LAHORE: The Lahore High Court has declared null and void sales tax collection by the Federal Board of Revenue (FBR) through electricity bills.
According to the details, Justice Shahid Karim of Lahore High Court (LHC) heard the appeal filed by the M/s United West and Yarn Factory in which the counsel for the appellant Muhammad Mohsin Virk advocate argued that Federal Board of Revenue (FBR) is collecting sales tax through electricity bills besides this sales tax is included in the electricity bills.
He prayed that besides the exemption of sales tax on the electricity bills by the FBR that collecting authorities also including and collecting sales tax from the textile industry.
He argued that Federal Board of Revenue (FBR) allowed textile industry to pay sales tax through normal procedure, adding more that after the notification of FBR the sales tax collection through electricity bills not done so.
On the other side the counsel for the appellant argued before the court that sales tax collection through electricity bills cannot be allowed.
After hearing the arguments from the complainant and FBR, Lahore High Court (LHC) has ordered to null and void the sales tax collection through electricity bills.
Earlier, the Lahore High Court was restricted the Federal Board of Revenue (FBR) from tax collection from steel sector through special procedure.
Muhammad Mohsin Virk was counsel for the appellant who argued before the court that, under the Sales Tax Act, taxpayer has a choice to deposit the sales tax through common procedure instead of the special one.
Besides allowing the Act, the Federal Board of Revenue (FBR) is collecting the sales tax through special procedure through electricity bills. He prayed the court to kindly stop the Federal Board of Revenue (FBR) from the tax collection through special procedure.
After hearing the arguments from appellant, the Lahore High Court (LHC) was restrained the FBR from tax collection through special procedure.
