ISLAMABAD: Federal Board of Revenue (FBR) has detected tax evasion cases by two power companies. It has been revealed that two power companies concealed the actual sales and evaded sales tax amount worth Rs693.72 million. Federal Board of Revenue has directed the related regional tax offices to fix the responsibility against the persons at fault.
According to details M/s Faisalabad Electric Supply Corporation (FESCO) National Tax Number (3048930-0) registered with Regional Tax Office Faisalabad purchased electricity of Rs6,139.09 million from different IPPs and NTDC. Against these purchases of electricity, FESCO showed sales of electricity of Rs3,622.52 million. Electricity cannot be stored and FESCO had concealed its sales which resulted in short realization of sales tax of Rs187.09 million.
Likewise M/s Northern Power Generation Company Limited (NPGCL) National Tax Number (3049717-5) registered with Regional Tax office Multan had declared less supplies of electricity to M/S National Transmission Dispatch Company (NTDC) as compared to electricity purchased by the NTDC in its sales tax returns. The position reflected that Northern Power Generation had concealed its sales tax in certain tax periods which led to concealment of sales and ultimately resulted in short realization of sales tax of Rs506.63 million.
It is important to mention here that according to section 3 (1) (a) read with section 2 (46) of the Sales Tax Act, 1990 there shall be charged, levied and paid sales tax at the rate of seventeen percent of the value of taxable supplies made by a registered person in the course or furtherance of any taxable activity carried on by him. Further lapse also attracts penalty under section 33 (11) (c) of the act ibid which also needs to be recovered.
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