ST zero-rating on power and gas connections: scrutinising, verifying of exporters' record begin

The Federal Board of Revenue (FBR) and gas/power distribution companies are jointly scrutinising and verifying the record of exporters in textile, leather, surgical, carpets and sports industries to check authenticity of sales tax zero-rating on electricity and gas connections.
Sources told Business Recorder here on Sunday that the FBR has issued instructions to all Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to verify tax record of each and every registered exporter of the mentioned sectors enjoying sales tax zero-rating facility. The purpose of the whole exercise is to check that only admissible companies are enjoying sales tax zero-rating on electricity and gas connections. During the exercise, the persons involved in misuse/unauthorised use of the sales tax zero-rating would be identified for taking enforcement action against them. There are apprehensions that certain units are availing the sales tax zero-rating on electricity and gas connections without necessary approval of the FBR.
According to the FBR's instructions, the Board has provided CDs containing data / list of sales tax general orders (STGOs) regarding grant and withdrawal of zero-rating on electricity and gas to the field formations.
In this connection, the FBR has directed the field formations that scrutiny in respect of cases falling under respective jurisdiction of LTU/RTO may be carried out in collaboration with concerned utility companies to ascertain/verify that only registered person duly authorised by the Board are availing the said facility.
The persons involved in misuse/unauthorised use of the said facility may be identified and action be taken as per law, FBR's instructions added.
When contacted, an expert said that the FBR had already launched a national survey of manufacturing premises of exporters in textile, leather, surgical, carpets and sports industries to physically verify sales tax zero-rating on electricity and gas connections. The physical survey was launched to check the misuse of sales tax zero-rating facility on supply of electricity and gas bills by the authorised registered persons/un-authorised (registered) persons.