C.No.l(33)STR/99.Pt Dated 24th January, 2000.Sales Tax General Order NO.1/2000.

A question has arisen as to the value of supply of the electricity supplied by independent Power Projects (IPPs) to M/s. WAPDA and M/s. KESC. The contracts between M/s. WAPDA/KESC and different IPPs envisage a tariff structure comprising a number of categories e.g. the consideration of money on account of Energy Purchase Price (E.P.P.), Capacity Purchase Price (C.P.P.), Energy Purchase Price Premium, Excess Energy Bonus and Supplemental Charges (S.C.) etc. 2. The EPP is payable by WAPDA/KESC on account of purchase of "electrical energy" while the consideration received by I.P.Ps on account of CPP is for net capacity of the plant which is to be paid during the contractual period. The payment of CPP, etc. is not reliable to the supply of electricity. 3. The issue has been examined in the Central Board of Revenue and it is ruled that the value of supply of electricity by IPPs is the amount received on account of Energy Purchase Price only. Therefore, any amount in excess of EPP received on account of Capacity Purchase Price, Energy Purchase Price Premium, Excess Bonus,…