KESC directed to deposit PKR 890 million income tax – Alfalah Securities Limited

Karachi, October 31, 2012 (PPI-OT): Tax department has directed the Karachi Electricity Supply Company (KESC) to deposit income tax worth of PKR 890 million collected from the commercial and industrial consumers which has been retained by KESC since July, 2012.

According to Alfalah Securities Limited, it is to be deposited immediately to avoid recovery proceedings which may also include attachment of bank accounts. KESC being withholding agent has to deposit the deducted amount of tax in the national exchequer. KESC had earlier filed a suit in the Sindh High Court stating that the RTO (Regional Tax Office) does not hold lawful jurisdiction under section 16l of the Income Tax Ordinance to recover the outstanding tax which has now been assigned to RTO by Federal Board of Revenue (FBR).