ISLAMABAD: The Federal Board of Revenue (FBR) has detected two alleged cases of tax evasion amounting to Rs 693.72 million by two power generation companies.
According to details, Faisalabad Electric Supply Company (NTN 3048930-0) registered with Regional Tax Office Faisalabad purchased electricity of Rs 6,139.09 million from different IPPs and National Transmission and Dispatch Company. Against these purchases of electricity, the registered company had shown sale of electricity of Rs 3,622.52 million.
Electricity cannot be stored and FESCO had concealed its sale which resulted in loss of Rs 187.09 million to national exchequer under the head of sales tax.
Likewise another big company M/s Northern Power Generation Company Limited (NTN 3049717-5) registered with Regional Tax Office Multan had declared less supplies of electricity to M/S NTDC as compared to electricity purchased by the NTDC in its sales tax return.
The position reflected that registered company Northern Power Generation had concealed its sales and ultimately resulted in short realization of sales tax of Rs506.63 million. Federal Board of Revenue has instructed to the concerned Regional Tax Offices to expedite the legal proceeding against companies and fix responsibility against the person at fault.
It is important to mention here that according to Section 3 (1) (a) read with section 2(46) of the Sales Tax Act, 1990 there shall be charge, levied and paid sales tax at rate of 17 percent of the value of taxable supplies made by a registered person in the course or furtherance of any taxable activity carried on by him.