- GOVERNMENT OF PAKISTAN
- (REVENUE
DIVISION)
- (Sales
Tax)
- *****
- Islamabad, the 15th March, 2000
NOTIFICATION
(SALES TAX)
S.R.O. 124(I)/2000. In exercise of the powers
conferred by section 71 of the Sales Tax Act, 1990, the Federal Government is
pleased to make the following rules, namely :-
1. Short title, application and commencement.-
- (1)
These rule may be called the Special Procedure for Collection and Payment of
Sales Tax (Electric
-
Power) Rules, 2000.
-
- (2)
These rules shall apply for collection and payment of sales tax on electric
power imported, generated,
-
produced, transmitted and supplied by electricity generation, transmission and
distribution companies
-
licensed under the Regulation of Generation, Transmission and Distribution of
Electric Power Act, 1997
-
(XL of 1997), including their distributors, dealers and agents, or by any
other person dealing in importation,
-
generation, production, transmission, distribution and supply of electric
power.
(3) They shall come into force at once.
2. Definitions.-
(1) In these rules, unless there is
anything repugnant in the subject or context,-
(a) "Act" means the Sales Tax Act, 1990;
-
(b) Authority" means the National Electric Power Regulatory
Authority established under section 3 of
-
the Regulation of Generation, Transmission and Distribution of Electric Power
Act, 1997 (XL of
-
1997);
-
- (c)
"consumer" means a person or his successor-in-interest who purchases or
receives electric power for
-
consumption and not for delivery of re-sale to others and includes a person
who owns or occupies a
-
premises where electric power is supplied;
(d) "registered consumer" means a consumer registered under the Act;
-
(e) "distribution" means the ownership, operation, management
or control of distribution facilities for the
-
movement or delivery or sale to consumers of electric power but shall not
include the ownership,
-
operation, management and control of distribution facilities located on
private property and used
-
solely to move or deliver electric power to the person, owning, operating,
managing and controlling
-
those facilities or to tenants thereof shall not constitute distribution;
(f) "distribution company" means a person engaged in the distribution of
electric power;
(g) "electric power" means electrical power supplied by a person to a consumer;
- (h)
"generation" includes the ownership, operation, management or control of
generation facilities for
-
delivery or sale of electric power and not solely for consumption by the
person owning, operating,
-
managing and controlling those facilities;
(i)
"HUBCO" means the Hub Power Company Limited;
(j)
"KAPCO" means the Kot Addu Power Company Limited;
(k) "KESC" means the Karachi Electric Supply Corporation;
-
(l) "IPP" means an Independent Power Producer established in private sector
operating under a license
- issued by the Authority for the purpose of generation,
transmission, distribution and sale of electric
- power, and governed by various
Implementation Agreements executed between the Islamic Republic
- of Pakistan and such
Independent Power Producer and includes HUBCO and KAPCO;
-
- (m)
"person" means an electricity generation, transmission and distribution
company licensed by the
-
Authority and includes a distributor, dealer and agent of such a company, an
Independent Power
-
Producer, a Public Sector Project, Private Sector Project, or any other person
dealing in importation,
-
generation, production, transmission, distribution and supply of electric
power;
-
- (n)
"Private Sector Project" means a facility for generation, transmission or
distribution of electric power
-
constructed, owned, managed or controlled by any one or more organizations or
companies
-
incorporated under the Companies Act, 1913 or the Companies Ordinance, 1984
(XLVIII of 1984);
-
-
(o) "Public Sector Project" means a facility for generation,
transmission or distribution of electric power
-
constructed, owned, managed or controlled by the Federal Government, a
Provincial Government, a
-
local authority or any body owned or controlled by any such Government or
authority;
-
- (p) "transmission" means the ownership, operation, management or control of
transmission facilities;
- and
-
- (q)
"WAPDA" means the Pakistan Water and Power Development Authority established
under the
-
Pakistan Water and Power Development Authority Act, 1958 (W. P Act XXXI of
1958).
-
- (2)
All other words and expressions used, but not defined herein shall have the
meanings assigned to them in
-
the Act.
3. Registration.-
Every person who supplies electric power shall be liable
to registration under the relevant provisions of the Act.
4. Levy and collection of Sales Tax.-
- (1)
Every person who supplies electric power shall be liable to registration and
shall collect sales tax at the
-
rate specified in sub-section (1) of section 3 of the Act.
-
- (2)
Subject to sub-rule (3), sales tax on electric power shall be levied and
collected at the following stages,
-
namely :-
-
- (i)
in case of its importation, the responsibility to pay sales tax shall be of the person importing
- electric
power and the value thereof shall be the value as determined under section
25 or, as
-
the case may be, section 25B of the Customs Act, 1969 (IV of 1969),
including the amount of
- customs duties and
central excise duties levied thereon; and
-
- (ii) in case of generation, transmission, distribution and supply of electric power by a
Public
- Sector
Project for example WAPDA, KESC, etc.
a private Sector Project including an I.P.P.,
- a Captive Power Unit or any other person, the responsibility to collect sales tax
shall be of
- the person making the supply, and the value shall be the price of electric
power including
- charges, surcharges, rents, commissions and all duties and taxes whether local, Provincial or
- Federal, but excluding the amount
of sales tax as provided in clause (46) of section 2 of the
-
Act.
- (3) In case of an I.P.P., HUBCO
and KAPCO, the value of supply shall be the amount received by an I.P.P or,
- as the case
may be, HUBCO or KAPCO, on account of Energy Purchase Price only and any amount in
- excess
of Energy Purchase Price received on account of Capacity Purchase Price, Energy Price
-
Premium, Excess Bonus, Supplemental Charges, etc., shall not be deemed as
a component of the value
-
of supply notwithstanding anything contained in clause (46) of section 2 of
the Act:
-
- Provided that in case WAPDA or KESC disputes in respect of any amount WAPDA or,
as the case
- may be, KESC, shall issue a certificate showing such amount and the
tax involved therein and such
- certificate shall be deemed to be a Credit note
for IPP for the purposes of section 9 of the Act, and
-
accounted for in the return for the tax period in which such Credit Note is
issued.
-
-
Provided further that in case an IPP, for the like reasons, receives any amount
from WAPDA or
- KESC
in respect of supply made during any pervious tax period, tax on such amount
shall be
-
accounted for in the return for the period in which it is received.
5. Filing of returns and deposit of sales tax.-
- (1) In case of WAPDA and KESC,
sales tax levied and collected under rule 4, during a tax period shall be
-
deposited on cash-collection basis.
-
- (2) WAPDA and
KESC shall submit the monthly return as prescribed under section 26 of the Act,
by the 21st
-
day of the month following the month in which Sales Tax has been collected.
The tax due shall be
-
deposited in the Government Treasury under the relevant head "0220000 Sales
Tax" alongwith prescribed
-
return in the designated branch of National Bank of Pakistan.
6. Determination of sales tax liability in respect
of WAPDA and KESC
- (1) WAPDA and KESC
shall be entitled to claim admissible input tax adjustment against sales tax
paid on
-
their taxable purchases made in the month immediately preceding the tax
period:
-
- Provided that no input tax adjustment shall be admissible to WAPDA and KESC
on account of the
-
sales tax paid on the taxable purchases made before the 1st January, 2000.
7. Input Tax Adjustment.-
- (1) In case of
registered consumers the electric power bill issued by distribution
company shall be treated as a
-
tax invoice as defined in clause (40) of section 2 of the Act.
-
- (2) Subject to
sub-rule (5), the registered consumers shall be entitled to claim input tax Adjustment
against
- such invoice in the tax period in which the bill
is paid as per the provisions of section 7 and 8 of the Act
- provided the bill
contains registration number and address of the business
premises declared to the
- Collector of the such
consumer.
(3) [Omitted]
(4) [Omitted]
- (5) In
case a registered consumer is consuming electric power for both the taxable as well as
non-taxable
- activity, he shall
ascertain the correct amount of electric power consumed in taxable activity
and adjust
-
the input tax in accordance with the Apportionment of Input Tax Rules, 1996.
8. Record keeping and invoicing.-
- (1)
Every person who supplies electric power shall maintain records as prescribed
under section 22 of the Act
-
or any notification issued thereunder.
-
- (2)
Every person who supplies or distributes electric power shall point in his
bill or invoice, as the case may
-
be, registration number of the consumer and rate and amount of sales tax
required to be charged by him
-
under sub-section (1) of section 3 of the Act.
-
- (3)
Every person who supplies electric power and uses computerized accounting
system may, with prior
-
permission of the Collector of Sales Tax having jurisdiction, issue the
computer generated sales tax
-
invoice and keep their record on the Computer in the format and manner as the
Collector may approve,
-
companies or by any registered person engaged in the supply of electric power
shall attract penalties
-
under the relevant provisions of the Act.
9. Penalty.
- (1)
Non-issuance of electric power bill for a tax period or any inordinate delay
in the issuance of such bill by
-
the electric power transmission and distribution companies or by any
registered person engaged in the
-
supply of electric power shall attract penalties under the relevant provisions
of the Act.
-
- (2)
If the tax is not paid within the date due as provided under sub-rule (2) of
rule 5, the registered person shall
-
be liable to pay additional tax and any other penalty prescribed in the Act.
[F.No. 1(33)STR|2000.]
- SARFRAZ AHMED KHAN
- (Additional Secretary)