Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to the addition of section 73 in the Sales Tax Act, 1990,
through the Tax Laws (Amendment) Ordinance, 1999 (XXII of 1999) under which all
transactions, above fifty thousand rupees, were required to be made through crossed
cheque, crossed bank draft or pay order, to claim input adjustment or refund on such
transactions purchases.
2. Upon review, the Government has decided to withhold the operation of
the provisions of section 73 of Sales Tax Act, 1990, till 30th June, 2000. You are
requested to convey this decision to all concerned.
[Issued by the CBR, Islamabad under the signature of Mr. Azhar Iftikhar, Chief (Sales
Tax-I) addressed to all the Collectors of Sales Tax/Mirpur (AJ&K.).]
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SALES TAX GENERAL ORDER NO.1/2000.
C.No.1(33)STR/99.Pt DATED 24 TH JANUARY, 2000
SUBJECT:-
VALUE OF SUPPLY IN RESPECT OF ELECTRICAL ENERGY
BY IPPs INCLUDING HUBCO & KAPCO.
A question has arisen as to the value of supply of the electricity supplied by
independent Power Projects (IPPs) to M/s. WAPDA and M/s. KESC. The contracts
between M/s. WAPDA/KESC and different IPPs envisage a tariff structure comprising a
number of categories e.g. the consideration of money on account of Energy Purchase
Price (E.P.P.), Capacity Purchase Price (C.P.P.), Energy Purchase Price Premium, Excess
Energy Bonus and Supplemental Charges (S.C.) etc.
2. The EPP is payable by WAPDA/KESC on account of purchase of
"electrical energy" while the consideration received by I.P.Ps on account of CPP is for
net capacity of the plant which is to be paid during the contractual period. The payment
of CPP, etc. is not reliable to the supply of electricity.
3. The issue has been examined in the Central Board of Revenue and it is
ruled that the value of supply of electricity by IPPs is the amount received on account of
Energy Purchase Price only. Therefore, any amount in excess of EPP received on account
of Capacity Purchase Price, Energy Purchase Price Premium, Excess Bonus,
Supplemental Charges etc. is not to be included in the value of supply as defined in
clause (46) of section 2 of the Sales Tax Act, 1990. However, the assessment of sales tax
is to be done in accordance with the provision of sections 7, 8 and all other relevant