Supplementary ARR 06-07 - Delhi Transco Limited

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11. Compliance Status on Directives by the Commission11.1 Depreciation (D-5.9.2)The petitioner may submit the pro-rata depreciation considering actualusage/operation (in number of days) of assets during the financial year, for theassets commissioned during the financial year.TRANSCO ResponseDetails in respect of pro-rata depreciation considering the actual using/operationof assets commissioned during the year shall be submitted to the Hon’bleCommission in due course of time.11.2 Cost Audit (D – 5.9.3)The petitioner may specify the target dates to provide the cost accountingrecords as per the Cost Accounting Records Rules for electricity industry to theCommission.TRANSCO ResponseThe Company has appointed Cost Auditor M/s. H. Tara & Co. for the FY 2005-06. The cost accounting records are to be submitted to Cost Auditor on orbefore 30.6.2006.12. Fringe Benefits Tax (FBT)The petitioner may give detailed justification for – “why the Fringe Benefit Taxshould be allowed as an expense in the ARR” and also specify the details ofFringe Benefit Tax computed for the FY 2005-06 and FY 2006-07 and actualupto January 2006.TRANSCO ResponseThe GoI has levied Fringe Benefit Tax w.e.f. April 1,2005.The provision ofSection 115WA of the Income Tax which reads as under:“ 15 WA. (1) In addition to the income-tax charged under this Act, there shall becharged for every assessment year commencing on or after the 1 st day of April,2005, additional income-tax (in this Act referred to as fringe benefit tax) inrespect of the fringe benefits provided or deemed to have been provided by asemployer to his employees during the previous year at the rate of thirty percenton the value of such fringe benefits.DTL Deficiencies ARR-06-07 16
(2) Notwithstanding that no income-tax is payable by an employer on his totalincome computed in accordance with the provisions of this Act, the tax on fringebenefits shall be payable by such employer.”TRANSCO would like to submit that it is an additional tax liability, which was notthere in the previous years. Accordingly, FBT being additional income-tax to betreated in the same manner in which income-tax is treated i.e. an item of passthrough in the tariff.In view of the above, the recovery of FBT paid by the Company should beallowed from the beneficiaries like income-tax. The details of Fringe Benefit Taxcomputed for FY 05-06 (up to December 2005) is attached as Annexure-XVI.13. Other IssuesThe petitioner may also provide the details of swapping of domestic loans, ifany.TRANSCO ResponseTRANSCO would like to submit that no swapping of domestic loans has beendone during FY 04-05 and FY 05-06.Yours faithfully,Encl: as above.( M.P. AGGARWAL )General Manager (Comml)DTL Deficiencies ARR-06-07 17
Page 1 and 2: DELHI TRANSCO LIMITED(A Govt. of NC
Page 3 and 4: TRANSCO ResponseThe amount of Rs. 3
Page 5 and 6: ii.The petitioner may also submit t
Page 7 and 8: In order to calculate the transmiss
Page 9 and 10: iv.The petitioner may submit the ex
Page 11 and 12: 7. Reactive EnergyThe petitioner ma
Page 13 and 14: TRANSCO ResponseActual R&M expenses
Page 15: TRANSCO ResponseThe details of “O

Supplementary ARR 06-07 - Delhi Transco Limited

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