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The rate is determined by the ATL position on the date the tax is collected, and by the importer's correct category. Here the category is commercial, so the base rate is 2%; because the NTN is not on the ATL in force, the rate doubles to 4%.
Computation: 4% × 12,500,000 = PKR 500,000, against PKR 250,000 at the non-doubled rate. The difference of PKR 250,000 is the point of the case.
Filing a return does not by itself restore ATL status. The return must be processed, the ATL updated, and the name republished; that is a system event with its own timing, and it had not happened by 3 March. A CPR proves the return was transmitted, not that the taxpayer is on the ATL. 'Pending' status confirms the processing is incomplete.
Verification steps: search the ATL by NTN and by CNIC of the proprietor/director; check the ATL date; confirm the registration profile and category; and record the result. I would print or save the ATL screen for the date of collection and attach it to the file, because the usual dispute later is what the list showed on that day. I would also check whether the importer had challenged the ATL removal or applied for restoration.
I cannot waive the collection. Section 148 is a collection mechanism; the officer's duty is to collect at the correct rate and issue the PSID. If the agent disputes it, the route is a written application to the competent authority for ATL restoration, not an oral request at the counter.
2. What must the agent do to obtain release, and what happens to the extra amount if the ATL is later restored with effect from 1 March?
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Release requires a credited payment, not a promise. The sequence is: generate the PSID for the full amount at 4%, pay at the designated bank or through the alternate e-payment channel, wait for the CPR to move from 'pending' to 'paid', and only then expect the out-of-charge. Because the system currently shows 2%, the agent must not assume the lower amount was accepted; the bank credit and the CPR status control.
On the later restoration: if the ATL is amended with effect from 1 March, the legal position on 3 March changes retrospectively. The importer can then claim the difference of PKR 250,000. The route is an application for refund/adjustment supported by the amended ATL, the GD, the PSID and the payment receipt. The officer should not pre-empt that by collecting 2% now and hoping; that creates an unauthorised short collection which the audit will pick up.
Practically, I would advise the agent in writing: pay 4%, keep the receipts, pursue ATL restoration, and file the refund claim once the amended list issues. I would also flag the GD in the system so that the post-clearance audit knows why the higher rate was applied.
If, on the other hand, the importer turns out to be an industrial undertaking importing inputs, the base rate is 1% (2% doubled), and the earlier 2% computation was itself wrong. That is why the registration profile and the nature of the goods must be checked before the PSID is generated.
3. What are the officer's monthly obligations after this collection, and what other consequences does non-ATL status have for this importer?
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The collection must be reported. The withheld/collected amount is included in the monthly statement under section 165, filed through the IRIS/e-withholding system by the prescribed due date for the month of collection, with the NTN, the GD number, the value, the rate and the tax. A certificate of collection is issued to the importer. The statement must reconcile with the PSID and CPR figures; a mismatch between the statement and the bank credit is a common audit observation and is treated as a default by the collector.
Non-ATL status has consequences beyond this consignment. Other withholding agents will apply higher or doubled rates to payments to this importer. Certain refunds and adjustments may be processed only after ATL verification. The importer's ability to obtain approvals and to be treated as compliant is affected. If a return for a tax year remains unfiled, the Commissioner can also proceed under the relevant provisions for non-filing, including assessment and penalty.
The practical message to the agent is that the fix is compliance, not negotiation: file the outstanding return, pay any late-filing penalty, get the ATL updated, and then seek the refund of the excess collected. The officer's role is to document the collection accurately so that the refund can be processed without a second inquiry.