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Additional income tax slapped on electricity bills of non-filer professionals

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.

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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.NoDESCRIPTIONRATE OF ADDITIONAL ADVANCE TAX
1Where the bill does
not exceed 10,000
rupees
5%
2Where the bill
exceeds 10,000
rupees but does not
exceed 20,000 rupees
10%
3Where the bill
exceeds 20,000
rupees but does not
exceed 30,000
15%
4Where the bill
exceeds 30,000
rupees but does not
exceed 40,000
20%
5Where the bill
exceeds 40,000
rupees but does not
exceed 50,000
25%
6Where the bill
exceeds 50,000
rupees but does not
exceed 75,000
30%
7Where the bill
exceeds 75,000
rupees
35%
RATES OF ADDITIONAL ADVANCE INCOME TAX ON ELECTRICITY

Following are the distribution companies (DISCOs) operating in Pakistan:

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