The Lahore High Court (LHC) recently ruled against the Punjab Revenue Authority (PRA) in a significant sales tax dispute involving Fauji Wind Energy. The court determined that the PRA had no jurisdiction over services linked to wind power operations located in Sindh, as reported by Profit by Pakistan Today. The PRA had alleged that Fauji Wind Energy failed to withhold Punjab Sales Tax on services received between July 1, 2014, and June 30, 2015, citing payments exceeding ₨3.05 billion and an alleged tax liability of ₨488 million. The court quashed the show-cause notice and related orders, emphasizing that the services were consumed in Sindh, thus falling outside Punjab's tax jurisdiction. This decision follows a pattern of jurisdictional disputes, with the court referencing previous cases like Fauji Cement and Rahat Café, though those were decided on different legal grounds.
FINANCE
Lahore High Court Ruling on Fauji Wind Energy Tax Dispute

LHC ruled PRA can't tax Fauji Wind Energy's Sindh services, quashing a ₨488M claim. Separately, FCC upheld a super tax on high earners, sparking concerns over business predictability.
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Profit by Pakistan Today
Updated 18h agoDA