As amended up to 07th May, 2024
The (Act No. III of 1951 as Amended by Act VII of 1990) The amendments made through Tax Laws (Amendment) Act, 2024 have been shown in Red
Contents Chapter I 7 Preliminary………………………………………………………… 7 1. Short title, extent and commencement. 7 2. Definitions… 7-29 Chapter-II 29 SCOPE AND PAYMENT OF TAX… 29 3. Scope of tax. 29 3A. Omitted 35 3AA. Omitted 35 3AAA. Omitted 35 3B. Collection of excess sales tax etc. 35 4. Zero rating. 35 5. Change in the rate of tax. 37 6. Time and manner of payment. 37 7. Determination of tax liability. 39 7A. Levy and collection of tax on specified goods on value addition. 41 8. Tax credit not allowed. 42 8A. Joint and several liability of registered persons in supply chain where tax unpaid. 44 8B. Adjustable input tax. 45 9. Debit and credit note. 46 10. Refund of input tax. 46 11. Assessment of Tax and recovery of tax not levied or short levied or erronously refunded. 48 11A. Short paid amounts recoverable without notice 50 11B. Assessment giving effect to an order 50 11C. Power of tax authorities to modify orders, etc. 51 12. Omitted 51 13. Exemption.― 51 Chapter-III 54 REGISTRATION 54 14. Registration. 54 14A. Repealed 54 14AB. Discontinuance of gas and electricity connections. 55 15. Omitted 55 16. Omitted 55 17. Omitted 55 18. Omitted 55 19. Omitted 55 20. Omitted 55 21. De-registration, blacklisting and suspension of registration 55 21A. Active taxpayers list 56 Chapter-IV 57 BOOK KEEPING AND INVOICING REQUIREMENTS 57 22. Records. 57 23. Tax Invoices. 59 24. Retention of record and documents for six years. 61 25. Access to record, documents, etc 61 25A. Drawing of samples. 63 25AA. Transaction between Associates 63 Chapter-V 64 RETURNS 64 26. Return. 64 26A. Omitted 66 26AA. Omitted 66 26AB. Extension of time for furnishing returns 66 27. Special Returns. 67 28. Final Return. 67 29. Return deemed to have been made 67 Chapter-VI 68 APPOINTMENT OF OFFICER OF SALES TAX & THEIR POWERS 68 30. Appointment of Authorities 68 30A. Directorate General, (Intelligence and Investigation) Inland Revenue 70 30B. Directorate General Internal Audit 70 30C. Inland Revenue Services Academy 70 30CA. Directorate General of Digital Initiatives… 70 30D. Directorate General of Valuation. 71 30DD. Directorate of Post Clearance Audit 71 30DDD. Directorate General of Input Output Co-efficient Organization. 71 30DDDA.Directorate-General of law 71 30E. Powers and Functions of Directorate etc. 71 31. Powers. 71 32. Delegation of powers 72 32A. Audit by Special Audit Panels 73 32AA. Omitted. 74 Chapter-VII 75 OFFENCES AND PENALTIES 75 33. Offences and penalties. 75 33A. Omitted 86 34. Default Surcharge 86 34A. Exemption from penalty and default surcharge 88 35. Omitted. 88 35A. Omitted. 88 36. Omitted. 88 37. Power to summon persons to give evidence and produce documents in inquiries under the Act 88 37A. Power to arrest and prosecute 89 37B. Procedure to be followed on arrest of a person. 90 37C. Special Judges 93 37D. Cognizance of Offences by Special Judges 93 37E. Special Judge, etc. to have exclusive Jurisdiction 94 37F. Provisions of Code of Criminal Procedure, 1898, to apply 95 37G. Transfer of cases 95 37H. Place of Sittings 95 37I. Appeal to the High Court 95 38. Authorised officers to have access to premises, stocks, accounts and records 96 38A. Power to call for information. 97 38B. Obligation to produce documents and provide information 97 39. Omitted 98 40. Searches under warrant 98 40A. Omitted. 99 40B. Posting of Inland Revenue Officer. 99 40C. Monitoring of Tracking by Electronic or other means. 99 40D. Provisions relating to goods supplied from tax-exempt areas. 100 40E. Licensing of brand name. 100 41. Omitted… 101 42. Omitted. 101 Chapter-VIII 101 APPEALS 101 43. Omitted. 101 43A. Pecuniary jurisdiction in appeals. 101-102 44. Omitted. 102 45. Omitted. 102 45A. Power of the Board and Commissioner to call for records 102 45B. Appeals. 103 46. Appeals to Appellate Tribunal. 106 47. Reference to the High Court. 106-107 47A. Alternative dispute resolution. 107-108 Chapter-IX 108 RECOVERY OF ARREARS 108 48. Recovery of arrears of tax. 108 Chapter-X 110 MISCELLANEOUS 110 49. Sales of taxable activity or transfer of ownership.-- 110 49A. Liquidators. 110 50. Power to make rules. 112 50A. Computerized system. 112 50B. Electronic scrutiny and intimation 113 51. Bar of suits, prosecution and other legal proceedings. 113 52. Appearance by authorised representative. 114 52A. e-intermediaries to be appointed. 114 53. Estate of deceased person. 115 54. Estate in bankruptcy. 115 55. Removal of difficulties. 115 56. Service of order, decisions, etc. 115 56A. Agreement for the exchange of information 117 56AB. Real time access to information and databases 118 56B. Disclosure of information by a public servant 119 56C. Prize schemes to promote tax culture 119 57. Rectification of Mistake 120 58. Liability for payment of tax in the case of private companies or business enterprises 120 58A. Representatives. 121 58B. Liability and obligations of representatives. 123 59. Tax paid on stocks acquired before registration 124 60. Powers to deliver certain goods without payment of tax 125 61. Repayment of tax in certain cases. 125 61A. Repayment of tax to persons registered in Azad Jammu and Kashmir. 125 62. Drawback allowable on re-export.-- 125 63. Drawback on goods taken into use between importation and re- exportation. 126 64. Power to declare what goods are identifiable and to prohibit drawback in case of specified foreign territory 126 65. Exemption of tax not levied or short levied as a result of general practice 126 66. Refund to be claimed within one year. 127 67. Delayed Refund. 128 67A. Payment of refund through sales tax refund bonds 129 68. Liability of the registered person for the acts of his agent. 130 69. Issuance of duplicate of sales tax documents. 130 70. Computation of limitation period. 130 71. Special procedure 131 72. Officers of Sales Tax to follow Board's orders, etc 131 72A. Reference to the authorities 131 72B. Selection of audit by the Board 132 72C. Reward to Inland Revenue Officers and Officials 132 72D. Reward to whistleblowers 132 73. Certain transactions not admissible. 133 74. Condonation of time-limit. 135 74A. Validation. 136 75. Application of the provisions of Act IV of 1969 to Sales Tax 136 76. Fee and service charges. 136 77. Uniform… 137 SCHEDULES 137 THE FIRST SCHEDULE (omitted) 137 THE SECOND SCHEDULE (omitted) 137 THE THIRD SCHEDULE 137 THE FOURTH SCHEDULE (omitted) 141 THE FIFTH SCHEDULE 141 THE SIXTH SCHEDULE 147 THE SEVENTH SCHEDULE (omitted) 222 THE EIGHT SCHEDULE 222 THE NINTH SCHEDULE 234 THE TENTH SCHEDULE 236 THE ELEVENTH SCHEDULE 239 THE TWELFTH SCHEDULE… 243 THE THIRTEENTH SCHEDULE 245 The
It extends to the whole of Pakistan. 6[(3) It shall come into force on such date as the Federal Government may, by notification in the official Gazette, appoint.] 7[2. Definitions.― In this Act, unless there is anything repugnant in the subject or context,-- 8[(1) “active taxpayer” means a registered person who does not fall in any of the following categories, namely:- 1 For Statements of Objects and Reasons see Gazette of Pakistan, dated the 30th March 1951, Pt. V. pp 36 and 37. 2 Substituted for the words “or consumption of goods” by the Finance Act, 1960. 3 Substituted for the words “or consumption of goods” by the Finance Act, 1960. 4
5 Brackets and word “(Amendment)” omitted by the Finance Act, 1991. 6 Came into force by Notification No. S.R.O. 1100(I)/90, dated 28-10-1990 w.e.f. 1st November, 1990. 7
8 Clauses (1) and (1A) substituted for clause (1) by Finance Act, 2015. (a) who is blacklisted or whose registration is suspended 9[***] in terms of section 21; (b) fails to file the return under section 26 by the due date for two consecutive tax periods; (c) who fails to file an Income Tax return under section 114 or statement under section 115, of the Income Tax Ordinance, 2001(XLIX of 2001), by the due date; and- (d) who fails to file 10[quarterly] or an annual withholding tax statement under section 165 of the Income Tax Ordinance, 2001; (1A) “Appellate Tribunal” means the Appellate Tribunal Inland Revenue established under section 130 of the Income Tax Ordinance, 2001 (XLIX of 2001);]
“appropriate officer” means an 11[officer of Inland Revenue] authorised by the Board by notification in the official Gazette to perform certain functions under this Act; 12[(2A) “arrears”, in relation to a person, means, on any day, the sales tax due and payable by the person under this Act before that day but which has not yet been paid; ] 13[(3) “associates (associated persons)” means, – (i) subject to sub-clause (ii), where two persons associate and the relationship between the two is such that one may reasonably be expected to act in accordance with the intentions of the other, or both persons may reasonably be expected to act in accordance with the intentions of a third person; 9 The words “or is blocked” omitted by Finance Act, 2020. 10 The word substituted by Finance Act, 2020. 11 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 12 Clause (2A) substituted by Finance Act, 2008. Earlier it was inserted by Tax Laws (Amendments) Ordinance, 1999. Originally it was inserted by Finance Act, 1991. 13 Clause (3) substituted by Finance Act, 2008. (ii) two persons shall not be associates solely by reason of the fact that one person is an employee of the other or both persons are employees of a third person; (iii) without limiting the generality of sub-clause (i) and subject to sub-clause (iv), the following shall be treated as associates, namely: – (a) an individual and a relative of the individual; (b) members of an association of persons; (c) a member of an association of persons and the association, where the member, either alone or together with an associate or associates under another application of this section, controls fifty per cent or more of the rights to income or capital of the association; (d) a trust and any person who benefits or may benefit under the trust; (e) a shareholder in a company and the company, where the shareholder, either alone or together with an associate or associates under another application of this section, controls either directly or through one or more interposed persons– (i) fifty per cent or more of the voting power in the company; (ii) fifty per cent or more of the rights to dividends; or (iii) fifty per cent or more of the rights to capital; and (f) two companies, where a person, either alone or together with an associate or associates under another application of this section, controls either directly or through one or more interposed persons – (i) fifty per cent or more of the voting power in both companies; (ii) fifty per cent or more of the rights to dividends in companies; or (iii) fifty per cent or more of the rights to capital in both companies. (iv) two persons shall not be associates under sub-clause (a) or (b) of paragraph (iii) where the 14[Commissioner] is satisfied that neither person may reasonably be expected to act in accordance with the intentions of the other. (v) In this clause, “relative” in relation to an individual, means– (a) an ancestor, a descendant of any of the grandparents, or an adopted child, of the individual, or of a spouse of the individual; or (b) a spouse of the individual or of any person specified in sub-clause (a).] 15[(3A) “association of persons” includes a firm, a Hindu undivided family, any artificial juridical person and anybody of persons formed under a foreign law, but does not include a company;] 16[(3AA) “banking company” means a banking company as defined in the Banking Companies Ordinance, 1962 (LVII of 1962) and includes anybody corporate which transacts the business of banking in Pakistan;] 17[(4) “Board” means the Federal Board of Revenue established under section 3 of the Federal Board of Revenue Act, 2007;] 14 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 15 Clause (3A) inserted by Finance Act, 2008. 16 Clause (3A) re-numbered as (3AA). Earlier it was inserted by Finance Act, 2004. 17 Clause (4) substituted by Finance Act, 2008. Earlier it was substituted by Finance Act, 2007. 18[(4A) “Chief Commissioner” means a person appointed as the chief Commissioner Inland Revenue under section 30;] 19 [ (4AA) “Commissioner (Appeals)” means Commissioner of Inland Revenue (Appeals) appointed under section 30;] 20[(5) “Commissioner” means the Commissioner of Inland Revenue appointed under section 30;] 21[(5A) “common taxpayer identification number” means the registration number or any other number allocated to a registered person;] 22[(5AA) “company” means – (a) a company as defined in the Companies Ordinance, 1984 (XL VII of 1984); (b) a body corporate formed by or under any law in force in Pakistan; (c) a modaraba; (d) a body incorporated by or under the law of a country outside Pakistan relating to incorporation of companies; (e) a trust, a co-operative society or a finance society or any other society established or constituted by or under any law for the time being in force; or (f) a foreign association, whether incorporated or not, which the Board has, by general or special order, declared to be a 18 Clause (4A) inserted by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made 19 New clause 4AA inserted by Finance Act, 2021. 20 Clause (5) inserted by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made Through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 21 Clause (5A) inserted by Finance Act, 2006. Earlier clause (5A) was omitted by Finance Act, 2004. Earlier it was inserted by Tax Laws (Amendments) Ordinance, 1999. 22 Clause (5AA) inserted by Finance Act, 2008. company for the purposes of the Income Tax Ordinance 2001 (XLIX of 2001); 23[(5AAA)] “computerized system” means any comprehensive information technology system to be used by the Board or any other office as may be notified by the Board, for carrying out the purposes of this Act;] 24[(5AB) “cottage industry” means a manufacturing concern, which fulfils each of following conditions, namely:− (a) does not have an industrial gas or electricity connection; (b) is located in a residential area; (c) does not have a total labour force of more than ten workers; and (d) annual turnover from all supplies does not exceed 25[eight] million rupees;] 26[(5AC) “CREST” means the computerized program for analyzing and cross matching of sales tax returns, also referred to as COMPUTERISED RISK-BASED EVALUATION of SALES TAX;]
“Customs Act” means the Customs Act, 1969 (IV of 1969), and where appropriate all rules and notifications made under that Act; 27[(6A) “defaulter” means a person and, in the case of company or firm, every director, or partner of the company, or as the case may be, of the firm, of which he is a director or partner or a proprietor and includes guarantors or successors, who fail to pay the arrears;] 28[(6B) “default surcharge” means the default surcharge levied under section 34;] 23 Clause (5AA) re-numbered as (5AAA) by Finance Act, 2008. Earlier it was inserted by Finance Act, 2006. 24 Clause (5AB) substituted by Finance Act, 2019. 25 Word “eight” substituted by Finance (Supplementary) Act, 2022. 26 CREST 5AC inserted by Finance Act, 2013. 27 Clause (6A) inserted by Tax Laws (Amendments) Ordinance, 1999. 28 Clause (6B) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2005.
“distributor” means a person appointed by a manufacturer, importer or any other person for a specified area to purchase goods from him for further supply and includes a person who in addition to being a distributor is also engaged in supply of goods as a wholesaler or a retailer;
“document” includes any electronic data, computer programmes, computer tapes, computer disks, micro-films or any other medium for the storage of such data;
“due date” in relation to the furnishing of a return 29[under section 26], 30[ 31[...] 32[. ] means the 33[15th] day of the month following the end of the tax period, or such other date as the 34[Board] may, by notification in the official Gazette, specify 35[and different dates may be specified for furnishing of different parts or annexures of the return]; 36[(9A)] “e-intermediary” means a person appointed as e-intermediary under section 52A for filing of electronic returns and such other documents as may be prescribed by the Board from time to time, on behalf of a person registered under section 14;] 37[(9AA) ***]
“establishment” means an undertaking, firm or company, whether incorporated or not, an association of persons or an individual;
“exempt supply” means a supply which is exempt from tax under section 13; 38[(11A) “FBR Refund Settlement Company 39[10a] Limited” means the company with this name as incorporated under the 40[Companies Act, 2017 (XIX of 2017)], for the purpose of settlement of sales tax and income tax 29 The words and figure inserted by Finance Act, 1998. 30 The words and figure inserted by Tax Laws Amendment Ordinance, 2000, dated 24th May, 2000. 31 Comma and words etc. “, sub-section (6) of section 26A” omitted by Finance Act, 2004. 32 The expression “and section 26AA omitted by Finance, Act, 2016. 33 Substituted for “20th” by Finance Act, 1998 34 Substituted for “Federal Government” by Finance Act, 2008 35 Expression inserted through Finance Act, 2016. 36 Clause (9A) inserted by Finance Act, 2006. Earlier clause (9A) was omitted by Finance Act, 2004. Originally it was inserted by Tax Laws (Amendments) Ordinance, 2001. 37 Clause (9AA) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001. 38 Existing clause re-numbered as clause (11B) and new clause (11A) inserted by Finance Supplementary (Second Amendment) Act, 2019 39 The word (Pvt) omitted by Finance Act, 2019. 40 Words substituted vide Finance Act, 2019 refund claims including payment by way of issuing refund bonds under section 67A’;] 41[10(11B) “firm” means the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all;]
“goods” include 42[*** ] every kind of movable property other than actionable claims, money, stocks, shares and securities; 43[“(12A) “green industry” in relation to the entry at serial number 150 of the Table-1 of the Sixth Schedule, means- (a) a new industrial undertaking which is- (i) setup on land which not previously been utilised for any commercial, industrial or manufacturing activity and is free from constraints imposed by any prior work; (ii) built without demolishing revamping, renovating, upgrading, remodeling or modifying any existing structure, facility or plant; (iii) not formed by the splitting up or reconstitution of an undertaking already in existence or by transfer of machinery, plant or building from an undertaking established in Pakistan prior to commencement of the new business and is not part of an expansion project; (iv) using any process or technology that has not earlier been used in Pakistan and is so approved by the Engineering Development Board; and (b) is approved by the Commissioner on an application made in the prescribed form and manner, accompanied by the prescribed 41 Clause (11A) inserted by Finance Act, 2008. 42 Expression omitted by Finance Act, 2023 43 New clause 12A inserted through Tax Laws (Amendment) Act, 2020 dated 30-3-2020. documents and, such other documents as may be required by the Commissioner: Provided that this definition shall be applicable from the 1st July, 2019 and onwards.”.]
“importer” means any person who 44[ ... ] imports any goods into Pakistan; 45[(14) “input tax”, in relation to a registered person, means – (a) tax levied under this Act on supply of goods to the person; (b) tax levied under this Act on the import of goods by the person; (c) in relation to goods or services acquired by the person, tax levied under the Federal Excise Act, 2005 in sales tax mode as a duty of excise on the manufacture or production of the goods, or the rendering or providing of the services; 46[47 ] (d) 48[…….] 49[Provincial Sales Tax levied on services rendered or provided to the person; and] (e) levied under the Sales Tax Act, 1990 as adapted in the State of Azad Jammu and Kashmir, on the supply of goods received by the person;] 50[(14A) the expression “KIBOR” means Karachi Inter-Bank Offered Rate prevalent on the first day of each quarter of the financial year;] 51[(15) “Local Inland Revenue Office” means the office of Superintendent of Inland Revenue or such other office as the Board may, by notification in the official Gazette, specify;] 44 Word “lawfully” omitted by Finance Act, 2008 45 Clause (14) substituted by Finance Act, 2008. 46 Word “and” added at the end of clause through Finance, Act, 2016. 47 Word “and” omitted through Tax Laws (Amendment) Ordinance, 2016. 48 Expression omitted through Finance, Act, 2016. 49 Expression re-inserted through Tax Laws (Amendment) Ordinance, 2016 having affect from 01st day of July, 2016.. 50 Clause (14A) inserted by Finance Act, 2009. 51 Clause (15) substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this
“manufacture” or “produce” includes – (a) any process in which an article singly or in combination with other articles, materials, components, is either converted into another distinct article or product or is so changed, transformed or reshaped that it becomes capable of being put to use differently or distinctly and includes any process incidental or ancillary to the completion of a manufactured product; (b) process of printing, publishing, lithography and engraving; and (c) process and operations of assembling, mixing, cutting, diluting, bottling, packaging, repacking or preparation of goods in any other manner;
“manufacturer” or “producer” means a person who engages, whether exclusively or not, in the production or manufacture of goods whether or not the raw material of which the goods are produced or manufactured are owned by him; and shall include – (a) a person who by any process or operation assembles, mixes, cuts, dilutes, bottles, packages, repackages or prepares goods by any other manner; (b) an assignee or trustee in bankruptcy, liquidator, executor, or curator or any manufacturer or producer and any person who disposes of his assets in any fiduciary capacity; and (c) any person, firm or company which owns, holds, claims or uses any patent, proprietary, or other right to goods being manufactured, whether in his or its name, or on his or its behalf, as the case may be, whether or not such person, firm or company sells, distributes, consigns or otherwise disposes of the goods 52[:] amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 52 Substituted for the semi-colon by Finance Ordinance, 2000 53[Provided that for the purpose of refund under this Act, only such shall be treated as manufacturer-cum-exporter who owns or has his own manufacturing facility to manufacture or produce the goods exported or to be exported;] 54[(18) “Officer of Inland Revenue” means an officer appointed under section 30;] 55[(18A) “online market place” includes an electronic interface such as a market place, e-commerce platform, portal or similar means which facilitate sale of goods, including third party sale, in any of the following manner, namely:– (a) by controlling the terms and conditions of the sale; (b) authorizing the charge to the customers in respect of the payment for the supply; or (c) ordering or delivering the goods.]
“open market price” means the consideration in money which that supply or a similar supply would generally fetch in an open market; 56[(20) “output tax”, in relation to a registered person, means – (a) tax levied under this Act on a supply of goods, made by the person; (b) tax levied under the Federal Excise Act, 2005 in sales tax mode as a duty of excise on the manufacture or production of the goods, or the rendering or providing of the services, by the person; 57[(c) sales tax levied on the services rendered or provided by the person under Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001);] 53 Proviso inserted by Finance Ordinance, 2000. 54 Clause (18) substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 55 New clause 18A inserted by Finance Act, 2021. 56 Clause (20) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2007. 57 Clause (c) substituted by Finance Act, 2020. 58[(21) “person” means,– (a) an individual; (b) a company or association of persons incorporated, formed, organized or established in Pakistan or elsewhere; (c) the Federal Government; (d) a Provincial Government; (e) a local authority in Pakistan; or (f) a foreign government, a political subdivision of a foreign government, or public international organization;]
“prescribed” means prescribed by rules made under this Act; 59[(22A) “Provincial sales tax” means tax levied under, Provincial laws or laws relating to Islamabad Capital Territory, which are declared by the Federal Government, through notification in the official Gazette to be Provincial Sales Tax for the purpose of input tax;]
“registered office” means the office or other place of business specified by the registered person in the application made by him for registration under this Act or through any subsequent application to the 60[Commissioner];
“registration number” means the number allocated to the registered person for the purpose of this Act; 61[(25) “registered person” means a person who is registered or is liable to be registered under this Act: 58 Clause (21) substituted by Finance Act, 2008. 59 Clause (22A) inserted by Finance Act, 2008. 60 The word “Collector” was substituted for “Commissioner” by Finance (Amendment) ordinance, 2010 promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259. 61 Clause (25) substituted by Finance Ordinance, 2002. Provided that a person liable to be registered but not registered under this Act 62[...] shall not be entitled to any benefit available to a registered person under any of the provisions of this Act or the rules made thereunder;] 63[(26) ***]
“retail price”, with reference to the Third Schedule, means the price fixed by the manufacturer 64[or importer, in case of imported goods] 65[...], inclusive of all 66[duties], charges and taxes (other than sales tax 67[...]) at which any particular brand or variety of any article should be sold to the general body of consumers or, if more than one such price is so fixed for the same brand or variety, the highest of such price 68[:]. 69[Provided that the Board may through a general order specify zones or areas for the purpose of determination of highest retail price for any brand or variety of goods.]
“retailer” means a person 70[***] supplying goods to general public for the purpose of consumption 71[:]. 72[Provided that any person, who combines the business of import and retail or manufacture or production with retail, shall notify and advertise wholesale prices and retail prices separately, and declare the address of retail outlets 73[***].] 74[(28A) ***]
“return” means any return required to be furnished under Chapter-V of this Act; 62 Words “shall remain liable to further tax under sub-section (1A) of section 3 and” omitted by Finance Act, 2004. 63 Clause (26) omitted by Finance Ordinance, 2002. 64 The expression inserted vide Finance Act, 2019. 65 Words “or the importer” omitted by Finance Act, 2005. Earlier these were inserted by Finance Act, 2003. 66 Words and comma inserted by Finance Act, 2007. 67 Words “and octroi” omitted by Finance Act, 1998. 68 The “semicolon” has been substituted by” colon” in Finance Act, 2014 69 Inserted by Finance Act 2014. 70 Words “not being a manufacturer or producer or an importer” omitted by Finance Act, 2003, after omission the commas become superfluous. Earlier commas and words were inserted by Finance Act, 1998. 71 Substituted for the semi-colon by Finance Act, 2003. 72 Proviso inserted by Finance Act, 2003. 73 The comma, words and figures “, and his total turnover per annum shall be taken into account for the purposes of registration under section 14” omitted by Finance Act, 2015. 74 Clause (28A) omitted by Finance Act, 2008. Earlier it was inserted by Finance Act, 1997. 75[(29A) “sales tax” means – – (a) the tax, additional tax, or default surcharge levied under this Act; (b) a fine, penalty or fee imposed or charged under this Act 76[ excluding fee and service charges imposed and collected under section 76] ; and (c) any other sum payable under the provisions of this Act or the rules made thereunder;] 77[(29AA) “sales tax account” means an account representing the double entry recording of sales tax transactions in the books of account;]
“Schedule” means a Schedule appended to this Act;
“similar supply”, in relation to the open market price of goods, means any other supply of goods which closely or substantially 78[resembles] the characteristics, quantity, components and materials of the aforementioned goods; 79[(31A) “special audit” means an audit conducted under section 32A;]
“Special Judge” means the Special Judge appointed under Section 80[37C of the act until such appointment is made by the Special Judge appointed under section] 185 of the Customs Act; 81[(33) “supply” means a sale or other transfer of the right to dispose of goods as owner, including such sale or transfer under a hire purchase agreement, and also includes – 75 Clause (29A) inserted by Finance Act, 2008. 76 Words inserted by Finance Act, 2022. 77 Clause (29A) renumbered as (29AA) by Finance Act, 2008. Earlier it was inserted by Finance Act, 2006. 78 Substituted for “resemble” by Finance Act, 2008. 79 Clause (31A) inserted by Finance Act, 1998. 80 Words etc. inserted by Finance Act, 2010 w.e.f. June 5, 2010. 81 Clause (33) substituted by Finance Act, 2008. (a) putting to private, business or non-business use of goods produced or manufactured in the course of taxable activity for purposes other than those of making a taxable supply; (b) auction or disposal of goods to satisfy a debt owed by a person; 82[***] (c) possession of taxable goods held immediately before a person ceases to be a registered person 83[; 84[***]] 85[(d) in case of manufacture of goods belonging to another person, the transfer or delivery of such goods to the owner or to a person nominated by him 86[; and] 87 [***] Provided that the 88[Board, with the approval of the Federal Minister- in-charge,] may, by notification in the official Gazette, specify such other transactions which shall or shall not constitute supply;] 89[(33A) “supply chain” means the series of transactions between buyers and sellers from the stage of first purchase or import to the stage of final supply;] 90[(34)] tax”, unless the context requires otherwise, means sales tax;] 91[(35) “taxable activity”, means any economic activity carried on by a person whether or not for profit, and includes – – (a) an activity carried on in the form of a business, trade or manufacture; 82 Word “and” omitted by Finance Act, 2015. 83 Semi-colon and word “and” substituted for colon by Finance Act, 2015. Semi-colon and word “and” substituted for colon by Finance Act, 2015. 84 Word “and” omitted by Finance Act, 2022. 85 Clause (d) added by Finance Act, 2015. 86 Semi colon and the word “and” substituted by Finance Act, 2022. 87 Sub-clause (e) omitted by Finance Act, 2023 88 The words “Federal Government” substituted with the expression vide Finance Act, 2019. 89 Clause (33A) inserted by Finance Act, 2013. 90 Clause (34) substituted by Finance Act, 2008. 91 Clause (35) substituted by Finance Act, 2008. (b) an activity that involves the supply of goods, the rendering or providing of services, or both to another person; (c) a one-off adventure or concern in the nature of a trade; and (d) anything done or undertaken during the commencement or termination of the economic activity, but does not include – (a) the activities of an employee providing services in that capacity to an employer; (b) an activity carried on by an individual as a private recreational pursuit or hobby; and (c) an activity carried on by a person other than an individual which, if carried on by an individual, would fall within sub- clause (b).]
“tax fraction” means the amount worked out in accordance with the following formula: – a 100 + a ('a' is the rate of tax specified in section 3);
“tax fraud” means knowingly, dishonestly or fraudulently and without any lawful excuse (burden of proof of which excuse shall be upon the accused) – (i) doing of any act or causing to do any act; or (ii) omitting to take any action or causing the omission to take any action, 92[including the making of taxable supplies without getting registration under this Act 93[[; or],] 92 Words etc. inserted by Finance Act, 2004. 93 Substituted for comma by Finance Act, 2005 94[(iii)] falsifying 95[or causing falsification 96[of] the sales tax invoices,] in contravention of duties or obligations imposed under this Act or rules or instructions issued thereunder with the intention of understating the tax liability 97[or underpaying the tax liability for two consecutive tax periods] or overstating the entitlement to tax credit or tax refund to cause loss of tax; 98[(38) ***]
“taxable goods” means all goods other than those which have been exempted under section 13;
“tax invoice” means a document required to be issued under section 23;
“taxable supply” means a supply of taxable goods made 99[...] 100[by an importer, manufacturer, wholesaler (including dealer), distributor or retailer] other than a supply of goods which is exempt under section 13 and includes a supply of goods chargeable to tax at the rate of zero per cent under section 4; 101[(42) ***]
“tax period” means a period of one month or such other period as the 102[Board, with the approval of the Federal Minister-in-charge,] may 103[, ] by notification in the official Gazette, specify; 104[“(43A) 105[“Tier-1 retailer” means a retailer falling in any one or more of the following categories, namely:-] 94 Sub-clause (iii) inserted by Finance Act, 2005. 95 Words inserted by Finance Act, 2007. 96 Word “of” inserted by Finance Act, 2021. 97 Words inserted by Finance Ordinance, 2000. 98 Clause (38) omitted by Finance Act, 2004. 99 The words “In Pakistan” omitted by Finance Act, 2003. 100 The words and commas inserted by Finance Act, 1998. 101 Clause (42) omitted by Finance Act, 1997. 102 102 The words “Federal Government” substituted with the expression vide Finance Act, 2019. 103 Substituted for semi-colon by Finance Act, 2008 104 Clause (43A) inserted through Finance Act, 2017 105 Expression substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 substituted expression read as under: “Tier-1 retailers means” (a) a retailer operating as a unit of a national or international chain of stores; (b) a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks; (c) a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees 106[twelve] hundred thousand; 107[ ] (d) a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers”;] 108[ ] 109[***] 110 [ (f) a retailer who has acquired point of sale for accepting payment through debit or credit cards from banking companies or any other digital payment service provider authorized by State Bank of Pakistan; 111[***] 112 [(g) a retailer whose deductible withholding tax under sections 236G or 236H of the Income Tax Ordinance, 2001(XLIX of 2001) during the immediately preceding twelve consecutive months has exceeded the threshold as may be specified by the Board through notification in the official Gazette; and 113[***] 114[(h) any other person or class of persons as prescribed by the Board.] 115[(44) “time of supply”, in relation to,– 106 Word “six” substituted by “twelve” though Tax Laws (Amendment) Act, 2020, dated 30-3-2020 107 The word “and” omitted vide Finance Act, 2019. 108 The word “and” omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020. 109 Sub-clause (e) omitted by Finance Act, 2023 110 New clause (f) inserted by Finance Act, 2021. 111 Word “and” omitted by Finance (Supplementary) Act, 2022. 112 New clause (g) inserted by Finance (Supplementary) Act, 2022. 113 Sub-clause (ga) omitted by Finance Act, 2023 114 Existing clause (f) re-numbered as clause (h) by Finance Act, 2021. 115 Clause (44) (44 A) and (44 AA) substituted for clause (44) by Finance Act, 2008. (a) a supply of goods, other than under hire purchase agreement, means the time at which the goods are delivered or made available to the recipient of the supply” 116[****]; (b) a supply of goods under a hire purchase agreement, means the time at which the agreement is entered into; and (c) services, means the time at which the services are rendered or provided; 117[Provided that in respect of sub clause ( a) ,(b) or (c), where any part payment is received, – (i) for the supply in a tax period, it shall be accounted for in the return for that tax period; and (ii) in respect of exempt supply, it shall be accounted for in the return for the tax period during which the exemption is withdrawn from such supply ;] (44A) “trust” means an obligation annexed to the ownership of property and arising out of the confidence reposed in and accepted by the owner, or declared and accepted by the owner for the benefit of another, or of another and the owner, and includes a unit trust; (44AA) “unit trust” means any trust under which beneficial interests are divided into units such that the entitlements of the beneficiaries to income or capital are determined by the number of units held;] 118[(45) ***]
“value of supply” means:-- (a) in respect of a taxable supply, the consideration in money including all Federal and Provincial duties 119[and taxes, if any, which the supplier receives from the recipient for that supply but excluding the amount of tax: 116 Words omitted by Finance Act, 2021. 117 Proviso added by Finance Act, 2013. 118 Clause (45) omitted by Finance Act, 2004. 119 Words inserted by Finance Act, 1999. Provided that – (i) in case the consideration for a supply is in kind or is partly in kind and partly in money, the value of the supply shall mean the open market price of the supply excluding the amount of tax; 120[ ... ] (ii) in case the supplier and recipient are associated persons and the supply is made for no consideration or for a consideration which is lower than the open market price, the value of supply shall mean the open market price of the supply excluding the amount of tax; 121[and] 122[(iii) in case a taxable supply is made to a consumer from general public on installment basis on a price inclusive of mark up or surcharge rendering it higher than open market price, the value of supply shall mean the open market price of the supply excluding the amount of tax.] (b) in case of trade discounts, the discounted price excluding the amount of tax; provided the tax invoice shows the discounted price and the related tax and the discount allowed is in conformity with the normal business practices; (c) in case where for any special nature of transaction it is difficult to ascertain the value of a supply, the open market price; (d) in case of imported goods 123[excluding those as specified in the Third Schedule], the value determined under section 25 124[...] of the Customs Act, including the amount of customs- duties and central excise duty levied thereon; 125[...] (e) in case where there is sufficient reason to believe that the value of a supply has not been correctly declared in the invoice, the 120 Words “and” omitted by Finance Ordinance, 2001. 121 Word inserted by Finance Ordinance, 2001. 122 Sub-clause (iii) inserted by Finance Ordinance, 2001. 123 The expression inserted vide Finance Act, 2019. 124 Words etc. “or 25B” omitted by Finance Act, 2004. 125 The word “and” omitted by Finance Supplementary (Amendment) Act, 1997. Earlier the same amendment was made by Sales Tax (Second Amendment) Ordinance, 1996, dated 2nd November, 1996; and again was made by the Sales Tax (Amendment) Ordinance, 1979. value determined by the Valuation Committee comprising representatives of trade and the 126[Inland Revenue] constituted by the 127[Commissioner] 128[;] 129[ ] 130[(f) in case of manufacture of goods belonging to another person, the actual consideration received by the manufacturer for the value addition carried out in relation to such goods;] 131[(g)] in case of a taxable supply, with reference to retail tax, the price of taxable goods excluding the amount of retail tax, which a supplier will charge at the time of making taxable supply by him, or such other price as the Board may, by a notification in the official Gazette, specify.] 132[(h) in case of supply of electricity by an independent power producer 133[or WAPDA], the amount received on account of energy purchase price only; and the amount received on account of capacity purchase price, energy purchase price premium, excess bonus, supplemental charges etc. shall not be included in the value of supply; 134[***] (i) in case of supply of electric power and gas by a distribution company, the total amount billed including price of electricity and natural gas, as the case may be, charges, rents, commissions and all duties and taxes local, provincial and federal but excluding the amount of late payment surcharge and the amount of sales tax; 135[:] 126 Substituted for “Sales Tax Department” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) ordinance 2010 promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259. 127 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) ordinance 2010 promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259. 128 Word etc. “; and” substituted for “colon” by Finance Supplementary (Amendment) Act, 1997. Earlier it was substituted by Sales Tax (Second Amendment) Ordinance, 1996, dated 2nd November, 1996; and again was made by the Sales Tax (Amendment) Ordinance, 1979. 129 The word “and” omitted vide Finance Act, 2019. 130 Sub clause (f) substituted by Finance Act, 2019. Earlier it was substituted by Sales Tax (Second Amendment) Ordinance, 1996, dated 2nd November, 1996; and again was made by the Sales Tax (Amendment) Ordinance, 1997. 131 Sub-Clause (g) inserted by Finance Act, 1997. 132 Clauses (h) and (i) added by Finance Act, 2019. 133 The words inserted by Finance Act, 2020, shall be deemed to have been inserted with effect from 1st July, 2019 . 134 The word “and” omitted by Finance Act, 2020, the word “and” and “new clause j” inserted by Finance Act, 2020 . 135 For expression “and” expression “:” substituted and thereafter Explanation inserted by Finance Act, 2022. Explanation.- It is clarified that the value of supply does not include the amount of subsidy provided by the federal government or provincial governments to the electricity 136 [ or natural gas including re-gasified liquefied natural gas] consumers and has never been chargeable to tax under the Act;] 136[(j) in case of registered person who is engaged in purchasing used vehicles from general public on which sales tax had already been paid at the time of import or manufacturing, and which are, later on, sold in the open market after making certain value addition, value of supply will be the difference between sale and purchase price of the said vehicle on the basis of the valuation method prescribed by the Board.] 137[Provided] that, where the Board deems it necessary it may, by notification in the official Gazette, fix the value of any imported goods or taxable supplies or class of supplies and for that purpose fix different values for different classes or description of same type of imported goods or supplies: Provided further that where the value at which import or supply is made is higher than the value fixed by the Board, the value of goods shall, unless otherwise directed by the Board, be the value at which the import or supply is made;] 138[(46A) “whistleblower” means whistleblower as defined in section 72D of the Sales Tax Act, 1990;]
“wholesaler” 139[includes a dealer and] means any person who carries on, whether regularly or otherwise, the business of buying and selling goods by wholesale or of supplying or distributing goods, directly or indirectly, by wholesale for cash or deferred payment or for commission or other valuable consideration or stores such goods belonging to others as an agent for the purpose of sale; and includes 140[a person supplying taxable 136 Expression inserted by Tax Laws (Second Amendment) Ordinance, 2022. 137 Provisos substituted by Finance Act, 2006. 138 Clause (46A) added by Finance Act, 2015. 139 Words inserted by Finance Act, 1997. 140 The words, brackets and figures inserted by Finance Act, 1998. goods to 141[a person 142[who deducts income tax at source under the Income Tax Ordinance, 2001 (XLIX of 2001)]] 143[...]; and
“zero-rated supply” means a taxable supply which is charged to tax at the rate of zero per cent under section 4.]
(a) taxable supplies made 145[…] by a registered person in the course or furtherance of any 146[taxable activity] carried on by him; and (b) goods imported into Pakistan, 147[irrespective of their final destination in territories of Pakistan]. 148[(1A) Subject to the provision of sub section (6) of section 8 or any notification issued thereunder, where taxable supplies are made to a person who has not obtained registration number 149[ or he is not an active taxpayer] , there shall be charged, levied and paid a further tax at the rate of 150[four] percent of the value In addition to the rate specified in sub sections (1), (1B), (2), (5), 151[(6) and section 4] provided that the Federal Govt. may, by notification in the official Gazette, specify the taxable supplies in respect of which the further tax shall not be charged, levied and paid.] 141 Substituted for “person deducting advance tax under sub-section (4) of section 50 of the Income Tax, 1979 (XXXI of 1979)” by Finance Act, 2004. 142 Substituted for “whose income is not liable to tax under the Income Tax Ordinance, 2001 (XLIX of 2001) but has deducted income tax at source under section 153 of the said Ordinance” by Finance Act, 2006. 143 Comma and words “, and a person who in addition to making retail supplies is engaged in wholesale business” omitted by Finance Act, 2008. 144 Substituted for seventeen vide Finance (Supplementary) Act, 2023. 145 Words “ in Pakistan” omitted by Finance Act, 2003 146 Words substituted by Finance Act, 1996. 147 Words inserted through Finance Act, 2017 148 Sub section (1A) inserted by Finance Act, 2013. 149 Words inserted by Finance Act, 2022. 150 For the word “three” the word “four” substituted by Finance Act, 2023 151 The expression inserted through Finance Act, 2017 152[(1B) On the goods specified in the Tenth Schedule, in lieu of levying and collecting tax under sub-section (1), the tax shall be levied and collected, in the mode and manner specified therein− (a) on the production capacity of plants, machinery, undertaking, establishments or installation producing 153[or] manufacturing such goods; or (b) on fixed basis, from any person who is in a position to collect such tax due to the nature of the business, and different rates may be so prescribed for different regions or areas.] 154[(2) Notwithstanding the provisions of sub-section (1): – (a) taxable supplies 155[and import of goods] specified in the Third Schedule shall be charged to tax at the rate of 156[eighteen] per cent of the retail price 157[or in case such supplies 158[or imports] are also specified in the Eighth Schedule, at the rates specified therein and the retail price thereof,] along with the amount of sales tax shall be legibly, prominently and indelibly printed or embossed by the manufacturer 159[, or the importer, in case of imported goods,] on each article, packet, container, package, cover or label, as the case may be; 160[:]161[ ] 162 [Provided that the Federal Government may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, declare that the tax on goods specified in the Third Schedule shall be collected and paid at 152 Clause (1B) substituted vide Finance Act, 2019. 153 Word substituted by Finance Act, 2021. 154 Sub section (2) substituted by Finance Act, 2001 155 The expression inserted through Finance Act, 2019. 156 Substituted for seventeen vide Finance (Supplementary) Act, 2023. 157 The expression inserted through Finance Act, 2017 158 The words “or imports” inserted vide Finance Act, 2019. 159 The expression inserted through Finance Act, 2019. 160 Substituted for “; and” by Finance Act, 2007. 161 The word ‘; and” omitted by Finance Act, 2014. 162 New proviso inserted by Finance (Supplementary) Act, 2023. such higher rate or rates on the retail price thereof, as may be specified in the said notification: and 163[Provided 164[further] that the 165[Board], may, by notification in the official Gazette, exclude any taxable supply 166[or import] from the said Schedule or include any taxable supply 167[or import] therein; 168[…] (aa) 169[goods specified in the Eighth schedule shall be charged to tax at such rates and subject to such conditions and limitations as specified therein; and] 170[(b) the 171[Federal Government] may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, declare that in respect of any taxable goods, the tax shall be charged, collected and paid in such manner and at such higher or lower rate or rates as may be specified in the said notification.]
The liability to pay the tax shall be,- (a) in the case of supply of goods172[…], of the person making the supply, and (b) in the case of goods imported into Pakistan, of the person importing the goods. 173[(3A) Notwithstanding anything contained in clause (a) of sub- section (3), the 174[Board, with the approval of the Federal Minister-in- charge,] may, by a notification in the official Gazette, specify the goods in 163 Proviso inserted by Finance Act, 2007. 164 Word inserted by Finance (Supplementary) Act, 2023. 165 Word “Board” substituted by Finance (Supplementary) Act, 2022. 166 The words “or imports” inserted through Finance Act, 2019. 167 The words “or imports” inserted through Finance Act, 2019. 168 Word “and” omitted by Finance Bill, 2014. 169 Inserted by Finance Act, 2014 170 Clause (b) substituted by Finance Act, 2015. 171 Words “Federal Government” substituted by Finance Act, 2018. 172 Words “in Pakistan” omitted by Finance Act, 2003. 173 Sub-section 3A inserted by Finance Act, 1998. 174 The expression inserted through Finance Act, 2019. respect of which the liability to pay tax shall be of the person receiving the supply.] 175[(3B) Notwithstanding anything contained in sub section (1) and (3), sales tax on the import and supply of the goods specified in the Ninth Schedule to this Act shall be charged, collected and paid at the rates, in the manner, at the time, and subject to the procedure and conditions as specified therein or as may be prescribed, and the liability to charge, collect and pay the tax shall be on the persons specified therein.] 176[(4) ***] 177[(5) The 178[Federal Government] may, in addition to the tax levied under sub-section (1) 179[…], 180[…] sub-section (2) and sub-section (4), levy and collect 181[“tax at such extra rate or amount”] not exceeding 182[eighteen] per cent of the value of such goods or class of goods and on such persons or class of persons, in such mode, manner and at time, and subject to such conditions and limitations as it may, by rules, prescribe.] 183[(6) The Federal Government or 184[the Board] may, in lieu of the tax under sub-section (1), by notification in the official Gazette, levy and collect such amount of tax as it may deem fit on any supplies or class of supplies or on any goods or class of goods and may also specify the mode, manner or time of payment of such amount of tax. 185[(7) The tax shall be withheld 11[***] at the rate as specified in the Eleventh Schedule, by any person or class of persons 186[being purchaser of goods or services 187[ , other than the services liable to pay sales tax under a Provincial enactment, ] as withholding agent for the purpose of depositing the same, in such manner and subject to such conditions or 175 Inserted by Finance Act 2014 176 Sub section (4) omitted by Finance Act, 2008. 177 Sub section (5) inserted by Finance Act, 1999. 178 Words “Federal Government” substituted by Finance Act, 2018. 179 Word etc. “and (1 A)” omitted by finance Act, 2004. 180 Word etc. “clause (C) of” omitted by Finance Ordinance, 2002 181 Words substituted by Finance Act, 2013. 182 Substituted for seventeen vide Finance (Supplementary) Act, 2023. 183 Sub section (6) inserted by Finance Ordinance 2001 184 Substituted for “Central Board of Revenue” by Finance Act, 2007 185 Sub-section (7) substituted by Finance Act, 2019. 186 The words omitted and the expression inserted by Finance Act, 2020. 187 Expression inserted by Finance Act, 2022. restrictions as the Board may prescribe in this behalf through a notification in the official Gazette 188[:] [Provided that in case of the online market place facilitating the sale of third party goods, the liability to withhold tax on taxable supplies of such party at the rates specified in column (4) against S. No. 8 of the Eleventh Schedule to the Sales Tax Act, 1990 shall be on the operator of such market place.] 189[(8) Notwithstanding anything contained in any law or notification made thereunder 190[, but subject to the provisions of clause (b) of sub- section (2)] in case of supply of natural gas to CNG stations, the Gas Transmission and Distribution Company shall charge sales tax from the CNG stations at the rate of 191[eighteen] per cent of the value of supply to the CNG consumers, as notified by the Board from time to time, but excluding the amount of tax, as provided in clause (46) of section 2. 192 [
Notwithstanding anything contained in sub-section (1), tax shall be charged from retailers, other than those falling in Tier-1, through their monthly electricity bills, at the rate of five percent where the monthly bill amount does not exceed rupees twenty thousand and at the rate of seven and half percent where the monthly bill amount exceeds the aforesaid amount and the electricity supplier shall deposit the amount so collected directly without adjusting against his input tax: Provided that the tax under this sub-section shall be in addition to the tax payable on supply of electricity under sub-sections (1), (1A) and (5): Provided further that the Commissioner of Inland Revenue having jurisdiction shall issue order to the electricity supplier regarding exclusion of a person who is either a Tier-1 retailer or not a retailer. ] 188 Colon and proviso inserted by Finance Act, 2022. 189 Sub-section 8 Inserted by Finance Act, 2014. 190 Comma and words inserted by Finance Act, 2015. 191 Substituted for seventeen vide Finance (Supplementary) Act, 2023. 192 Sub-section 9 substituted by Tax Laws (Second Amendment) Ordinance, 2022 and shall be deemed to have been so substituted from the 01st day of July, 2022. 193[(9A) Notwithstanding anything contained in this Act, Tier-1 retailers shall pay sales tax at the rate as applicable to the goods sold under relevant provisions of this Act or a notification issued there under: 194[****] Provided further that from such date, and in such mode and manner, as prescribed by the Board, all Tier-1 retailers shall integrate their retail outlets with Board’s computerized system for real-time reporting of sales.] 195[(9AA) In respect of goods, specified in the Thirteenth Schedule, the minimum production for a month shall be determined on the basis of a single or more inputs as consumed in the production process as per criterion specified in the Thirteenth Schedule and if minimum production so determined exceeds the actual supplies for the month, such minimum production shall be treated as quantity supplied during the month and the liability to pay tax shall be discharged accordingly.] 196[(10) *** repealed] 197 [(11) Notwithstanding anything contained in the Act, the Board through Notification in the official Gazette, may require class of persons to integrate their invoice issuing machines with the Board’s Computerized System for real time reporting of sales in such mode and manner and from such date as may be prescribed.] 198[(12) Notwithstanding anything contained in this Act, the Federal Government may, in lieu of or in addition to the tax under sub- section (9), by notification in the official Gazette, levy and collect such amount of tax at such rates and from such date as it may deem fit, from retailers, other than those falling in Tier-1, through their monthly electricity bill, and may also specify the mode, manner or time of payment of such tax: 193 Sub-section (9A) substituted through Finance Act, 2019. 194 First proviso omitted by Finance Act, 2021. 195 New sub-section inserted by Finance Act, 2021. 196 Section 10 repealed which was earlier inserted by Tax Laws (Third Amendment) Ordinance, 2021. 197 New sub-section (11) added by Finance Act, 2022. 198 New sub-section (12) added by Tax Laws (Second Amendment) Ordinance, 2022. Provided that different rates or amounts of tax may be specified for different persons or class of persons.] 199[3A. ***] 200[3AA. ***] 201[3AAA. ***] 202[3B. Collection of excess sales tax etc.– (1) Any person who has collected or collects any tax or charge, whether under misapprehension of any provision of this Act or otherwise, which was not payable as tax or charge or which is in excess of the tax or charge actually payable and the incidence of which has been passed on to the consumer, shall pay the amount of tax or charge so collected to the Federal Government. 203[(2) Notwithstanding anything contained in any law or judgement of a court, including the Supreme court and a High court, any amount payable to the Federal Government under sub-section (1) shall be deemed to be an arrear of tax or charge payable under this Act and shall be recoverable accordingly and any claim for refund in respect of such amount shall neither be admissible to the registered person nor payable to any court of law or to any person under direction of the court.]
The burden of proof that the incidence of tax or charge referred to in sub-section (1) has been or has not been passed to the consumer shall be on the person collecting the tax or charge.]
[(a) goods exported, or the goods specified in the Fifth Schedule;] 199
200
201
202 Old section (3A) renumbered as (3B) by Finance Act, 1996. 203 Sub-section (2) substituted by Finance Act, 2014. 204 The expression inserted through Finance Act, 2017 205 Words “a Supply of” omitted by Finance Act, 2004. (b) supply of stores and provisions for consumption aboard a conveyance proceeding to a destination outside Pakistan as specified in section 24 of the Customs Act, 1969 (IV of 1969); 206[(c) such other goods, as the Federal Government may specify by notification in the official Gazette, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements:”; and] 207[(d) omitted.] Provided that nothing in this section shall apply in respect of a supply of goods which – (i) are exported, but have been or are intended to be re- imported into Pakistan; or (ii) have been entered for export under Section 131 of the Customs Act, 1969 (IV of 1969), but are not exported 208[***] 209[; or] (iii) 210 [have been exported to a country specified by the Federal Government, by Notification in the official Gazette 211[:] 212[Provided further that the Federal Government may, by a notification in the official Gazette, restrict the amount of credit for input tax actually paid and claimed by a person making a zero-rated supply of goods otherwise chargeable to sales tax.] 206 Clause (c) substituted through Finance Act, 2019. 207 Clause (d) omitted by Finance Act, 2019. 208 Words omitted by Finance Act, 1999. 209 Substituted for “full stop” by Finance Act, 1991. 210 Added by Finance Act, 1991. 211 Substituted for “full stop” by Finance Act, 1996. 212 Proviso added by Finance Act, 1996.
(a) a taxable supply made 213[***] by a registered person shall be charged to tax at such rate as is in force at the time of supply; (b) imported goods shall be charged to“tax at such rate as” is in force,- (i) in case the goods are entered for home consumption, on the date on a 9[goods declaration] is presented under section 79 of the Customs Act, 1969 (IV of 1969); (ii) in case the goods are cleared from warehouse, on the date on which a 214[goods declaration] for clearance of such goods is presented under section 104 of the Customs Act, 1969 (IV of 1969); Provided that where a 9[goods declaration] is presented in advance of the arrival of the conveyance by which the goods are imported, the tax shall be charged as is in force on the date on which the manifest of the conveyance is delivered: Provided further that if the tax is not paid within seven days of the of the 215[goods declaration] 216[under section 104 of the Customs Act,] the tax shall be charged at the rate as is in force on the date on which tax is actually paid.
213 Words “in Pakistan” omitted by Finance Act, 2003 214 Substituted for “bill of entry” by Finance Act, 2005 215 Substituted for “bill of entry” by Finance Act, 2005 216 Words, figure and comma inserted by the Finance Act, 1996. 217 The Words inserted in place of “IV of 1969” by Finance Act, 1996 218 The words inserted by Finance Act, 1998. 219 Words “including recovery” inserted by Finance Act, 2015. 220[(1A) Notwithstanding anything contained in any other law for the time being in force, including but not limited to the Protection of Economic Reforms Act, 1992 (XII of 1992), and notwithstanding any decision or judgment of any forum, authority or court whether passed, before or after the promulgation of the Finance Act, 1998 (III of 1998), the provisions of section 31-A of the Customs Act, 1969 (IV of 1969), referred to in sub- section (1) shall be incorporated in and shall be deemed to have always been so incorporated in this Act and no person shall be entitled to any exemption from or adjustment of or refund of tax on account of the absence of such a provision in this Act, or in consequence of any decision or judgment of any forum, authority or court passed on that ground or on the basis of the doctrine of promissory estoppel or on account of any promise or commitment made or understanding given whether in writing or otherwise, by any government department or authority.]
The tax in respect of taxable supplies made 221[***] during a tax period shall be paid by the registered person 222[by the date as prescribed in this respect] 223[:] 224[Provided that the Board may, by a notification in the Official Gazette, direct that the tax in respect of all or such classes of supplies (other than zero-rated supplies) of all or such taxable goods, as may be specified in the aforesaid notification, shall be charged, collected and paid in any other way, mode, manner or at time as may be specified therein.] 225[(3) The tax due on taxable supplies 226[***] shall be paid by any of the following modes, namely:- (i) through deposit in a bank designated by the Board; and (ii) through such other mode and manner as may be specified by the Board.] 220 Sub Section (1A) inserted by Sales Tax (amendment) Ordinance, 2002 dated June 07, 2002 and shall be deemed to have always been so inserted. 221 Words “ in Pakistan” omitted by Finance Act, 2013 222 Words substituted through Finance, Act, 2016. 223 Substituted for full stop by Finance Act, 1997 224 Proviso inserted by Finance Act, 1997 225 Sub Section III substituted by Finance Act, 1996. 226 Words “made in Pakistan” omitted by Finance Act, 2003. 227[4. ***] 228 [(5) The Federal Government may, subject to such conditions, limitations and restrictions as it may impose, by notification in the official Gazette, allow payment of sales tax on installments basis by the Federal or Provincial Governments or any public sector organization on import or supply of any goods or class of goods: Provided that such payment may be allowed from any previous date specified in the notification under this sub-section.]
238[Provided that where a registered person did not deduct input tax within the relevant period, he may claim such tax in the return for any of the six succeeding tax periods.]
A registered person shall not be entitled to deduct input tax from output tax unless,- (i) in case of a claim for input tax in respect of a taxable supply made 239[***], he holds a tax invoice 240[in his name and 227 Sub Section 4 omitted by Finance Act, 1996. 228 New sub-section (5) added by Finance Act, 2022. 229 Substituted for the word “ for by Finance Act, 2007 230 The word” section” substituted by the words and figure “section 8 and” in Finance Act 2014. 231 Comma and word etc, inserted by Finance Ordinance, 2001 232 Words inserted by Finance Act, 1996 233 Words inserted by Finance Act, 2004. 234 Words inserted by Finance Act, 1998. 235 Inserted by Finance Act 2014 236 Words etc “ excluding the amount of tax” omitted by Finance Act, 2004 237 Substituted for the full stop by Finance Act, 2003 238 Proviso substituted by Finance Act, 2008. 239 Words “in Pakistan” omitted by Finance Act, 2003. 240 Words inserted by Finance Act, 2003. bearing his registration number] in respect of such supply 241[, or in case of supply of electricity or gas, a bill bearing his registration number and the address where the connection is installed] 242[:] Provided that from the date to be notified by the Board in this respect, in addition to above, if the supplier has not declared such supply in his return or he has not paid amount of tax due as indicated in his return; (ii) 243[in case of goods imported into Pakistan, he holds bill of entry or goods declaration in his name and showing his sales tax registration number, duly cleared by the customs under section 79 244[, section 81] or section 104 of the Customs Act, 1969 (IV of 1969);] (iii) 245[in case of goods purchased in auction, he holds a treasury challan, 246[in his name and bearing his registration number,] showing payment of sales tax;] 247[(iv) ***] 248[(3) Notwithstanding anything in sub-sections (1) and (2), 249[Board, with the approval of the Federal Minister-in-charge,] may, by a special order, subject to such conditions, limitations or restrictions as may be specified therein allow a registered person to deduct input tax paid by him from the output tax determined or to be determined as due from him under this Act.] 250[(4) Notwithstanding anything contained in this Act or rules made there under, the 251[Federal Government] may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as may be 241 The expression substituted through Finance Act, 2019. 242 A Colon substituted the semi colon & Proviso added through Finance, Act, 2016. 243 Clause (ii) substituted by Finance Act, 2003. 244 Expression “, section 81” inserted by Finance Act, 2015. 245 Clause (iii) inserted by Finance Ordinance, 2002 246 Comma and words inserted by Finance Act, 2004. 247 Clause (iv) omitted by Finance Act, 1997. 248 Sub Section (3) inserted by Finance Ordinance, 2002. 249 The expression substituted by Finance Act, 2019. 250 Sub Section (4) inserted by Finance Act, 2007. 251 Words “Federal Government” substituted by Finance Act, 2018. specified therein, allow a registered person or class of persons to deduct such amount of input tax from the output tax as may be specified in the said notification.] 252[(5) Notwithstanding anything contained in this Act or the rules made thereunder, the Board, by notification in the official Gazette, may impose restrictions on wastage of material on which input tax has been claimed in respect of the goods or class of goods.] 253[7A. Levy and collection of tax on specified goods on value addition. – 254[(1) Notwithstanding anything contained in this Act or the rules made there under, the 10[Federal Government] may specify, by notification in the official Gazette, that sales tax chargeable on the supply of goods of such description or class shall, with such limitations or restrictions as may be prescribed, be levied and collected on the difference between the value of supply for which the goods are acquired and the value of supply for which the goods, either in the same state or on further manufacture, are supplied.] 255[(2) Notwithstanding anything contained in this Act or the rules made thereunder, in respect of the goods or class of goods specified in the Twelfth Schedule, the minimum value addition tax, against the value added by the registered person, shall be payable, at the rate and by the registered persons or class of registered persons, specified therein, subject to the conditions, limitations, restrictions and procedure specified therein: Provided that the Federal Government may, through a notification published in the official Gazette, amend any provision of the said Twelfth Schedule.] 252 New sub-section inserted by Finance Act, 2020. 253
254 Renumbered by Finance Act, 2004 255 Sub-section (2) substituted vide Finance Act, 2019. 256[8. Tax credit not allowed. – (1) Notwithstanding anything contained in this Act, a registered person shall not be entitled to reclaim or deduct input tax paid on – 257[(a) the goods 258[or services] used or to be used for any purpose other 259[***] for taxable supplies made or to be made by him;] (b) any other goods or services which the 260[Federal Government] may, by a notification in the official Gazette, specify261[;262[***]] 263[(c)] 264[***] the goods under 265[sub-section] (5) of section 3 266[:] 267[(ca) the goods 268[or services] in respect of which sales tax has not been deposited in the Government treasury by the respective supplier;] 269[(caa) purchases, in respect of which a discrepancy is indicated by CREST or input tax of which is not verifiable in the supply chain;] 270[(d) fake invoices; 271[***] (e) purchases made by such registered person, in case he fails to furnish the information required by the Board through a notification issued under sub-section (5) of section 26 [;] 272[(f) goods and services not related to the taxable supplies made by the registered person.] 256
257 Clause (a) substituted by Sales Tax (amendment) Ordinance, 2001 dated February 07, 2001. 258 Words inserted by Finance Act, 2008. 259 Words “for the manufacture of production of manufacture goods or,” omitted by Finance Act, 2007. 260 Words “Federal Government” substituted by Finance Act, 2018. 261 Substituted for full stop by Finance Act, 1999 262 Word “and” omitted by Finance Act, 2004. 263 Clause (c) inserted by Finance Act, 1999. 264 Word “on” omitted by Finance Act, 2004. 265 Substituted for subsection (1A) and Finance Act, 2004. 266 Substituted for the full stop by Finance Act, 2004. 267 Clause (ca) inserted by Finance Act, 2006. 268 Words inserted by Finance Act, 2008. 269 Clause (caa) inserted by Finance Act, 2013 270 Clause (d) inserted by Finance Act, 2004. 271 The word “and “omitted by Finance Act 2014. 272 Inserted by Finance Act, 2014. 273[(g) goods and services acquired for personal or non-business consumption;] 274[(h) goods used in, or permanently attached to, immoveable property, such as building and construction materials, paints, electrical and sanitary fittings, pipes, wires and cables, but excluding 275[pre-fabricated buildings and] such goods acquired for sale or re-sale or for direct use in the production or manufacture of taxable goods; 276[***]] 277[(i) vehicles falling in Chapter 87 of the First Schedule to the Customs Act, 1969 (IV of 1969), parts of such vehicles, electrical and gas appliances, furniture furnishings, office equipment (excluding electronic cash registers), but excluding such goods acquired for sale or re-sale] 278[;] 279[(j) services in respect of which input tax adjustment is barred under the respective provincial sales tax law; (k) import or purchase of agricultural machinery or equipment subject to sales tax at the rate of 7% under Eighth Schedule to this Act; (l) from the date to be notified by the Board, such goods and services which, at the time of filing of return by the buyer, have not been declared by the supplier in his return 280[or he has not paid amount of tax due as indicated in his return; and 281[(m) the input goods 282[or services] attributable to supplies made to un-registered 283[distributor], on pro-rata basis, for which sale invoices do not bear the NIC number or NTN as the case may be, of the recipient as stipulated in section 23.] 273 Inserted by Finance Act, 2014. 274 Inserted by Finance Act, 2014. 275 Words inserted by Finance Act, 2015. 276 Word “and” omitted by Finance Act, 2015. 277 Inserted by Finance Act, 2014. 278 Semi-colon substituted for full stop by Finance Act, 2015. 279 Clauses (j), (k) and (l) added by the Finance Act, 2015. 280 Expression added through Finance Act, 2016. 281 Clause (m) substituted through Finance Act, 2019. 282 The words inserted by Finance Act, 2020. 283 Word “person” substituted by Finance Act, 2022.
If a registered person deals in taxable and non-taxable supplies, he can reclaim only such proportion of the input tax as is attributable to taxable supplies in such manner as may be specified by the Board.
No person other than a registered person shall make any deduction or reclaim input tax in respect of taxable supplies made or to be made by him. 284[(4) ***] 285[(5) Notwithstanding anything contained in any other law for the time being in force or any decision of any Court, for the purposes of this section, no input tax credit shall be allowed to the persons who paid fixed tax under any provisions of this Act as it existed at any time prior to the first day of December, 1998.] 286[(6) Notwithstanding anything contained in any other law for the time being in force or any provision of this Act, 287[Board, with the approval of the Federal Minister-in-charge,] may, by notification in the official Gazette, specify any goods or class of goods which a registered person cannot supply to any person who is not registered 288[***] under this Act.] 289[(7) ***] 290[8A. Joint and several liability of registered persons in supply chain where tax unpaid.– Where a registered person receiving a taxable supply from another registered person is in the knowledge or has reasonable grounds to suspect that some or all of the tax payable in respect of that supply or any previous or subsequent supply of the goods supplied would go unpaid 291[, of which the burden to prove shall be on the department] 284 Sub-Section (4) omitted by Finance Act, 1999. 285 Sub-section (5) inserted by Finance Act, 1999. 286 Sub-section (6) inserted by Sales Tax (Amendment) Ordinance, 2001 dated February 7, 2001. 287 The expression substituted by Finance Act, 2019. 288 Words “or enrolled” omitted by Finance Act, 2004. 289 Sub-section (7) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001. 290
291 Expression added by Finance Act, 2015. such person as well as the person making the taxable supply shall be jointly and severally liable for payment of such unpaid amount of tax 292[:]] 293[Provided that the Board may by notification in the official gazette, exempt any transaction or transactions from the provisions of this section.] 294[8B. Adjustable input tax.– (1) Notwithstanding anything contained in this Act, in relation to a tax period, a registered person 295[***] shall not be allowed to adjust input tax in excess of ninety per cent of the output tax for that tax period: 296[Provided that the restriction on the adjustment of input tax in excess of ninety percent of the output tax, shall not apply in case of fixed assets or Capital goods:] Provided further that the Board may by notification in the official Gazette, exclude any person or class of persons from the purview of sub- section (1).
A registered person, subject to sub-section (1), may be allowed adjustment 297[or refund] of input tax not allowed under sub-section (1) subject to the following conditions, namely:– (i) in the case of registered persons, whose accounts are subject to audit under the Companies Ordinance, 1984, upon furnishing a statement along with annual audited accounts, duly certified by the auditors, showing value additions less than the limit prescribed under sub-section (1) above; or (ii) in case of other registered persons, subject to the conditions and restrictions as may be specified by the Board by notification in the official Gazette. 292 Substituted for full stop by Finance Act, 2007. 293 Proviso inserted by Finance Act, 2007. 294
295 Words omitted by Finance Act, 2022. 296 Proviso substituted by Finance Act, 2011. 297 Words inserted by Finance Act, 2009.
The adjustment or refund of input tax mentioned in sub- sections (2), if any, shall be made on yearly basis in the second month following the end of the financial year of the registered person.
Notwithstanding anything contained in sub-sections (1) and (2), the Board may, by notification in the official Gazette, prescribe any other limit of input tax adjustment for any person or class of persons. 298[(4A) Notwithstanding anything contained in sub-sections (1), (2) and (3), input tax allowed in case of locally manufactured electric vehicles subject to reduced rate of tax under the Eighth Schedule shall be limited to the extent of amount of output tax and no refund or carry forward of excess input tax shall be allowed.]
Any auditor found guilty of misconduct in furnishing the certificate mentioned in sub-section (2) shall be referred to the Council for disciplinary action under section 20D of Chartered Accountants, Ordinance, 1961 (X of 1961).] 299[(6) In case a Tier-1 retailer does not integrate his retail outlet in the manner as prescribed under sub-section (9A) of section 3, during a tax period or part thereof, the adjustable input tax for whole of that tax period shall be reduced by 300[60%.]
301[10. Refund of input tax.– (1) If the input tax paid by a registered person on taxable purchases made during a tax period exceeds the output 298 New sub-section (4A) inserted by Finance Act, 2020. 299 New sub-section (6) inserted through Finance Act, 2019. 300 Expression substituted by Finance Act, 2021. 301
tax on account of zero rated local supplies or export made during that tax period, the excess amount of input tax shall be refunded to the registered person not later than forty-five days of filing of refund claim in such manner and subject to such conditions as the Board may, by notification in the official Gazette specify: 302[Provided that in case of excess input tax against supplies other than zero-rated or exports, such excess input tax may be carried forward to the next tax period, along with the input tax as is not adjustable in terms of sub-section (1) of section 8B, and shall be treated as input tax for that period and the Board may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, prescribe the procedure for refund of such excess input tax.] Provided further that the Board may, from such date and subject to such conditions and restrictions as it may impose, by notification in the official Gazette, direct that refund of input tax against exports shall be paid 303[at the fixed rates and in the manner as] notified in the such notification.
If a registered person is liable to pay any tax, default surcharge or penalty payable under any law administered by the Board, the refund of input tax shall be made after adjustment of unpaid outstanding amount of tax or, as the case may, default surcharge and penalty.
Where there is reason to believe that a person has claimed input tax credit or refund which was not admissible to him, the proceedings against him shall be completed within sixty days. For the purposes of enquiry or audit or investigation regarding admissibility of the refund claim, the period of sixty days may be extended up to one hundred and twenty days by an officer not below the rank of an Additional 304[Commissioner Inland Revenue] and the Board may, for reasons to be recorded in writing, extend the aforesaid period which shall in no case exceed nine months.] 302 Proviso substituted by Finance Act, 2008. 303 The expression substituted through Finance Act, 2019. 304 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 305[11. Assessment of Tax & Recovery of Tax not levied or short levied or erroneously refunded] .– (1) Where a person who is required to file a tax return fails to file the return for a tax period by the due date or pays an amount which, for some miscalculation is less than the amount of tax actually payable, an officer of Inland Revenue shall, after a notice to show cause to such person, make an order for assessment of tax, including imposition of penalty and default surcharge in accordance with sections 33 and 34: Provided that where a person required to file a tax return files the return after the due date and pays the amount of tax payable in accordance with the tax return along with default surcharge and penalty, the notice to show cause and the order of assessment shall abate.
Where a person has not paid the tax due on supplies made by him or has made short payment or has claimed input tax credit or refund which is not admissible under this Act for reasons other than those specified in sub-section (1), an officer of Inland Revenue shall after a notice to show cause to such person, make an order for assessment of tax actually payable by that person or determine the amount of tax credit or tax refund which he has unlawfully claimed and shall impose a penalty and charge default surcharge in accordance with sections 33 and 34.
Where by reason of some collusion or deliberate Act any tax or charge has not been levied or made or has been short levied or has been erroneously refunded, the person liable to pay any amount of tax or charge or the amount of fund erroneously made shall be served with the notice requiring him to show cause for payment of the amount specified in the notice.
Where, by reason of any inadvertence, error or misconstruction any tax or charge has not been levied or made or has been short-levied or has been erroneously refunded, the person liable to the amount of tax or charge or the amount of refund erroneously made shall be served with a notice requiring him to show cause for payment of the amount specified in the notice; 305
Provided that, where a tax or charge has not been levied under this sub section the amount of tax shall be recovered as tax fraction of the value of supply. 306 [(4A) Where any person, required to withhold sales tax under the provisions of this Act or the rules made thereunder, fails to withhold the tax or withholds the same but fails to deposit the same in the prescribed manner, an officer of Inland Revenue shall after a notice to such person to show cause, determine the amount in default].
No order under this section shall be made by an officer of Inland Revenue unless a notice to show cause is given within five years, of the 307[end of the financial year in which the relevant date falls], to the person in default specifying the grounds on which it is intended to proceed against him and the officer of Sales Tax shall take into consideration the representation made by such person and provide him with an opportunity of being heard: Provided that order under this section shall be made within one hundred and twenty days of issuance of show cause notice or within such extended period as the Commissioner may, for reasons to be recorded in writing, fix provided that such extended period shall in no case exceed ninety days: Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or the time taken through adjournment by the petitioner not exceeding sixty days shall be excluded from the computation of the period specified in the first proviso.
Notwithstanding anything in sub-section (1), where a registered person fails to file a return, an officer of Inland Revenue, not below the rank of Assistant Commissioner, shall subject to such conditions as specified by the Federal Board of Revenue, determine the minimum tax liability of the registered person. 306 New sub-section 4A added through Finance Act, 2016. 307 Words substituted by Finance Act, 2021.
For the purpose of this section, the expression “relevant date” means— (a) the time of payment of tax or charge as provided under section 6; and (b) in a case where tax or charge has been erroneously refunded, the date of its refund.] 308[11A. Short paid amounts recoverable without notice.– Notwithstanding any of the provisions of this Act, where a registered person pays the amount of tax less than the tax due as indicated in his return, the short paid amount of tax along with default surcharge shall be recovered from such person by stopping removal of any goods from his business premises and through attachment of his business bank accounts, without giving him a show cause notice and without prejudice to any other action prescribed under section 48 of this Act or the rules made thereunder: Provided that no penalty under section 33 of this Act shall be imposed unless a show cause notice is given to such person.] 309[11B. Assessment giving effect to an order.– (1) Except where sub- section (2) applies, where, in consequence of, or to give effect to, any finding or direction in any order made under Chapter-VIII by the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court an order of assessment of tax is to be issued to any registered person, the Commissioner or an officer of Inland Revenue empowered in this behalf shall issue the order within one year from the end of the financial year in which the order of the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court, as the case may be, was served on the Commissioner or officer of Inland Revenue.
Where, by an order made under Chapter-VIII by the Appellate Tribunal, High Court or Supreme Court, an order of assessment is remanded wholly or partly and the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is directed to pass a new order of assessment, the Commissioner or Commissioner (Appeals) or 308
309 New section 11B added by Finance Act, 2018. officer of Inland Revenue, as the case may be, shall pass the new order within one year from the end of the financial year in which the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is served with the order: Provided that limitation under this sub-section shall not apply, if an appeal or reference has been preferred against the order passed by Appellate Tribunal or a High Court.] 310[11C. Power of tax authorities to modify orders, etc.– (1) Where a question of law has been decided by a High Court or the Appellate Tribunal in the case of a registered person, on or after first day of July, 1990, the Commissioner or an officer of Inland Revenue may, notwithstanding that he has preferred an appeal against the decision of the High Court or made an application for reference against the order of the Appellate Tribunal, as the case may be, follow the said decision in the case of the said taxpayer in so far as it applies to said question of law arising in any assessment pending before the Commissioner or an officer of Inland Revenue, until the decision of the High Court or of the Appellate Tribunal is reversed or modified.
In case the decision of High Court or the Appellate Tribunal, referred to in sub-section (1), is reversed or modified, the Commissioner or an officer of Inland Revenue may, notwithstanding the expiry of period of limitation prescribed for making any assessment or order, within a period of one year from the date of receipt of decision, modify the assessment or order in which the said decision was applied so that it conforms to the final decision.] 311[12. ***] 312[13. Exemption.– (1) Notwithstanding the provisions of section 3, supply of goods or import of goods specified in the Sixth Schedule shall, 310 New section 11C inserted by Finance Act, 2020. 311 Section 12 omitted by Finance Act, 1996. 312 Section 13 substituted by Finance Act, 1996. subject to such conditions as may be specified by the 313[Federal Government], be exempt from tax under this Act 314[.] 315[***]
Notwithstanding the provisions of sub-section (1) – 316[(a) the Federal Government may, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements, by notification in the official Gazette, exempt any supplies made or imports, of any goods or class of goods from the whole or any part of the tax chargeable under this Act, subject to the conditions and limitations specified therein;] 317[(b) ***]
The exemption from tax chargeable under sub-section (2) may be allowed from any previous date specified in the notification issued under clause (a) 318[***].] 319[(4) ***] 320[(5) ***] 321[(6) The 322[Board] shall place before the National Assembly all notifications issued under this section in a financial year. 313 Substituted for “Board” by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999. 314 Substituted for colon by Tax Laws Amendment Ordinance, 2000, full Stop was substituted for colon by sales tax “(Amendment) Ordinance, 1999, dated 13th August, 1999. 315 Provisos omitted by Tax Laws Amendment Ordinance, 2000, dated 24th May, 2000. Earlier it was omitted by sales Tax (Amendment) Act, 1999 dated 30-03-1999. 316 Clause (a) substituted through Finance Act, 2019. 317 Clause (b) omitted by Finance Act, 2015. 318 Expression “or, as the case may be, order made under clause (b) of that sub-section” omitted by Finance Act, 2015. 319 Sub-section (4) omitted by Finance Act, 2006. 320 Sub-section (5) omitted by Sales Tax (Amendment) Ordinance, 2000. 321 Sub-section (6) and sub-section (7) added by Finance Act, 2015. 322 Substituted for the words “Federal Government” through Finance Act, 2017
Any notification issued under sub-section (2), after 1st July, 2015 shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued 323[: Provided that all such notifications, except those earlier rescinded, shall be deemed to have been in force with effect from the 1st July, 2016 and shall continue to be in force till the 30th June, 2018, if not earlier rescinded: Provided further that all notifications issued on or after the first day of July, 2016 and placed before the National Assembly as required under sub-section (6) shall continue to be in force till thirtieth day of June, 2018, if not earlier rescinded by the Federal Government or the National Assembly.] 323 For the full stop a colon inserted and thereafter new provisos added through Finance Act, 2017
324[14. Registration.— (1) Every person engaged in making taxable supplies in Pakistan, including zero-rated supplies, in the course or furtherance of any taxable activity carried on by him, falling in any of the following categories, if not already registered, is required to be registered under this Act, namely:- (a) a manufacturer who is not running a cottage industry; (b) a retailer who is liable to pay sales tax under the Act or rules made thereunder, excluding such retailer required to pay sales tax through his electricity bill under sub-section (9) of section 3; (c) an importer; (d) an exporter who intends to obtain sales tax refund against his zero-rated supplies; (e) a wholesaler, dealer or distributor; and (f) a person who is required, under any other Federal law or Provincial law, to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act.
Persons not engaged in making of taxable supplies in Pakistan, if required to be registered for making imports or exports, or under any provisions of the Act, or any other Federal law, may apply for registration.
The registration under this Act shall be regulated in such manner as the Board may, by notification in the official Gazette, prescribe.] 325[ 324
325 Section 14A repealed, which was earlier inserted by Tax Laws (Third Amendment) Ordinance, 2021. 326 [14AB.Discontinuance of gas and electricity (a) Any person, including tier-1 retailers, who fail to register for sales tax purpose or (b) Notified tier-1 retailers registered but not integrated with the Board’s Computerized System: Provided that upon registration or integration, as the case may be, of the above said persons, the Board shall notify the restoration of their gas or electricity connection through Sales Tax General Order.] 327[15. 328[16. 329[17. ***] 330[21. 326 New section 14AB added by Finance Act, 2022. 327
328
329 Sections 17 to 20 omitted by Finance Act, 2004. 330
subject to the rules, de-register a registered person or such class of registered persons not required to be registered under this Act.
Notwithstanding anything contained in this Act, in cases where the 331[Commissioner] is satisfied that a registered person is found to have issued fake invoices 332[...] or has 333[otherwise] committed tax fraud, he may blacklist such person or suspend his registration in accordance with such procedure as the Board may by notification in the official Gazette, prescribe.] 334[(3) During the period of suspension of registration, the invoices issued by such person shall not be entertained for the purposes of sales Tax refund or input tax credit, and once such person is black listed, the refund or input tax credit claimed against the invoices issued by him, whether prior or after such black listing, shall 335[...] be rejected through a self-speaking appealable order and after affording an opportunity of being heard to such person.] 336[(4) Notwithstanding anything contained in this Act, where the Board, the concerned Commissioner or any officer authorized by the Board in this behalf has reasons to believe that a registered person is engaged in issuing fake or flying invoices, claiming fraudulent input tax or refunds, does not physically exist or conduct actual business, or is committing any other fraudulent activity, the Board, concerned Commissioner or such Officer may after recording reasons in writing, block the refunds or input tax adjustments of such person and direct the concerned Commissioner having jurisdiction for further investigation and appropriate legal action.] 337[21A. Active taxpayers list.-The Board shall have the power to maintain active taxpayers list in the manner as may be prescribed by rules and such rules may provide for the restrictions and limitations to be imposed on a person who ceases to be an active taxpayer.] 331 Substituted “for collector” by Finance Act, 2010 332 Comma and words “, evaded tax” omitted by Finance Act, 2005. 333 Word inserted by Finance Act, 2005. 334 Sub Section (3) inserted by Finance Act, 2011 335 Words and figure omitted by Finance Act, 2013. 336 Sub section (4) inserted by Finance Act, 2013. 337
338[22. Records.– (1) A registered person making taxable supplies shall maintain and keep at his business premises or registered office in English or Urdu language the following records of goods purchased 339[, imported] and supplied (including zero-rated and exempt supplies) made by him or by his agent acting on his behalf in such form and manner as would permit ready ascertainment of his tax liability during a tax period – (a) records of supplies made shall indicate the description, quantity and value of goods, name and address of the person to whom supplies were made and the amount of the tax charged; (b) records of goods purchased shall show the description, quantity and value of goods, name, address and registration number of the supplier and the amount of the tax on purchases; 340[(c) records of goods imported shall show the description, quantity and value of goods and the amount of tax paid on imports;] 341[(d)] records of zero-rated and exempt supplies; 342[(da) double entry sales tax accounts;] 343[(e)] invoices, credit notes, debit notes, bank statements, 344[banking instruments in terms of section 73,] inventory records, 345[utility bills, salary and labour bills, 346[cash book,] rental 338
339 The comma and words inserted by Finance Act, 2005. 340 Clause (c) inserted by Finance Act, 2005. 341 Existing clause (c) re-lettered as clause (d) by Finance Act, 2005. 342 Clause (da) inserted by Finance Act, 2006. 343 Existing clause (d) re-lettered as clause (e) by Finance Act, 2005. 344 The words, comma and figure inserted by Finance Act, 2004. 345 The commas and words inserted by Finance Act, 1999. 346 Expression inserted by Finance Act, 2021. agreements, sale purchase agreements and lease agreements]; 347[...] 348[(ea) Record relating to Gate passes, inward or outward and transport receipts.] 349 [ (eb) Electronic version of records mentioned in clauses (a) to (ea) of this sub-section.] 350[(f)] such other records as may be specified by the Board: 351[Provided that the persons paying 352[...] retail tax shall keep such record as may be specified by the Board.] 353[(1A) Notwithstanding anything in any other law for the time being in force, the Board may require, by notification in the official Gazette, a registered person or class of registered persons to declare and use only as many number of business bank accounts as may be specified by the Board in such notification to make or receive payments on account of purchase and sale transactions for the purpose of this Act or rules made thereunder and to make payment of due tax from such accounts only.]
The Board may, by notification in the official Gazette, specify for any class of taxable persons or any other person registered under this Act to keep such other records for the purposes of this Act. 354[(2A) The Board may, by notification in the Official Gazette, specify for any class of taxable persons registered under this Act to use such electronic fiscal cash registers as are approved by the Board in the manner as may be prescribed.] 355[(3) The Board may, by notification in the official gazette, prescribe the procedure or software for electronically maintenance of records, filing of sales tax returns or refunds and for any other matter or approve any 347 The word “and” omitted by Finance Act, 2013. 348 Clause (ea) inserted by Finance Act, 2013. 349 New clause (eb) inserted by Finance Act, 2021. 350 Existing clause (e) re-lettered as clause (f) by Finance Act, 2005 351 Proviso substituted by the Finance Act, 1997. 352 The words “turnover tax or” omitted by Finance Act, 2005. 353 Sub-section (1A) inserted by Finance Act, 2007. 354 Sub-section (2A) inserted by Finance Act, 1999. 355 Sub Section (3) substituted by Finance Act, 2003. software for electronic maintenance of records and filing of returns or refunds by a person or class of such persons.]] 356[(4) The registered persons, whose accounts are subject to audit under the Companies Ordinance, 1984 (XLVII of 1984), shall be required to submit a copy of the annual audited accounts, along with a certificate by the auditors certifying the payment of due tax by the registered person.] (a) name, address and registration number of the supplier; [358(b) name, address and registration number of the recipient and in case of supplies by manufacturer or importer to unregistered distributor, the NIC or NTN of such unregistered distributors, as the case may. ] Provided that the condition of NIC or NTN shall be effective from 1st August, 2019 359[:] 360 [ Provided further that the condition of NIC shall not apply in the case of payment through debit or credit card or digital mode;] (c) date of issue of invoice; 356 Sub Section (4) inserted by Finance Act, 2007. 357 The expression added through Finance Act, 2019. 358 Clause (b) substituted by Finance Act, 2022. 359 Colon substituted by Finance (Supplementary) Act, 2022. 360 Proviso inserted by Finance (Supplementary) Act, 2022. (d) description 361[including count, denier and construction in case of textile yarn and fabric,] and quantity of goods; (e) value exclusive of tax; (f) amount of sales tax; and 362[(ff) ***] (g) value inclusive of tax: Provided that the Board may, by notification in the official Gazette, specify such modified invoices 363[...] for different persons or classes of persons; Provided further that not more than one tax invoice shall be issued for a taxable supply364[.] 365[***] 366[(2) No person other than a registered person or a person paying 367[*** 368[***]]369[retail tax] shall issue an invoice under this section. 370[(3) A registered person making a taxable supply may, subject to such conditions, restrictions and limitations as the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically and to the Board as well as to the 371[Commissioner], as may be specified.] 372[(4) The Board may, by notification in the Official Gazette, prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.] 361 The expression added through Finance Act, 2019. 362 Clause (ff) omitted by Finance Act, 2004. 363 Comma and words “, including replacement invoice,” omitted by Finance Act, 1997. 364 Full stop substituted by Finance (Supplementary) Act, 2022. 365 Proviso omitted by Finance (Supplementary) Act, 2022. 366 Sub Section (2) inserted by Finance Act, 1996. 367 Words “turnover tax or” omitted by Finance Act, 2004. 368 Words “or retailer tax” added by Finance Act, 1997. 369 Words inserted by Finance Act, 1997. 370 Sub section (3) inserted by Finance Act, 2005. 371 Substituted for “Collector” by Finance Act, 2010. 372 Sub Section (4) inserted by Finance Act, 2007. 373[24. Retention of record and documents for 374[Six] years.– A person, who is required to maintain any record or documents under this Act, shall retain the record and documents for a period of 352[Six] years after the end of the tax period to which such record or documents relate 375[or till such further period the final decision in any proceedings including proceedings for assessment, appeal, revision, reference, petition and any proceedings before an alternative Dispute Resolution Committee is finalized].] 376[25. Access to record, documents, etc.– 377[(1) A person who is required to maintain any record or documents under this Act 378[or any other law] shall, as and when required by 5[Commissioner],produce record or documents which are in his possession or control or in the possession or control of his agent; and where such record or documents have been kept on electronic data, he shall allow access to [the officer of Inland Revenue authorized by the Commissioner] and use of any machine on which such data is kept.] 379[(2) The officer of Inland Revenue authorized by the Commissioner, on the basis of the record, obtained under sub-section (1), may, once in a year, conduct audit: Provided that in case the Commissioner has information or sufficient evidence showing that such registered person is involved in tax fraud or evasion of tax, he may authorize an officer of Inland Revenue, not below the rank of Assistant Commissioner, to conduct an inquiry or investigation under section 38: Provided further that nothing in this sub-section shall bar the officer of Inland Revenue from conducting audit of the records of the registered person if the same were earlier audited by the office of the Auditor-General of Pakistan380[.] 381[omitted] 373
374 Substituted for “Five” by Finance Act, 2010. 375 Words and Commas inserted by Finance Act, 2010. 376
377 Numbered by Finance Act, 2003 378 Words inserted by Finance Act, 1999. 379 Substituted for “Such Officer of Sales tax” by Finance Act, 2010 380 Substituted for the colon through Finance Act, 2019. 381 Third proviso omitted by Finance Act, 2019. 382[(2A) For the purpose of sub-section (2) of section 25, the Commissioner may conduct audit proceedings electronically through video links, or any other facility as prescribed by the Board.] 383[(3)] After completion of Audit under this section or any other provision of this Act, the officer of Inland Revenue may, after obtaining the registered person’s explanation on all the issues raised in the audit shall pass an order under section 11 384[***].] 385[(4) ***] 386[(4A) ***] 387[ (5) Notwithstanding the penalties prescribed in section 33, if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with 388[default surcharge] voluntarily, whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him: Provided if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with [default surcharge] during the audit, or at any time before issuance of show cause notice 389[***] he may deposit the evaded amount of tax, 2[default surcharge] under section 34, and twenty five per cent of the penalty payable under section 33: Provided further that if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with 390[default surcharge] after issuance of show cause notice, he shall deposit the evaded amount of tax, 2[default surcharge] under section 34, and full amount of the penalty payable under section 33 and thereafter, the show cause notice, shall stand abated.] 382 New sub-section (2A) inserted by Finance Act, 2020. 383 Sub Section 3 substituted by Finance Act, 2010. 384 Words, figures and comma “or section 36, as the case may be” omitted by Finance Act, 2015. 385 Sub Section 4 omitted by Finance Act, 2010. 386 Sub Section (4A) expired. 387 Sub Section (5) inserted By Finance Act, 2003. 388 Substituted for “Additional Tax” by Finance Act, 2005. 389 Words in lieu of Audit report omitted by Finance Act, 2010. 390 Substituted for the words “additional tax” by Finance Act, 2005. 391[Explanation.– For the purpose of sections 25, 38, 38A, 38B and 45A and for removal of doubt, it is declared that the powers of the Board, Commissioner or officer of Inland Revenue under these sections are independent of the powers of the Board under section 72B and nothing contained in section 72B restricts the powers of the Board, Commissioner or Officer of Inland revenue to have access to premises, stocks, accounts, records, etc. under these sections or to conduct audit under these sections.] 392[25A. Drawing of samples.– Where an authorized officer of 393[Inland Revenue] considers it necessary to take a sample of any goods or raw materials, for the purpose of determining their liability to sales tax or for the purpose of establishing their value or for any other reason, he may remove a minimum quantity of goods or raw materials sufficient to enable a proper examination or analysis to be made. At the time of taking the sample the person in possession of the goods shall be informed and given the opportunity to sign the representative samples, so drawn, and take a corresponding sample for his record. Any sample taken under this section shall be taken against a proper receipt a copy each of which shall be kept in the record by the registered person and the 394[Large Taxpayers Unit or Regional Tax Office, as the case may be].] 395[25AA. Transactions between Associates.– 6[(1)] The Commissioner or an office of Inland Revenue may, in respect of any transaction between persons who are associates, determine the transfer price of taxable supplies between the persons as is necessary to reflect the fair market value of supplies in an arm’s length transaction.] 396[(2) The Board may, by notification in official gazette, prescribe rules for carrying out the purpose of sub-section (1).]
391 Explanation added by Finance Act, 2013. 392
393 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 394 Substituted for “Collectorate” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 395
396 Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021. 397[26. 398[***] Return.– (1) Every registered person 399[...] shall furnish not later than the due date a true 400[, complete] and correct return in the prescribed form to a designated bank 401[or any other office] specified by the Board, indicating the purchases and the supplies made during a tax period, the tax due and paid and such other information, as may be prescribed 402[;] 403[Provided that the Board may, by notification in the official Gazette, require any person or class of persons to submit return on quarterly basis: Provided further that the Board may, by notification in the official Gazette, require any person or class of persons to submit such return as may be prescribed annually in addition to the monthly return or quarterly return: Provided also that the return filed electronically on the web or any magnetic media or any other computer readable media as may be specified by the Board shall also be deemed to be a return for the purpose of sub- section (1) and the Board may, by notification in the official Gazette, make rules for determining eligibility of the data of such returns and e- intermediaries who will digitize the data of such returns and transmit the same electronically under their digital signatures.] 404[...]
405[. ] omitted 406[(3) A registered person may, subject to approval of the 407[Commissioner Inland Revenue] having jurisdiction, file a revised return 397
398 Word “monthly” omitted by Finance Act, 2006. 399 Words “making taxable supplies” omitted by Finance Act, 1999. 400 Comma and word inserted by Finance Act, 2020. 401 Words inserted by Finance Act, 2006. 402 In the proposed amendment “a full stop is substituted for a colon” while colon is already appearing. 403 Proviso inserted by Finance Act, 2006. 404 Proviso omitted by Finance Act, 2006 405 Sub-section (2) omitted through Finance Act, 2016. 406 Sub section (3) substituted by Finance Act, 2006. 407 Substituted for collector of Sales tax by Finance Act, 2010 within 408[one hundred and twenty] days of the filing of return under sub- section (1) or, as the case may be, sub-section (2), 409[ or under clause (a) or clause (b) of section 27], to correct any omission or wrong declaration made therein410[:] 411[Provided that the approval under this sub-section shall not be required if revised return is filed within sixty days of filing of return and either the tax payable therein is more than the amount paid or the refund claimed therein is less than the amount as claimed, under the return sought to be revised.] 412[(4) Notwithstanding the penalties prescribed in section 33, if a registered person wishes to file revised return voluntarily along with deposit of the amount of tax short paid or amount of tax evaded along with 413[default surcharge], whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him: Provided that in case the registered person wishes to deposit the amount of tax as pointed out by the officer of 414[Inland Revenue] during the audit, or at any time before issuance of the show cause notice 415[...], he may deposit the evaded amount of tax, [default surcharge] under section (34), and twenty five percent of the penalty payable under section 33 along with the levied return: Provided further that in case the registered person wishes to deposit the amount after issuance of show cause notice, he shall deposit the evaded amount of sales tax 416[...],417[default surcharge] under section 34, and full amount of leviable penalty under section 33 along with the revised return and thereafter, the show cause notice, shall stands abated.] 418[(5) The Board may, by notification in the official Gazette, require any person or class of persons, for any goods of such description or class, 408 Substituted for “ninety” by Finance Act, 2008. 409 Words inserted by Finance Act, 2011. 410 Substituted for the full stop through Finance Act, 2019. 411 New proviso added through Finance Act, 2019. 412 Subsection (4) inserted by Finance Act, 2003. 413 Substituted for “Additional Tax” by Finance Act, 2005. 414 Substituted for “Sales tax” by Finance Act, 2010. 415 Words “in lieu of the audit report” omitted by Finance Act, 2010. 416 Words “etc alongwith the amount of further tax as per provision of sub section (1A) of section 3, if applicable omitted by Finance Act, 2004. 417 Substituted for words “additional tax” by Finance Act, 2005. 418 Sub section (5) inserted by Finance Act, 2004. to furnish such summary or details or particulars pertaining to the imports, purchases and supplies during any tax period or periods, in such format as may be specified.] 419[26A. ***] 420[26AA. ***]
An application under sub-section (1) shall be made by the due date for furnishing the return in terms of section 2(9) for the period to which the application relates.
Where an application has been made under sub-section (1) and the Commissioner is satisfied that the applicant is unable to furnish the return to which the application relates by the due date because of– (a) absence from Pakistan; (b) sickness or other misadventure; or (c) any other reasonable cause, the Commissioner may, by order in writing, grant the applicant an extension of time for furnishing the return.
An extension of time under sub-section (3) shall not exceed fifteen days from the due date for furnishing the return, unless there are exceptional circumstances justifying a longer extension of time: Provided that where the Commissioner has not granted extension for furnishing the return under sub-sections (3) or (4), the Chief Commissioner may on an application made by the registered person for extension or further extension, as the case may be, grant extension or further extension for a 419
420
421 New section 26AB inserted by Finance Act, 2021. period not exceeding fifteen days, unless there are exceptional circumstances justifying a longer extension of time.
An extension or further extension of time granted under sub- sections (3) or (4), as the case may be, shall not, for the purpose of charge of default surcharge under section 34, change the due date for payment of sales tax under section 6.] 422[27. Special Returns.– In addition to the return specified under section 26 – (a) a person registered 423[ 424[ ] under this Act] shall furnish special return within such date and in such form indicating information such as quantity manufactured or produced, purchases made, goods supplied or payment of arrears made, etc, for such period as the Board may, by a notification in official gazette, specify; and (b) the 425[commissioner] may require any person whether, registered or not, to furnish a return (whether on his own behalf or as an agent or trustee) in a prescribed form and such person shall furnish the return not later than the date specified in this regard.] 426[28. Final Return.– If a person applies for de-registration in terms of section 21, he shall before such de-registration, furnish a final return to the 427[commissioner] in the specified form in such manner and at such time as directed by the 428[commissioner]].
422
423 Substituted for words and figure “under section 14” by sales tax (Amendments) Ordinance, 2000, dated September 05, 2000. 424 Words “or enrolled” omitted by Finance Act, 2004. 425 Substituted for “Collector” by Finance Act, 2010 426
427 Substituted for “Collector” by Finance Act, 2010 428 Substituted for “Collector” by Finance Act, 2010 429 Words inserted by Finance Act, 1996. 431[30. Appointment of Authorities.– (1) For the purposes of this Act, the Board may, appoint in relation to any area, person or class of persons, any person to be – (a) a chief commissioner of Inland Revenue; (b) a commissioner of Inland Revenue ; (c) a commissioner of Inland Revenue (Appeals); (d) an Additional commissioner of Inland Revenue ; (e) a Deputy commissioner of Inland Revenue; 432[(ea) District Taxation Officer Inland Revenue;] (f) an Assistant commissioner of Inland Revenue; 433[(fa) Assistant Director Audit Inland Revenue;] (g) an Inland Revenue Officer; (h) a Superintendent Inland Revenue; (i) an Inland Revenue Auditor Officer 434[...]; 435[(ia) an inspector Inland Revenue; and] (j)an officer of Inland Revenue with any other designation. 430 Any reference to the “Sales Tax Officer” shall be construe as reference to an “Officer of “Inland Revenue” by virtue of section 72 of the Sales Tax Act, 1990. 431
432 Clause (ea) inserted through Finance Act, 2017 433 Clause (fa) inserted through Finance Act, 2017 434 Word “and” omitted by Finance Act, 2011. 435 Clause “(ia)” inserted by Finance Act, 2011
The Chief Commissioner Inland Revenue and Commissioner Inland Revenue (Appeals) shall be sub-ordinate to the Board and Commissioner Inland Revenue shall be sub-ordinate to the Chief Commissioner Inland Revenue. 436[(2A) The Chief Commissioners Inland Revenue shall perform their functions in respect of such persons or classes of persons or such areas as the Board may direct. 5(2B) The Commissioners Inland Revenue shall perform their functions in respect of such persons or classes of persons or such areas as the Chief Commissioner, to whom they are sub-ordinate, may direct.]
Additional Commissioner Inland Revenue, Deputy Commissioners Inland Revenue 437[, District Taxation Officer Inland Revenue], Assistant Commissioner Inland Revenue 6[, Assistant Director Audit Inland Revenue], Superintendent Inland Revenue, Inland Revenue Audit Officer, Inland Revenue Officer 438[, Inspector Inland Revenue], and officer of Inland Revenue with any other designation shall be sub-ordinate to the Commissioner Inland Revenue and shall perform their functions in respect of such persons or classes of persons or such areas as the Commissioners, to whom they are sub ordinate, may direct.
Deputy Commissioner Inland Revenue 439[, District Taxation Officer Inland Revenue], Assistant Commissioner Inland Revenue 1[, Assistant Director Audit Inland Revenue], Superintendent Inland Revenue, Inland Revenue Audit Officer, Inland revenue Officer, 440[Inspector Inland Revenue Officer] an officer of Inland Revenue with any other designation shall be sub-ordinate to the Additional Commissioner Inland Revenue.] 441[30A. Directorate General (Intelligence and Investigation), Inland Revenue.–(1) The Directorate General (Intelligence and Investigation) Inland Revenue shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant 436 Sub-sections (2A) & (2B) inserted through Finance Act, 2017 437 Expressions inserted through Finance Act, 2017 438 Comma and words inserted by Finance Act, 2011. 439 Expression inserted through Finance Act, 2017 440 Comma and words inserted by Finance Act, 2011. 441
Directors and such other officers as the Board may, by notification in the official Gazette, 442[appoint].
The Board may, by notification in the official Gazette,– (a) specify the functions and jurisdiction of the Directorate General and its officers; and (b) confer the powers of authorities specified in section 30 upon the Directorate General and its officers.] 448[ Directors, Additional Directors, Deputy Directors and Assistant Directors 442 Substituted for the word “post” through Finance Act, 2019. 443
444 Words “of inspection and” omitted by Finance Act, 2007. 445
446 Marginal heading substituted by Finance Act, 2022. 447 Words substituted by Finance Act, 2022. 448 Section 30CA substituted by Finance Act, 2023 449
450 Words “and Post Clearance Audit” omitted by Finance Act, 2007. and such other officers as the Board, may by notification in the official Gazette, appoint. 451[30DD. Directorate of Post Clearance Audit.– The Directorate of Post clearance Audit shall consist of a Director and as many Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.] 454[30E. Powers and Functions of Directorate, etc.– The Board may, by notification in the official Gazette, specify the functions, jurisdiction and powers of the Directorates General as specified in the preceding sections and their officers by notification in the official Gazette.] Provided that, notwithstanding anything contained in this Act or the rules, the Board may, by general or special order, impose such limitations 451
452 New section 30DDD added through Finance Act, 2016. 453 New section 30DDDA added through Tax Laws (Amendment) Act, 2024. 454
455 Substituted for “sales tax” by Finance Act, 2010 w.e.f June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No.III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259 or conditions on the exercise of such powers and discharge of such duties as it deems fit. 456[32. Delegation of powers.– 457[(1) The Board or the Chief Commissioner, with the approval of the Board, may, by an order and subject to such limitations or conditions as may be specified therein, empower by name or designation – [(a) any Additional Commissioner Inland Revenue or Deputy Commissioner Inland Revenue to exercise any of the powers of a Commissioner Inland Revenue under this Act; and (b) any Deputy Commissioner Inland Revenue or Assistant Commissioner Inland Revenue to exercise any of the powers of an Additional Commissioner Inland Revenue under this Act; (c) any Assistant Commissioner Inland Revenue to exercise any of the powers of a Deputy Commissioner Inland Revenue under this Act; and (d) any other officer of Inland Revenue to exercise any of the powers of an Assistant Commissioner Inland Revenue under this Act.] 458[(2) ***]
The officer to whom any powers are delegated under this section shall not further delegate such powers.] 459[32A. 460[Audit by Special Audit Panels]. 461[(1) The Board may appoint as many special audit panels as may be necessary, comprising two or more members from the following, – (a) an officer or officers of Inland Revenue; 456
457 Sub Section (1) substituted by Finance Act, 2010 w.e.f. June 5, 2010. Earlier clause (a) to (d) substituted by Finance (2) omitted by the Finance Act, 2010 458 Sub Section (2) omitted by the Finance Act, 2010. 459
460 Substituted for the words “Special Audit by Chartered Accountants or Cost Accountants” by Finance Act, 2015 461 Substituted for sub-section (1) by Finance Act, 2015 (b) a firm of chartered accountants as defined under the Chartered Accountants Ordinance, 1961 (X of 1961); (c) a firm of cost and management accountants as defined under the Cost and Management Accountants Act, 1966 (XIV of 1966); or (d) any other person as directed by the Board, to conduct audit of a registered person or persons, including audit of refund claims and forensic audit and the scope of such audit shall be determined by the Board or the Commissioner Inland Revenue on a case-to-case basis. In addition, the Board may, where it considers appropriate, also get such audit conducted jointly with similar audits being conducted by provincial administrations of sales tax on services.]
Notwithstanding that records of a registered person have been audited by an officer appointed under section 30, the Board or a 462[Commissioner] may direct 463[special audit panel] appointed under sub- section (1) to audit the records of any registered person.
464[Every member of special audit panel] appointed under sub- section (1), shall have the powers of an officer of 465[Inland Revenue] under sections 25, 37 and 38. 466[(4) Each special audit panel shall be headed by a chairman who shall be an officer of Inland Revenue.
If any one member of the special audit panel, other than the chairman, is absent from conducting an audit, the proceedings of the audit may continue and the audit conducted by the special audit panel shall not be invalid or be called in question merely on the ground of such absence. 462 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259. 463 Substituted for the words “an auditor” by Finance Act, 2015 464 Substituted for the words “An Auditor” by Finance Act, 2015 465 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010.The same was made by Finance (Amendment) Ordinance, 2010, promulgated as ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part-I at Pages 229 to 259. 466 Sub-sections (4), (5) and (6) inserted by Finance Act, 2015.
The Board may prescribe rules in respect of constitution, procedure and working of special audit panel.] 467[32AA. ***] 467 Section 32 AA omitted by Finance Act, 2008, earlier it was inserted by Tax Laws Amendment Ordinance, 2000, dated may 24, 2000.
468[33. Offences and penalties.– 469[...] Whoever commits any offence described in column (1) of the Table below shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence in column
thereof: –
Such person shall pay a penalty of 470[ten] thousand rupees: Provided that in case a person files a return within 471[ten] days of the due date, he shall pay a penalty of 472[two] hundred rupees for each day of default.
Such person shall pay a penalty of five thousand rupees or three per cent of the amount of the tax involved, whichever is higher.
Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of t he tax involved, whichever is higher. 3, 7 and 23
activity. Such person shall pay a penalty of five thousand rupees. 468
469 Bracket and figure “one” omitted by Finance Act, 2008. 470 Substituted for the word “five” by Finance Act, 2019.. 471 Substituted for the word “fifteen” by Finance Act, 2015. 472 Substituted for the word “one” by Finance Act, 2019.
Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of the tax involved, whichever is higher: Provided that, if the amount of tax or any part thereof is paid within 473[ten] days from the due date, the defaulter shall pay a penalty of five hundred rupees for each day of default: Provided further that no penalty shall be imposed when any miscalculation is made for the first time during a year: Provided further that if the amount of tax due is not paid even after the expiry of a period of sixty days of issuance of the notice for such payments by an officer of 474[Inland Revenue, not below the rank of Assistant Commissioner Inland Revenue], the defaulter shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to amount equal to the amount of tax involved, or with both. 3, 6, 7 and 48
due is paid. Such person shall pay a penalty of five thousand rupees or three per cent of the amount of the tax involved, whichever is higher. 7 and 26
Such person shall pay a penalty of ten thousand rupees or five per cent 473 Substituted for the word “fifteen” by Finance Act, 2015. 474 Substituted for “Sales tax”, not below the rank of Assistant Collector of sales tax” by Finance Act, 2010
registration under this Act fails to make an application for registration before making taxable supplies. of the amount of tax involved, whichever is higher: Provided that such person who is required to get himself registered under this Act, fails to get registered within sixty days of the commencement of taxable activity, he shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to an amount equal to the amount of tax involved, or with both.
under. Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax involved, whichever is higher. 22 and 24
(a) fails to produce the record on receipt of first notice; (b) fails to produce the record on receipt of second notice; and (c) fails to produce the record on receipt of third notice. such person shall pay a penalty of five thousand rupees; such person shall pay a penalty of ten thousand rupees; and such person shall pay a penalty of fifty thousand rupees. 10. Any person who fails to furnish the information Such person shall pay a penalty of ten thousand rupees.
required by the Board through a notification issued under sub- section (5) of section 26. 11. Any person who, – (a) submits a false or forged document to any 475[officer of 476[Inland revenue]; or (b) destroys, alters, mutilates or falsifies the records including a sales tax invoice; or (c) Knowingly or fraudulently makes false statement, false declaration, false representation, false personification, gives any false information or issues or uses a document which is forged or false. Such person shall pay a penalty of twenty five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to an amount equal to the amount of tax involved, or with both. 2(37) and General 12. Any person who denies or obstructs the access of an authorized officer to the business premises, registered office or to any other place where records are kept, or otherwise refuses access to the stocks, accounts or records or fails to present the same when Such person shall pay a penalty of twenty five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to five years, or with fine which may extend to an amount equal to the loss of tax involved, or with both. 25, 38 , 478[38A and 40B] 475 Any reference to “officer of Sales Tax” shall be construed as reference to an ‘officer of Inland Revenue” by virtue of Section 72A of the Sales Tax Act, 1990. 476 Substituted for the words “Sales Tax” by the Finance Act, 2010 478 Substituted for “or 38A” by Finance Act, 2009
required under section 25, 38 477[38A or 40B]. 13. Any person who commits, causes to commit or attempts to commit the tax fraud, or abets or connives in commissioning of tax fraud. Such person shall pay a penalty of twenty five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to five years, or with fine which may extend to an amount equal to the loss of tax involved, or with both. 2(37) 14. Where any person violates any embargo placed on removal of goods in connection with recovery of tax. Such person shall pay a penalty of twenty five thousand rupees or ten per cent of the amount of the tax involved, whichever is higher. He shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to one year, or with fine which may extend to amount equal to the amount of tax involved, or with both. 15. Any person who obstructs the authorized officer in the performance of his official duties. Such person shall pay a penalty of twenty five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. 31 and General 16. Any person who fails to make payment in the manner prescribed under section 73 of this Act. Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher. 17. Any person who fails to fulfil any of the conditions, limitations or restrictions prescribed in a Notification issued Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher. 71 and General 477 Substituted for “or 38A” by Finance Act, 2009
under any of the provisions of this Act. 18. Where any officer of 479[Inland Revenue] authorized to act under this Act, acts or omits or attempts to act or omit in a manner causing loss to the sales tax revenue or otherwise abets or connives in any such act. Such officer of 480[Inland Revenue] shall be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to amount equal to the amount of tax involved, or with both. General 19. Any person who contravenes any of the provision of this Act 481[or the rules made thereunder] for which no penalty has, specifically, been provided in this section. Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher. ] General.] 482[ 20. *** ] 483[21. Where any person repeats an offence for which a penalty is provided under this Act Such person shall pay twice the amount of penalty provided under the Act for the said offence General. 22. Any person who,- (a) knowingly and without lawful authority gains access to or attempts to gain access to the Such person shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by the Special Judge, to imprisonment for a term which may extend to one year, or with 50A.] 479 Words “Sales Tax” substituted for Inland Revenue by Finance (Amended) Ordinance, 2010. 480 Substituted for “Sales Tax” by Finance Act, 2010 481 Words added through Finance Act, 2016. 482 Serial No. 20 omitted by Finance Act, 2008. 483 Serial No. 21 and 22 inserted by Finance Act, 2006.
computerized system; or (b) unauthorizedly uses or discloses or publishes or otherwise disseminates information obtained from the computerized system; or (c) falsifies any record or information stored in the computerized system; or (d) knowingly or dishonestly damages or impairs the computerized system; or (e) knowingly or dishonestly damages or impairs any duplicate tape or disc or other medium on which any information obtained from the computerized system is kept or stored; or fine which may extend to an amount equal to the loss of tax involved, or with both.
(f) unauthorizedly uses unique user identifier of any other registered user to authenticate a transmission of information to the computerized system; or (g) fails to comply with or contravenes any of the conditions prescribed for security of unique user identifier. 484[23. Any person who manufactures, possesses, transports, distributes, stores or sells 485[goods or class of goods as specified by the Board under sub- section (1) of section 40C] with counterfeited tax stamps, banderoles, stickers, labels or barcodes or without tax stamps, banderoles, stickers, labels or barcodes (i) Such [specified goods] shall be liable to outright confiscation 486[***]. Any person committing the offence shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to three years, or with additional fine which may extend to an amount equal to the loss of tax involved, or with both. (ii) In case of transport of [specified goods] with counterfeited tax stamps, banderoles, stickers, labels or barcodes, or without tax stamps, 40C(2)] 484 S.No. 23 and entries relating thereto in columns (1), (2) and (3) inserted through Finance Act, 2017 485 Expression substituted by Finance Act, 2023 486 Expression omitted by by Finance (Supplementary) Act, 2022.
banderoles, stickers, labels or barcodes, permanent seizure of the vehicle used for transportation of non-conforming or counterfeit [specified goods]; and (iii) In case of repeat sale of [specified goods] without or with counterfeited, tax stamps, banderoles, stickers, labels or barcodes, the premises used for such sale be sealed for a period not exceeding fifteen days. 487[“24. Any person, who is integrated for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the Board or its computerized system, conducts such transactions in a manner so as to avoid monitoring, tracking, reporting or recording of such transactions, or issues an invoice which does not carry the prescribed invoice number or barcode 488[ or QR code] or bears duplicate invoice number or counterfeit barcode, Such person shall pay a penalty of five hundred thousand rupees or two hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to two years, or with additional fine which may extend to two million rupees, or with both. 490[Notwithstanding above, the business premises of such person shall be liable to be sealed by an officer of Inland Revenue in the manner prescribed.] Any person who abets commissioning of such offence, shall be liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to one year, or with additional fine which may extend sub-section (9A) of section 3 and section 40C. 487 New serial numbers “24”, “25”, “26” and “27” inserted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020. 488 Words added by Finance Act, 2022. 490 Paragraph under serial number 24 inserted by Finance (Supplementary) Act, 2022.
489[ or QR code or defaces the prescribed invoice number of barcode or QR code] or any person who abets commissioning of such offence. to two hundred thousand rupees, or with both. 25. Any person, who is required to integrate his business for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the Board or its computerized system, fails to get himself registered under the Act, and if registered, fails to integrate in the manner as required under law. Such person shall be liable to pay a penalty up to one million rupees, and if continues to commit the same offence after a period of 491[two] months after imposition of penalty as aforesaid, his business premises shall be sealed 492[till such time he integrates his business in the manner as stipulated under 493[section 40C.] 494[***] section 40C 495[25A A person required to integrate his business as stipulated under sub-section (9A) of section 3, who fails to get himself registered under the Act, and if Such person shall be liable to pay: (i) penalty of five hundred thousand rupees for first default; (ii) penalty of one million rupees for second default after fifteen days of order for first default; Sub-section (9A) of section 3] 489 Words added by Finance Act, 2022. 491 The word substituted by Finance Act, 2020. 492 The word substituted by Finance Act, 2020. 493 Expression substituted by Finance Act, 2022. 494 Expression omitted by by Finance Act, 2022. 495 Serial number substituted by Finance Act, 2022.
registered, fails to integrate in the manner as required under the law and rules made thereunder.] (iii) penalty of two million rupees for third default after fifteen days of order for second default; (iv) penalty of three million rupees for fourth default after fifteen days of order for third default: Notwithstanding above, the business premises of such person shall be liable to be sealed by an officer of Inland Revenue in the manner prescribed: Provided that if the retailer integrates his business with the Board’s Computerized System before imposition of penalty for second default, penalty for first default shall be waived by the Commissioner.] 26. Any person, being a manufacturer or importer of an item which is subject to tax on the basis of retail price, who fails to print the retail price in the manner as stipulated under the Act. Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax involved, whichever is higher: Further, such goods shall also be liable to confiscation. However, the adjudication authority, after such confiscation, may allow redemption of such goods on payment of fine which shall not be less than twenty percent of the total retail price of such goods. sub-section (27) of section 2 and clause (a) of sub-section
of section 3. 27. Any person, being owner of the goods, which are brought to Pakistan in violation of section 40D. Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax involved, whichever is higher: Further, such goods shall also be liable to confiscation. However, the adjudication authority, after such
confiscation, may allow redemption of such goods on payment of fine which shall not be less than twenty percent of value, or retail price in case of items falling in Third Schedule, of such goods. 496[28. Any person who is required to share information under section 56AB, fails to do so in the manner as required under the law Such person shall pay a penalty of twenty five thousand rupees for first default and fifty thousand rupees for each subsequent default 56AB] [34. Default Surcharge.– (1) Notwithstanding the provisions of section 11, if a registered person does not pay the tax due or any part thereof, whether wilfully or otherwise, in time or in the manner specified under this Act, rules or notifications issued thereunder or claims a tax credit, refund or makes an adjustment which is not admissible to him, or incorrectly applies the rate of zero per cent to supplies made by him, he shall, in addition to the tax due, pay default surcharge at the rate mentioned below:— (a) 499[...] the person liable to pay any amount of tax or charge or the amount of refund erroneously made, shall pay default surcharge at the rate of 500[twelve per cent per annum], of the amount of tax due or the amount of refund erroneously made; 501[and] 496 New serial number 28 added by Finance Act, 2020. 497 Section 33A omitted by Finance Act, 2022. 498
499 Words and comma “for the first six months of default,” omitted by Finance Act, 2008. 500 Words twelve substituted by Finance Act, 2018. 501 Word inserted by Finance Act, 2008. 502[(b) ***] (c) in case, the default is on account of tax fraud, the person who has committed tax fraud shall pay default surcharge at the rate of two per cent per month, of the amount of tax evaded or the amount of refund fraudulently claimed, till such time the entire liability including the amount of default surcharge is paid.
For the purpose of calculation of default surcharge, – (a) in the case of inadmissible input tax credit or refund, the period of default shall be reckoned from the date of adjustment of such credit or, as the case may be, refund is received; and (b) in the case of non-payment of tax or part thereof, the period of default shall be reckoned from the 16th day of a month (following the due date of the tax period to which the default relates) to the day preceding the date on which the tax due is actually paid. 502 Clause (b) omitted by Finance Act, 2008. 503[34A. Exemption from penalty and 504[default surcharge].-- The Federal Government may, by a notification in the official Gazette, or the 505[Board] by a special order published in Gazette for reasons to be recorded in writing, exempt any person or class of persons from payment of the whole or part of the penalty and 506[default surcharge] imposed under sections 33 and 34 subject to such conditions and limitations as may be specified in such notification or, as the case may be, special order.] 507[35. ***] 508[35A. ***] 509[36. ***]
Any person summoned under sub-section (1) shall be bound to attend either in person or by an authorised agent, as the officer of 4[Inland Revenue] may direct; Provided that a person who is exempted from personal appearance in a court under section 132 and 133 of the Code of Civil Procedure (Act V of 1908), shall not be required to appear in person. 503
504 Substituted for “additional tax” by Finance Act, 2005 505 Substituted for “Central Board of revenue” by Finance Act, 2007 506 Substituted for “additional tax” by Finance Act, 2005 507
508
509
510 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
Any inquiry before an officer of 511[Inland Revenue] shall be deemed to be a judicial proceeding within the meaning of section 193 and 512[228] of the Pakistan Penal Code (Act XLV of 1860). 513[37A. Power to arrest and prosecute.-- (1) An officer of 514[Inland Revenue not below the rank of an Assistant Commissioner of Inland Revenue] or any other officer of equal rank authorised by the 515[Board] in this behalf, who on the basis of material evidence has reason to believe that any person has committed a tax fraud 516[or any offence warranting prosecution under this Act] 517[…], 518[may cause arrest of such person.]
All arrests made under this Act shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (Act V of 1898). 519[(3) ***]
Notwithstanding anything contained in sub-section (1) to subsection (3) or any other provision of this Act, where any person has committed a tax fraud 520[or any offence warranting prosecution under this Act], the 521[Commissioner] may, either before or after the institution of any proceedings for recovery of tax, compound the offence if such person pays the amount of tax due along with such 522[default surcharge] and penalty as is determined under the provisions of this Act.
Where the person suspected of tax fraud 523[or any offence warranting prosecution under this Act] is a company, every director or 511 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 512 Substituted for the figure “223” by Finance Act, 1994 513
514 Substituted for “sales tax”, not below the rank of an Assistant Collector of Sales tax by Finance Act, 2010 w.e.f June 5, 2010, the same amendment was made by Finance (amendment) Ordinance, 2010, promulgated as Ordinance No.III of 2010, dated February 6, 2010, published in the Official Gazette of Pakistan Extraordinary part I at pages 23 to 53. 515 Substituted for “Central Board of Revenue” by Finance Act, 2007 516 Words inserted by Finance Act, 2007. 517 Words “in respect of a supply or supplies made by him” omitted by Finance Act, 2007. 518 Substituted for the words “may arrest such person” by Finance Act, 2003 519 Sub-section (3) omitted by Finance Act, 2005. 520 Words inserted by Finance Act, 2007. 521 Substituted for “Collector” by Finance Act, 2010 w.e.f. june5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 522 Substituted for “additional tax” by Finance Act, 2005 523 Words inserted by Finance Act, 2007. officer of that company whom the authorised officer has reason to believe is personally responsible for actions of the company contributing the tax fraud 524[or any offence warranting prosecution under this Act] shall be liable to arrest; provided that any arrest under this sub-section shall not absolve the company from the liabilities of payment of tax, 525[default surcharge] and penalty imposed under this Act.] 526[37B. Procedure to be followed on arrest of a person.-- (1) When 527[an officer of Inland Revenue] authorized in this behalf arrests a person under Section 37A, he shall immediately intimate the fact of the arrest of that person to the Special Judge who may direct such Officer to produce that person at considers such time and place and on such date as the Special Judge considers expedient and such Officer shall act accordingly.
Notwithstanding anything contained in the sub-section (1), any person arrested under this Act shall be produced before the Special Judge or, if there is no Special Judge within a reasonable distance, to the nearest Judicial Magistrate, within twenty-four hours of such arrest, excluding the time necessary for the journey from the place of arrest to the Court of the Special Judge or, as the case may be, of such Magistrate.
When any person is produced under sub-section (2) before the Special Judge, he may, on the request of such person, after perusing the record, if any and after giving the prosecution an opportunity of being heard, admit him to bail on his executing a bond, with or without sureties, or refuse to admit him to bail and direct his detention at such place as he deems fit: Provided that nothing herein contained shall preclude the Special Judge from cancelling the bail of any such person at a subsequent stage if, for any reason, he considers such cancellation necessary, but before passing such order he shall afford such person an opportunity of being heard, unless for reasons to be recorded he considered that the affording of such opportunity shall defeat the purposes of this Act.
When such person is produced under sub-section (2) before a Judicial Magistrate, such Magistrate may, after authorising his detention in 524 Words inserted by Finance Act, 2007. 525 Substituted for “additional tax” by Finance Act, 2005 526
527 Substituted for the words “the Sales Tax Officer” through Finance Act, 2019. such custody at such place and for such period as he considers necessary or proper for facilitating his earliest production before the Special Judge, direct his production before the Special Judge on a date and time to be fixed by him or direct such person to be forthwith taken to, and produced before, the Special Judge and he shall be so taken.
Nothing in sub-section (3) or sub-section (4) shall preclude the Special Judge or the Judicial Magistrate from remanding any such person to the custody of 528[an officer of Inland Revenue] holding inquiry against that person if such officer makes a request in writing to that effect, and the Special Judge or the Judicial Magistrate, after perusing the record, if any, and hearing such person, is of the opinion that for the completion of inquiry or investigation it is necessary to make such order: Provided that in no case the period of such custody shall exceed fourteen days.
When any person is arrested under this Act, 529[an officer of Inland Revenue] shall record the fact of arrest and other relevant particulars in the register specified in sub-section (10) and shall immediately proceed to inquire into the charge against such person and if he completes the inquiry within twenty-four hours of his arrest, excluding the time necessary for journey as aforesaid, he may, after producing such person before the Special Judge or the nearest Judicial Magistrate, make a request for his further detention in his custody.
While holding an inquiry under sub-section (6), 530[an officer of Inland Revenue] shall exercise the same powers as are exercisable by an officer in charge of a police station under the Code of Criminal Procedure, 1898 (Act V of 1898), but such officer shall exercise such powers subject to the foregoing provisions of this section while holding an inquiry under this Act.
If 531[an officer of Inland Revenue], after holding an inquiry as aforesaid, is of the opinion that there is no sufficient evidence or reasonable ground for suspicion against such person, he shall release him on his 528 Substituted for the words “the Sales Tax Officer” through Finance Act, 2019. 529 Substituted for the words “the Sales Tax Officer” through Finance Act, 2019. 530 Substituted for the words “the Sales Tax Officer” through Finance Act, 2019. 531 Substituted for the words “the Sales Tax Officer” through Finance Act, 2019. executing a bond, with or without sureties, and shall direct such person to appear, as and when required, before the Special Judge, and make a report to the Special Judge for the discharge of such person and shall make a full report of the case to his immediate superior.
The Special Judge to whom a report has been made under sub- section, (8) may, after the perusal of record of the inquiry, and hearing the prosecution, agree with such report and discharge the accused or, if he is of the opinion that there is sufficient ground for proceedings against such person, proceed with his trial and direct the prosecution to produce evidence.
532[An officer of Inland Revenue] empowered to hold inquiry under this section shall maintain a register to be called "Register of Arrests and Detentions" in the prescribed form in which he shall enter the name and other particulars of every person arrested under this Act, together with the time and date of arrest, the details of the information received, the details of things, goods or documents, recovered from his custody, the name of the witnesses and the explanation, if any, given by him and the manner in which the inquiry has been conducted from day to day; and, such register or authenticated copies of its aforesaid entries shall be produced before the Special Judge, whenever such Officer is so directed by him.
After completing the inquiry, 533[an officer of Inland Revenue] shall, as early as possible, submit to Special Judge a complaint in the same form and manner in which the officer incharge of a police station submits a report, before a court.
Magistrate of the first class may record any statement or confession during inquiry under this Act, in accordance with the provisions of Section 164 of the Code of Criminal Procedure, 1898 (Act V of 1898).
Without prejudice to the foregoing provisions of this section, 534[Board, with the approval of the Federal Minister-in-charge,] may, by notification in the official Gazette, authorize any other officer working under the 535[Board] to exercise the powers and perform the functions of 532 Substituted for the words “the Sales Tax Officer” through Finance Act, 2019. 533 Substituted for the words “the Sales Tax Officer” through Finance Act, 2019. 534 The expression substituted for the words “Federal Government” through Finance Act, 2019. 535 Substituted for “Central Board of Revenue” by Finance Act, 2007 536[an officer of Inland Revenue] under this section, subject to such conditions, if any, that it may deem fit to impose.] 537[37C. Special Judges.– (1) The Federal Government may by notification in the official Gazette, appoint as many Special Judges as it considers necessary and, where it appoints more than one Special Judge, it shall specify in the notification the headquarter of each Special Judge and the territorial limits within which he shall exercise jurisdiction under this Act.
No person shall be appointed as a Special Judge unless he is or has been a Sessions Judge.] (a) Upon a report in writing made by an officer of Inland Revenue or by any other officer especially authorized in this behalf by the Federal Government; or (b) Upon receiving a complaint or information of facts constituting such offence made or communicated by any person; or (c) Upon his own knowledge acquired during any proceeding before him under this act or under any other law for the time being in force.
Upon the receipt of report under clause (a) of sub-section (1), the Special Judge shall proceed with trial of the accused.
Upon the receipt of a complaint or information under clause (b), or acquired in the manner referred to in clause (c) of sub-section (1), the Special Judge may, before issuing a summon or warrant for appearance of the person complained against, hold a preliminary inquiry for the purpose of ascertaining the truth or falsehood of the complaint, or direct any 536 Substituted for the words “the Sales Tax Officer” through Finance Act, 2019. 537
538
magistrate or any officer of Inland Revenue or any police officer to hold such inquiry and submit a report, and such Magistrate or officer shall conduct such inquiry and make report accordingly.
If, after conducting such inquiry or after considering the report of such Magistrate or officer, the Special Judge is of the opinion that– – (a) there is no sufficient ground for proceeding, he may dismiss the complaint, or (b) there is sufficient ground for proceeding, he may proceed against the person complained against in accordance with law.
A special Judge or a Magistrate or an officer holding inquiry under sub-section (3) may hold such inquiry, as early as possible, in accordance with the provision of section 202 of the Code of Criminal Procedure, 1898 (Act V of 1898). (a) no court other than the Special Judge having jurisdiction, shall try an offence punishable under this Act; (b) no other court or officer, except in the manner and to the extent specifically provided for in this Act, shall exercise any power, or perform any function under this Act; (c) no court, other than the High Court, shall entertain, hear or decide any application, petition or appeal under chapters XXXI and XXXII of the Code of Criminal Procedure, 1898 (Act V of 1898), against or in respect of any order or direction made under this Act; and (d) no court, other than the Special Judge or the High Court, shall entertain any application or petition or pass any order or give any direction under chapters XXXVII, XXXIX, XLIV or XLV of the aforesaid Code.]
The provision of the Code of Criminal procedure, 1898 (Act V of 1898), so far as they are not inconsistent with the provisions of this Act, shall apply to the proceedings of the court of a Special Judge and such court shall be deemed to be a court of Sessions for the purpose of the said Code and the provisions of Chapter XXIIA of the foresaid Code, so far as applicable and with the necessary modifications, shall apply to the trial of cases by the Special Judge under this Act.
For the purposes of sub-section (1), the Code of Criminal Procedure, 1898 (Act V of 1898), shall have effect as if an offence punishable under this Act were one of the offences referred to in sub-section
of section 337 of the said Code.
In respect of a case transferred to a Special Judge under sub- section (1), such Special Judge shall not by reason of the said transfer, be bound to recall and rehear any witness whose evidence has been recorded in the case before the transfer and may act upon the evidence already recorded or produced before the court which tried the case before the transfer.] by the Board, aggrieved by any order passed or decision made by a Special Judge under this Act or under the Code of Criminal Procedure, 1898 (Act V of 1898), may, subject to the provisions of Chapters XXXI and XXXII of the said Code, within Sixty days from the date of the order or decision, prefer an appeal to the High Court.
Except as otherwise provided in sub-section (1), the provisions of the Limitation Act, 1908 (IX of 1908), shall apply to an appeal preferred under sub-section (1).] 539[38. Authorised officers to have access to premises, stocks, accounts and records – (1) Any officer authorised in this behalf by the Board 540[or the Commissioner 541[***]] shall have free access 542[including real-time electronic access] to business or manufacturing premises, registered office or any other place where any stocks, business records or documents required under this Act are kept or maintained belonging to any registered person or a person liable for registration or whose business activities are covered under this Act or who may be required for any inquiry or investigation in any tax fraud committed by him or his agent or any other person; and such officer may, at any time, inspect the goods, stocks, records, data, documents, correspondence, accounts and statements, utility bills, bank statements, information regarding nature and sources of funds or assets with which his business is financed, and any other records or documents, including those which are required under any of the Federal, Provincial or local laws maintained in any form or mode and may take into his custody such records, statements, diskettes, documents or any part thereof, in original or copies thereof in such form as the authorised officer may deem fit against a signed receipt.
The registered person, his agent or any other person specified in sub-section (1) shall be bound to answer any question or furnish such information or explanation as may be asked by the authorised officer.
The department of' direct and indirect taxes or any other Government department, local bodies, autonomous bodies, corporations or 539
540 Words inserted by Finance Act, 2010 w.e.f. June 5, 2010. 541 The words “or the Collector” were omitted by Finance Act, 2009. 542 Words inserted by Finance Act, 2020. such other institutions shall supply requisite information and render necessary assistance to the authorised officer in the course of inquiry or investigation under this section.] 543[(4) For the purpose of sub-section (1), the Board may make rules relating to electronic real-time access for audit or a survey of persons liable to tax.] 544[38A. Power to call for information.— The 545[Commissioner] may, by notice in writing, require any person, including a banking company, to furnish such information or such statement in connection with any investigation or inquiry in cases of tax fraud, as may be specified in such notice 546[:]] 547[Provided that the 548[Commissioner] may require any regulatory authority to provide information concerning the licenses and authorizations issued by it.] 549[38B. Obligation to produce documents and provide information.– (1) Notwithstanding anything contained in this Act or any other law for the time being in force, any person required to maintain the record under the Act, on demand by an officer, not below the rank of 550[an Assistant] 551[Commissioner Inland Revenue] , by notice in writing, as and when specified in the notice, shall,– (a) produce for examination, such documents or records which the officer of 552[Inland Revenue] considers necessary or relevant to the audit, inquiry or investigation under the Act; (b) allow the officer of 553[Inland Revenue] to take extracts from or copies of such documents or records; and 543 New sub-section (4) inserted by Finance Act, 2020. 544
545 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 546 Substituted for full stop by Finance Act, 2007 547 Proviso inserted by Finance Act, 2007. 548 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010 549
550 Substituted for “a Deputy” by Finance Act, 2011 551 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 552 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 553 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 (c) appear before the officer of 554[Inland Revenue] and answer any question put to him concerning the documents and records relating to the audit or inquiry or investigation referred to in clause (a) above.
An officer of 555[Inland Revenue] conducting an audit, inquiry or, as the case may be, an investigation under the Act, may require in writing any person, department, company or organization to furnish such information as is held by that person, department, company or organization, which, in the opinion of the officer of 556[Inland Revenue], is relevant to such audit, inquiry or investigation.
The Board may require, in writing, any person, department, company or organization, as the case may be, to provide any information or data held by that person, department, company or organization, which, in the opinion of the Board, is required for purposes of formulation of policy or administering the Customs, Sales Tax, Federal Excise or Income Tax.
Every person, department, company or organization shall furnish the information requisitioned by the Board or the officer of Sales Tax under sub-section (2) or (3), within the time specified in the notice issued by the Board or, as the case may be, the officer of 557[Inland Revenue].] 558[39. ***] 559[40. Searches under warrant.– (1) Where any officer of 560[Inland Revenue] has reason to believe that any documents or things which in his opinion, may be useful for, or relevant to, any proceedings under this Act 554 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 555 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 556 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 557 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 558
559
560 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 are kept in any place, he may after obtaining a warrant from the magistrate, enter that place and cause a search to be made at any time.
The search made 561[in his presence] under sub-section (1) shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (V of 1898).] 562[40A. ***] 563[40B. Posting of 568[40C. Monitoring or Tracking by Electronic or other means.– (1) Subject to such conditions, restrictions, and procedures, as it may being fit to impose or specified, the Board may, by notification in the official Gazette, specify any registered person or class of registered persons or any good or class of goods in respect of which monitoring or tracking of production, sales, clearances, stocks or any other related activity may be implemented through electronic or other means as may be prescribed
From such date as may be prescribed by the Board, no taxable goods shall be removed or sold by the manufacturer or any other person without affixing tax stamp, band role stickers, labels, 569[barcodes,] etc. in any such form, style and manner as may be prescribed by the Board in this behalf.] 570[(3) Such tax stamps, banderols, stickers, labels, barcodes etc., shall be acquired by the registered person referred to in sub-section (2) from a licensee appointed by the Board for the purpose, against price approved by 561 The word and comma, inserted by the Finance Act, 2005 562
563
564 Substituted for “Central Board of revenue” by Finance Act, 2007 565 Words “or Chief Commissioner” omitted by Finance Act, 2018. 566 Colon omitted and full stop inserted by Finance Act, 2018. 567 Proviso and explanation omitted by Finance Act, 2018. 568
569 Word and comma inserted by Finance Act, 2015 570 Sub-section (3) added by Finance Act, 2015. the Board, which shall include the cost of equipment installed by such licensee in the premises of the said registered person.] 571[40D. Provisions relating to goods supplied from tax-exempt areas.-(1) The conveyance carrying goods supplied from the tax exempt areas, shall be accompanied by such documents in respect of the goods carried as may be prescribed under rules.
The Regional Tax Office having jurisdiction may establish check-posts on the routes originating from tax-exempt areas for the purpose of examining the goods carried and the documents related thereto, An officer not below the rank of Inspector, Inland Revenue, as authorized by the Commissioner, Inland Revenue, and assigned to such check-posts, may stop vehicle on such routes as coming from tax-exempt areas and examine documents for ascertaining their validity and conformity to the goods carried.
In the absence of the prescribed documents or any discrepancy in such documents, the goods so carried shall be seized along with the vehicle carrying the goods by the officer as aforesaid under proper acknowledgment.
The notices to the owner of the goods and the vehicle to show cause against imposition of penalty shall be issued within fifteen days of the seizure as aforesaid.
For the purposes of this section, the expression “tax-exempt areas” means Azad Jammu and Kashmir, Gilgit-Baltistan, 572[Border Sustenance Markets and] Tribal Areas as defined in Article 246 of the Constitution of the Islamic Republic of Pakistan and such other areas as may be prescribed.”;] 571 New Section “40D” inserted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020. 572 Expression inserted by Finance Act, 2021. 573 New section 40E inserted by Finance Act, 2021. stock keeping unit (SKU) in such manner as may be prescribed by the Board.
Any specified brand and SKU found to be sold without obtaining a licence from the Board shall be deemed counterfeit goods and liable to outright confiscation and destruction in the prescribed manner and such destruction and confiscation shall be without prejudice to any other penal action which may be taken under this Act.] 574[41. ***
575[APPEALS] 576[43. *** (a) an appeal to the Commissioner (Appeals) shall lie where the value of assessment of tax or, as the case may be, refund of tax does not exceed ten million rupees; or (b) an appeal to the Appellate Tribunal Inland Revenue shall lie where the value of assessment of tax or, as the case may be, refund of tax exceeds ten million rupees.
A person or, as the case may be, officer of Inland Revenue aggrieved by an order of the Commissioner (Appeals) in cases under clause (a) of sub-section (1) may file a reference before the High Court in 574 Sections 41 and 42 omitted by Finance Act, 1996 575 Heading of chapter Adjudication substituted for cases by finance act 1996 576 Sections 43 and 44 omitted by Finance Act, 1996 577 New section 43A added through Tax Laws (Amendment) Act, 2024. accordance with section 133 of the Income Tax Ordinance, 2001(XLIX of 2001).
A person or, as the case may be, officer of Inland Revenue aggrieved by an order of the Appellate Tribunal in cases under clause (b) of sub-section (1) may file a reference before the High Court in accordance with section 133 of the Income Tax Ordinance, 2001 (XLIX of 2001).
The cases pending before the Commissioner (Appeals) having the value of assessment of tax or, as the case may be, refund of tax exceeding ten million rupees shall on and from the 16th day of June, 2024 stand transferred to the Appellate Tribunal Inland Revenue.
All cases transferred from the Commissioner (Appeals) to the Appellate Tribunal under sub-section (4) shall be decided by the Appellate Tribunal within the period provided for under section 132 of the Income Tax Ordinance, 2001 (XLIX of 2001) which period shall commence from the 16th day of June, 2024.] 578[45. ***] 579[45A. Power of the Board 580[and 581[Commissioner]] to call for records.-- (1) The Board may, of its own motion 582[, or otherwise] call for and examine the record of any departmental proceedings under this Act or the rules made there under for the purpose of satisfying itself as to the legality or propriety of any decision or order passed therein by an Officer of 583[Inland Revenue], it may pass such order as it may think fit: Provided that no order imposing or enhancing any penalty or fine requiring payment of a greater amount of [Sales Tax] than the originally 578
579
580 Substituted for “Collector and Collector (Adjudication)” by Finance Act, 2005. Earlier these were substituted for “and Collector” by Finance Act, 2003. 581 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 05, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extra Ordinary Part I at pages 229 to 259. 582 Words inserted by Finance Act, 2015. 583 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 levied shall be passed unless the person affected by such order has been given an opportunity of showing cause and of being heard.
No proceeding under 584[this section] shall be initiated in a case where an appeal under Section 585[45B] or Section 46 is pending.
No order shall be made under this Section after the expiry of 586[five] years from the date of original decision or order of the sub-ordinate officer referred to in sub-section (1). 587[(4) The 588[Commissioner] may, suo moto, call for and examine the record of any proceeding under this Act or the rules made thereunder for the purpose of satisfying himself as to the legality or propriety of any decision or order passed by an officer of 589[Inland Revenue] subordinate to him, and pass such order as he may deem fit.]] 590[45B. Appeals.– 591[(1) Any person, other than the Sales Tax Department, aggrieved by any decision or order passed under sections 10, 11, 25, 36, or 66, by an officer of Inland Revenue may, within thirty days of the date of receipt of such decision or order, 592[if the value of the assessment or, as the case may be, refund of the tax does not exceed ten million rupees] prefer appeal to the Commissioner Inland Revenue (Appeals): Provided that an appeal preferred after the expiry of thirty days may be admitted by the Commissioner Inland Revenue (Appeals) if he is satisfied that the appellant has sufficient cause for not preferring the appeal within the specified period 593[.] 584 Substituted for “sub-section (1)” by Finance Act, 2008 585 Substituted for the figure “45” by Finance Ordinance, 2002 586 Substituted for “three” by Finance Ordinance, 2000 587 Sub-section (4) substituted by Finance Act, 2005 588 Substituted for the word “Collector” by Finance Act, 2010 589 Substituted for the words “Sales Tax” by Finance, Act, 2010 590 Section 45B inserted by Finance Ordinance, 2002 591Subsection (1) Substituted by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 592 Expression inserted by Tax Laws (Amendment) Act, 2024. 593 For the colon a full stop substituted and second proviso omitted by Finance Act, 2020. 9[****] 594[(1A) An appeal under sub-section (1) shall– (a) be in the prescribed form; (b) be verified in the prescribed manner; (c) state precisely the grounds upon which the appeal is made; (d) be accompanied by the prescribed fee specified in sub-section (1B); and (e) be lodged with the Commissioner (Appeals) within the time set out in sub-section (1). [(1B) The prescribed fee shall be– (a) in the case of an appeal against an assessment– (i) where the appellant is a company, five thousand rupees; or (ii) where the appellant is not a company, two thousand and five hundred rupees; and (b) in any other case– (i) where appellant is a company, five thousand rupees; or (ii) where the appellant is not a company, one thousand rupees.] 595[596[(1C) Where in a particular case, the Commissioner (Appeals) is of the opinion recovery of tax levied under this act, shall cause undue hardship to the taxpayer, he, after affording opportunity of being heard to the commissioner or officer of Inland revenue against whose orders appeal has been made, may stay the recovery of such tax for a period not exceeding thirty days in aggregate.]
The 597[Commissioner Inland Revenue] (Appeals) may, after giving both parties to the appeal an opportunity of being heard, pass such 594 New sub-sections (1A and 1B) inserted by Finance Act, 2020. 595 Existing sub-section (1A) re-numbered as (1C) by Finance Act, 2020. 596 Inserted through Finance Act, 2013 597 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated order as he thinks fit, confirming, varying, altering, setting aside or annulling the decision or order appealed against 598[:] 599[Provided that such order shall be passed not later than 600[one hundred and twenty] days from the date of filing of appeal or within such extended period as the 601[Commissioner] (Appeals) may, for reasons to be recorded in writing fix: Provided further that such extended period shall, in no case, exceed 602[sixty] days 603[:]] 604[Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or the time taken through adjournment by the petitioner not exceeding thirty days shall be excluded from the computation of aforesaid periods.]
In deciding an appeal, the 1[Commissioner of Inland Revenue] (Appeals) may make such further inquiry as may be necessary provided that he shall not remand the case for de novo consideration. 605[(4) ***] 606[(5) The Commissioner (Appeals) shall not admit any documentary material or evidence which was not produced before the Officer Inland Revenue unless the Commissioner (Appeals) is satisfied that the appellant was prevented by sufficient cause from producing such material or evidence before the Officer Inland Revenue.] as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 598 Colon inserted through Finance, Act, 2005 599 Two provisos inserted by Finance Act, 2005 600 Substituted for “ninety” by Finance Act, 2008. 601 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 05, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan 602 Substituted for “one hundred and twenty” by Finance Act, 2009, earlier it was substituted for “ninety” by Finance Act, 2008. 603 Substituted for full stop by Finance Act, 2009 604 Proviso inserted by Finance Act, 2009 605 Sub-section (4) omitted y Finance Act, 2006. 606 New sub-section (5) inserted by Finance Act, 2020. 607[(1) Subject to section 43A, any person, other than an SOE, aggrieved by any order passed by an officer of Inland Revenue, or the Board or Commissioner (Appeals) under this Act or the rules made there under may, within thirty days of the receipt of such order, prefer an appeal to the Appellate Tribunal or, as the case may be, a reference to the High Court: Provided that where sub-section (11) of section 134A of Income Tax Ordinance, 2001 (XLIX of 2001) shall apply, an SOE may prefer an appeal under this sub-section.] 608[(2) The Appellate Tribunal may admit, hear and dispose of the appeal as per procedure laid down in sections 609[131 and 132 of the Income tax Ordinance, 2001(XLIX of 2001, and rules made thereunder.] 610[ 611(2A)*** ] 612[(3) *** *** *** *** *** *** ***] 613 607 Sub-section (1) substituted by Tax Laws (Amendment) Act, 2024. 608 Sub-Section (2) substituted by Finance Act, 2009. 609 Substituted for “194A, 194B and 194C of the customs Act, 1969 (IV of 1969)” by Finance Act, 2010. 610 Sub Section (2A) inserted by Finance Act w.e.f. June 5, 2010. 611 Sub-section (2A) omitted by Tax Laws (Amendment) Act, 2024. 612 Sub-sections (3), (4), (5), (6), (7), (8) and (9) omitted by Finance Act, 2009. 613 Section 47 substituted by Tax Laws (Amendment) Act, 2024. the case and complete record of the Appellate Tribunal or, as the case may be, Commissioner (Appeals) to the High Court, stating any question of law or a mixed question of law and fact arising out of such order.
Provisions of section 133 of the Income Tax Ordinance, 2001 (XLIX of 2001) and rules made thereunder relating to a reference to the High Court shall, mutatis mutandis, apply to references to the High Court under this Act.] 614[47A. Alternative dispute resolution.- (1) Notwithstanding any other provision of this Act, or the rules made thereunder, an aggrieved person in connection with any dispute pertaining to- may apply, except where criminal proceedings have been initiated, to the Board for the appointment of a committee for the resolution of any hardship or dispute mentioned in detail in the application: Provided that where the aggrieved person is a state-owned enterprise (SOE), the limit of tax liability of fifty million rupees or above mentioned in clause (a) shall not apply and it shall be mandatory for such aggrieved SOE to apply to the Board for the appointment of a committee for the resolution of any dispute under this section: Provided further that no suit, prosecution, or other legal proceedings shall lie against the SOE in relation to the dispute resolved under this section. Explanation.- State-owned enterprise shall have the same, meaning as assigned thereto in the State-Owned Enterprises (Governance and Operations) Act, 2023 (VII of 2023). 614 Section 47A substituted by Tax Laws (Amendment) Act, 2024.
Provisions of section 134A of the Income Tax Ordinance, 2001 (XLIX of 2001) and rules made thereunder relating to alternative dispute resolution shall, mutatis mutandis, apply to applications for alternative dispute resolution under this Act.]
(1A), where] any amount of tax 616[...] is due from any person, the officer of 617[Inland Revenue] may:- (a) deduct the amount from any money owing to person from whom such amount is recoverable and which may be at the disposal or in the control of such officer or any officer of Income Tax, Customs or Central Excise Department; (b) require by a notice in writing any person who holds or may subsequently hold any money for or on account of the person from whom tax may be recoverable to pay to such officer the amount specified in the notice; (c) stop removal of any goods from the business premises of such person till such time the amount of tax is paid or recovered in full; 618[(ca) require by a notice in writing any person to stop clearance of imported goods or manufactured goods or attach bank accounts;] (d) seal the business premises till such time the amount of tax is paid or- recovered in full; 615 Words etc. “levied, penalty imposed or demand raised under any bond or other instrument executed under this Act” omitted by Finance Ordinance, 2002. 616 Substituted for “where” by Finance Act, 2007 617 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 618 Clause (ca) inserted by Finance Act, 1999. (e) attach and sell or sell without attachment any movable or immovable property of the registered person from whom tax is due 619[; and] (f) 620[...] recover such amount by attachment and sale of any moveable or- immovable property of the guarantor, person, company, bank or financial institution, where a guarantor or any other person, company, bank or financial institution fails to make payment under such guarantee, bond or instrument 621 [:] Provided that the Commissioner Inland Revenue or any officer of Inland Revenue shall not issue notice under this section or the rules made thereunder for recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal under section 45B 622[or, as the case may be, section 46] in respect of the order under which the tax sought to be recovered has become payable and the appeal has not been decided by the Commissioner (Appeals), subject to the condition that 623[ten] per cent of the amount of tax due has been paid by the taxpayer.] 624[(1A) If any arrears of tax, default surcharge, penalty or any other amount which is adjudged or payable by any person and which cannot be recovered in the manner prescribed above, the Board or any officer authorized by the Board, may, write off the arrears in the manner as may be prescribed by the Board.]
For the purpose of recovery of tax, penalty or any other demand raised under this Act, the officer of 625[Inland Revenue] shall have the same powers which under the Code of Civil Procedure 1908 (V of 1908), a Civil Court has for the purpose of recovery of an amount due under a decree. 619 Semi-colon and the word “’ and” at the end of clause (e) and thereafter clause (f) inserted by Finance Act, 1997. Earlier it was omitted by Finance Act, 1996. Originally it was inserted by Finance Act, 1994. 620 Word “may” omitted by Finance Act, 2007. 621 For the full stop a colon substituted and thereafter proviso added through Finance Act, 2017 622 Expression inserted by Tax Laws (Amendment) Act, 2024. 623 Word ten substituted by Finance Act, 2018. 624 Sub-section (1A) inserted by Finance Act, 2007. 625 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 626[(3) The provision of sub-sections (1) and (2) shall mutatis mutandis apply regarding assistance in collection and recovery of taxes in pursuance of a request from a foreign jurisdiction under a tax treaty, bilateral or a multilateral convention, and inter-governmental agreement or similar agreement or mechanism.]
627[49. Sales of taxable activity or transfer of ownership.--(1) In case of termination of taxable activity or part thereof or its sale or transfer of ownership to a non-registered person, the possession of taxable goods or part thereof by the registered person shall be deemed to be a taxable supply and the registered person shall be required to account for and pay the tax on the taxable goods held by him: Provided that if the tax payable by such registered person remains unpaid, the amount of unpaid tax shall be the first charge on the assets of the business and shall be payable by the transferee of business. 628[(2) In the case of sale or transfer of ownership of a taxable activity or part thereof to another registered person as an ongoing concern, the taxable goods or part thereof shall be transferred to the new owner through a zero-rated invoice and the sales tax chargeable thereon shall be accounted for and paid by the registered person to whom such taxable activity or part thereof is transferred.] 629[49A. Liquidators. – (1) Every person (hereinafter referred to as a “liquidator”) who is – (a) a liquidator of a company; (b) a receiver appointed by a Court or appointed out of Court; 626 New sub-section inserted by Finance Act, 2021. 627
628 Sub-section (2) substituted through Finance Act, 2016. 629
(c) a trustee for a bankrupt; or (d) a mortgagee in possession; shall, within fourteen days of being appointed or taking possession of an asset in Pakistan, whichever occurs first, give written notice thereof to the 630[Commissioner]. (2) The 4[commissioner] shall, within three months of being notified under sub-section (1), notify the liquidator, in writing, of the amount which appears to the 1[Commissioner] to be sufficient to provide for any sales tax which is or will become payable by the person whose assets are in the possession of the liquidator.
A liquidator shall not, without leave of the 1[Commissioner]. Part with any asset held as liquidator until the liquidator has been notified under sub-section (2).
A liquidator: – (a) shall set aside, out of the proceeds of sale of any asset by the liquidator, the amount notified by the 1[Commissioner] under sub-section (2), or such amount as is subsequently agreed to by the 1[Commissioner]: and (b) shall be liable to the extent of the amount set aside for the Sales tax liability of the person who owned the asset.
A liquidator shall be personally liable to the extent of any amount required to be set-aside under sub-section (4) for the tax referred to in sub-section (2) if, and to the extent that, the liquidator fails to comply with the requirements of this section.
Where the proceeds of sale of any asset are less than the amount notified by the 631[Commissioner] under sub-section (2), the application of sub-sections (4) and (5) shall be limited to the proceeds of sale. 630 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 631 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
This section shall have effect notwithstanding anything contained in any other law for the time being in force.] 634[(2) All rules made under sub-section (1) or any other provisions of this Act, shall be collected, arranged and published along with general orders and departmental instructions and rulings, if any, at appropriate intervals and sold to the public at reasonable price 635[or may be placed regularly on the official website maintained by the Board.] 636[50A. Computerized system.– (1) The Board may prescribe the use of computerized system for carrying out the purposes of this Act, including the receipt of applications for registration, returns and such other declarations or information required to be provided under this Act and the rules made thereunder, from such date and for such registered persons or class of persons as the Board may, by notification in the official Gazette, specify.
The Board may make rules for regulating the conduct and transaction of business in relation to the submission of returns or other information to the Board by the persons required to transmit or receive any information through the computerized system, including 637[matters such as grant of] authorization, suspension and cancellation of authorization and for security of the information transmitted or received through the computerized system.] 638[(3) Unless otherwise proved, the information received in the computerized system from or on behalf of any registered person shall, for all official and legal purposes, be deemed to have been furnished by and received from such registered person. 632 Brackets and figure inserted by Finance Act, 2008. 633 Comma and words inserted by Finance Act, 1994 634 Sub-section (2) inserted by Finance Act, 2008. 635 Words inserted by Finance Act, 2021. 636
637 Substituted for “their” by Finance Act, 2007 638 Sub-section (3) and (4) inserted by Finance Act, 2007.
The business information gathered through computerized system shall be confidential to be used only for official and legal purposes and no unauthorized person shall claim for any access to such information.] 639[50B. Electronic scrutiny and intimation.-- (1) The Board may implement a computerized system for the purpose of automated scrutiny, analysis and cross-matching of returns and other available data relating to registered persons and to electronically send intimations to such registered persons about any issue detected by the system.
The intimation sent by the computerized system under sub- section (1) shall be in the nature of an advice or advance notice, aimed at allowing the registered person to clarify the issue, rectify any mistake or take other corrective action before any legal or penal action is initiated.
The computerized system shall be so implemented so as to keep record of the issues detected, intimations sent, responses received and actions taken, and to present such information to the officer of Inland Revenue and to the Board in the prescribed manner.
The Board may prescribe procedures and specifications for the smooth and efficient operation of the computerised system.]
No suit, prosecution or other legal proceeding shall lie against the Federal Government or against any public servant in respect of any order passed in good faith under this Act. 640[(3) Notwithstanding anything in any other law for the time being in force, no investigation or inquiry shall be undertaken or initiated by any governmental agency against any officer or official for anything done in his official capacity under this Act, rules, instructions or direction made or issued thereunder without the prior approval of the Board.] 639
640 Sub section (3) inserted by Finance Act, 2004. 643[52A. e-intermediaries to be appointed.– (1) Subject to such conditions, limitations and restrictions, the Board may, by a notification in the official Gazette, appoint a person to electronically file return under Chapter V and such other documents electronically, as may be prescribed from time to time, on behalf of a person registered under section 14.
A person registered under section 14 may authorize an e- intermediary to electronically file return or any other documents, as specified in sub-section (1).
The return or such other documents filed by an e-intermediary on behalf of a registered person shall be deemed to have been filed by that registered person.
Where this Act requires anything to be done by the registered person and if such thing is done by an e-intermediary authorized by the registered person under sub-section (2), unless the contrary is proved, shall be deemed to have been done with the knowledge and consent of such registered person so that in any proceedings under this Act, the registered person shall be liable as if the thing has been done by him.
Where an e-intermediary, authorized by a registered person under sub-section (2) to act on his behalf, knowingly or wilfully submits a false or incorrect information or document or declaration with an intent to avoid payment of tax due or any part thereof or claiming a tax credit or a refund that is not due to the registered person, such e-intermediary shall be jointly and severally responsible for recovery of the amount of tax short paid or the amount refunded in excess as a result of such incorrect or false 641 Substituted for “Sales Tax Act” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 642 Words inserted by Sales Tax (Amendment) Ordinance, 2000, dated September 5, 2000 643
information or document or declaration, without prejudice to any other action that may be taken against him under the relevant provisions of the law.
The Board may, by notification in the official Gazette, prescribe rules for the conduct and transaction of business of e- intermediaries, including their appointment, suspension and cancellation of appointment, subject to such conditions as specified therein.]
If tax liability is incurred by an estate in bankruptcy, the tax is deemed to be a current expenditure in the operations of the estate in bankruptcy and shall be paid before the claims preferred by other creditors are settled. 644[55. Removal of difficulties.– If any difficulty arises in giving effect to the provisions of this Act or the rules made or notifications issued there under, the Board may through a general order or otherwise, issue instructions or directions, not inconsistent with the provisions of this Act, for such actions to be taken by an officer of Inland Revenue or any other person as it considers necessary or expedient for the purpose of removing the difficulty.] 645[56. Service of orders; decisions etc. – (1) subject to this Act , any notice, order or requisition required to be served on a resident individual, other than in a representative capacity for the purposes of this Act shall be treated as properly served on the individual if – (a) personally served on the individual or, in the case of an individual under a legal disability or a non-residents individual the representative of the individual; 644 Substituted vide Finance Ordinance, 2001 645
(b) sent by register post or courier service specified in clause (b) of sub-section (2) or to the individual’s usual or last known address in Pakistan; 646[..] (c) served on the individual in the manner prescribed for service of a summons under the code of civil procedure, 1908(Act V of 1908) 647[; or (d) sent electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal excise returns by the 648[registered person].]
Subject to this Act, any notice order or requisition required to be served on any person, other than a resident individual to whom sub- section (1)applies, for the purposes of this Act, shall be treated as properly served on person if – (a) personally served on the representative of the person; (b) sent by registered post or courier service to the person’s registered office or address for service of notices under this Act, in Pakistan or where the person does not have such office or address, the notice is sent by registered [Post to any office or place of business of the person in Pakistan; 649[..] (c) served on the Person in the manner prescribed for service of a summons under the code of civil procedure, 1908(Act V of 1908) 650[; or (d) sent electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal excise returns by the 3[registered person].]
Where an association of persons is dissolved, any notice, order or requisition required to be served under this Act, on the association or a 646 The words “or” omitted through Finance Act, 2017 647 Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017 648 The words substituted by Finance Act, 2020. 649 The words “or” omitted through Finance Act, 2017 650 Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017 member of the association may be served on any person who was the principal officer or a member of the association immediately before such dissolution.
Where, business stands discontinued, any notice, order or requisition required to be served under this Act, on the person discontinuing the business may be served on the person personally or on any individual who was the person’s representative at the time of discontinuance.
The validity of service of a notice under this Act shall not be called into question after the notice has been complied with in any manner.] 651[56A. Agreement for the exchange of information 653[(1A) Notwithstanding anything contained in this Act, the Board shall have power to share data or information including real time data videos, images received under the provisions of this Act with any other Ministry or Division of the Federal Government or Provincial Government, subject to such limitations and conditions an may be specified by the Board.]
The provisions of section 107 of the Income Tax Ordinance, 2001 (XLIX of 2001) shall, mutatis mutandis, apply to the provisions of this section. 654[(3) The Federal Government may enter into bilateral or multilateral convention, and inter-governmental agreement or similar agreement or mechanism for assistance in the recovery of taxes.] 651 Sections 56A, 56B and 56C added by Finance Act, 2015 652 Words inserted by Finance Act, 2021. 653 New sub-section (1A) inserted by Finance Act, 2021. 654 New sub-section (3) inserted by Finance Act, 2021. 655[56AB. Real-time access to information and databases.—(1) Notwithstanding anything contained in any law for the time being in force, including but not limited to the National Database and Registration Authority Ordinance, 2000 (Ordinance VIII of 2000), and the Emigration Ordinance, 1979 (Ordinance XVIII of 1979), arrangements shall be made to provide real-time access of information and database to the Board in the prescribed form and manner by– (a) the National Database and Registration Authority with respect to information pertaining to National Identity Card (NIC), Pakistan Origin Card, Overseas Identity Card, Alien Registration Card, and other particulars contained in the Citizen Database; (b) the Federal Investigation Agency and the Bureau of Emigration and Overseas Employment with respect to details of international travel; (c) the Islamabad Capital Territory and Provincial and local land record and development authorities with respect to record-of-rights including digitized edition of record-of- rights, periodic record, record of mutations and report of acquisition of rights; (d) the Islamabad Capital Territory and Provincial Excise and Taxation Departments with respect to information regarding registration of vehicles, transfer of ownership and other associated record; (e) all electricity suppliers and gas transmission and distribution companies with respect to particulars of a consumer, the units consumed and the amount of bill charged or paid: Provided that where the connection is shared or is used by a person other than the owner, the name and NIC of the owner and the user shall also be furnished: Provided further that all electricity suppliers and gas transmission and distribution companies shall make arrangements by the 1st day of January, 2021 for 655 New section 56AB inserted by Finance Act, 2020. allowing consumers to update the ratio of sharing of a connection or the particulars of users, as the case may be; and (f) any other agency, authority, institution or organization, notified by the Board.
The Board shall make arrangements for laying the infrastructure for real-time access to information and database under sub-section (1) and aligning it with its own database in the manner as may be prescribed.
Until real-time access to information and database is made available under sub-section (1), such information and data shall be provided periodically in such form and manner as may be prescribed.
Subject to section 56B, all information received under this section shall be used only for tax purposes and kept confidential.]
Notwithstanding anything contained in sub-section (1) and the Freedom of Information Ordinance, 2002 (XCVI of 2002), any information received or supplied in pursuance of bilateral or multilateral agreements with government of foreign countries for exchange of information under section 56A shall be confidential.] 657[(2) The Board may prescribe procedure for “mystery shopping” in respect of invoices issued by tier-1 retailers integrated with FBR online 656
657 Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021. system randomly and in case of any discrepancy, all the relevant provisions of this Act shall apply accordingly.] 658[57. Rectification of Mistake.– (1) The officer of Inland Revenue, Commissioner, the Commissioner (Appeals) or the Appellate Tribunal may, by an order in writing, amend any order passed by him to rectify any mistake apparent from the record on his or its own motion or any mistake brought to his or its notice by a taxpayer or, in the case of the Commissioner (Appeals) or the Appellate Tribunal, the Commissioner.
No order under sub section (1) which has the effect of increasing an assessment, reducing a refund or otherwise applying adversely to the taxpayer shall be made unless the taxpayer has been given a reasonable opportunity of being heard.
Where a mistake apparent on the record is brought to the notice of the officer of Inland Revenue, Commissioner or Commissioner (Appeals), as the case may be, and no order has been made under sub section (1), before the expiration of the Financial year next following the date on which the mistake was brought to their notice, the mistake shall be treated as rectified and all the provisions of this Act shall have effect accordingly.
No order under sub-section (1) shall be made after five years from the date of the order sought to be rectified.] 659[58. Liability for payment of tax in case of private companies or business enterprises.–(1) Notwithstanding anything contained in the Companies Act, 2017 (XIX of 2017), where any private company or business enterprise is wound up and any tax chargeable on the company or business enterprise, whether before, or in the course, or after its liquidation, in respect of any tax period cannot be recovered from the company or business enterprise, every person who was an owner of, or partner in, or director of, or a shareholder, owning not less than ten per cent of the paid- up capital, in the company or business enterprise, as the case may be, during the relevant period shall jointly and severally with such persons, be liable for the payment of such tax. 658
659
Any director or partner who pays tax under sub-section (1) shall be entitled to recover the tax paid from the company or a share of the tax from any other director or partner, as the case may be.
A shareholder who pays tax under sub-section (1) shall be entitled to recover the tax paid from the company or from any other shareholder, owning not less than ten percent of the paid up capital, in proportion to the shares owned by that other shareholder.”; and
The provisions of this Act shall apply to any amount due under this section as if it were tax due under an order for assessment made under this Act.] 660[58A. Representatives.– (1) For the purpose of this Act and subject to sub-sections (2) and (3), the expression “representative” in respect of a registered person, means: – (a) where the person is an individual under a legal disability, the guardian or manager who receives or is entitled to receive income on behalf, or for the benefit of the individual; (b) where the person is a company (other than a trust, a Provincial Government, or local authority in Pakistan), a director or a manager or secretary or agent or accountant or any similar officer of the company; (c) where the person is a trust declared by a duly executed instrument in writing whether testamentary or otherwise, any trustee of the trust; (d) where the person is a Provincial Government, or local authority in Pakistan, any individual responsible for accounting for the receipt and payment of money or funds on behalf of the Provincial Government or local authority; (e) where the person is an association of persons, a director or a manager or secretary or agent or accountant or any similar 660
officer of the association or, in the case of a firm, any partner in the firm; (f) where the person is the Federal Government, any individual responsible for accounting for the receipt and payment of moneys or funds on behalf of the Federal Government; or (g) where the person is a public international organization, or a foreign government or political sub-division of a foreign government, any individual responsible for accounting for the receipt and payment of moneys or funds in Pakistan on behalf of the organization, government, or political subdivision of the government.
Where the Court of Wards, the Administrator General, the Official Trustee, or any receiver or manager appointed by, or under, any order of a Court receives or is entitled to receive income on behalf, or for the benefit of any person, such Court of Wards, Administrator General, Official Trustee, receiver, or manager shall be the representative of the person for the purposes of this Act.
661[subject to sub-section (4), where a person is a non-resident person, the representative of the said person for the purpose of this Act, for a financial year in which the relevant tax period falls, shall be any person in Pakistan]: – – (a) who is employed by, or on behalf of, the non-resident person; (b) who has any business connection with the non-resident person; (c) from or through whom the non-resident person is in receipt of any income, whether directly or indirectly; (d) who holds, or controls the receipt or disposal of any money belonging to the non-resident person; (e) who is the trustee of the non-resident person; or 661 The expression substituted by and Explanation added by Finance Act, 2020. (f) who is declared by the 662[Commissioner] by an order in writing to be the representative of the non-resident person. 1[Explanation.– For the purposes of this sub-section, non-resident person shall have the same meaning assigned thereto under the Income Tax Ordinance, 2001 (XLIX of 2001).]
No person shall be declared as the representative of a non- resident person unless the person has been given an opportunity by the 1[Commissioner] of being heard.] 58B. Liability and obligations of representatives.– (1) Every representative of a person shall be responsible for performing any duties or obligations imposed by or under this Act on the person, including the payment of tax.
Subject to section 58 and sub-section (5) of this section, any tax that, by virtue of sub-section (1), is payable by a representative of a registered person shall be recoverable from the representative only to the extent of any assets of the registered person that are in the possession or under the control of the representative.
Every representative of a registered person who pays any tax owing by the registered person shall be entitled to recover the amount so paid from the registered person or to retain the amount so paid out of any moneys of the registered person that are in the representative’s possession or under the representative’s control.
Any representative, or any person who apprehends that he may be assessed as a representative, may retain out of any money payable by him to the person on whose behalf he is liable to pay tax (hereinafter in this section referred to as the “principal”), a sum equal to his estimated liability under this Act, and in the event of disagreement between the principal and 662 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. such a representative or a person as to the amount to be so retained, such representative or person may obtain from the 663[Commissioner] a certificate stating the amount to be so retained pending final determination of the tax liability, and the certificate so obtained shall be his authority for retaining that amount.
Every representative shall be personally liable for the payment of any tax due by the representative in a representative capacity if, while the amount remains unpaid, the representative: – (a) alienates, charges or disposes of any moneys received or accrued in respect of which the tax is payable; or (b) disposes of or parts with any moneys or funds belonging to the person that is in the possession of the representative or which comes to the representative after the tax is payable, if such tax could legally have been paid from or out of such moneys or funds.
Nothing in this section shall relieve any person from performing any duties imposed by or under this Act on the person which the representative of the person has failed to perform.] 664[59. Tax paid on stocks acquired before registration.– The tax 665[. . .] paid on goods purchased by a person who is subsequently required to be registered under section 14 due to new liabilities or levies or gets voluntary registration under 666[this Act or the rules made thereunder], shall be treated as input tax, provided that such goods were purchased by him from a registered person against an invoice issued under section 23 during a period of thirty days before making an application for registration and constitute his verifiable unsold stock on the date of compulsory registration or on the date of application for registration or for voluntary registration: Provided that where a person imports goods, the tax paid by him thereon during a period of ninety days before making an application for registration shall be treated as an input tax subject to the condition that he 663 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010 664
665 Commas and words “, other than the turnover tax” omitted by Finance Act, 2004. 666 Substituted for “section 18” by Finance Act, 2004 holds the bill of entry relating to such goods and also that these are verifiable unsold or un-consumed stocks on the date of compulsory registration or on the date of application for registration or for voluntary registration.] 667[60. Powers to deliver certain goods without payment of tax.– Subject to such conditions, limitations or restrictions as it thinks fit to impose, 668[Federal Government] may authorise the 669[import] of goods or class of goods, without payment of the whole or any part of the tax payable thereon to the following persons, namely: – (i) registered importers importing such goods temporarily with a view to subsequent exportation; 670[(ii) registered manufacturer-cum-exporters who import raw materials and intermediary products for further manufacture of goods meant for export;] 671[(iii) ***] 673[61A. Repayment of tax to persons registered in Azad Jammu and Kashmir.– Subject to such conditions, limitations or restrictions as it may deem fit to impose, the Board may authorize the repayment in whole or in part of the input tax paid on any goods acquired in or imported into Pakistan by the persons registered in Azad Jammu and Kashmir as are engaged in making of zero-rated supplies.] 667
668 Words substituted by Finance Act, 2018. 669 Substituted for “delivery” by Finance Act, 1999 670 Clause (ii) substituted by the Finance Act, 1999. 671 Clause (iii) omitted by Finance Act, 1999. 672 Words “the importation of” omitted by Finance Ordinance, 2002 673
importation are re-exported outside Pakistan and such goods as are capable of being identified, seven-eighth of such tax shall, except as otherwise hereinafter provided, be repaid as drawback, and the provisions of Customs Act, 1969 (IV of 1969), relating to drawback of customs duties shall, so far as may be apply to such tax, as they apply for the purposes of that Act: Provided that no such drawback shall be repaid unless the re-export is made within a period of two years from the date of importation as shown in the records of the Custom House: Provided further that the Board may, on sufficient cause being shown, in any case extend the said period by a further period of one year. (a) modifying the amount of tax which shall be repaid as drawback on any such goods or class of goods; or (b) prohibiting the repayment of tax as drawback on any such goods or class of such goods; or (c) varying the condition for the grant of drawback on any such goods or class of such goods by restricting the period after importation within which the goods must be re-exported. respect of any supply the 674[Federal Government] is satisfied that inadvertently and as a general practice: – (a) tax has not been charged in any area on any supply which was otherwise taxable, or according to the said practice the amount charged was less than the amount that should have actually been charged; (b) the registered person did not recover any tax prior to the date it was discovered that the supply was liable to tax; and (c) the registered person started paying the tax from the date when it was found that the supply was chargeable to tax; It may, by a notification in the official Gazette, direct that the tax not levied or short levied as a result of that inadvertent practice, shall not be required to be paid for the period prior to the discovery of such inadvertent practice. 677[Provided that in a case where a registered person did not deduct input tax within the relevant tax period, the 678[Commissioner] may, after satisfying himself that input tax adjustment is due and admissible, allow the registered person to take such adjustment in the tax period as specified by the 4[Commissioner]:] 674 Words substituted by Finance Act, 2018. 675 Words inserted by Finance Act, 1998. 676 Substituted for the full-stop by Finance Ordinance, 2001 677 Proviso inserted by Finance Ordinance, 2002. 678 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 679[ Provided 680[further] that in a case where the refund has become due on account of any decision or judgement of any officer of 681[Inland Revenue] or court or the Tribunal, the period of one year shall be reckoned from the date of judgement or decision of such officer, court or Tribunal682[:]] Provided further that the application or claim filed under this section shall be disposed of within a period not exceeding ninety days from the date of filing of such application or claim.] 683[Provided also that no refund shall be admissible under this section if incidence of tax has been passed directly or indirectly to the consumer.] 684[67. Delayed Refund.– Where a refund due under section 10 is not made within 685[the time specified in section 10 from the date] of filling of 686[refund claim], there shall be paid to the claimant in addition to the amount of refund due to him, a further sum equal to 687[KIBOR] per annum of the amount of refund due, from the date following the expiry of [the time specified 688[as aforesaid], to the day preceding the day of payment of refund: Provided that where there is reason to believe that a person has claimed the refund which is not admissible to him, the provision regarding the payment of such additional amount shall not apply till the investigation of the claim is completed and the claim is either accepted or rejected 7[:] 689[Provided further that where a refund due in the consequence of any order passed under section 66 is not made within forty five days of date 679 Proviso inserted by Finance Ordinance, 2001. 680 Word inserted by Finance Ordinance, 2002. 681 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 682 Substituted for full stop by Finance Act, 2005 683 Proviso inserted by Finance Act, 2011. 684
685 Substituted for “thirty days” by Finance Act, 1997 686 Substituted for “return” by Finance Act, 2007 687 Substituted for “Six percent” by Finance Act, 2009, earlier the word “six” was substituted for “fourteen” by the Finance Act, 2004, before that it was substituted for “ten” by Finance Supplementary (Amendment) Act, 1997. Which came into force on March 28, 1997, prior to this it was substituted by Sales Tax (Second Amendment) Ordinance 1996, dated 2nd November, 1996. 688 Substituted for the words and figures “in section 10 from the date” by Finance Act, 2007. 689 Colon substituted for full stop and new proviso inserted by Finance Act, 2021. of such order, there shall be paid to the claimant in addition to the amount of the refund due to him, a further sum equal to KIBOR per annum of the amount of refund, due from the date of the refund order.]
The Board shall issue a promissory note to FBR Refund Settlement Company 692[ ] Limited, hereinafter referred to as the company, incorporating the details of refund claimants and the amount of refund determined as payable to each for issuance of sales tax refund bonds, hereinafter referred to as the bonds, of the same amount.
The bonds shall be issued in values in multiples of one hundred thousand rupees.
The bonds so issued shall have a maturity period of three years and shall bear annual simple profit at ten per cent.
The bonds shall be traded freely in the country’s secondary markets.
The bonds shall be approved security for calculating the statutory liquidity reserve.
The bonds shall be accepted by the banks as collateral.
There shall be no compulsory deduction of Zakat against the bonds and Sahib-e-Nisab may pay Zakat voluntarily according to Shariah. 690 New section 67A inserted by Finance Supplementary (Second Amendment) Act, 2019 691 The word “private” omitted by Finance Act, 2019. 692 The word “private” omitted by Finance Act, 2019.
After period of maturity, the company shall return the promissory note to the Board and the Board shall make the payment of amount due under the bonds, along with profit due, to the bond holders.
The bonds shall be redeemable in the manner as in the preceding sub-section before maturity only at the option of the Board along with simple profit payable at the time of redemption in the light of general or specific policy to be formulated by the Board.
The refund under sub-section (1) shall be paid in the aforesaid manner to the claimants who opt for payment in such manner.
The 693[Board, with the approval of the Federal Minister-in- charge,] may notify procedure to regulate the issuance, redemption and other matters relating to the bonds, as may be required.] 694[69. Issuance of duplicate of sales tax documents.– An officer of 695[Inland Revenue not below the rank of Assistant Commissioner] may, on payment of one hundred rupees, issue an attested duplicate of any sales tax document as is available with the department or has been filed under this Act or rules made thereunder to a relevant registered person applying for the same.] 693 The expression substituted for the words “Federal Government” by Finance Act, 2019. 694
695 Substituted for the words “Sales Tax not below the rank of Assistant Collector” by the Finance Act, 2010 699[(2) ***] 700[(3) Notwithstanding anything contained in this Act or any other law for the time being in force or any decision of any court, the trade enrolment Certificate Schemes immediately in force before the commencement of the Finance Act, 1999, shall be deemed to be validly made under this Act.] 701[72. Officers of 702[Sales Tax] to follow Board's orders, etc.– All officers of 9[Inland Revenue] and other persons employed in the execution of this Act shall observe and follow the orders, instructions and directions of the Board: Provided that no such orders, instructions or directions shall be given so as to interfere with the discretion of [officers of 6[Inland Revenue] in the exercise of their quasi-judicial functions.] 703[72A Reference to the authorities.– Any reference to the Collector, Additional Collector, Deputy Collector, Assistant Collector, Superintendent, Senior Auditor and an officer of Sales Tax wherever occur in this Act and rules, notifications, clarifications general orders or order made or issued there under, shall be construed as reference to the Commissioner Inland Revenue, Additional Commissioner Inland Revenue,” Deputy Commissioner Inland Revenue, Assistant Commissioner 696
697
698 The expression “Notwithstanding anything contained in this Act, the Federal Government” substituted through Finance Act, 2019. 699 Sub-section (2) omitted by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999. Earlier inserted by Finance Act, 1999. 700 Sub-section (3) inserted by Finance Act, 1999. 701 Sub-section (3) inserted by Finance Act, 1999. 702
9 Substitued for the Words “Sales Tax” by Finance Act, 2010. 703 Substituted for “sales” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. Inland Revenue, Superintendent Inland Revenue, Inland Revenue Audit Officer and an officer of Inland Revenue, respectively.] 704[72B. Selection of audit by the Board.– (1) The Board may select persons or classes of persons for audit of tax affairs through computer ballot which may be random or parametric as the Board may deem fit. 705[(1A) Notwithstanding anything contained in this Act or any other law, for the time being in force, the Board shall keep the selection parameters confidential.]
Audit of tax affairs of persons selected under sub-section (1) shall be conducted as per procedure given in section 25 and all the provisions of this Act shall apply accordingly.
For the removal of doubt, it is hereby declared that the Board shall be deemed always to have had, the power to select any persons or classes of persons for audit of tax affairs under this section.] 706[72C. Reward to Inland Revenue Officers and Officials.– (1) In cases involving concealment or evasion of sales tax and other taxes, cash reward shall be sanctioned to the officers and officials of Inland Revenue for their meritorious conduct in such cases and to the informer providing credible information leading to such detection, as may be prescribed by the Board, only after realization of part or whole of a taxes involve in such cases.
The Board may, by notification in the official Gazette, prescribed the procedure in this behalf and specify the apportionment of reward sanctioned under this section for individual performance or to collective welfare of the officers and officials of Inland Revenue.] 707[72D. Reward to whistleblowers.-- (1) The Board may sanction reward to whistleblowers in cases of concealment or evasion of tax, tax 704
705 New sub-section (1A) added through Finance Act, 2019. 706
707
fraud, corruption or misconduct providing credible information leading to such detection of evasion of tax fraud.
The Board may, by notification in the official Gazette, prescribe the procedure in this behalf and also specify the apportionment of reward sanctioned under this section for whistleblowers.
The claim for reward by the whistleblower shall be rejected, if- (a) the information provided is of no value; (b) the Board already had the information; (c) the information was available in public records; or (d) no collection of taxes is made from the information provided from which the Board can pay the reward.
For the purpose of this section, “whistleblower” means a person who reports concealment or evasion of sales tax and tax fraud leading to detection or collection of taxes, fraud, corruption or misconduct, to the competent authority having power to take action against the person or a sales tax authority committing fraud, corruption, misconduct, or involved in concealment or evasion of taxes.] 708[73. Certain transactions not admissible.– (1) Notwithstanding anything contained in this Act or any other law for the time being in force, payment of the amount for a transaction exceeding value of fifty thousand rupees, excluding payment against a utility bill, shall be made by a crossed cheque drawn on a bank or by crossed bank draft or crossed pay order or any other crossed banking instrument showing transfer of the amount of the sales tax invoice in favour of the supplier from the business bank account of the buyer 709[:] 710[Provided that online transfer of payment from the business account of buyer to the business account of supplier as well as payments 708
709 Substituted for full stop by Finance Act, 2005 710 Proviso inserted by Finance Act, 2005. through credit card shall be treated as transactions through the banking channel, subject to the condition that such transactions are verifiable from the bank statements of the respective buyer and the supplier.] 711 [ Provided further that adjustments made by a registered person in respect of amounts payable and receivable to and from the same party shall be treated as payments satisfying the provisions of this sub-section subject to following conditions, namely:– (a) sales tax has been charged and paid by both parties under the relevant provisions of this Act and rules prescribed thereunder, wherever applicable; and (b) the registered person has sought prior approval of the Commissioner before making such adjustments.]
The buyer shall not be entitled to claim input tax credit, adjustment or deduction, or refund, repayment or draw-back or zero-rating of tax under this Act if payment for the amount is made otherwise than in the manner prescribed in sub-section (1), provided that payment in case of a transaction on credit is so transferred within one hundred and eighty days of issuance of the tax invoice.
The amount transferred in terms of this section shall be deposited in the business bank account of the supplier, otherwise the supplier shall not be entitled to claim input tax credit, adjustment or deduction, or refund, repayment or draw-back or zero-rating of tax under this Act. Explanation— For the purpose of this section, the term “business bank account” shall mean a bank account utilized by the registered person for business transactions, declared to the 712[Commissioner] in whose jurisdiction he is registered 713[through Form STR-1 or change of particulars in registration database.]] 711 New proviso inserted by Finance Act, 2021. 712 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 713 Words inserted by Finance Act, 2013. 714[“(4)A registered 715[person] shall not be entitled to deduct input tax (credit adjustment or deduction of input tax) which is attributable to such taxable supplies exceeding, in aggregate, one hundred million rupees in financial year or ten million rupees in a tax period as are made to certain person who is not a registered person under this Act: Provided that the aforesaid shall not apply to supplies made to.- (a) Federal / provincial / local Government departments, authorities, etc. not engaged in making of taxable supplies; (b) Foreign Missions, diplomats and privileged persons; 716[***] (c) all other persons not engaged in supply of taxable goods; 4[and] 717(d) persons or classes of person, specified by the Board through notification in the official Gazette subject to such conditions and restrictions as may be specified therein .] at any time before or after the expiry of such time or period,] in any case or class of cases, permit such application to be made or such act or thing to be done within such time or period as it may consider appropriate [:] Provided that the Board may, by notification in the official Gazette, and subject to such limitations or conditions as may be specified therein, empower any [Commissioner] to exercise the powers under this section in any case or class of cases. 714 New sub-section “(4)” inserted through Tax Laws (Amendment) Act, 2020. 715 Word substituted by Finance Act, 2020. 716 Word “and” omitted and the word “and” inserted by Finance Act, 2020. 717 New clause (d) inserted by Finance Act, 2020. 718
719 Substituted for the words “Central Board of Revenue” by Finance Act, 2007. 720 Words added by Finance Act, 2022. 724[(2) Notwithstanding any omission, irregularity or deficiency in the establishment of or conferment of powers and functions on the Directorate General (Intelligence and Investigation), Inland Revenue and authorities specified in section 30A, all orders passed, notices issued and actions taken, before commencement of the Finance Act, 2018, in exercise or purported exercise of the powers and functions of the officers of Inland Revenue under this Act by the Director General (Intelligence and Investigation), Inland Revenue or the authorities specified in section 30A shall be deemed to have been validly passed, issued and taken under this Act.] 725[76. Fee and service charges.– 3[(1)] The 726[“Board with approval of the Federal Minister-in-charge”] may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as it may deem fit to impose, levy fee and service charges for valuation, in respect of any other service or control mechanism provided by any formation under the control of the Board, including ventures of public-private partnership, at such rates as may be specified in the notification.] 721
722 Existing provision numbered as sub-section (1) by Finance Act, 2018. 723 Figure substituted by Finance Act, 2018. 724 New sub-section (2) added by Finance Act, 2018. 725 New section 76 added through Finance Act, 2019. 726 Words “Federal Government” substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020. 727[(2) The Board may authorize and prescribe the manner in which fee and service charges collected under sub-section (1) shall be expended.] 728 [77. Uniform.– The Board may, by notification in the official Gazette, prescribe rules for wearing of uniform by officers and staff of Inland Revenue Services.] *************** SCHEDULES 729[***] 730[***] 731[The See 732[clause (a)] of sub-section (2) of section 3] Fruit juices and vegetable juices Ice Cream. 733[2105.0000] 727 Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021. 728 New section 77 added by Finance Act, 2022. 729 The first schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997. 730 The Second Schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997. 731 The Third Schedule Substituted by Finance Act, 1998, earlier it was inserted by Finance Act, 1996. 732 Substituted for the words, brackets and letter “clause (c)” by Finance Ordinance, 2002 733 Substituted for the figure “21.05” through Finance Act, 2017 Aerated waters or beverages. 22.01 and 20.02 Syrups and squashes. Respective headings Cigarettes. 734 [ 6 Toilet soap 3401.1100 and 3401.2000] 735 [7 Detergents 736[Respective heading] Shampoo Toothpaste Shaving cream Perfumery and cosmetics Respective sub-headings of 33.03 and 33.04.] 737 [12 *** ***] 738 [14 Tea Respective sub-headings of 09.02 Powder drinks Milky drinks 2106.9090] 739 [17 Toilet paper and tissue paper 4818.1000 and 4818.2000] 740[18. Spices sold in retail packing bearing brand names and trade marks 09.04, 09.06, 09.08 and 09.10 741[19. *** ***] Shoe polish and shoe cream 3405.1010] 5[22. ***] 734 Serial No.6 and entries relating thereto substituted by Finance Act, 2005, earlier these were inserted by Sales Tax (Amendment) Ordinance, 2002, dated March 21, 2002. 735 Serial No.7 to 11 and entries relating thereto added by Finance Act, 2005 736 Expression substituted by Finance Act, 2022. 737 Serial No.12 to 13 and entries relating thereto omitted by Finance Act, 2008 738 Serial No.14 to 16 and entries relating thereto added by Finance Act, 2005 739 Serial No.17 and entries relating thereto added by Finance Act, 2005 740 Serial No.18 to 21 and entries relating thereto added by Finance Act, 2006 741 Serial No.19 to 20 and entries relating thereto omitted by Finance Act, 2008 742[23. *** *** *** *** *** *** *** *** ***] 743[32. ***] Cement sold in retail Respective heading packing *** ***] 744[36. ***]] 745[37. Mineral/bottled water Respective headings] 746[38. Household electrical Respective headings goods, including air conditioners, refrigerators, deep freezers, televisions, recorders and players, electric bulbs, tube-lights, electric fans, electric irons, washing machines and telephone sets. Household gas appliances, Respective headings including cooking range, 742 Serial Nos. 23 to 31, 34 and 35 entries relating thereto omitted by Notification No. S.R.O. 895(I)/2013, dated 4th October, 2013. 743 Serial No. 32 and entries relating thereto omitted by Finance Act, 2022. 744 Serial Nos. 22 and 36 and entries relating thereto omitted Notification No. S.R.O. 681(I)/2013, dated 26th July, 2013. 745 New Serial number added through Finance Act, 2016 746 Serial numbers 38 up to 49 and entries relating thereto added through Finance Act, 2019. ovens, geysers and gas heaters. Foam or spring mattresses and other foam products for household use. Respective headings Paints, distempers, enamels, pigments, colours, varnishes, gums, resins, dyes, glazes, thinners, blacks, cellulose lacquers and polishes sold in retail packing Respective headings Lubricating oils, brake fluids, transmission fluid, and other vehicular fluids sold in retail packing. Respective headings Storage batteries excluding those sold to automotive manufacturers or assemblers Respective headings Tyres and tubes excluding those sold to automotive manufacturers or assemblers Respective headings Motorcycles Respective headings Auto rickshaws Respective headings Biscuits in retail packing with brand name Respective Headings Tiles Respective Headings Auto-parts, in retail packing, excluding those sold to automotive manufacturers or assemblers Respective Headings] 747[50. [***] omitted with effect from the 1st day of December, 2021 Respective heading] 748[***] 749[The [See section 4] 750 [1. ***] Supply to diplomats, diplomatic missions, privileged persons and privileged organizations which are covered under various Acts, Orders, Rules, Regulations and Agreements passed by the Parliament or issued or agreed by the Government of Pakistan.] 751 [3. ***]omitted 752 [4. ***]] 747Serial number 50 omitted by Finance (Supplementary) Act, 2022 w.e.f 1st day of December, 2021. 748 Fourth Schedule omitted by Finance Act, 1998. 749 Fifth Schedule added by Finance Act, 1996. 750 S. Nos. 1 and 6 and entries relating thereto omitted by Finance Act, 2021. 751Serial number 3 and entries relating thereto in column (2) omitted by Finance (Supplementary) Act, 2022. 752Serial No. 4 and entry relating thereto omitted by Finance Act, 2012 753 [5. Supplies of raw materials 754[, components and goods for further] manufacture of goods in the Export Processing Zones.] 754 [6. *****] 755[6A. ***]omitted 756 [7. Supplies made to exporters under the Duty and Tax Remission Rules, 2001 subject to the observance of procedures, restrictions and conditions prescribed therein.] 757 [8. Imports or supplies made to Gawadar Special Economic Zone, excluding vehicles falling under heading 87.02 of the Pakistan Customs Tariff, subject to such conditions, limitations and restrictions as the 758[Board] may impose. ] 759[8A. Imports or supplies made by, for or to a qualified investment as specified at Serial No.1 of the First Schedule to the Foreign Investment (Promotion and Protection) Act, 2022 for the period as specified in the Second Schedule to the said Act.] [9. ***]omitted 760[10. ******] 6[11. ****] The following goods and the raw materials, packing materials, sub-components, components, sub-assemblies and assemblies imported or purchased locally for the manufacture of the said goods, subject to the conditions, limitations and restrictions as 761[prescribed by the Board]:-- 753 Serial No. 5 added by the Finance Act, 1997. 754 Substituted for the words “and components for” by the Sales Tax (Amendment) Ordinance, 1999 755 Serial number(s) 6A and 9 and entries relating thereto in column (2) omitted by Finance (Supplementary) Act, 2022. 756Serial No. 7 added by Finance Ordinance, 2001 757 Serial No. 8 and entries relating thereto inserted by Finance Act, 2004 758 Substituted f Revenue” by Finance Act, 2007 759 New serial No. 8A added by the Finance Act, 2023 760 S. Nos. 10 and 11 and entries relating thereto omitted by Finance Act, 2021. 761 Substituted for the word “specified in Chapter XIV of the Sales Tax Special Procedure Rules, 2007” through Finance Act, 2019. 762[(i) to (ix) [. ]] 763[(x) ... (xi) ... (xii) ... (xiii) ... (xiv) ... (xv) ... (xi) ] (xvii) 764[Preparations suitable for infants, put up for retail sale 765[not exceeding rupees 766[six] hundred per two hundred grams] (PCT Heading 1901.1000) (xviii) 767[. ] (xix) 768[***] omitted. (xx) 769[Colors in sets (PCT heading 3213.1000). (xxi) Writing, drawing and marking inks (PCT heading. 3215.9010 and 3215.9090) (xxii) Erasers (PCT heading 4016.9210 and 4016.9290) 762 Serial numbers (i) to (ix) omitted through Finance Act, 2016. 763 Clauses (x) to (xvi) omitted by Finance Act, 2015 764 Expression substituted through Finance Act, 2017 765 Words added by Finance (Supplementary) Act, 2022. 766 For the word “five” the word “six” substituted by Finance Act, 2023 767 Serial number (xviii) omitted through Finance Act, 2016. 768 Clause (xix) omitted by Finance (Supplementary) Act, 2022. 769 New clauses (xx) to (xxvii) inserted by Finance Act, 2018. (xxiii) Exercise books (PCT heading 4820.2000) (xxiv) Pencil sharpeners (PCT heading 8214.1000) (xxv) 770[other drawing, marking out or mathematical calculating instruments (geometry box) (PCT heading 9017.2000)] (xxvi) Pens, ball pens, markers and porous tipped pens (PCT heading 96.08) (xxvii) Pencils including color pencils (PCT heading 96.09)”.] 771[13. Supplies of raw materials, components and goods for further manufacture of goods in the Gwadar Free Zone and export thereof, provided that in case of supply to tariff area of Pakistan, tax shall be charged on the value assessed on the Goods Declaration for import Supplies of locally manufactured plant and machinery of the following specifications, to manufacturers in the Gwadar Free Zone, subject to the conditions, restrictions and procedure given below, namely:− (i) plant and machinery, operated by power of any description, as is used for the manufacture or production of goods by that manufacturer. (ii) apparatus, appliances and equipment specifically meant or adapted for use in conjunction with the machinery specified in clause (i). (iii) mechanical and electrical control and transmission gear, meant or adapted for use in conjunction with machinery specified in clause (i). (iv) parts of machinery as specified in clauses (i), (ii) and (iii), identifiable for use in or with such machinery. Conditions, restrictions and procedures:− (a) the supplier of the machinery is registered under the Act; 770 Clause (xxv) substituted by Finance Act, 2023 771 New serial numbers 13 and 14 inserted by Finance Act, 2020 shall have effect from the 1st June, 2020. (b) proper bill of export is filed showing registration number; (c) the purchaser of the machinery is an established manufacturer located in the Gwadar Free Zone and holds a certificate from the Gwadar Port Authority to that effect; (d) the purchaser submits an indemnity bond in proper form to the satisfaction of the concerned Commissioner Inland Revenue that the machinery shall, without prior permission from the said Commissioner, not be sold, transferred or otherwise moved out of the Gwadar Free Zone before a period of five years from the date of entry into the Zone; (e) if the machinery is brought to tariff area of Pakistan outside Gwadar Free Zone, sales tax shall be charged on the value assessed on the Goods Declaration for import; and (f) breach of any of the conditions specified herein shall attract legal action under the relevant provisions of the Act, besides recovery of the amount of sales tax along with default surcharge and penalties involved.] 772[15. ***]omitted Milk (PCT heading 04.01). 773[17. Fat filled milk (PCT heading 1901.9090)] [18. ***]omitted 774[19. ***] Petroleum Crude Oil (PCT heading 2709.0000)]. 775[21. co Local supplies of 776 [commodities,] raw materials, mponents, parts and plant and machinery to registered exporters authorized under Export Facilitation Scheme, 772 Serial numbers 15 and 18 omitted by Finance (Supplementary) Act, 2022. 773 Serial numbers 17 substituted by Finance Act, 2022. 774 S erial number 19 omitted by Finance Act, 2022. 775 New serial number 21 added by Finance Act, 2022. 776 Expression added by Finance Act, 2023 2021 notified by the Board with such conditions, limitations and restrictions as specified therein.] 777[The [See section 13(1)] 778 [1. ***] omitted [2. ***] omitted [3. ***] omitted 779 [4. *** *** *** *** *** *** ***] [11. ***] omitted [12. ***] omitted Edible vegetables 780[imported from Afghanistan] including roots and tubers, 781[except 0701.1000, 784[***], 0702.0000, 785[***], 0703.2000, 0703.9000, 777 Sixth Schedule substituted by Finance Act, 2005. Earlier it was substituted by Finance Act, 1998. Originally it was inserted by Finance Act, 1996. 778 Serial number(s) 1,2,3,11 and 12 omitted by Finance (Supplementary) Act, 2022. 779 S. Nos. 4 to10 and entries relating thereto omitted by Finance Act, 2006 780 Words inserted by Finance (Supplementary) Act, 2022. 781 The words inserted by the Finance Act, 2009. 784 The figure and comma “0701.9000,” omitted by the Finance Act, 2009 785 The figure and comma “0703.1000,” omitted by the Finance Act,2009 ware potato and onions], whether fresh, frozen or otherwise preserved (e.g. in cold storage) but excluding those bottled 782[or] canned 783[***]. 0704.1000, 0704.2000, 0704.9000, 0705.1100, 0705.1900, 0705.2100, 0705.2900, 0706.1000, 0706.9000, 0707.0000, 0708.1000, 0708.2000, 0708.9000, 0709.1000, 0709.2000, 0709.3000, 0709.4000, 0709.5100, 786[***], 0709.6000, 0709.7000, 0709.9000, 0710.1000, 0710.2100, 0710.2200, 0710.2900, 0710.3000, 0710.4000, 0710.8000, 0710.9000, 0712.2000, 0712.3100, 0712.3200, 0712.3300, 0712.3900 and 0712.9000 Pulses. 0713.1000, 787[0713.2010, 0713.2020, 0713.2090], 0713.3100, 0713.3200, 0713.3300, 0713.3910, 0713.3920, 0713.3990, 0713.4010, 0713.4020, 0713.5000, 0713.9010, 0713.9020 and 0713.9090 782 Substituted for the comma by the Finance Act, 2008 783 The words “or package” omitted by the Finance Act, 2008. 786 Expression omitted by Finance Act, 2022. 787 Substituted for the figure and comma “0713.2000” by the Finance Act, 2009 788[15. Fruit imported from Afghanistan excluding apples PCT 0808.1000 0804.1010, 0804.1020, 0804.2000, 0804.3000, 0804.4000, 0804.5010, 0804.5020, 0804.5030, 0805.1000, 0805.2910, 0805.2100, 0805.2200, 0805.2990, 0805.4000, 0805.5000, 0805.9000, 0806.1000, 0806.2000, 0807.1100, 0807.1900, 0807.2000, 0808.3000, 0808.4000, 0809.1000, 0809.2000, 0809.3000, 0809.4000, 0810.1000, 0810.2000, 0810.4000, 0810.5000, 0810.6000, 0810.9010, 0810.9090, 0811.1000, 0811.2000, 0811.9000, 0813.1000, 0813.2000, 0813.3000, 0813.4010, 0813.4020 and 0813.4090] Red chillies excluding those sold 789[under] brand names and trademarks. 790[0904.2110] and 791[0904.2210] Ginger excluding those sold 792[under] brand names and trademarks. 793[09.10] 788 Serial number 15 substituted by Finance (Supplementary) Act, 2022. 789 Word substituted by Finance Act, 2023 790 Substituted for PCT heading “0904.2010” by the Finance Act, 2012 791 Substituted for PCT heading “0904.2020” by the Finance Act, 2012 792 Word substituted by Finance Act, 2023 793 Substituted for the figure “0910.1000” through Finance Act, 2017 Turmeric excluding those sold 794[under] brand names and trademarks. 795[19. Rice, wheat, wheat and meslin flour Respective heading] 796[20. ***] 797[21. ***] omitted 798[22. ***] [23. ***] omitted 773[24. ***] 799[25. ***] 795[26. ***] 795[27. ***] 800[28. ***] 795[29. ***] 801[29A. *** 9B. ***] 795[29C. ***] 802[30. ***] 794 Word substituted by Finance Act, 2023 795 Serial number 19 substituted by Finance (Supplementary) Act, 2022. 796 Serial number 20 omitted by Finance (Supplementary) Act, 2022. 797 Serial number(s) 21and 23 omitted by Finance (Supplementary) Act, 2022. 798 Serial numbers 22,24,26, 27, 29 and 29C omitted by Finance Act, 2021. 799 S. No. 25 and the entries relating thereto omitted by the Finance Act, 2013 800 Serial No. 28 and entries relating thereto omitted by Finance Act, 2015 801 S. Nos. 29A and 29B omitted by the Finance Act, 2011 802 S. No. 30 omitted by the Finance Act, 2011 Holy Quran, complete or in parts, with or without translation; Quranic Verses recorded on any analogue or digital media; other Holy books. 803[4901.9910, 8523.2100, 8523.2910, 8523.2990, 804[8523.4910], 805[8523.4920], 806[8523.4190] [...], [...], 8523.4190, 8523.5910, 8523.5990, 8523.8010, 8523.8020 and 8523.8090] 807[32. Newsprint and books but excluding brochures, leaflets and directories Respective headings] Currency notes, bank notes, shares, stocks and bonds. 808[49.07] 809[34. *** ***] 810[36. ***] 811[37. ***] Monetary gold. 812[7108.1390] 813[and 7108.2090] 814[39. ***] 815[40. ***] 816[41. *** 803 Substituted for the words and figures “4901.9910 and respective headings of 85.24” by the Finance Act, 2007 804 Substituted for PCT heading “8523.4010” by Finance Act, 2012 805 Substituted for PCT heading “8523.4030” by Finance Act, 2012 806 Substituted for PCT heading “8523.4090” by Finance Act, 2012 807 Serial number 32 substituted by Finance Act, 2022. 808 Substituted for the figure “4907.0000” by Finance Act, 2017 809 S. Nos. 34 & 35 omitted by the Finance Act, 2011 810 Serial number 36 omitted through Finance Act, 2019. 811 Serial number 37 omitted through Finance Act, 2019. 812 Substituted for the figure “7108.2000” by Finance Act, 2017 813 The word and figures added by the Finance Act, 2007 814 S. No. 39 and entries relating thereto omitted by Finance Act, 2015 815 S. No. 40 omitted by the Finance Act, 2006 816 S. Nos. 41 to 44 omitted by the Finance Act, 2011 *** *** ***] Dextrose and saline infusion giving sets 817[***] along with empty non-toxic bags for infusion solution, Dextrose and saline infusion giving sets, Artificial parts of the body, Intra-Ocular lenses and Glucose testing equipment. 9018.3910, 9018.3920, 9021.3100, 818[9021.3900] and 819[Respective headings] 820[46. ***] Import of articles of household and personal effects including vehicles and also the goods for donation to projects established in Pakistan imported by any of the rulers of Gulf Sheikhdoms who is in possession of residential accommodation in Pakistan and goods including vehicles by the United Arab Emirates dignitaries as are listed in column (2) against heading No. 99.05 in column
of the First Schedule to the Customs Act, 1969 (IV of 1969) for their personal use and for donation to welfare projects established in Pakistan subject 817 The word “imported” omitted by the Finance Act, 2007 818 Substituted for the figures “9201.3900” by the Finance Act, 2007 819 Words substituted by Finance Act, 2022. 820 Serial number 46 omitted by Finance (Supplementary) Act, 2022. to the similar conditions as are envisaged for the purposes of applying zero-rate of customs duty on such goods under the said Act. Goods imported or supplied under grants-in-aid for which a specific consent has been obtained from the 821[Board]; supplies and imports under agreements signed by the Government of Pakistan before the 30th June, 1996, provided the agreements contained the provision for exemption of tax at the time of signing of agreement. 822[49. ***] omitted [50. ***] omitted [51. ***] omitted [52. ***] omitted [52A. ***] omitted [53. ***] omitted [54. ***] omitted [55. ***] omitted 823[56. Omitted.] [57. ***] omitted 821 Substituted for the words “Central Board of Revenue” by Finance Act, 2007 822 Serial number(s) 49 to 57 and 58 omitted by Finance (Supplementary) Act, 2022. 823 Serial No. 56 and entries relating thereto omitted by Finance Act, 2015 [58. ***] omitted Artificial kidneys, eye cornea, hemodialysis machines, hemodialyzers, A.V. fistula needles, hemodialysis fluids 824[,] and powder, blood tubing tines for dialysis and reverse osmosis plants for dialysis, double lumen catheter for dialysis, catheter for renal failure patient and peritoneal dialysis solution, 825[cochlear implants systems] and angioplasty equipment (balloons, catheters, wires and stents), subject to the similar conditions and procedures as are envisaged for the purpose of applying zero-rate of customs duty on these goods under the 99.24 826[, 99.25 827[,99.37] and 99.38] 824 Substituted for the word “and” by the Finance Act, 2008 825 The comma and words inserted by the Finance Act 2014 826 Substituted for the word and figures “and 99.25” by the Finance Act, 2008 827 The comma and figure inserted by the Finance Act 2014 Customs Act, 1969 (IV of 1969). 828[60. ***] omitted [61. ***] omitted 829[62. ***] [63. ***] omitted 830[64. *** *** *** *** *** *** ***.] 831[71. ***] omitted [72. ***] omitted 832[73. ***] 73A. ***] ***] ***] ***] ***] ***] ***] ***] [81. ***] omitted ***] 828 Serial number(s) 60, 61 and 63 omitted by Finance (Supplementary) Act, 2022. 829 S. No. 62 omitted by the Finance Act, 2011 830 S. Nos. 64 to 70 omitted by the Finance Act, 2011 831 Serial number(s) 71, 72, 81, 84 and 92 omitted by Finance (Supplementary) Act, 2022. 832 Serial numbers 73 to 80, 82, 83 and 85 omitted by Finance Act, 2021. ***] [84. ***] omitted 833[85. ***] Colors in sets(Poster colors) Writing, drawing and making inks 3215.9010and 3215.9090 Erasers 4016.9210 and 4016.9290 Exercise books Pencil sharpeners ***] [92. ***] omitted ***] Wheelchairs 8713.1000 and 8713.9000 834[95. ***] Other drawing, marking out or mathematical calculating instruments (geometry box) 835[Pens, ball pens, markers and porous tipped pens] Pencils including color pencils 836[99. ***] omitted Construction materials to 837[Gwadar] Export processing Zone’s investors and to Export Processing Zone 3[Gwadar] for development of Zone’s infrastructure Respective headings 833 Serial numbers 85, 91 and 93 omittted by Finance Act, 2021. 834 Serial number 95 and entries relating thereto is omitted through Finance Act, 2019. 835 The expression substituted by Finance Act, 2017 836 Serial number 99 omitted by Finance (Supplementary) Act, 2022. 837 Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017 838[100 A Materials and equipment 839[(plant, machinery, Respective Headings equipment, appliances and accessories)] for construction and operation of 3[Gwadar] Port and development of Free Zone for 3[Gwadar] Port as imported by or supplied to China Overseas Ports Holding Company Limited (COPHCL) and its operating companies namely (i) China Overseas Ports Holding Company Pakistan (Private) Limited (ii) Gwadar International Terminal Limited, (iii) Gwadar Marin Services Limited and (iv) Gwadar Free Zone Company Limited, their contractors and sub-contractors; and Ship Bunker Oils bought and sold to the ships calling on/visiting 3[Gwadar] Port, 840[by the aforesaid operating companies] having Concession Agreement with the Gwadar Port Authority, for a period of forty year, subject to the following conditions and procedure, namely,– 838 New serial numbers 100A & 100B added through Finance Act, 2016. 839 The expression inserted through Finance Act, 2017 840 The expression inserted by Finance Act, 2020 shall have effect from the 1st June, 2020 . (A). Conditions and procedure for imports.– (i) This exemption shall be admissible only to China Overseas Ports Holding Company Limited (COPHCL) and its operating companies, their contractors and sub- contractors which hold the Concession Agreement; (ii) Ministry of Ports and Shipping shall certify in the prescribed manner and format as per Annex- I that the imported materials and equipments are bonafide requirement for construction and operation of 841[Gwadar] Port and development of Free Zone for 1[Gwadar] Port. The authorized officer of that Ministry shall furnish all relevant information online to Pakistan Customs against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 841 Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017 1969). In already computerized Collectorate or Customs station, where the computerized system is not operational, the Project Director or any other person authorized by the Collector in this behalf shall enter the requisite information in the Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis, provided that this condition shall not apply to ship bunker oils; and (iii) The goods so imported 842[and also those already imported under Notification No. S.R.O. 115(I)/2008, dated the 6th February, 2008] shall not be sold or disposed of without prior approval of the FBR and 842 The expression inserted and words substituted by Finance Act, 2020 shall have effect from the 1st June, 2020. payment of sales tax leviable at the 1[applicable rate on residual value], provided that this condition shall not apply to ship bunker oils. (B). Conditions and procedure for local supply.– (i) This exemption shall be admissible only to China Overseas Ports Holding Company Limited (COPHCL) and its operating companies, their contractors and sub- contractors which hold Concession Agreement; (ii) for claiming exemption on goods which are otherwise taxable in Pakistan, the operating companies will purchase the materials and equipment for the construction of 843[Gwadar] Port and development of Free Zone for 1[Gwadar] Port from the sales tax registered persons only; (iii) invoice of the exempt supply, containing the particulars required under section 23 of the aforesaid Act, shall for each supply be issued by the registered person to the operating company mentioning thereon that the said invoice is being issued under this notification; (iv) a monthly statement summarizing all the particulars of the supplies made in the month against invoices issued to the operating companies shall be prepared in triplicate by the registered persons making the 843 Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017 exempt supplies and shall be signed by the authorized person of the registered person. All three copies of the said signed monthly statement shall be got verified by the registered person from the person authorized to receive the supplies in the office of operating company, confirming that supplies mentioned in the monthly statement have been duly received; (v) after verification from the operating company, original copy of the monthly statement will be retained by the registered person, duplicate by the operating company and the triplicate provided by the registered person to the Collector of Sales Tax having jurisdiction, by twentieth day of the month following the month in which exempt supplies to the operating companies were made; and (vi) the registered person making the exempt supplies shall keep the aforesaid record for presentation to the sales tax department as and when required to do so. 1[100B] Supplies made by the businesses to be established in the Gwadar Free Zone for a period of twenty-three years within the Gwadar Free Zone, subject to the condition that the sales and supplies outside the Gwadar Free Zone and into the territory of Pakistan shall be subjected to sales tax. Respective headings 844[100C . Vehicles imported by China Overseas Ports Holding Company Limited (COPHCL) and its operating companies Respective headings 844 New S.No. 100C and entries relating thereto inserted through Finance Act, 2017 namely (i) China Overseas Ports Holding Company Pakistan (Private) Limited (ii) Gwadar International Terminal Limited, (iii) Gwadar Marine Services Limited and (iv) Gwadar Free Zone Company Limited, for a period of twenty- three years for construction, development and operations of Gwadar Port and Free Zone Area subject to limitations, conditions prescribed under PCT heading 9917 (3)] 845[100 D Machinery, equipment, materials and goods imported either for exclusive use within the limits of Gwadar Free Zone, or for making exports therefrom, subject to the conditions that such machinery, equipment, materials and goods, are imported by investors of Gwadar Free Zone, and all the procedures, limitations and restrictions as are applicable on such goods under the Customs Act, 1969 (Act IV of 1969) and rules made thereunder shall, mutatis mutandis, apply provided that if any of such goods is taken out Respective headings 845 New serial number 100D inserted by Finance Act, 2020 shall have effect from the 1st June, 2020. of the Zone for purpose other than the export, the tax on the same shall be paid by the importer.] 846[101. ***] 847[102. ***] omitted 848[103. ***] [104. ***] omitted [105. ***] omitted 849[106. ***] Import and supply of iodized salt bearing brand names and trademarks whether or not sold in retail packing. [108. ***] 850[109. ***] omitted [110. ***] omitted 851[…….] omitted […….] Following cardiology/cardiac surgery, neurovascular, electrophysiology, endosurgery, endoscopy, oncology, urology, gynaecology, disposables and other equipment:-- Respective headings 846 Serial number 101 omitted by Finance Act, 2021. 847 Serial number(s) 102, 104 and 105 omitted by Finance (Supplementary) Act, 2022. 848 Serial number 103 omitted by Finance Act, 2021. 849 Serial numbers 106 and 108 omitted by Finance Act, 2021. 850 Serial number(s) 109 and 110 omitted by Finance (Supplementary) Act, 2022. 851 Serial No. 111, expression “White crystalline sugar” omitted through Finance Act, 2016.
Dilatations Catheters (Balloons)
10. Fractional Flow Reserve (FFR/IFR) System 11. IVUS/FFR/IFR Catheters and wires 12. Support Micro Catheters (Straight and Angled) 13. Drug Coated Angioplasty Balloon 14. Coronary and Peripheral Micro Coils 15. Thrombectomy Device 16. Thrombus Aspiration Catheters 852 New sub-serial No(s) 7 to.25 under entry A of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018. 17. Covered Stents (Coronary/Peripheral) 18. Vessel Closure Devices 19. Embolic Protection Devices 20. Renal Stents 21. Vena-cava Filters 22. Coronary and Peripheral Snares 23. Atherectomy Devices 24. IABP Consoles & Catheters 25. Intracardiac Echocardiography Machine & Catheters]
853 New sub-serial No. 7 under entry B of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.
10. PDA Delivery System (with leads, connectors and accessories) (with leads, connectors and accessories) (with leads, connectors and accessories) (with leads, connectors and accessories)
10. 3-D Cardiac Mapping System 11. Cryoballoon System and Accessories]
854 New sub-serial No(s) 4 to 11 under entry H of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.
(a) Heart Mate-II (b) Heart Mate-III (c) Centri Meg LEOV
10. Minimally invasive surgery equipment & Instruments 855 New sub-serial No(s) 6 to 12 under entry J of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018. 11. RF Ablation equipment for AF (Surgical) 12. Heart Lung Machines]
10. Transcatheter Aortic / Heart Valve System (TAVI/TAVR) 11. Cerebral Retrievable Stents 12. Aortic Stent Grafts 856 New sub-serial No(s) 5 to 18 under entry K of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018. 13. Embolization Coils, Delivery System, Filling Coil 14. Abdominal Aortic Aneurysm (EVAR) System and Accessories/ thoracic EVAR/ extension 15. Insertable Cardiac Monitor (ICM) 16. Carotid Stents 17. Vascular Clips 18. MRI Compatible Cardiac Monitor, Infusion Pump, Anesthesia Machine with Accessories] Disposables and other equipment for peripheral interventions including stents (including carotid and wall stents), balloons, sheaths, catheters, guide wires, filter wires, coils, needles, valves (including rotating homeostatic valves), connecting cables, inflation devices adapters 857[“Drug Eluting Peripheral Stents”]. 857 Words “Drug Eluting Peripheral Stents” under entry L of S.No. 112 added by Finance Supplementary (Amendment) Act, 2018. 858[113. ***] omitted [114. ***[ omitted 859[115. ***] [116. ***] omitted [117. ***] omitted [omitted] [ ] 861[. ] omitted [ ] Diagnostic kits or equipment, namely:- HIV Kits 4C Es Trionyx 5C Cell control Lnormal Bovine precision multi sera Pregnancy test DNA SSP DRB Generic IC Reticulocyte count (control) retic C Control Kit for vitamin B 12 estimation Ferritin kit HEV (Hepatitis E virus) ID-DA Cell Urine Analysis Strips Albumin beg Cratinin sysi Ring 862[Respective headings] 858 Serial number(s) 113, 114, 116, and 117 omitted by Finance (Supplementary) Act, 2022. 859 Serial number 115 omitted by Finance Act, 2021. 860 S.No. 118 omitted by Finance Supplementary (Second Amendment) Act, 2019 861 Serial No. 119, expression “Tubular day..” omitted through Finance Act, 2016. 862 Words substituted by Finance Act, 2022. Detektiion cups ISE Standard Alkaline phosphatase (Alb) Bilirubin kit HDL Cholesterol Ck creatinin kinase (mb) Ck nac Glulcose kit Ammonia Modular Lac Ldh kit (lactate dehydrogenase kit) Urea uv kit Ua plus Tina quant Crp control Aslo tin Proteins Lipids HDL/LDL cholesterol Protein kit U Control Sera Pac Control HCV UIBC (Unsaturated iron binding capacity) U/CSF Inorganic Phosphorus kit Kit amplicon kit (for PCR) Ige Lc hsv Oligo NA/K/CL Hcy Standard [or calibrated] Hla B27 Liss Coombs Typhoid kit HCV amp Urine test strips Strips for sugar test Blood glucose test strips Kits for automatic cell separator for collection of platelets Elisa or Eclia kit PCR kits Immunoblast (western blot test). I.C.T. (Immunochromatographi c kit) CBC Reagent (For hematology analyzer) Complete blood count reagent Blood Bag CPDA-1 with blood transfusion set pack in aluminium foil with set. 863[Explanation.– For removal of doubt, it is clarified that the Respective headings 863 Explanation added by Finance Act, 2023 blood transfusion sets not packed in aluminum foil imported with blood bags CPDA-1, in corresponding quantity in same consignment are also exempt] Urine drainage bags Respective headings 864[123. ***] [124. ***] [125. ***] 865[126. ***] omitted ***] omitted 866[128. ***] ***] omitted 867[130. ***] omitted [131. ***] omitted [132. ***] omitted Pesticides and their active ingredients registered by the Department of Plant Protection under the Agricultural Pesticides Ordinance, 1971(II of 1971), stabilizers, emulsifiers and solvents, namely:− Xylol (xylenes) - Beta Pinene / Agrotin 527 / Terpenic derivative 864 Serial numbers 123 to 125 omitted by Finance Act, 2021. 865 Serial number(s) 126, 127 and 129 omitted by Finance (Supplementary) Act, 2022. 866 Serial number 128 omitted by Finance Act, 2021. 867 Serial number(s) 130 to 132 omitted by Finance (Supplementary) Act, 2022. Toluene Mixed xylene isomers Naphthalene Solvesso-100, 150, 200 868[..] 3[..] 869[..] 4[..] Methanol (methyl alcohol) Propylene glycol (propane-1, 2- diol) - Adhesives Polyvinyl Acetate - Polyvinyl Alcohol Ingredients for pesticides Other ingredients for pesticides - Solvenon MP / 1-Methoxy 2- Propanol - Methyglycol Acetate Methanal (formaldehyde) Cyclo-hexanone and methyl- cyclo-hexanones - Cyclohexanon - Cyclohexanone Mixed petroleum Xylene (1,2 & 1,3 & 1,4 dimethyl benzene and ethyle benzene) Acetic anhydride Ingredients for pesticides Dioctyl orthophthalates 870[..] 1[..] 871[..] 2[..] 868 The words “ingredients for pesticides” and the figure “2903.3040” omitted by Finance Act, 2017 869 The words “Cadusafos Technical Material” and figure “2903.6900” omitted by Finance Act, 2017 870 The words “ingredients for pesticides” and the figure “2918.9010” omitted by Finance Act, 2017 871 The words “ingredients for pesticides” and the figure “2919.0010” omitted by Finance Act, 2017 872[..] 3[..] Endosulfan Technical Material Other ingredients for pesticides Diethylamine and its salts Ingredients for pesticides Other Ingredients for pesticides Ingredients for pesticides 873[..] 1[..] Dimethyl Formamide (DMF) 874[..] 2[..] Other Ingredients for pesticides Alpha cyano, 3-phenoxybenzyl (-) cis, trans 3-(2,2-diclord vinyl) 2,2 dimethyl cyclopropane carboxylate (S) Alpha cyano, 3- phenoxybenzyl (S)-2-(4, chloro phenyl)-3 mehtyl butyrate Cyano, 3-phenony benzyl 2,2,3,3 tetra methyl cyclopropane carboxalate - Cypermethrin, Alpha Cypermethrin, Beta- Cypermethrin, Zeta- Cypermethrin, Lambda Cylalothrin, Deltamethrin, Fenpropathrin, Esfenvalerate, Bifenthrin 872 The words “other ingredients for pesticides” and the figure “2919.0090” omitted by Finance Act, 2017 873 The words “Tiethanolamine and its salts” and the figure “2922.1300” omitted by Finance Act, 2017 874 The words “ingredients for pesticides” and the figure “2924.2930” omitted by Finance Act, 2017 Technical Material- Acetamiprid, Imidacloprid Technical Material- Monomehypo, Chlorothalonil Technical Material- Bromoxynil Technical Material Other nitrite compounds- Cyfluthrin, Beta Cyfluthrin Technical Material 2-N, N-Dimethyl amino-I sodium thiosulphate, 3- thiosulfourropane Ingredients for pesticides 2- N,N-dimethyamino 1,3 disodium thiosulphate propane Other orgonosulpher compounds - Ethion, Methamidophos Technical Material - Dimethysulfoxid 875[Respective headings] Ingredients for pesticides 876[Respective headings] Other Ingredients for pesticides 877[Respective headings] Ingredients for pesticides 878[Respective headings] 2,3 Dihydro 2-2 dimethyl-7 benzo furanyl methyl- carbamate Other ingredients for pesticides - Carbosulfan Technical Material 875 For expression, words “respective headings” substituted by Finance Act, 2022. 876 For expression, words “respective headings” substituted by Finance Act, 2022. 877 For expression, words “respective headings” substituted by Finance Act, 2022. 878 For expression, words “respective headings” substituted by Finance Act, 2022. Fipronil Ingredients for pesticides 879[Respective headings] Other Ingredients for pesticides - Chlorpyrifos, Triazophos, Diazinon Technical Material Other Ingredients for pesticides Pyrimethanine Ingredients for pesticides - Atrazine Technical Material Isatin (lactam of istic acid) 1-Vinyl-2-pyrrol-idone - Triazophos Technical Material Ingredients for pesticides Ingredients for pesticides -Methyl benzimidazol – 2 – ylcarbamate. -Dicopper chloride trihydroxide Ingredients for pesticides 880[2939.8010] - Abamectin, Emamectin Technical Material 881[Respective headings] Other Ingredients for pesticides Sulphonic acid (Soft) 882[Respective headings] Other surface active agents 883[Respective headings] Catonic 884[Respective headings] Non ionic surface active agents 885[Respective headings] 879 For expression, words “respective headings” substituted by Finance Act, 2022. 880 Substituted for the figure “2939.9910” by Finance Act, 2017 881 For expression, words “respective headings” substituted by Finance Act, 2022. 882 For expression, words “respective headings” substituted by Finance Act, 2022. 883 For expression, words “respective headings” substituted by Finance Act, 2022. 884 For expression, words “respective headings” substituted by Finance Act, 2022. 885 For expression, words “respective headings” substituted by Finance Act, 2022. Other organic surface active agents 886[Respective headings] 3402.9000 Chemical preparations 887[3824.9999] Solvent C-9 888[White spirit Solvent oil 2710.1250] 889[134. ***] omitted [135. ***] omitted [136. ***] omitted 890[137. Paper weighing 60 g/m2, art paper, printing paper and art card for printing of Holy Quran imported by Federal or Provincial Governments and Nashiran-e-Quran as per quota determined by IOCO 4802.5510, 4810.1990, 4810.1910, 4802.6990 and 4810.2900.] 891[138. ***] omitted [139. ***] omitted [140. ***] omitted [141. ***] omitted [142. ***] omitted (i) Hearing aids (all types and kinds) (ii) Hearing assessment equipment; (a) Audiometers (b) Tympanometer (c) ABR 886 For expression, words “respective headings” substituted by Finance Act, 2022. 887 Substituted for the figure “3824.9099” by Finance Act, 2017 888 New entries inserted by Finance Act, 2021. 889 Serial number(s) 134 to 136 omitted by Finance (Supplementary) Act, 2022. 890 S.No. 137 and entries relating thereto substituted by Finance Act, 2022. 891 Serial number(s) 138 to 142 omitted by Finance (Supplementary) Act, 2022. (d) Oto Acoustic Omission Liquefied Natural Gas imported by fertilizer manufacturers for use as feed stock Plant, machinery, equipment including dumpers and special purpose motor vehicles, if not manufactured locally, imported by M/s China State Construction Engineering Corporation Limited (M/s CSCECL) for the construction of Karachi – Peshawar Motorway (Sukkur – Multan Section) and M/s China Communication Construction Company (M/s CCCC) for the construction of Karakorum Highway (KKH) Phase-II - (Thakot - Havellian Section) subject to the following conditions: (i) that the exemption under this serial number shall only be available to contractors named above; (ii) that the equipment and construction machinery imported under this serial number shall only be used for the construction of the Respective heading respective allocated projects; (iii) that the importer shall furnish an indemnity bond, in the prescribed manner and format as set out in Annex-A, at the time of import to the extent of sales tax exempted under this serial number on consignment to consignment basis; (iv) that the Ministry of Communications shall certify in the prescribed manner and format as set out in Annex-B that the imported equipment and construction machinery are bona fide requirement for construction of Sukkur – Multan Section (392.0 km) of Karachi – Peshawar Motorway or for the construction of Karakorum Highway(KKH) Phase- II - Thakot to Havellian Section (118.057 km) as the case may be; (v) for the clearance of imported goods through Pakistan Customs Computerized System the authorized officer of the Ministry shall furnish all relevant information, as set out in Annex-B, online against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Director Reforms and Automation or any other person authorized by the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis; (vi) that the equipment and construction machinery, imported under this serial number, shall not be re-exported, sold or otherwise disposed of without prior approval of the FBR. In case goods are sold or otherwise disposed of with prior approval of FBR the same shall be subject to payment of sales tax as may be prescribed by the FBR; (vii) in case the equipment and construction machinery, imported under this serial number, is sold or otherwise disposed of without prior approval of the FBR in terms of para (vi) above, the same shall be subject to payment of statutory rates of sales tax as were applicable at the time of import; (viii) notwithstanding the condition at para (vi) and (vii) above, equipment and construction machinery, imported under this serial number, may be surrendered at any time to the Collector of Customs having jurisdiction, without payment of any sales tax , for further disposal as may be prescribed by the FBR; (ix) the indemnity bond submitted in terms of para (iii) above by the importer shall be discharged on the fulfillment of conditions stipulated at para (vi) or (vii) or (viii) above, as the case may be; and (x) that violation of any of the above mentioned conditions shall render the goods liable to payment of statutory rate of sales tax leviable on the date of clearance of goods in addition to any other penal action under relevant provisions of the law. 892[146. ***] omitted Goods supplied to German Development Agency Respective heading 892 Serial number 146 omitted by Finance (Supplementary) Act, 2022. (Deutsche Gesellschaft für Internationale Zusammenarbeit) GIZ Imported construction materials and goods imported by M/s China State Construction Engineering Corporation Limited (M/s CSCECL), whether or not locally manufactured, for construction of Karachi-Peshawar Motorway (Sukkur-Multan Section) subject to fulfilment of same conditions, limitations and restrictions as are specified under S. No. 145 of this table, provided that total incidence of exemptions of all duties and taxes in respect of construction materials and goods imported for the project shall not exceed ten thousand eight hundred ninety-eight million rupees including the benefit of exemption from duties and taxes availed before 30th June, 2018 under the provisions of the Sales Tax Act, 1990, the Customs Act, 1969, the Federal Excise Act, 2005 and the Income Tax Ordinance, 2001 and Notifications issued thereunder; Respective heading 893[149. ***] omitted [150 ***] omitted 894[151. (a) Supplies; and (b) imports of plant, machinery, equipment for installation in tribal areas and of industrial inputs by the industries located in the tribal areas, as defined in the Constitution of Islamic Republic of Pakistan,− as made till 895[30th June, 2024], to which the provisions of the Act or the notifications issued thereunder, would have not applied had Article 247 of the Constitution not been omitted under the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018): Provided that, in case of imports, the same shall be allowed clearance by the Customs authorities on presentation of a post-dated cheque for the amount of sales tax payable under the Sales Tax Act, 1990, and the same shall be returned to the importer after presentation of a consumption or installation certificate, as the Respective heading 893 Serial number 149 and 150 omitted by Finance (Supplementary) Act, 2022. 894 New serial numbers 151, 152 and 153 and entries relating thereto in column (2) and (3) inserted through Finance Act, 2019. 895 Expression substituted by Finance Act, 2023 case may be, in respect of goods imported as issued by the Commissioner Inland Revenue having jurisdiction: Provided further that if plant, machinery and equipment, on which exemption is availed under this serial number, is transferred or supplied outside the tribal areas, the tax exempted shall be paid at applicable rate on residual value Supplies of electricity, as made from the day of assent to the Constitution (Twenty-fifth Amendment) Act, 2018, till 896[30th June, 2024], to all residential and commercial consumers in tribal areas, and to such industries in the tribal areas which were set and started their industrial production before 31st May, 2018, but excluding steel and ghee or cooking oil industries 897[ 153. ***] 898[154. Dietetic foods intended for consumption by children suffering from inherent Respective heading 896 Expression substituted by Finance Act, 2023 897 Serial number 153 omitted by Finance Act, 2021. 898 New serial numbers 154 to 156 inserted by Finance Act, 2020 . 899[155. 900[156. 901[157. metabolic disorder subject to the conditions that the importer shall acquire approval and quota from Ministry of National Health Services, Regulations and Coordination. ***] omitted Import of CKD kits by local manufacturers of following Electric Vehicles:– (i) Road Tractors for semi-trailers (Electric Prime Movers) (ii) Electric Buses (iii) Three Wheeler Electric Rickshaw (iv) Three Wheeler Electric Loader (v) Electric Trucks (vi) Electric Motorcycle Import of CKD (in kit form) of following electric vehicles (4 wheelers) by local manufacturers till 30th June, 2026: (i) Small cars/SUVs with 50 Kwh battery or below; and Respective heading] Respective headings 899 Serial number 155 omitted by Finance (Supplementary) Act, 2022. 900 Serial number 156 substituted by Finance (Supplementary) Act, 2022. 901 New serial numbers 157 to 162 inserted by Finance Act, 2021. (ii) Light commercial vehicles (LCVs) with 150 kwh battery or below 902[158. ***] omitted 903[159. ***] omitted 910[160. ***] omitted Import of plant, machinery, equipment and raw materials for consumption of these items within Special Technology Zone by the Special Technology Zone Authority, zone developers and zone enterprises Respective headings Import of raw materials, components, parts and plant and machinery by registered persons authorized under Export Facilitation Scheme, 2021 notified by the Board with such conditions, limitations and restrictions. Respective headings] 904[163. Goods imported by various agencies of the United Nations, diplomats, diplomatic missions, privileged persons and privileged organizations which are covered under various Acts and, Orders, rules and regulations made thereunder; and agreements by the Federal Government: 99.01, 99.02, 99.03 and 99.06 902 Serial number 158 omitted by Finance (Supplementary) Act, 2022. 903 Serial numbers 159 & 160 omitted by Finance Act, 2023 904 New serial number(s) 163 to 174 added by Finance Act, 2022. Provided that such goods are charged to zero- rate of customs duty under the Customs Act, 1969 (IV of 1969), and the conditions laid therein. Provided further that exemption under this serial shall be available with effect from the 15 th day of January, 2022. Photovoltaic cells whether or not assembled in modules or made up into panels 8541.4200 and 8541.4300 Goods imported by or donated to hospitals run by the non-profit making institutions subject to the similar restrictions, limitations, conditions and procedures as are envisaged for the purpose of applying zero-rate of customs duty on such goods under the Customs Act, 1969, (IV of 1969). 99.13 and 99.14, Goods excluding electricity and natural gas supplied to hospitals run by the charitable hospitals of fifty beds or more. Respective headings Goods temporarily imported into Pakistan, meant for subsequent exportation charged to zero-rate of customs duty subject to the similar restrictions, 99.19, 99.20 and 99.21 limitations, conditions and procedures as are envisaged for the purpose of applying zero-rate of customs duty on such goods under the Customs Act, 1969 (IV of 1969). Fertilizers 905 [excluding DAP] Respective headings Oil cake and other solid residues Tractor 8701.9220 and 8701.9320 Seeds for sowing Respective heading Machinery, equipment and materials imported either for exclusive use within the limits of Export Processing Zone or for making exports therefrom, and goods imported for warehousing purpose in Export Processing Zone, subject to the conditions that such machinery, equipment, materials and goods are imported by investors of Export Processing Zones, and all the procedures, limitations and restrictions as are applicable on such goods under the Customs Act, 1969 (IV of 1969) and rules made thereunder shall mutatis mutandis, apply. Respective headings 905 Words added by Finance Act, 2023 Goods produced or manufactured in and exported from Pakistan which are subsequently imported in Pakistan within one year of their exportation, provided conditions of section 22 of the Customs Act, 1969 (IV of 1969), are complied with. Respective headings Machinery and equipment as listed at serial number 32 of the Table of Part-I of Fifth Schedule to the Customs Act, 1969 (IV of 1969), subject to the conditions, limitations and restrictions specified thereunder. Respective headings.] 906[Annex-I [See serial No. 100A & 100B] Header Information NTN/FTN of Importer Approval No. Details of materials and equipments (to be filled in by the authorized officer of the Ministry of Ports and Shipping) Goods imported (Collectorate of import) HS code Description Specs Customs duty rate (applicable) Rate of sales tax WHT Quantity UOM Quantity imported Collectorate CRN/ Mach No. Date of CRN/ Mach No. (12 ) (14 ) Header Information NTN/FTN of Importer Approval No. Details of materials and equipments (to be filled in by the authorized officer of the Ministry of Ports and Shipping) Goods imported (Collectorate of import) HS code Description Specs Customs duty rate (applicable) Rate of sales tax WHT Quantity UOM Quantity imported Collectorate CRN/ Mach No. Date of CRN/ Mach No. NOTE 1.– Before certifying, the authorized officer of the Ministry of Ports and Shipping shall ensure that the goods are genuine and bona fide requirement for construction and operation of Gwadar Port and development of Free Zone for Gwadar Port. Signature Designation NOTE 2.– In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished online against a specific 906 Annexure-I inserted through Finance Act, 2016. user I.D. and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). 907[Annex-A [See condition 145(iii)] (On appropriately stamped non-judicial paper) THIS DEED OF INDEMNITY is made on the date of BETWEEN Messrs having registered office at (hereinafter called "the importers" which means and includes their successors, administrators, executors and assignees) of the one part, AND the President of Pakistan through the Collector of Customs (hereinafter called the "Collector of Customs"), of the other part. WHEREAS the Federal Government, by its decision contained in serial number 145 or serial number 148 of this table, as the case may be, and subject to the conditions given in the said serial number 145 or serial number 148 of this table, as the case may be, has been pleased to direct that such equipment and construction machinery, as are not manufactured locally, shall be exempt from the whole of sales tax leviable thereon, in accordance with the said serial number 145 or serial number 148 of this table, as the case may be, if imported for :- (i) construction of Sukkur – Multan Section (392.0 km) of Karachi – Peshawar Motorway or (ii) for the construction of Karakorum Highway (KKH) Phase-II - Thakot to Havellian Section (118.057 km). AND WHEREAS M/S. having registered office at (hereinafter called the importers) have imported the equipment and/or construction machinery mentioned in the said serial number 145 or serial number 148 for purposes of construction of above mentioned project(s) in accordance with the conditions given in the said serial number 145 or serial number 148 of this table, as the case may be; NOW, THEREFORE, in consideration of the release of the equipment and/or construction machinery without recovery of leviable sales tax, the importers bind themselves to pay on demand to the Government of Pakistan the sum of Rs. being the sales tax and charges leviable on the machinery, if the importers fail to fulfill the condition (vi) or (vii) or (viii) 907 New Annexures A, B, C & D inserted by Finance Act, 2018. of the said serial number 145 or serial number 148 of this table, as the case may be. The importers further agree and bind themselves that the amount covered by this Bond shall be recovered as arrears of sales tax under section 202 of the Customs Act, 1969. This Bond shall become void when the Collector of Customs is satisfied that the importers have fulfilled all the conditions of the said serial number 145 or serial number 148 of this table, as the case may be. Signed by importers on this day of 201_. Witness (signature, name, designation and full address) Witness (signature, name, designation and full address) Note: The bond shall be written on appropriate non-judicial stamp paper and shall be witnessed by a Government servant in BPS 17 or above, an Oath Commissioner, a Notary Public or an officer of a Schedule Bank. [See condition 145 (iv) and (v)] NTN or FTN of Importer Approval No. (I) (II) Details of input goods (to be filled by the authorized officer of the Regulatory Authority) to be imported Description Quantity/UOM L/C No. IGM No. Remarks, if and or bank Date & any. specifications. contract Index No. No. and B/L. CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY AUTHORITY: It is hereby certified that the description, quantity and other details mentioned above are true and correct. Goods imported are in commensuration with the project requirement and are bona fide requirement of the project. It is further certified that the above items shall not be used for any other purpose except for the project. Signature: Name & Designation: Official Stamp: Date: [See condition 146(b)] (On appropriately stamp non-judicial paper attested by a Government servant in BPS 17 or above, an Oath Commissioner, a Notary Public or an officer of a Scheduled Bank) THIS DEED OF INDEMNITY is made on the date of BETWEEN Messrs having registered office at (hereinafter called "the importers" which means and includes their successors, administrators, executors and assignees) of the one part, AND the President of the Islamic Republic of Pakistan through the Collector of Customs (hereinafter called the "Collector of Customs"), of the other part. WHEREAS the Federal Government, by its decision contained in serial number 146 and subject to the conditions given in the said serial number 146, has been pleased to direct that such equipment shall be exempt from the whole of sales tax leviable thereon, in accordance with the said serial number 146, if imported for Lahore Orange Line Metro Train Project. AND WHEREAS M/S. , the importers have imported the equipment mentioned in the said serial number 146 for the above mentioned project in accordance with the conditions given in the said serial number 146; NOW, THEREFORE, in consideration of the release of the equipment without recovery of leviable sales tax, the importers bind themselves to pay on demand to the Government of Pakistan the sum of Rs. being the sales tax and charges leviable on the equipment, if the importers fail to fulfill the condition (f) or (g) or (h) of the said serial number 146, as the case may be. The importers further agree and bind themselves that the amount covered by this Indemnity Bond shall be recovered as arrears of sales tax under section 202 of the Customs Act, 1969. This Bond shall stand revoked automatically when the Collector of Customs is satisfied that the importers have fulfilled all the conditions of the said serial number 146. Signed by importers on this day of 201_. (Name and permanent address) (On behalf of President) Witness(1) (signature, name, designation and full address) Witness(2) (signature, name, designation and full address) [See conditions 146 (c) and (e)] NTN or FTN of Importer Approval No. Details of equipment (to be filled by the authorized officer of the Regulatory Authority) to be imported Description and specifications. Quantity/UOM L/C No. or bank contract No. and B/L. IGM No. Date & Index No. Remarks, if any. CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY AUTHORITY: It is hereby certified that the description, quantity and other details mentioned above are true and correct. Goods imported are in commensuration with the project requirements and are bona fide requirement of the Project under the Contract. It is further certified that the above items shall not be used for any other purpose except for the Project. Signature: Name and Designation: Official Stamp: Date: ”] 908 [1. ***] omitted [2. ***] omitted 909 [3. 910[Supplies made by cottage industry.] Respective headings.] [4. ***] omitted 911 [5. ***] Supply of fixed assets against which input tax adjustment is not available under a notification issued in terms of clause (b) of sub-section (1) of section 8 of the Sales Tax Act, 1990. Respective headings. 912 7. 913[***], vermicillies, 914[***], sheer mal, bun and rusk excluding those sold in bakeries, 915[***] and sweet shops falling in the category of Tier-1 retailers. Respective heading] Foodstuff cooked or prepared in-house and served in messes run on the basis of mutuality and Respective headings. 908 Serial number(s) 1, 2 and 4 omitted by Finance (Supplementary) Act, 2022. 909 S. No. 3 substituted by the Finance Act, 2007 910 Substituted by the Finance Act, 2014 911 S. No. 5 omitted by the Finance Act, 2011 912 Serial number 7 substituted by Finance (Supplementary) Act, 2022. 913 Expressions omitted by Finance Act, 2022. 914 Expressions omitted by Finance Act, 2022. 915 Expressions omitted by Finance Act, 2022. industrial canteens for workers. [9. ***] omitted Agricultural produce of Pakistan, not subjected to any further process of manufacture. Respective headings. 916[11. ***] 917[12. ] ***] 918 [ 919 [13. *** 2[14. ***] 920[15. ***] omitted [16. ***] omitted 921[17. ***] ***] ***] ***] 3[21. Poultry feed, cattle feed, sunflower seed meal, rape seed meal and canola seed meal 2306.3000, 2306.4900 and respective headings] 922[22. ***] omitted [23. ***] omitted [24. ***] [25. ***] 916 S. No. 11 omitted by the Finance Act, 2022. 917 S. No. 12 omitted by the Finance Act, 2013 918 S. Nos. 13 to 16 added by the Finance Act, 2014 919 S. No. 13 & 14 omitted by the Finance Act, 2015 920 Serial number(s) 9, 15 and 16 omitted by Finance (Supplementary) Act, 2022. 921 S. Nos. 17 to 20 and 24, 25 omitted by Finance Act, 2021. 922 Serial number(s) 22, 23 and 33 omitted by Finance (Supplementary) Act, 2022. 923[26. Supply of locally produced silos till 30.06.2026 Respective heading Wheat Bran 924[This exemption shall apply from the 1st day of July, 2018] Sugar beet Fruit juices, whether fresh, frozen or otherwise preserved but excluding those bottled, canned or packaged. 2009.1100, 2009.1200, 2009.1900, 2009.2100, 2009.2900, 2009.3100, 2009.3900, 2009.4100, 2009.4900, 2009.5000, 2009.6100, 2009.6900, 2009.7100, 2009.7900, and 2009.9000 Milk and cream, concentrated or containing added sugar or other sweetening matter, excluding that sold in retail packing under a brand name Flavored milk, excluding that sold in retail packing under a brand name Yogurt, excluding that sold 925[***] under a brand name 926[Respective heading] [33. ***] omitted Butter, excluding that sold 932[***] under a brand name Desi ghee, excluding that sold 932[***] under a brand name Cheese, excluding that sold 932[***] under a brand name Processed cheese not grated or powdered, excluding that sold 932[***] under a brand name 923 New serial numbers 26 to 39 inserted by Finance Act, 2021. 924 Expression added by Finance Act, 2023 925 Under serial number(s) 32 and 34 to 37 words omitted by Finance Act, 2023 926 Words substituted by Finance Act, 2022. [38. ***] omitted927 Products of meat or meat offal 1602.3200, 1602.3900, excluding sold 928[***] under 1602.5000, 1604.1100, a brand name or trademark 1604.1200, 1604.1300, 1604.1400, 1604.1500, 1604.1600, 1604.1900, 1604.2010, 1604.2020 and 1604.2090] 929 [40 Live Animals and live poultry Respective headings Meat of bovine animals, Respective headings sheep, goat and uncooked poultry meat excluding those sold 935[***] under a brand name Fish and crustaceans Respective headings excluding those sold 935[***] under a brand name Live plants including bulbs, 0601.1010, 0601.1090, roots and the like 0601.2000, 0602.1000, 0602.2000, 0602.3000, 0602.4000, 0602.9010 and Cereals other than rice, wheat, Respective headings wheat and meslin flour 930 [45 Edible vegetables including Respective heading] roots and tubers whether fresh, frozen or otherwise reserved (e.g. in cold storage) but excluding those bottled or canned. Edible fruits Respective headings Sugar cane 927 Serial number 38 omitted by Finance (Supplementary) Act, 2022. 928 Under serial number(s) 39, 41 and 42 words omitted by Finance Act, 2023 929 Serial number(s) 40 to 51 inserted by Finance (Supplementary) Act, 2022. 930 Serial number 45 substituted by Finance Act, 2022. Eggs including eggs for hatching 0407.1100, 0407.1900 0407.2100 and 0407.2900 Compost (non-commercial fertilizer) R
931 New serial number(s) 52 to 54 added by Finance Act, 2022. 932 New serial number 55 added by Tax Laws (Second Amendment) Ordinance, 2022. Description and Coding System (relevant version) as amended from time to time shall be considered authentic source of interpretation.
933[TABLE-3 The plant, machinery, equipment and apparatus, including capital goods, specified in column (2) of the Annexure below, falling under the HS Codes specified in column (3) of that Annexure, shall be exempt from the whole of Sales tax, subject to the following conditions, besides the conditions specified in column (4) of the Annexure, namely:- (i) The imported goods as are not listed in the locally manufactured items, notified through a Customs General Order issued by the Board from time to time or, as the case may be, certified as such by the Engineering Development Board. (ii) except for S. No. 9, 14, 934[14A and 15] of the Annexure, the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify in the prescribed manner and format as per Annex-A that the imported items are the company’s bona fide requirement. He shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969. In already computerized Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Project Director or any other person authorized by the Collector in this behalf shall enter the 933 Inserted by Finance Act, 2014 934 The figure and words inserted through Finance Act, 2017 requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis; and (iii) in case of partial shipments of machinery and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furnish complete details of the machinery, equipment and components required for the complete plant, duly supported by the contract, layout plan and drawings: Explanation.- For the purpose of Table-3, capital goods mean any plant, machinery, equipment, spares and accessories, classified in Chapters 84, 85 or any other chapter of the Pakistan Customs Tariff, required for- (a) the manufacture or production of any goods and includes refractory bricks and materials required for setting up a furnace, catalysts, machine tools, packaging machinery and equipment, refrigeration equipment, power generating sets and equipment, instruments for testing, research and development, quality control, pollution control and the like; or (b) used in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock, dairy and poultry industry. 935[ANNEXURE 936 [1. ***] omitted 2 & 2A ***] omitted 935 Inserted by Finance Act, 2014. 936 Serial number(s) 1 to 9 and 11 omitted by Finance (Supplementary) Act, 2022. ***] omitted ***] omitted ***] omitted ***] omitted ***] omitted ***] omitted ***] omitted 937 10. ***] omitted ***] omitted] Machinery, equipment and other project related items including capital goods, for setting up of hotels, power generation plants, water treatment plants and other infrastructure related projects located in an area of 30 km around the zero point in Gwadar. Respective Headings
of the FBR and payment of customs duties and 937 Serial number 10 omitted by Finance Act, 2015. taxes leviable at the time of import. 938 [ 13 . ***] omitted ***] omitted 14A ***] omitted [15& 15A ***] omitted 15B. ***] omitted ***] [17. ***] omitted The following parts for assembling and manufacturing of personal computers and laptops: If imported by manufacturers and assemblers of computers and laptops, registered with and certified by Engineering Development Board in accordance with quota determined by IOCO (i) Bare PCBs (ii) Power Amplifier (iii) Microprocessor/ Controllers (iv) Equipment for SMT Manufacturing (v) Laptop batteries (vi) Adopters (vii) Cooling fans (viii) Heat sink (ix) Hard Disk SSD (x) RAM/ROMS 8471.7060 and 8471.7090 (xi) System on Chip/FPGA- IC (xii) LCD / LED Screen (xiii) Motherboards (xiv) power supply (xv) Optical Drives (xvi) External Ports (xvii) Network cards (xviii) Graphic cards 938 Serial number(s) 13 to 15B and 17 omitted by Finance (Supplementary) Act, 2022. 939 S.No. 16 and entries relating thereto omitted by Finance Act, 2015 (xix) wireless cards (xx) micro phone (xxi) Trackpad Plant and machinery, except the items listed under Chapter 87 of the Pakistan Customs Tariff, imported for setting up of a Special Economic Zone (SEZ) by zone developers and for installation in that zone by zone enterprises, on one time basis as prescribed in the SEZ Act, 2012 and rules thereunder subject to such condition, limitations and restriction as a Federal Board of Revenue may impose from time to time. 9917(2) Nil] 940 [20 . Plant and machinery for the assembly/ manufacturing of electric vehicles Respective heading The exemption shall be admissible on one time basis for setting up the new assembly and/or manufacturing facility of the vehicles and expansion in the existing units to the extent of electric vehicles specific plant and machinery, duly approved/ certified and determined by the Engineering Development Board (EDB).] 941 [21 ***] omitted 942 [ 22 1.Machinery, equipment and spares meant for initial installation, balancing, modernization, Respective Headings (i) This concession shall also be available to primary contractors of the project upon 940 New serial number 20 inserted by Finance Act, 2020. 941 Serial number 21omitted by Finance (Supplementary) Act, 2022. 942 New serial number 22 inserted by Finance Act, 2022. replacement or expansion of projects for power generation through hydel, oil, gas, coal, nuclear and renewable energy sources including under construction projects entered into an implementation agreement with the Government of Pakistan prior to 15 th day of January, 2022.
fulfilment of the following conditions, namely:- (a) the contractor shall submit a copy of the contract or agreement under which he intends to import the goods for the project; (b) the Chief Executive or head of the contracting company shall certify in the prescribed manner and format as per Annex-A that the imported goods are the projects bona fide requirement; and (c) the goods shall not be sold or otherwise disposed of without prior approval of the FBR on payment of sales tax leviable at the time of import; (ii) temporarily imported goods shall be cleared against a security in the form of a post-dated cheque for the differential amount between the statutory rate of sales tax and the amount payable along with an undertaking to pay the sales tax at the statutory rates in case such goods are not re-exported on conclusion of the project.] Header Information NTN/FTN of Importer Regulatory Authority no. Name of Regulatory authority Details of Input goods (to be filled by the chief executive of the importing company) Goods imported (Collectorate of import) HS Code Description Specs Custom Duty rate (applic-able) Sales Tax rate (applicable) WHT Quantity UOM Quantity imported Collectorate CRN/ Mach No. Date of CRN/ Mach. No. (11 ) that the above items shall not be used for any other purpose. 943 Annex-A substituted by Finance Act, 2022. Signature of Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive Name N.I.C. No. NOTE:- In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished online against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969. Explanation.– Chief Executive means.–
944[Annex-B Header Information NTN/FTN of Importer Approval No. Details of Input goods (to be filled by the authorized officer of the Regulatory Authority) Goods imported (Collectorate of import) HS Code Description Specs Custom Duty rate (applicable) Sales Tax rate (applicable) WHT Quantity UOM Quantity imported Collectorate CRN/Mach. No. Date of CRN/ Mach No. 944 Inserted by the Finance Act, 2014 (9 ) CERTIFICATE Before certifying the above-authorized officer of the Regulatory Authority shall ensure that the goods are genuine and bona fide requirement of the project and that the same are not manufactured locally. Signature Designation NOTE:- In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished on line against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969. The goods specified in column (2) of the Annexure below falling under the PCT codes specified in column (3) of the said Annexure, when supplied within the limits of the Border Sustenance Markets, established in cooperation with Iran and Afghanistan, shall be exempted from the whole of the sales tax, subject to the following conditions, namely:– (i) Such goods shall be supplied only within the limits of Border Sustenance Markets established in cooperation with Iran and Afghanistan; (ii) If the goods, on which exemption under this Table has been availed, are brought outside the limits of such markets, sales tax shall be charged on the value assessed on the goods declaration import or the fair market value, whichever is higher; (iii) Such items in case of import, shall be allowed clearance by the Customs Authorities subject to furnishing of bank guarantee equal to the amount of sales tax involved and the same shall be released after presentation of consumption certificate issued by the Commissioner Inland Revenue having jurisdiction; 945 Table-4 added by Finance Act, 2021. (iv) The said exemption shall only be available to a person upon furnishing proof of having a functional business premises located within limits of the Border Sustenance Markets; and (v) Breach of any of the conditions specified herein shall attract relevant legal provisions of this Act, besides recovery of the amount of sales tax alongwith default surcharge and penalties involved. Seed (Potatoes) Tomatoes, fresh or chilled Onions and shallots Garlic Cauliflowers cabbage Carrots and turnips Cucumbers and gherkins fresh or chilled Peas (pisum sativum) Beans (vigna spp., phaseolus spp.) other leguminous vegetables Peas (Pisum sativum) Grams (Dry/Whole) Dried leguminous vegetables 0713.2090, 0713.9090 Beans of the species Vigna mungo (L.) Hepper or Vigna radiata (L.) Wilczek Small red (Adzuki) beans (Phaseolus or Vigna angularis) Kidney beans including white beans Bambara – vigna subteranea or vaahdzeia subterrea Beans vigna unguiculata Other Lentils (Dry/Whole) Broad beans (Vicia faba var. major) and horse beans (Vicia faba var. equina, Vicia faba var. minor) Pigeon peas (cajanus cajan) Vanilla (Neither crushed nor ground) Cinnamon Other (Cinnamon And Cinnamon Tree Flowers) Neither crushed nor ground (Cloves) Crushed or ground (Cloves) Neither Crushed nor ground (Nutmeg) Crushed or ground (Nutmeg) Neither crushed nor ground (Maze) Crushed or ground (Maze) Large (Cardammoms) Small (Cardammoms) Crushed or ground (Cardammoms) Neither crushed nor ground (Coriander) Crushed or ground (Coriander) Neither crushed nor ground (Seeds of Cumins) Crushed or ground (Seeds of Cumins) Neither crushed nor ground (Seeds of Anise, Badian, Caraway, Fennel etc) Crushed or ground (Seeds of Anise, Badian, Caraway, Fennel etc) Thyme; bay leaves Barley (Seeds) 1003.1000, 1003.9000 Sunflower seeds ,whether or not broken Locust beans Cereal straws and husks Knives and cutting blades for paper and paper board Of a fat content, by weight, not exceeding 1 % (milk and cream) Of a fat content, by weight, exceeding 1 % but not exceeding 6 % (milk and cream) Of a fat content, by weight, exceeding 6 % but not exceeding 10% (Milk and Cream) Of a fat content, by weight, exceeding 10 % (Milk and Cream) Leeks and other alliaceous vegetables Cauliflowers and headed broccoli Brussels sprouts Cabbage lettuce (head lettuce) Lettuce Chicory 0705.2100, 0705.2900 Fruits of the genus Capsicum or of the genus Pimenta Figs Fresh (grapes) Dried (Grapes) Melons 0807.1100, 0807.1900 Apples Green Tea Other Green Tea Crushed or ground (Ginger) Turmeric (curcuma) Other (spice) Lactose (Sugar ) Sugar Syrup Sugar Other Caramel Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya bean oil. Other (animal feed) For Sewing (Thread) For embroidery (Thread) Spades and shovels Tools for masons, watchmakers, miners and hand tools nes For kitchen appliances or for machines used by the food industry Other kitchen appliances Yogurt 946[0403.2000] Other (Potatoes) Sweet corn Mixtures of vegetables 946 Expression substituted by Finance Act, 2022. Fresh (Dates) Dried (Dates) Apricots Sour cherries (Prunus cerasus) Other (Apricots) Peaches, including nectarines Plums and sloes Strawberries Kiwi Fruit Neither crushed nor ground (Ginger) Wheat and Meslin(Other) Wheat and Meslin (Other ) Of Wheat (Flour) Of Meslin Vermacelli Other (Packed Cake) Homogenised perparations Citrus Fruit Other (jams) Organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap Preparations put up for retail sale Other (washing preparations) Tableware and kitchenware of porcelain or china Household articles nes & toilet articles of porcelain or china Glassware for table or kitchen purposes (excl. glass having a linear c Glassware nes (other than that of 70.10 or 70.18) Spoons Tableware articles not in sets and not plated with precious metal Bicycles and other cycles (including delivery tricycles), not motorised Vacuum flasks Vacuum flasks/vacuum vessels complete w/cases; parts o/t glass inners (others) 9617.0020.] 947[***] 948[The [See clause (aa) of sub-section (2) of section 3] 949 [1. 950 [2. ***] 951 [3. ***] 952 [4. ***] omitted [5. ***] omitted ***] omitted ***] omitted ***] omitted ***] omitted ***] omitted ***] omitted 947 The seventh schedule omitted by the Finance Act, 1997 948 The eighth schedule inserted by the Finance Act, 2014 949 Serial numbers 1 and 5 omitted by Finance Act, 2021. 950 Serial number 2 omitted by Finance Act, 2020. 951 S. No. 3 and entries relating thereto omitted by Finance Act, 2015 952 Serial number(s) 4 and 6 to 12 omitted by Finance (Supplementary) Act, 2022. 953[13. ***] omitted [14. ***] omitted ***] omitted ***] omitted ***] omitted 954[18. ***] 955[19. ***] ***] omitted 956[21. ***] 957[22. ***] Second hand and worn clothing or footwear 958[25. ***] ***] omitted ***] omitted ***] omitted ***] omitted ***] omitted 959[31. [ ]] omitted 960[32. [***] omitted 2[33. [ ]] omitted ***] omitted 953 Serial number(s) 13 to 17, 20, 26 to 30 and 34 omitted by Finance (Supplementary) Act, 2022. 954 Serial number 18 and entries relating thereto is omitted through Finance Act, 2019. 955 Serial number 19 omitted by Finance Act, 2021. 956 Serial number 21 and entries relating thereto is omitted through Finance Act, 2019. 957 Serial number 22 omitted by Finance Act, 2021. 958 Serial number 25 omitted by Finance Act, 2022. 959 Serial number 31 omitted through Finance Act, 2016. 960 Serial number 32 and entries relating thereto is omitted through Finance Act, 2019. 961 [35 to 42]. [ ]] omitted Natural gas Respective heading 962[5%] If supplied to fertilizer plants for use as feed stock in manufacturing of fertilizer Phosphoric acid If imported by fertilizer company for manufacturing of DAP 963 45. ***] omitted ***] omitted Locally produced coal Rs. 964[700] per metric tonne or 965[18%] ad valorem, whichever is higher Nil 966 [48 & 49 [ ]] omitted 967 [50 . ***] [51. ***] 968 [52 . ***] The following cinematographic equipment imported Subject to same limitations and conditions as are 961 S.No(s) 33 & 35 to 42 omitted by Finance Act, 2018. 962 For the figure “10” the figure “5” substituted through Finance Act, 2018. 963 Serial number(s) 45 and 46 omitted by Finance (Supplementary) Act, 2022 964 Expression substituted by Finance Act, 2022. 965 Expression substituted by Finance (Supplementary) Act, 2023. 966 S.No(s) 48 & 49 omitted by Finance Act, 2018. 967 S.No(s) 50 to 51 omitted by Finance Act, 2021. 968 Serial number 52 omitted by Finance Act, 2022. during the period commencing on the 1st day of July, 2018 and ending on the 30th day of June, 2023. specified in Part-1 of Fifth Schedule to the Customs Act, 1969 for availing 3% concessionary rate of customs duty on the import of these equipment.”; (i) Projector (ii) Parts and accessories for projector (iii) Other instruments and apparatus for cinema (iv) Screen (v) Cinematographic
(vi) 3D Glasses (vii) Digital Loud Speakers (viii) Digital Processor (ix) Sub-woofer and Surround Speakers (x) Amplifiers (xi) Audio rack and termination board 7326.9090 8537.1090 (xii) Music Distribution System (xiii) Seats (xiv) Recliners (xv) Wall Panels and metal profiles (xvi) Step Lights 969[Respective headings] (xvii)Illuminated Signs (xviii) Dry Walls (xix) Ready Gips 970 54. ***] omitted ***] omitted Potassium Chlorate (KCLO3) Respective headings 971[18%] alongwith rupees 972[60] per kilogram Import and supply thereof. Provided that rate of rupees 973[60] per kilogram shall not apply on imports made by and supplies made to organizations under the control of Ministry of Defence Production. Rock phosphate Respective headings If imported by fertilizer manufacturers for use in the manufacturing of fertilizers. 974 [58 . LPG Imports thereof and local supplies of such imported LPG.”.] [59. ***] omitted 975 [60 . ***] omitted ***] omitted ***] omitted ***] omitted ***] omitted 969 Words substituted by Finance Act, 2022. 970 Serial number(s) 54, 55, 59 and 61 to 64 omitted by Finance (Supplementary) Act, 2022 971 Expression substituted by Finance (Supplementary) Act, 2023. 972 The figure substituted by Finance Act, 2022. 973 The figure substituted by Finance Act, 2022. 974 S.No. 58 added by Finance Supplementary (Amendment) Act, 2018. 975 Serial number 60 “Fat filled Milk” omitted by Finance Act, 2022. 976 [65 . ***] Supplies as made from retail outlets as are integrated with Board’s computerized system for real-time reporting of sales Respective Headings 977[15%] if supplied goods are finished fabric, and locally manufactured finished articles of textile and textile made-ups and leather and artificial leather subject to the condition that they have maintained 4% value addition during the last six months”; and 978 [66 A ***] omitted 66B ***] omitted ***] ***] omitted ***] omitted 979 [70 . Following locally manufactured electric vehicles Respective Heading Local supplies only] (i) Road Tractors for semi- trailers (Electric Prime Movers) (ii) Electric Buses (iii) Three Wheeler Electric Rickshaw 976 Serial numbers 65 and 67 omitted by Finance Act, 2021. 977 The expression substituted by Finance Act, 2023 978 Serial number(s) 66A, 66B and 68, 69 omitted by Finance (Supplementary) Act, 2022 979 Serial number 70 substituted by Finance (Supplementary) Act, 2022 (iv) Three Wheeler Electric Loader (v) Electric Trucks (vi) Electric Motorcycle 980 [71 . Following locally manufactured or assembled electric vehicles (4 wheelers) till 30th June, 2026: (i) Small cars/ SUVs with 50 Kwh battery or below; and (ii) Light commercial vehicles (LCVs) with 150 kwh battery or below Respective heading If supplied locally Motorcars Locally manufactured or assembled motorcars of cylinder capacity upto 981[850cc] 982 [73 . Locally manufactured 980 New serial numbers 71 to 74 inserted by Finance Act, 2021. 981 Expression substituted by Finance (Supplementary) Act, 2022. 982 Serial number 73 substituted by Finance (Supplementary) Act, 2022 Hybrid electric vehicle: (a) Upto 1800 cc (b) From 1801 cc to 2500 cc 87.03 87.03 8.5%. 12.75% Goods supplied from tax-exempt areas of erstwhile FATA/PATA to the taxable areas Respective headings 16%.] 983 [75 ***] 984 [76 ***] omitted 985 [77 personal computers and Laptop computers, notebooks whether or not incorporating multimedia kit 8471.3020 and 8471.3010 If imported in CBU condition 986 [78 . Supply of locally manufactured articles of jewellery, or parts thereof, of precious metal or of metal clad with precious metal. No input tax shall be adjusted Electric vehicle in CBU condition of 50 kwh battery or below EV transport buses of 25 seats or more in CBU condition Respective heading 983 Serial number 75 omitted by Finance Act, 2022. 984 Serial number 76 omitted by Finance (Supplementary) Act, 2022 985 New serial number 77 added by Finance (Supplementary) Act, 2022 986 New serial number(s) 78 to 82 added by Finance Act, 2022 987 [8 1. Substances registered as drugs under the Drugs Act, 1976 (XXXI of 1976) and medicaments as are classifiable under chapter 30 of the First Schedule to the Customs Act, 1969 (IV of 1969) except the following, even if medicated or medicinal in nature, namely:- (a) filled infusion solution bags imported with or without infusion given sets; (b) scrubs, detergents and washing preparations; (c) soft soap or no soap; (d) adhesive plaster; (e) surgical tapes; (f) liquid paraffin; (g) disinfectants, and (h) cosmetics and toilet preparations. This substitution shall be deemed to Respective heading Subject to the conditions that: (i) Tax charged and deposited by the manufacturer or importer, as the case may be, shall be final discharge of tax in the supply chain (ii) No input tax shall be adjusted in the supply chain. 987 Serial numbers 81 & 82 substituted by Finance Act, 2023 have been made from the 1st day of July, 2022. Raw materials for the basic manufacture of pharmaceutical active ingredients and for manufacture of pharmaceutical products, provided that in case of import, only such raw materials shall be entitled to reduced rate as specified in column (4) which are liable to customs duty not exceeding eleven per cent ad valorem, either under the First Schedule or Fifth Schedule to the Customs Act, 1969 (IV of 1969) or under a notification issued under section 19 thereof. Respective heading Subject to the conditions that: (i) DRAP shall certify item-wise requirement of manufacturers of drugs and APIs and in case of import shall furnish all relevant information to Pakistan Customs Computerized System; and (ii) No input tax shall be adjusted in the supply chain.] 988 [8 3 DAP Respective headings Subject to the condition that no refund of 988 New serial number added by Finance Act, 2023 excessive input tax, if any, shall be admissible.] Header Information NTN/FTN of Importer Regulatory authority no. Name of Regulatory authority Details of Input goods (to be filled by the chief executive of the importing company) Goods imported (Collectorate of import) HS Code Description Specs Custom Duty rate (applic- able) Sales Tax rate (applicable) WHT Quantity UOM Quantity imported Collectorate CRN/ Mach No. Date of CRN/ Mach. No. CERTIFICATE. It is certified that the description and quantity mentioned above are commensurate with the project requirement and that the same are not manufactured locally. It is further certified that the above items shall not be used for any other purpose. Signature of Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive Name N.I.C. No. NOTE:-- In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished online against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969. Explanation.— Chief Executive means.— 989 Table -2 omitted by Finance (Supplementary) Act, 2022.
Header Information NTN/FTN of Importer Approval No. Details of Input goods (to be filled by the authorized officer of the Regulatory Authority) Goods imported (Collectorate of import) HS Code Description Specs Custom Duty rate (applicable) Sales Tax rate (applicable) WHT Quantity UOM Quantity imported Collectorate CRN/Mach. No. Date of CRN/ Mach No. (12 ) CERTIFICATE. Before certifying the above-authorized officer of the Regulatory Authority shall ensure that the goods are genuine and bona fide requirement of the project and that the same are not manufactured locally. Signature Designation NOTE:-- In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished online against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969. 990 [The [See sub-section (3B) of section 3] Sales Tax on supply (payable at the time of supply by CMOs): Subscriber Identification Module (SIM) Cards Rs. 250 992 [Provided that the provisions of Table-I shall not be applicable from 1st July, 2020 onwards. Explanation.– For removal of doubt, it is clarified that the above amendment in law shall not prejudicially affect, the Board’s stance or position in pending cases on the issue of chargeability of sales tax on SIM cards before any court of law.] 990 The Ninth Schedule added by the Finance Act, 2015 991 Table-I, Table-II and conditions substituted by Finance Act, 2020. 992 Proviso and Explanation to Table-1 inserted by Finance Act, 2021. Cellular mobile phones in CKD/CBU form: Cellular mobile phones or satellite phones to be charged on the basis of import value per set, or equivalent value in rupees in case of supply by the manufacturer, at the rate as indicated against each category:- - A. Not exceeding US$ 30 (excluding smart phones) Rs. 130 Rs. 10 Rs. 10 B. Not exceeding US$ 30 (smart phones) Rs. 200 Rs. 10 Rs. 10 C. Exceeding US$ 30 but not exceeding US$ 100 Rs. 200 Rs. 10 Rs. 10 D. Exceeding US$ 100 but not exceeding US$ 200 Rs. 1,680 Rs. 10 Rs. 10 E. Exceeding US$ 200 but not exceeding US$ 350 993[18%] ad valorem Rs. 1,740 Rs. 10 F. Exceeding US$ 350 but not exceeding US$ 500 994[18%] ad valorem Rs. 5,400 Rs. 10 G. Exceeding US$ 500 995[25%] ad valorem] Rs. 9,270 Rs. 10 993 Expression substituted by Finance (Supplementary) Act, 2023 994 Expression substituted by Finance (Supplementary) Act, 2023 995 Expression substituted by Finance (Supplementary) Act, 2023 LIABILITY, PROCEDURE AND CONDITIONS [(i) The liability to pay the tax on the goods specified in this Schedule shall be– (a) in case of the goods specified in Table-I, of the Cellular Mobile Operator (CMO); (b) in case of goods specified in columns (3) and (4) of Table-II, of the importer; and (c) in case of goods specified in column (5) of Table-II, of the local manufacturers of the goods. (ii) The time of payment of tax due under this Schedule shall be the same as specified in section 6; (iii) The tax paid under this Schedule shall not be deductible against the output tax payable by the purchaser or importer of the goods specified in this Schedule; (iv) The input tax paid on the input goods attributable to the goods specified in this Schedule shall not be deductible for the tax payable under this Schedule; and (v) The Board may prescribe further mode and manner of payment of tax due under this Schedule.] [See sub-section (1B) of section 3] 997[(1)]The tax on bricks, falling in PCT heading 998[6901.0000], shall be paid on fixed basis, 999[ ] at the rates specified in Table below:– 996 The new Tenth Schedule, the Eleventh Schedule and the Twelfth Schedule added through Finance Act, 2019. 997 Existing paragraph renumbered as paragraph (1) by Finance Act, 2020. 998 PCT heading “6901.1000” substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 999 Expression “on monthly return,” Omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 Lahore, Rawalpindi and Islamabad districts Rs. 12,500 Attock, Chakwal, Jehlum, Mandi Bahauddin, Sargodha, Gujrat, Sialkot, Narowal, Gujranwala, Hafizabad, Sheikhupura, Kasur, Nankana Sahib, Chiniot, Faisalabad, Jhang, Toba Tek Singh, Okara and Sahiwal districts Rs. 10,000 Khushab, Mianwali, Bhakar, Layyah, Muzaffarghar, Dera Ghazi Khan, Rajanpur, Multan, Lodhran, Khanewal, Vehari, Bahawalpur, Pakpattan, Bahawalnagar, Rahim Yar Khan districts; and Sindh, Khyber- Pakhtunkhwa and Baluchistan provinces Rs. 7,500 1000[(2) Tax on cement or concrete blocks falling in PCT heading 6810.1100, shall be charged on fixed basis as per the following Table, namely:- Paver Rs. 2 per sq.ft Hollow block (volume less than 1 cubic feet) Rs. 3 per piece Solid block (volume less than 1 cubic feet) Rs. 3 per piece Kerb Stone (volume less than 1 cubic feet) Rs. 5 per piece Kerb stone (volume greater than 1 cubic feet) Rs. 10 per piece] Note: No input tax adjustment shall be allowed against the tax paid under this Schedule.] 1000 New paragraph (2) and its Table along with Note inserted by Finance Act, 2020. [See sub-section (7) of section 3] The rates for withholding or deduction by the withholding agents 1002[are specified as below provided that withholding of tax under this Schedule shall not be applicable to the goods and supplies specified vide clauses 1003[***] after the Table] (a) Federal and provincial government departments; autonomous bodies; and public sector organizations (b) Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001) 1004[Active Taxpayers] 1/5th of Sales Tax as shown on invoice (a) Federal and provincial government departments; autonomous bodies; and public sector organizations (b) Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001) 2[Active Taxpayer] registered as a wholesaler, dealer or distributor 1/10th of Sales Tax as shown on invoice Federal and provincial government departments; autonomous bodies; and public sector organizations 2[persons other than Active Taxpayers] Whole of the tax involved or as applicable to supplies on the basis of gross value of supplies Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001) 1005[ excluding companies exporting surgical instruments] 2[persons other than Active Taxpayers] 5% of gross value of supplies 1001 Eleventh Schedule inserted by Finance Act, 2019. 1002 The expression substituted by Finance Act, 2020. 1003 Expression omitted by Finance Act, 2022. 1004 Words substituted by Finance Act, 2020. 1005 Words added by Finance Act, 2022. Registered persons as recipient of advertisement services Person providing advertisement services Whole of sales tax applicable Registered persons purchasing cane molasses. 2[persons other than Active Taxpayers] Whole of sales tax applicable. 1006 [7. Registered persons manufacturing lead batteries Persons supplying any kind of lead under chapter 78 (PCT Headings: 7801.1000, 7801.9100, 7801.9900, 7802.0000, 78.03, 7804.1100, 7804.1900, 7804.2000, 78.05, 7806.0010, 7806.0020, 7806.0090) or scrap batteries under chapter 85 (PCT Headings: 1007[Respectiv e headings] 75% of the sales tax applicable”. 1006 New serial numbers 7 and 8 inserted by Finance Act, 2021. 1007 Words added by Finance Act, 2022. Online market place Persons other than active taxpayers 1008[1]% of gross value of supplies: Provided that the provisions of this entry shall be effective from the date as notified by the Board.] (i) Electrical energy; (ii) Natural Gas; (iii) Petroleum Products as supplied by petroleum production and exploration companies, oil refineries, oil marketing companies and dealers of motor spirit and high speed diesel; (iv) Vegetable ghee and cooking oil; (v) Telecommunication services; (vi) Goods specified in the Third Schedule to the Sales Tax Act, 1990; (vii) Supplies made by importers who paid value addition tax on such goods at the time of import; (viii) Supplies made by an Active Taxpayer as defined in the Sales Tax Act, 1990 to another registered persons with exception of advertisement services; and 1008 Expression substituted by Finance Act, 2022 . 1009[(ix) Supply of sand, stone, gravel/crush and clay to low cost housing schemes sponsored or approved by Naya Pakistan Housing and Development Authority .] 1009 New clause (ix) inserted by Finance Act, 2020. [See sub-section (2) of section 7A] All imported goods subject to exclusions as in conditions and procedure given after the Table Respective Heading 3% ad valorem
The sales tax on account of minimum value addition as payable under this Schedule (hereinafter referred to as value addition tax), shall be levied and collected at import stage from the importers on all taxable goods as are chargeable to tax under section 3 of the Act or any notification issued thereunder at the rate specified in the Table in addition to the tax chargeable under section 3 of the Act or a notification issued thereunder:
The value addition tax under this Schedule shall not be charged on,— 1011[(i) Raw materials and intermediary goods imported by a manufacturer for in-house consumption 1012[ excluding compressor scrap (PCT heading 7204.4940), motor scrap (PCT heading 7204.4990) and copper cable cutting scrap (PCT heading 7404.0090) ] 1010 Twelfth Schedule inserted by Finance Act, 2019. 1011 Clause (i) substituted by Finance Act, 2020. 1012 Expression added by Finance Act, 2022. (ii) The petroleum products falling in Chapter 27 of Pakistan Customs Tariff as imported by a licensed Oil Marketing Company for sale in the country; (iii) Registered service providers importing goods for their in- house business use for furtherance of their taxable activity and not intended for further supply; (iv) Cellular mobile phones or satellite phones; (v) LNG / RLNG; (vi) Second hand and worn clothing or footwear (PCT Heading 6309.000); (vii) Gold, in un-worked condition; 1013[***] (viii) Silver, in un-worked condition; (ix) 1014[The goods as specified in the Third Schedule on which tax is paid on retail price basis.1015[;and 1016[(x) plant, machinery and equipment falling in Chapters 84 and 85 of the First Schedule to the Customs Act, 1969 (IV of 1969), as are imported by a manufacturer for in-house installation or use. 1017[(xi) Electric vehicles (4 wheelers) CKD kits for small cars/SUVs, with 50 kwh battery or below and LCVs with 150 kwh battery of below till 30th June, 2026; (xii) Electric vehicles (4 wheelers) small cars/SUVs, with 50 kwh battery or below and LCVs with 150 kwh battery of below in CBU condition till 30th June, 2026”; (xiii) Electric vehicles (2-3 wheelers and heavy commercial vehicles) in CBU condition till 30th June, 2025; and (xiv) motor cars of cylinder capacity upto 850cc]
The value addition tax paid at import stage shall form part of input tax, and the importer shall deduct the 1013 The word “and” omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 1014 Clause (ix) inserted vide SRO 1321(I)/2019 dated 08th November, 2019. 1015 The word “and” inserted by Tax Laws (Amendment) Act, 2020, dated 30-3-2020. 1016 Clause “(x)” inserted by Tax Laws (Amendment) Act, 2020, dated 30-3-2020 1017 New clauses inserted by Finance Act, 2021. same from the output tax due for the tax period, subject to limitations and restrictions under the Act, for determining his net liability. The excess of input tax over output tax shall be carried forwarded to the next tax period as provided in section 10 of the Act. 1018[“(4) The refund of excess input tax over output tax, which is attributable to tax paid under this Schedule, shall not be refunded to a registered person in any case, except that as used for making of zero- rated supplies.”]
The registered person, if also dealing in goods other than imported goods, shall be entitled to file refund claim of excess carried forward input tax for a period as provided in section 10 or in a notification issued there under by the Board after deducting the amount attributable to the tax paid at import stage i.e. sum of amounts paid during the claim period and brought forward to claim period. Such deducted amount may be carried forward to subsequent tax period.] [See sub-section (9AA) of section 3] The minimum production for steel products shall be determined as per criterion specified against each in the Table below: 1018 Clause (4) substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 the substituted clause read as under: “(4) In no case, the refund of excess input tax over output tax, which is attributable to tax paid at import stage, shall be refunded to a registered person.” 1019 New Thirteenth Schedule inserted by Finance Act, 2021. Steel billets and ingots One metric ton per 700 kwh of electricity consumed Steel bars and other re- rolled long profiles of steel One metric ton per 110 kwh of electricity consumed Ship plates and other re- rollable scrap 85% of the weight of the vessel imported for breaking”; and (i) both actual and minimum production and the local supplies shall be declared in the monthly return. In case, the minimum production exceeds actual supplies for the month, the liability to pay tax shall be discharged on the basis of minimum production: Provided that in case, in a subsequent month, the actual supplies exceed the minimum production, the registered person shall be entitled to get adjustment of excess tax on account of excess of minimum production over actual supplies: Provided further that in a full year, as per financial year of the company or registered person, or period starting from July to June of next year, in other cases, the tax actually paid shall not be less than the liability determined on the basis of minimum production for that year and in case of excess payment no refund shall be admissible: Provided also that in case of ship-breaking, the liability against minimum production, or actual supplies, whichever is higher, shall be deposited on monthly basis on proportionate basis depending upon the time required to break the vessel; (ii) the payment of tax on ship plates in aforesaid manner does not absolve ship breakers of any tax liability in respect of items other than ship plates obtained by ship-breaking; (iii) the melters and re-rollers employing self-generated power shall install a tamperproof meter for measuring their consumption. Such meter shall be duly locked in room with keys in the custody of a nominee of the Commissioner Inland Revenue having jurisdiction. The officers Inland Revenue having jurisdiction shall have full access to such meter; (iv) the minimum production of industrial units employing both distributed power and self-generated power shall be determined on the basis of total electricity consumption.] ********* PCPPI—4310(19) FBR—19-09-2019—2000.