Special Procedure for Collection and Payment of Sales Tax (Electric Power) Rules, 2000
S.R.O. 124(I)/2000, dated 15th March, 2000.-In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, the Federal Government is pleased to make the following rules, namely :-
1. Short title, application and commencement.- (1) These rule may be called the Special Procedure for Collection and Payment of Sales Tax (Electric Power) Rules, 2000.
(2) These rules shall apply for collection and payment of sales tax on electric power imported, generated, produced, transmitted and supplied by electricity generation, transmission and distribution companies licensed under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (XL of 1997), including their distributors, dealers and agents, or by any other person dealing in importation, generation, production, transmission, distribution and supply of electric power.
(3) They shall come into force at once.
2. Definitions.-(1) In these rules, unless there is anything repugnant in the subject or context,-
(a) “Act” means the Sales Tax Act, 1990;
(b) “Authority” means the National Electric Power Regulatory Authority established under section 3 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (XL of 1997);
(c) “consumer” means a person or his successor-in-interest who purchases or receives electric power for consumption and not for delivery of re-sale to others and includes a person who owns or occupies a premises where electric power is supplied;
(d) “registered consumer” means a consumer registered under the Act;
(e) “distribution” means the ownership, operation, management or control of distribution facilities for the movement or delivery or sale to consumers of electric power but shall not include the ownership, operation, management and control of distribution facilities located on private property and used solely to move or deliver electric power to the person owning operating, managing and controlling those facilities or to tenants thereof shall not constitute distribution;
(f) “distribution company” means a person engaged in the distribution of electric power;
(g) “electric power” means electrical power supplied by a person to a consumer;
(h) “generation” includes the ownership, operation, management or control of generation facilities for delivery or sale of electric power and not solely for consumption by the person owning, operating, managing and controlling those facilities;
(i) “HUBCO” means the Hub Power Company Limited;
(j) “KAPCO” means the Kot Addu Power Company Limited;
(k) “KESC” means the Karachi Electric Supply Corporation;
(l) “IPP” means an Independent Power Producer established in private sector operating under a license issued by the Authority for the purpose of generation, transmission, distribution and sale of electric power, and governed by various Implementation Agreements executed between the Islamic Republic of Pakistan and such Independent Power Producer and includes HUBCO and KAPCO;
(m) “person” means an electricity generation, transmission and distribution company licensed by the Authority and includes a distributor, dealer and agent of such a company, an Independent Power Producer, a Public Sector Project, Private Sector Project, or any other person dealing in importation, generation, production, transmission, distribution and supply of electric power;
(n) “Private Sector Project” means a facility for generation, transmission or distribution of electric power constructed, owned, managed or controlled by any one or more organizations or companies incorporated under the Companies Act, 1913 or the Companies Ordinance, 1984 (XLVIII of 1984);
(o) “Public Sector Project” means a facility for generation, transmission or distribution of electric power constructed, owned, managed or controlled by the Federal Government, a Provincial Government, a local authority or any body owned or controlled by any such Government or authority;
(p) “transmission” means the ownership, operation, management or control of transmission facilities; and
(q) “WAPDA” means the Pakistan Water and Power Development Authority established under the Pakistan Water and Power Development Authority Act, 1958 (W. P Act XXXI of 1958).
(2) All other words and expressions used, but not defined herein shall have the meanings assigned to them in the Act.
3. Registration.-Every person who supplies electric power shall be liable to registration under the relevant provisions of the Act.
4. Levy and collection of Sales Tax.-(1) Every person who supplies electric power shall be liable to registration and shall collect sales tax at the rate specified in sub-section (1) of section 3 of the Act.
(2) Subject to sub-rule (3), sales tax on electric power shall be levied and collected at the following stages, namely :-
(i) in case of its importation, the responsibility to pay sales tax shall be of the person importing electric power and the value thereof shall be the value as determined under section 25 or, as the case may be, section 25B of the Customs Act, 1969 (IV of 1969), including the amount of customs duties and central excise duties levied thereon; and
(ii) in case of generation, transmission, distribution and supply of electric power by a Public Sector Project for example WAPDA, KESC etc., and Private Sector Project including an I.P.P., a Captive Power Unit or any other person, the responsibility to collect sales tax shall be of the person making the supply and the value shall be the price of electric power including charges, surcharges, rents, commissions and all duties and taxes whether local, Provincial or Federal, but excluding the amount of sales tax as provided in clause (46) of section 2 of the Act.
(3) In case of an I.P.P., HUBCO and KAPCO, the value of supply shall be the amount received by an I.P.P. or as the case may be, HUBCO or KAPCO, on account of Energy Purchase Price only and any amount in excess of Energy Purchase Price received on account of Capacity Purchase Price, Energy Price Premium, Excess Bonus, Supplemental Charges, etc., shall not be deemed as a component of the value of supply notwithstanding anything contained in clause (46) of section 2 of the Act.
5. Filing of returns and deposit of sales tax.-(1) In case of WAPDA and KESC, sales tax levied and collected under rule 4, during a tax period shall be deposited on cash-collection basis.
(2) WAPDA and KESC shall submit the monthly return as prescribed under section 26 of the Act, by the 21st day of the month following the month in which Sales Tax has been collected. The tax due shall be deposited in the Government Treasury under the relevant head “0220000 Sales Tax” alongwith prescribed return in the designated branch of National Bank of Pakistan.
6. Determination of sales tax liability in respect of WAPDA and KESC (1) WAPDA and KESC shall be entitled to claim admissible input tax adjustment against sales tax paid on their taxable purchases made in the month immediately preceding the tax period :
Provided that no input tax adjustment shall be admissible to WAPDA and KESC on account of the sales tax paid on the taxable purchases made before the 1st January, 2000.
7. Input Tax Adjustment.-(1) In case of registered consumers the electric power bill issued by WAPDA or KESC shall be treated as a tax invoice as defined in clause (40) of section 2 of the Act.
(2) Subject to sub-rule (5), the registered consumers shall be entitled to claim input tax Adjustment against such invoice as per the provisions of section 7 and 8 of the Act provided the bill is in the name of the registered consumer and contains registration number of such consumer.
(3) In case of the meter is in the name of the owner of the rented or leased premises, but electric power bill contains the registration number of registered consumer, such registered consumer shall also be entitled to claim input tax adjustment against sales tax paid on electric power provided there is a legally valid rent or lease agreement between the owner of the premises and the registered consumer :
Provided that if the meter is not in the name of the owner of the rented or leased premises, the registered consumer shall not be allowed to claim input tax adjustment until the meter is changed in his name or in the name of the owner of rented or leased premises.
(4) In case the owner of the premises is a registered consumer and is himself carrying out taxable activity but the electric power connection or meter installed in the premises is in the name of some other person, such registered consumer shall not be entitled to claim input tax adjustment until the electric power connection or meter is transferred in his own name.
(5) In case a registered consumer is consuming electric power for both the taxable as well as non-taxable activity and he is in a position to ascertain the correct amount of electric power consumed in such taxable activity and non-taxable activity separately, he shall be entitled to claim input tax adjustment in respect of electric power consumed for taxable activity in terms of the Appointment of Input Tax Rules, 1996.
8. Record keeping and invoicing.-(1) Every person who supplies electric power shall maintain records as prescribed under section 22 of the Act or any notification issued thereunder.
(2) Every person who supplies or distributes electric power shall point in his bill or invoice, as the case may be, registration number of the consumer and rate and amount of sales tax required to be charged by him under sub-section (1) of section 3 of the Act.
(3) Every person who supplies electric power and uses computerized accounting system may, with prior permission of the Collector of Sales Tax having jurisdiction, issue the computer generated sales tax invoice and keep their record on the Computer in the format and manner as the Collector may approve.
9. Penalty.-(1) Non-issuance of electric power bill for a tax period or any inordinate delay in the issuance of such bill by the electric power transmission and distribution companies or by any registered person engaged in the supply of electric power shall attract penalties under the relevant provisions of the Act.
(2) If the tax is not paid within the date due as provided under sub-rule (2) of rule 5, the registered person shall be liable to pay additional tax and any other penalty prescribed in the Act.