BR100 Decreased By (-0.08%)
BR30 Increased By (0.08%)
KSE100 Decreased By (-0.11%)
KSE30 Decreased By (-0.2%)
AGHA 7.53 Decreased By ▼ -0.10 (-1.31%)
BECO 5.11 Decreased By ▼ -0.46 (-8.26%)
BML 58.30 Decreased By ▼ -1.44 (-2.41%)
BOP 34.58 Increased By ▲ 0.18 (0.52%)
CNERGY 13.68 Increased By ▲ 0.57 (4.35%)
CSIL 6.30 Decreased By ▼ -0.11 (-1.72%)
FCCL 57.55 Decreased By ▼ -0.51 (-0.88%)
FFL 16.50 Increased By ▲ 0.27 (1.66%)
FNEL 1.20 Decreased By ▼ -0.01 (-0.83%)
KEL 7.36 Decreased By ▼ -0.07 (-0.94%)
KOSM 5.98 Decreased By ▼ -0.05 (-0.83%)
LOTCHEM 27.51 Decreased By ▼ -0.16 (-0.58%)
MLCF 101.93 Decreased By ▼ -0.82 (-0.8%)
NBP 203.29 Decreased By ▼ -1.77 (-0.86%)
NCPL 60.47 Increased By ▲ 0.84 (1.41%)
NPL 69.80 Increased By ▲ 1.24 (1.81%)
OGDC 318.48 Decreased By ▼ -0.44 (-0.14%)
PACE 11.12 Increased By ▲ 0.07 (0.63%)
PAEL 42.86 Decreased By ▼ -0.24 (-0.56%)
PIBTL 16.72 Increased By ▲ 0.09 (0.54%)
PPL 230.62 Increased By ▲ 1.17 (0.51%)
PRL 76.73 Increased By ▲ 5.93 (8.38%)
PTC 71.18 Increased By ▲ 0.18 (0.25%)
SSGC 27.10 Decreased By ▼ -0.31 (-1.13%)
TBL 10.28 Decreased By ▼ -0.03 (-0.29%)
TELE 8.56 Increased By ▲ 0.03 (0.35%)
TPL 23.59 Increased By ▲ 0.53 (2.3%)
TPLP 15.45 Decreased By ▼ -0.31 (-1.97%)
TREET 24.51 Decreased By ▼ -0.20 (-0.81%)
TRG 60.09 Decreased By ▼ -0.20 (-0.33%)

ISLAMABAD: Federal Tax Ombudsman (FTO) has ruled that charging of income tax by M/s K-Electric, Karachi through monthly electricity bill on a mosque is not in accordance with the provisions of income Tax Ordinance 2001.

In line with the directions of the FTO, the K-Electric has withdrawn advance income tax wrongly charged on electricity bill of a Karachi-based trust.

In this regard, the FTO office has issued an order here on Monday.

According to the order, the Manager Taxation K-Electric realising the inadvertent mistake on the part of KE, during hearing submitted revised electricity bill of Masjid Al-Noor (Trust) for the month of October 2023 whereby the imposition of advance income tax was reversed. Since the issue was resolved mitigating the grievances of the complainant; therefore, the complaint is closed and file is consigned to record, FTO order added.

Briefly, Masjid Al Noor (Trust) located at Plot No. ST-04, Block- F, North Nazimabad, Karachi, received electric bill for the month of October 2023 with advance income tax imposed under section 235 of Income Tax Ordinance 2001 (the Ordinance).

It is observed that advance income tax under section 235 of the Ordinance has been charged on monthly electricity bill for October 2023 all of a sudden on a place of worship ‘Masjid Al-Noor’ located at Plot No ST-04, Block-F, North Nazimabad, Karachi. Section 235 of the Ordinance provides mechanism of advance income tax collection on the amount of monthly electricity bill.

On the contrary, the advance income tax under section 235 of the Ordinance is charged on total amount of electricity bill as per provision of section 235 of the Ordinance on commercial or industrial or domestic consumer.

The Mosque is not covered under any of these three kinds of consumers, therefore charging of income tax by M/s K-Electric, Karachi through monthly electricity bill on a mosque is not in accordance with the provisions of income Tax Ordinance 2001, FTO order said.

Since the Mosque is not covered under any three kinds of consumers, mentioned therefore charging of income tax by K-Electric, Karachi through monthly electricity bill on a mosque is not in accordance with the provisions of Income Tax Ordinance 2001, FTO added.

Copyright Business Recorder, 2023

Comments

Comments are closed for this article.