KARACHI: Federal Board of Revenue has decided to conduct withholding tax audit of Karachi Electricity Supply Company (KESC) to verify deduction of withholding tax under section 235 of the Income Tax Ordinance, 2001.
Sources said that FBR has directed the Chief Commissioner Regional Tax Office II (RTO) Karachi to carry out withholding audit in respect of the KESC.
According to FBR, KESC is not deducting withholding tax under section 235 of the Income Tax Ordinance 2001 during current fiscal year. The withholding tax collection under this head during July-October amounted to less than a million rupees as compared to Rs 565.150 million during the same period of previous year.
Regional Tax Office-II (RTO) Karachi has started the withholding tax audit of KESC. The section 235 of the Income Tax Ordinance 2001 is applicable to the sale/supply of the electricity to its commercial/industrial consumers and tax needs to be deducted in accordance with the provisions of the said section.