The Central Board of Revenue (CBR) has exempted Water and Power Development Authority (Wapda) from additional tax, default surcharge and penalties on payment of principal amount of sales tax.
Sources told Business Recorder on Friday the board has exempted Wapda from additional tax on confirmation from the Large Taxpayer Unit (LTU), Lahore, that the public sector unit has duly paid the principal amount of sales tax.
The board, as a special case, exempted Wapda from default surcharge adjudged and penalties imposed under different audit paras framed by the Directorate of Revenue Receipt Audit, Lahore. The sales tax department has exercised powers conferred in section 34-A of the Sales Tax Act, 1990 to extend the relief to the entity, they added.
Sources said the LTU, Lahore, had conducted audit of Wapda to ascertain its actual sales tax liability and input tax adjustment/ refund claimed during fiscal 2005-06. The audit focused on purchase procedures; oil and gas purchases; free electricity to Wapda employees/offices; line losses/theft, pilferage, etc, subsidies, difference between amount billed and collected, late filing of sales tax returns, public lighting, electricity supplied to tenants of Wapda houses, auxiliary consumption, protected and non-protected category, GST arrears, sale of scrap, revenue generated against meters burnt, etc.