Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to the subject cited above and to say that the question
whether sales tax is chargeable on Fixed Fuel Component of the Energy Purchase Price
(EPP) was examined in the Board and it was observed that Sales Tax General Order
No.1/2000 dated 24 th January, 2000 clearly rules that the value of supply of electricity by
IPPs is the amount received on account of the EPP. Therefore, while amounts in excess
of the EPP like Capacity Purchase Price, Energy Purchase Price Premium, Excess Bonus,
Supplemental Charges, etc. are not included, all components of the EPP are included in
the value of supply as defined in section 2(46) of the Sales Tax Act, 1990 and thus liable
to sales tax. Consequently, as the Fixed Fuel component of the EPP constitutes a part of
the value of supply, it is liable to sales tax.
2. As regards payment of sales tax from WAPDA to M/s Uch Power
Limited (UPL), it is ruled that WAPDA shall be entitled to take input tax adjustment on
the said amount and no additional tax shall be chargeable from UPL, in view of and
subject to the two provisos to sub-rule (3) of Rule 4 of the Special Procedure for
Collection and Payment of Sales Tax (Electric Power) Rules, 2000, inserted vide SRO
168(I)/2001, dated 15 th March, 2001 (copy enclosed).
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P) addressed to M/s Uch Power Limited Islamabad/WAPDA Lahore. Copy
endorsed to all the Collectors of Sales Tax.]
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C. NO. 3(56)STP/96 VOL-II, DATED 15 TH OCTOBER, 2001
SUBJECT:-
EXTENSION OF DATE TO FILING SALES TAX RETURNS.