LAHORE: The Lahore High Court (LHC) ordered the Federal Board of Revenue (FBR) to decide the sales tax case of contractor of Havali Lakha Power Plant Company in three weeks.
Justice Shams Mehmood Mirza heard the case in which appellant challenged the sales tax notice issued by the Federal Board of Revenue (FBR).
The counsel for the complainant argued before the court that at the time of initiation of the contract the same was declared as exempted from taxation but after the start of the work on the project, the FBR has imposed two percent sales tax on the company.
The counsel added a legal point by saying that the companies exempted from taxes at the time of signing contracts cannot be imposed sales tax by the FBR. He prayed to the court that it may stop the department from the tax recovery from the complainant Company.
After hearing the arguments, the Lahore High Court (LHC) ordered the Commissioner Inland Revenue (CIR) concerned to decide the case in three weeks.