Karachi Electric Supply Company (KESC) on Monday announced that in compliance with the requirements of Federal Government Notifications the company would start charging extra sales tax at the rate of 5 percent of the total billed amount, excluding the amount of federal taxes, to all unregistered industrial and commercial consumers and to the registered persons who are not on the Active Taxpayers List maintained by FBR, provided their monthly bill exceeded Rs 15,000.
Explaining the procedure, KESC said that the consumers claiming that they were registered with the FBR for sales tax purposes must produce original sales tax registration certificate along with a copy for verification at concerned IBC to ensure waiver of extra sales tax on their bills.
KESC further clarified that SRO 510(I)/2013 dated June 12, 2013 stipulated that the name, address and other particulars of a consumer appearing on his sales tax registration certificate or Active Taxpayers List must be the same with that of his electric power connection. Keeping in view of the above condition, consumers who have multiple business locations will be required to add all such business locations on their sales tax registration certificate to avoid extra tax.
KESC claimed that 5 percent extra tax was also applicable on consumers having industrial and commercial connection and registered under Provincial Sales Tax law as well as on the consumers who otherwise were not required to obtain sales tax registration under Sales Tax Act, 1990.
KESC stated that one of the conditions given in the SRO for not imposing extra tax was verification of the status of the consumer from the Active Taxpayers List maintained by the FBR that the person was actually registered and appearing as active taxpayer. KESC explained that it had large number of consumers and process of bill generation was system based. To facilitate consumers in updating their sales tax registration details on KESC bills, the company has deputed its teams in all IBCs to assist walk-in consumers desiring to make enquiries in this regard.
