ISLAMABAD: Federal Board of Revenue (FBR) directed Large Taxpayers Unit (LTU) to recover evaded amount of Rs183.94 million from two power generation companies which illegally claimed exemptions and caused national exchequer a loss of Rs183.94 million.
According to the details, Federal Board of Revenue directed the Large Taxpayer Unit (LTU) Lahore to fix responsibility and take stern action against the persons who are involved in this scam. During the scrutiny of two power generation companies of M/s Nishat Chunian and M/s Pak Generation Power accounts, filed with the returns, revealed that the said companies received “capacity purchase price” which is not exempted under the law, but much of the turnover which relates to supply of electricity is exempted under the aforesaid clauses of second schedule of ordinance. But the companies incorrectly claimed exemption despite the fact that this receipt did not relate to sale of electricity.
Incorrect claim of exemption from minimum tax resulted in short levy of tax amounting to Rs183.94 million. M/s Nishat Chunian Power Limited NTN 2958445 declared turnover of capacity purchase price of Rs4,736.74 million, but the tax authorities charged nil tax under section 113 @ 1% required under the law resulting in loss of Rs47.37 million.
Likewise M/s Pak Gen Power Limited declared turnover of capacity purchase price of Rs4,104.08 million but the tax authorities charged nil tax under section 113 @ 1% required under the law resulting in loss of revenue Rs41.04 million.