FBR allows steel manufacturers to declare electricity consumption for sales tax calculation

The Federal Board of Revenue has launched an online option that lets steel melters, re-rollers and composite units declare their own electricity consumption, according to Profit. The step targets cases where distribution companies do not submit supply data or file returns late, which can hold up sales tax computations. Under the 13th Schedule of the Sales Tax Act, 1990, these manufacturers must file Annex-K to work out their liability.

A letter issued to chief commissioners of Inland Revenue on October 7 sets out the procedure. Applicants send their paperwork through the IRIS system, and after the monthly power bills are checked, the chief commissioner approves the units online. Approved figures then populate Annex-K automatically, allowing returns to be filed without waiting for late DISCO data.

The tax authority said Annex-K is fully automated and normally receives consumption figures once DISCOs file Annex-C. It noticed that taxpayers faced hurdles when those filings were missing or late, and the new interface is meant to remove that bottleneck. Chief commissioners have been told to act on requests inside the legal timeframe, and every field formation has been asked to adopt the facility.