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| JKSPDC fails to submit details of tax, causes loss of Rs 96 cr | | |
Early Times Report
JAMMU, May 26: The J&K State Power Development Corporation's (JKSPDC) failure to submit details of income tax paid to State Electricity Regulatory Commission (SERC) has caused a loss of Rs 96 crore to the corporation and as a result Commission fixed the tariff on lower side.
JKSPDC is required to file an application for approval of Generation Tariff for each year with the SERC. The Commission accepts the application and issues an order for generation tariffs for the year after considering all suggestions and objections from all stakeholders.
Sources said that as per Regulation 7 of the SERC (Terms and Conditions for Determination of Hydro Generation Tariff Regulations 2011) which stipulate that only income tax related to the core business of the utility would be allowed as pass through in tariff and be recovered from beneficiary (JKPDD).
"The JKSPDC paid Rs 96 crore as taxes on income during 2013-14 and 2014-15 which had not been allowed as part of expenditure by the Commission due to non-furnishing of details of income/ expenditure/income tax by the Company on core business," sources said.
They said that the Commission directed the Company to submit the details of income tax paid duly certified by a chartered accountant along with tariff petition for 2015-16 but the Company did not submit the requisite details within the prescribed time limit up to February 2015 and failed to claim of Rs 96 crore spent on taxes which resulted in fixation tariff by the Commission on a lower side.
Although corporation claimed that the information has been submitted to the Commission with tariff petition for the year 2016-17 and the Commission had directed the Company to submit detailed information with next tariff and a revised petition was being filed with the Commission for allowance of income tax paid by the Company, the sources said. |
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