Income Tax Ordinance, 2001 — Section 235: Electricity consumption

235. Electricity consumption.- (1) There shall be collected advance tax at the rates specified in 2[Division IV of] Part-IV of the First Schedule on the amount of electricity bill of a commercial or industrial 3[or domestic] consumer 4[: Provided that the provisions of sub-section (1) shall not apply to a domestic consumer of electricity if his name appears on the Active Taxpayers’ List.] 5[ ] 6[ ]

(2)The person preparing electricity consumption bill shall charge advance tax under sub-section (1) in the manner electricity consumption charges are charged. 7[Explanation.— For removal of doubt, it is clarified that for the purposes of this section electricity consumption bill referred to in sub-section (2) means electricity bill inclusive of sales tax and all incidental charges.]

(3)Advance tax under this section shall not be collected from a person who produces a certificate from the Commissioner that his income during tax year

(2)The person preparing gas consumption bill shall charge advance tax under sub-section (1) in the manner gas consumption charges are charged.

(3)The tax collected under this section11[and under section 235] shall be a 11[minimum] tax on the income of a CNG station arising from the consumption of the gas referred to in sub-section (1). Chapter XII – Transitional Advance Tax Provisions is exempt from tax 1[or that he has discharged advance tax liability 2[under section 147 or whose entire income is subject to final tax regime or minimum tax regime under any provisions of this Ordinance other than this section]. ] 3[(4) Under this section,

(a)in the case of a taxpayer other than a company, tax collected upto bill amount of 4[three hundred and sixty thousand Rupees per annum]shall be treated as minimum tax on the income of such persons and no refund shall be allowed;

(b)in the case of a taxpayer other than a company, tax collected on monthly bill over and above thirty thousand rupees per month shall be adjustable; and 5[(c)] in the case of a company, tax collected shall be adjustable against tax liability.] 6[ ] 7[ ] 8[ ] 1 Expression inserted through Finance Act, 2020 dated 30th June, 2020 2 The words “for the tax year” substituted by the Finance Act, 2021. 3 Sub-section (4) substituted by the Finance Act, 2009. The substituted sub-section (4) read as follows: “(4) The tax collected under this section up to bill amount of twenty thousand rupees per month shall be minimum tax on the income of a person (other than a company). There shall be no refund of the tax collected under this section, unless the tax so collected is in excess of the amount for which the taxpayer is chargeable under this Ordinance in the case of a company.” 4 The word “thirty thousand rupees per month” substituted by the Finance Act 2017. 5 Clause (d) re-numbered by the Finance Act 2017. 6 Sections 235A and 235B inserted by the Finance Act, 2014. 7 Section 235A omitted by the Finance Act, 2021. The omitted section read as follows: “235A. Domestic electricity consumption.- (1) There shall be collected advance tax at the rates specified in Division XIX of Part IV of the First Schedule on the amount of electricity bill of a domestic consumer. 7 [Explanation.— For removal of doubt, it is clarified that for the purposes of this section, electricity consumption bill referred to in sub-section (2) means electricity bill inclusive of sales tax and all incidental charges.]

(2)The person preparing electricity consumption bill shall charge advance tax under sub section (1) in the manner electricity consumption charges are charged.

(3)Tax collected under this section shall be adjustable against tax liability. 8 Section 235B omitted through Finance Act, 2020 dated 30th June, 2020 the omitted section read as follows: 235B. Tax on steel melters 8[and composite units].- (1) There shall be collected tax from every steel melter, 8[and] composite steel units, registered for the purpose of Chapter XI of Sales Tax Special Procedure Rules, 2007 at the rate of one rupee per unit of electricity consumed for the production of steel billets, ingots and mild steel (MS products) excluding stainless steel .

(2)The person preparing electricity consumption bill shall charge and collect the tax under sub-section (1) in the manner electricity consumption charges are charged and collected. 464 Chapter XII – Transitional Advance Tax Provisions