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ST zero-rating on gas, power: FBR begins survey to check misuse

ST zero-rating on gas, power: FBR begins survey to check misuse

ISLAMABAD: The Federal Board of Revenue (FBR) embarked upon a survey of export-oriented manufacturing unit in textile, leather, surgical, carpets and sports sectors to verify sales tax zero-rating on electricity and gas connections.

As per details, the FBR directed all Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to physically verify each of registered exporters of the five sales tax zero-rating sectors.

The survey has been launched across the country to check the misuse of sales tax zero-rating facility on supply of electricity and gas bills by the registered persons/un-authorised (registered) entities.

According to the FBR instructions, the board has granted zero-rating facility on supply of electricity and gas to various registered persons, who are required to comply with the provisions as laid down under SRO 283(1)12011 dated April 1, 2011 and SRO 1125(1)/2011 dated December 31, 2011. It has been observed that the FBR has found certain cases wherein registered persons availing zero-rating facility have been misusing the facility.

The FBR also directed that an exercise should also be carried out to examine if the excess zero-rating facility has been availed by the registered persons from the date of their becoming ineligible till the date of withdrawal of the facility by the board either on their own request or on the recommendation of field formation, and action be taken accordingly for recovery of revenues.

The board also directed that a fortnightly report in this behalf may be submitted as per the following format: Name of registered person; NTN/STRN; energy meters/reference numbers; STGO No & S.No; status; action taken/proposed and recovery made.