Water and Power Development Authority (Wapda) has conveyed to the Central Board of Revenue (CBR) that the SRO. 792(I)/2005 contains incomplete information about the "electricity reference numbers" of the industrial units for claiming zero-rated sales tax on electricity being consumed for the manufacture of textile products, leather items, carpets, sports goods and surgical instruments.
CBR HAS ISSUED SRO: 792(I)/2005 notifying the names of 345 industrial units, which are entitled to zero-rated sales tax on power consumption in the manufacture of goods, which were zero-rated, for five export-oriented sectors.
However, Wapda authorities have informed the CBR that zero-rated facility could not be extended to these 345 units until and unless proper electricity reference is being available with the authority.
Wapda Computer Centre, Lahore director general pointed out that the electricity reference numbers mentioned in the notification for zero-rated are incorrect/incomplete. On the other hand, Wapda needs to get the electricity reference numbers in the 14-digit format (Batch, sub-division code and consumer number).
These 14 digits identify unique consumer number across Pakistan where Wapda/DISCOs is providing electricity.
Wapda also informed the CBR that the collectorates of sales tax should provide electricity reference numbers in the given format, relating to the units falling within the jurisdiction of the respective collectorates.
Once the electricity reference data has been compiled, the same is needed to be verified from Wapda authorities as well as to make sure that it meets the requirements. Thereafter the corrected data could be communicated to the Board.
In this connection, the CBR and Wapda should maintain continuous liaison. The issue needs to be resolved on top priority basis to give zero-rated facility to the units specified in the SRO. 792(I)/2005.
Following the viewpoint of Wapda, the CBR on Thursday issued instructions to collector of sales tax and federal excise, Large Taxpayer Unit (LTU), Karachi to confirm whether Karachi Electricity Supply Corporation (KESC) is also using the 14-digit scheme pertaining to units.
The CBR has asked all the collectors of sales tax, Lahore, Faisalabad, Gujranwala, Rawalpindi and Peshawar to provide the list of electricity reference numbers in the 14-digit format concerning the units falling in their respective jurisdiction and covered under SRO. 792(I)/2005.
The collectors should submit the latest data directly to the collector of sales tax and federal excise, Large Taxpayer Unit (LTU), Lahore on top priority basis to ensure that all future information on the issue contains the electricity reference numbers in the format given by the Wapda. However, collectors of sales tax, enforcement, Karachi, Hyderabad and Quetta have been directed to submit data to the Large Taxpayer Unit (LTU), Karachi.
The CBR has asked Wapda authorities in Lahore to co-ordinate with the collector of sales tax and excise, Lahore for settlement of the issue.