ADVANCE TAX ON ELECTRICITY – SECTION 235(1A), DIVISION IV, PART IV, FIRST SCHEDULE
As per Section 235 of the Income Tax Ordinance, 2001 the Electricity supply companies are required to collect advance tax on the amount of electricity bill of a commercial or industrial or domestic consumer. However, no tax is required to be collected from domestic consumer of electricity if his name appears on the Active Taxpayers’ List.
Now through Ordinance, a new subsection 1A is added whereby, in addition to tax collectable above, there shall be collected additional advance tax at the rates given below from following Professionals including:
- Accountants,
- Lawyers,
- Doctors,
- Dentists,
- Health Professionals,
- Engineers,
- Architects,
- IT Professionals,
- Tutors,
- Trainers
and other persons engaged in provision of services not appearing on ATL and operating from residential premises having domestic electric connections from DISCOs.
The Tax collected in this case from domestic consumer will be adjustable.
However, it has not been clarified that how the DISCOS will identify these professionals working from domestic premises.
RATES OF ADDITIONAL ADVANCE INCOME TAX ON ELECTRICITY
| S.No | DESCRIPTION | RATE OF ADDITIONAL ADVANCE TAX |
| 1 | Where the bill does not exceed 10,000 rupees | 5% |
| 2 | Where the bill exceeds 10,000 rupees but does not exceed 20,000 rupees | 10% |
| 3 | Where the bill exceeds 20,000 rupees but does not exceed 30,000 | 15% |
| 4 | Where the bill exceeds 30,000 rupees but does not exceed 40,000 | 20% |
| 5 | Where the bill exceeds 40,000 rupees but does not exceed 50,000 | 25% |
| 6 | Where the bill exceeds 50,000 rupees but does not exceed 75,000 | 30% |
| 7 | Where the bill exceeds 75,000 rupees | 35% |
Following are the distribution companies (DISCOs) operating in Pakistan:
- Faisalabad Electric Supply Company (FESCO)
- Gujranwala Electric Power Company (GEPCO)
- Hyderabad Electric Supply Company (HESCO)
- Sukkur Electric Power Company (SEPCO)
- Islamabad Electric Supply Company (IESCO)
- Karachi Electric Supply Company (KESC) (Now privately owned)
- Lahore Electric Supply Company (LESCO)
- Multan Electric Power Company (MEPCO)
- Peshawar Electric Power Company (PESCO)
- Quetta Electric Supply Company (QESCO)
- Tribal Electric Supply Company (TESCO)
Professionals | Additional Income Tax | Electricity Bills | Non-Filer Professionals | Domestic Electricity Connections | Work From Home |
