Accountancy Forum

Hi

Can someone please advise me on the Sales Tax issue re telephone bills. GST is added on the PTCL and Mobilink invoices.
Previously I was informed that these GST can be used as input in GST declaration.
However, the new forms for GST has a separate section for utilities and in brackets it mentions telephone, electricity and gas. Hence the confusion.
Are these GST reclaimable?

Thanks

Hi
Unlike income tax which is deducted from utility bills, sales tax is not with holding in nature and thus can not be claimed. However business users can claim input only if they can prove that utility was used for business purpose. For example gas input can only be claimed by hotels and CNG stations. Electricity input sales tax can be claimed by all registered sales tax users and not even enrolled. Telephone GST can be deducted registered sales tax users if telephone is in name of business. For eaxact advise, please specify your nature of business and enrollment / registration status with sales tax.
Aamer Sikandar

Aamer Sikandar