Independent Power Procedures

Section 13(2)(a) of the Sales Tax Act, 1990 empowered the Federal Government, through notification in the official gazette, to extend exemption to any taxable supplies from 'whole' or any 'part' of the tax chargeable under the Sales Tax Act, 1990

While framing Sales Tax Special Procedures Rules, 2007, the Federal Government while exercising said powers as provided under S.13(2)(a) of the Sales Tax Act, 1990 excluded the value of Capacity Purchase Price, Energy Purchase Price, Excess Bonus, Supplemental Charges, etc., from the value of electricity supply and restricted the same to the extent the value of Energy Purchase Price only, as provided in R.13(3) of the Sales Tax Special Procedures Rules, 2007

Such exclusion constitutes "exemption" from the "value" of gross price of electricity.