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In line with the directions of the FTO, the K-Electric has withdrawn advance income tax wrongly charged on electricity bill of a Karachi-based trust.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

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