ACT XLII OF
2012
An
Act to provide for the levy of a tax on services provided, rendered, initiated,
received, originated, executed or consumed in the
[Gazette
of
No.
PAP-Legis-2(141)/2012/712.--The
Punjab Sales Tax on Services Bill 2012, having been passed by the Provincial
Assembly of the Punjab on 21 June 2012, and assented to by the Governor of the
Punjab on 26 June 2012, is hereby published as an Act of the Provincial
Assembly of the Punjab.
Preamble.--Whereas it is expedient to provide for the
levy of a tax on services provided, rendered, initiated, originated, executed,
received or consumed in the Punjab and to deal with ancillary matters;
It is enacted as follows:--
CHAPTER
- I
PRELIMINARY
1. Short title, extent and commencement.--(1) This Act may be cited as the Punjab Sales
Tax on Services Act, 2012.
(2) It
shall extend to the whole of the
(3) This
Act shall come into force on and from such date as the Government may, by a
notification in the official Gazette, specify.
(4) Notwithstanding
sub-section (3), the Government may, by notification in the official Gazette,
specify services or class or classes of services in respect of which tax shall
be collected and paid with effect from the date subsequent to and different
from the date of the commencement of this Act.
2. Definitions.--In this Act--
(1) "Appellate
Tribunal" means the Appellate Tribunal established under any law and notified
by the Government as the Appellate Tribunal for purposes of the Act;
(2) "arrears",
in relation to a person, shall mean, on any day, the tax due and payable by the
person under the Act or the rules before that day but which has not yet been
paid;
(3) "Assistant
Commissioner" means a person appointed as an Assistant Commissioner of the
Authority;
(4) "associates"
or "associated persons" refer to--
(a) two persons, where the relationship
between them 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 but 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;
(b) without prejudice to the generality of
paragraph (a) and subject to paragraph (c), the following persons shall always
be treated as associates:--
(i) an individual and a relative of that
individual;
(ii) members of an association of persons;
(iii) 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;
(iv) 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:--
a. fifty per cent or more of the voting
power in the company;
b. fifty per cent or more of the rights to
dividends; or
c. fifty per cent or more of the rights to
capital; and
(v) 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:--
a. fifty per cent or more of the voting
power in both companies;
b. fifty per cent or more of the rights to
dividends in both companies;
c. fifty per cent or more of the rights to
capital in both companies; and
(c) two persons shall not be associates
under sub-paragraph (i) or (ii) of paragraph (b) where the Commissioner is
satisfied that neither person may reasonably be expected to act in accordance
with the intentions of the other.
Explanation.--The expression 'relative
in relation to an individual1 means--
(i) an ancestor, a descendant of any of the
grandparents, or an adopted child of the individual or of a spouse of the
individual; or
(ii) a spouse of the individual or of any
person specified at (i);
(5) "association
of persons" includes a firm, any artificial or juridical person and body
of persons formed under a foreign law, but does not include a company;
(6) "Authority"
means Punjab Revenue Authority established under any law;
(7) "banking
company" means a banking company as defined in the Banking Companies
Ordinance, 1962 (LVII of 1962) and includes any body corporate which transacts
the business of banking in the
(8) "Commissioner"
means a person appointed as Commissioner of the Authority;
(9) "Commissioner
(Appeals)" means a person appointed as Commissioner (Appeals) of the
Authority;
(10) "common
taxpayer identification number" means the registration number or any other
number or identification code allocated to a registered person;
(11) "company"
means--
(a) a company as defined in the Companies
Ordinance, 1984 (XLVII of 1984);
(b) a body corporate formed by or under any
law;
(c) a modarba and any other Islamic
financial institution;
(d) a body incorporated outside
(e) a trust, a co-operative society or a
finance society or any other society established or constituted by or under any
law; or
(f) a foreign association, whether
incorporated or not, which the Authority has, by general or special order,
declared to be a company for purposes of the Act;
(12) "computerized
system" means any comprehensive information technology system, including
its development, upgradation or updation, to be used by the Authority or any
other office as may be notified by the Authority, for carrying out the purposes
of the Act;
(13) "default
surcharge" means the default surcharge levied under the Act;
(14) "defaulter"
means a person and, in the case of company or firm, every director of the
company or partner of the firm and includes guarantors or successors, who fail
to pay the arrears of tax under the Act and the rules;
(15) "Deputy
Commissioner" means a person appointed as a Deputy Commissioner of the
Authority;
(16) "document"
includes any electronic data, computer programmes, computer tapes, computer
disks, micro-films or any other medium or mode for the storage or conveyance of
such data;
(17) "due
date" in relation to the furnishing of a return under Chapter VI means the
15th day of the month following the end of the tax period, or such other date
as the Authority may, by notification in the official Gazette, specify;
(18) "economic
activity" shall have the meaning given to it in Section 6;
(19) "e-intermediary"
means a person appointed as e-intermediary under the Act;
(20) "exempt
service" means a service which is exempt from the tax under Section 12;
(21) "FBR"
means the Federal Board of Revenue established under the Federal Board of
Revenue Act, 2007;
(22) "financial
year" means the period from 1st July of a year to 30th June of the following
year;
(23) "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;
(24) "goods"
include every kind of movable property other than actionable claims, money,
stocks, shares and securities but does not include a service defined under the
Act;
(25) "Government"
means Government of the
(26) "inter-bank
rate" means the
(27) "officer
of the Authority" means any officer of the Authority;
(28) "open
market price" shall have the meaning as given to it in Section 8;
(29) "person"
means--
(a) an individual;
(b) a company;
(c) Federal Government;
(d) a Provincial Government;
(e) a local authority or Local Government;
or
(f) a foreign government, a political
subdivision of a foreign government, or public international organization;
Explanation.--The use of the word
"he" in the Act shall be taken to refer to any or all mentioned from
(a) to (f) as required in the context of the relevant provision;
(30) "place
of business" means that a person--
(a) owns, rents, shares or in any other
manner occupies a space in the Punjab from where he carries on an economic
activity whether wholly or partially; or
(b) carries on an economic activity whether
wholly or partially through any other person such as an agent, associate,
franchise, branch, office, or otherwise in the
(31) "prescribed"
means prescribed by the rules;
(32) "registration
number" means the number allocated to a registered person for purposes of
the Act;
(33) "registered
person" means a person who is registered or is liable to be registered
under the Act but the person liable to be registered and has not registered
shall not be entitled to any benefit available to a registered person under any
of the provisions of the Act or the rules;
(34) "return"
means any return required to be furnished under Chapter VI of the Act;
(35) "resident"
means--
(a) an
individual who, in a financial year, has--
(i) a place of business, whole or part
thereof, in the
(ii) his permanent address, as listed in the
individual's national identity card, in the
(iii) a permanent representative to act on his
behalf or to provide service on his behalf in the
(b) an
association of persons or a company which, in a financial year, has--
(i) its registered office in the
(ii) its place of business, whole or part
thereof, in the
(iii) a permanent representative to act on its
behalf or to provide service on its behalf in the
(iv) the control or management of the affairs
of the association of persons is situated in the
(36) "rules"
means the rules made under the Act;
(37) "Schedule"
means a Schedule appended to the Act;
(38) "service"
or "services" means anything which is not goods or providing of which
is not a supply of goods and shall include but not limited to the services
listed in First Schedule;
Explanation.--A service shall remain
and continue to be treated as service regardless whether or not rendering
thereof involves any use, supply or consumption of any goods either as an
essential or as an incidental aspect of such rendering;
(39) "short-paid"
means where a registered person pays an amount of tax less than the tax due
owing to miscalculation or incorrect assessment of the tax amount due for a tax
period;
(40) "similar
service" means any other service which is the same as, or closely resembles
with, the other service in character, quality, quantity, functionality, materials,
or reputation;
(41) "Special
Judge" means a Special Judge appointed under Section 42;
(42) "tax"
means and includes--
(a) the tax, additional tax, or default
surcharge levied under the Act;
(b) a fine, penalty or fee imposed or
charged under the Act; and
(c) any other sum payable or recoverable
under the Act or rules;
(43) "tax
fraud" means knowingly, dishonestly or fraudulently and without any lawful
excuse--
(a) doing of any act or causing to do any
act; or
(b) omitting to take any action or causing
the omission of any action, including providing of taxable services without
being registered under the Act; or
(c) falsifying or causing falsification of
tax invoices or other tax documents or records; or
(d) acting in contravention of the duties or
obligations imposed under the Act or rules or instructions issued thereunder
with the intention of understating or suppressing the tax liability or
underpaying the tax liability;
(44) "tax
period" means a period of one month or such other period as the Authority
may, by notification in the official Gazette, specify;
(45) "taxable
service" shall have the meaning as given to it in Section 3; and
(46) "value
of a taxable service" shall have the meaning as given to it in Section 7.
3. Taxable service.—(1) Subject to such exclusion as mentioned in
Second Schedule, a taxable service is a service in Second Schedule, which is
provided by a person from his office or place of business in the
Explanation.--This sub-section deals with services provided
by a person regardless whether such services are provided to a resident person
or a non-resident person.
(2) If
a service listed in Second Schedule is provided to a resident person by a non-resident
person in the course of an economic activity, including the commencement or termination
of the activity, it shall be treated as a taxable service.
Explanation.--This sub-section deals with services provided
by a non-resident person to a resident person whether or not the end consumers,
if any, of such services are identifiable for purposes of this Act or the
rules.
(3) For
purposes of sub-section (2), where a person has a registered office or place of
business in the
(4) The
Authority may, with prior approval of the Government, by notification in the official
Gazette, prescribe rules for determining the conditions under which a
particular service or class of service shall be considered to have been
provided by a person from his registered office or place of business in the
Punjab.
(5) For
purposes of this Act and the rules, providing of service shall, where the
context so requires, include rendering, supply, initiation, origination,
execution, reception, consumption or termination of a service whether in whole
or in part.
4. Application of principles of origin and
reverse charge in certain situations.--(1) Where a person is providing taxable services in a Province other
than the Punjab but the recipient of such services is resident of the Punjab or
is otherwise availing such services in the Punjab and has charged tax
accordingly, the person providing such services shall pay the amount of tax so
charged to the Government.
(2) Where
the recipient of a taxable service is a person registered under the Act, he shall
deduct the whole amount of tax in respect of the service received and pay the same
with the Government.
(3) Where
a person is providing taxable services in more than one Province or territory
in
(4) Where
rendering of a taxable service originates from the
(5) Where
a taxable service originates from outside
(6) The
persons who are required to pay the tax to the Government in terms of sub-sections
(1), (2), (3), (4) and (5) shall be liable to registration for purposes of this
Act and the rules.
(7) All
questions or disputes relating to the application of the principle of origin
given in this section shall be resolved in terms of the already recorded
understanding between the Federal Government and the Provincial Governments on
the implementation of reformed General Sales Tax provided that pendency of any
such question or dispute shall not absolve the concerned person from his
obligation to deposit the tax.
(8) The
provisions of this section shall apply notwithstanding any other provision of this
Act or the rules and the Government may specify special procedure to regulate
the provisions of this section.
5. Amendment in Second Schedule.--(1) The Government may, by notification in
the official Gazette, make an amendment in Second Schedule by modifying, adding
or deleting any entry or entries with reference to the classification, if any,
description of any service or class of services and the rate or rates of tax
chargeable on any service or class of services not exceeding the maximum rate
prescribed in Second Schedule.
(2) A
notification issued under sub-section (1) shall be effective from such date as
may be specified in the notification but such date shall not be prior to the
date on which the notification is published in the official Gazette.
(3) The
Government shall at the time of presenting the Annual Budget Statement for the
next financial year, lay before the Provincial Assembly of the Punjab all the
notifications relating to the amendments in the Second Schedule during the
current financial year.
6. Economic activity.--(1) An economic activity means any activity
carried on whether continuously, regularly or otherwise by a person that
involves or is intended to involve the provision of services to another person
and includes--
(a) an
activity carried on in the form of a business, including a profession, calling,
trade, or undertaking of any kind, whether or not the activity is undertaken
for any consideration or profit;
(b) the
supply of movable property by way of lease, license or such similar
arrangement; and
(c) a
one-time transaction or concern in the nature of a business or trade.
(2) Anything
done or undertaken during the commencement or termination of an economic
activity shall be construed as part of the economic activity.
(3) An
economic activity does not include-
(a) the
activities of an employee providing services in that capacity to an employer;
or
(b) a
private recreational pursuit or hobby of an individual.
7. Value of a taxable service.--(1) The value of a taxable service is the
consideration (by whatever name called such as charges or price) in money
including all the Federal and the Provincial duties, taxes or charges, if any,
which the person providing a service receives from the recipient of the service
but does not include the amount of the tax.
(2) In
case the consideration for a service is in kind or is partly in kind and partly
in money, the value of the service shall mean the open market price of the
service as determined under Section 8 excluding the amount of the tax.
(3) In
case the person who provides the service and the recipient of the service are associated
persons and the service is supplied for no consideration or for a consideration
which is lower than the price at which the person provides the service to other
persons who are not associated persons, the value of the service shall mean the
price at which the service is provided to such other persons but does not
include the tax.
(4) In
case a person provides a service for no consideration or for a consideration which
is lower than the price at which such a service is provided by such person, the
value of the service shall mean the open market price for such a service.
(5) In
case of trade discounts, the value of the service shall mean the discounted price,
excluding the amount of the tax, provided the invoice shows that the discounted
price and the related tax and the discount allowed is in conformity with
customary business practice.
(6) In
case there is reason to believe that the value of a service has not been correctly
declared in the invoice or for any special nature of transaction it is
difficult to ascertain the value of a service, the value of the service shall
be the open market price.
(7) Notwithstanding
anything in sub-sections (1) to (6), where the Authority deems it necessary, it
may, by notification in the official Gazette, fix the value of any service or class
of services and for that purpose fix different values for different classes or descriptions
of the same or similar types of services but if the value at which the service is
provided is higher than the value fixed by the Authority, the value of the
service shall, unless otherwise directed by the Authority, be the value at
which the service is provided.
Explanation.--For the purpose of this section, the value of
the utilities or facilities, if any, ancillary to providing of taxable services
shall be included in the value of such services.
(8) The
Authority may, by notification in the official Gazette, issue valuation rules
for any service or class of services for purposes of assessment or determination
and payment of tax under this Act and prescribe threshold, parameters,
standards, methods, formula, criteria or bases for the determination of value
of any taxable service or class of taxable services and the assessment of the
tax on any service or class of services.
8. Open market price.--(1) The open market price of a service is—
(a) the
price, the service would fetch in an open market transaction freely entered
into between persons who are not associated persons; or
(b) if
it is not possible to determine an amount under paragraph (a), the price a similar
service would fetch in an open market transaction freely made between persons
who are not associated persons, adjusted to take account of the differences
between the similar service and the actual service,
(c) determined
on the basis of the market conditions prevailing at the time and place at which
the service is provided.
(2) If
the open market price of a service cannot be determined under sub-section (1),
it may be determined by using any method or formula specified by the Authority
for calculating an objective approximation of the price, the service would
fetch in an open market transaction freely made between persons who are not
associates.
9. Provision of services over a period of time.--(1) Where a service is provided over a period
of time and payment for the same is made on a periodic basis, the service shall
be treated as comprising two or more separate and distinct services each
corresponding to the part of the service to which each separate part of the
consideration relates.
ILLUSTRATIONS
(a) Where
services are provided for a two year period and payment is made on a semi-annual
basis, the provision of services for each six month period constitutes a
separate service.
(b) Where
an insurance company provides an insurance policy over a five year period and
receives a premium on an annual basis, each premium relates to a separate
service.
Note:
The above illustrations are
merely explanatory and shall not be construed as conclusive in any manner whatsoever.
(2) This section does not apply to services for
which payment is made on installments basis.
CHAPTER
- II
SCOPE
OF TAX
10. Scope of tax and allied matters.--(1) Subject to the provisions of this Act and
the rules, there shall be charged, levied, collected and paid the tax on the
value of a taxable service at the rate or rates specified in the Second
Schedule.
(2) The
Government may, on the recommendation of the Authority and subject to such conditions
and restrictions as the Government may impose, by notification in the official Gazette,
declare that in respect of any taxable service provided by a registered person
or a class of registered persons, the tax shall be charged, levied and
collected at such higher, lower, fixed or specific rate or rates as may be
specified in the said notification.
(3) Notwithstanding
other provisions of this Act, the Authority may, with the prior approval of the
Government and by notification in the official Gazette and subject to the conditions,
restrictions, limitations or otherwise, fix the limit or threshold of annual
turnover of any service or class of services provided by any person or class of
persons below which such person or class of persons shall be exempt from
payment of tax under the Act.
(4) A
person required to pay tax under this Act shall be entitled to deduct from the payable
amount, the amount of tax already paid by him on the receipt of taxable
services used exclusively in connection with taxable services provided by such
person subject to the condition that he holds a true and valid tax invoice not
older than six tax periods, showing the amount of tax earlier charged and paid
under the Act on the services so received but the Authority may, by
notification in the official Gazette, disallow or restrict such deduction in
case of any service or services as it may deem appropriate.
11. Person liable to pay tax.--(1) Where a service is taxable by virtue of
sub-section (1) of Section 3, the liability to pay the tax shall be on the
registered person providing the service.
(2) Where
a service is taxable by virtue of sub-section (2) of Section 3, the liability
to pay the tax shall be on the person receiving the service.
(3) The
Authority may, by notification in the official Gazette, specify the service or services
in respect of which the liability to pay tax shall be on any person, other than
the person providing the taxable service, or the person receiving the taxable
service.
(4) Nothing
contained in this section shall prevent the collection of tax from a different
person if that person is made separately or jointly or severally liable for the
under Section 19.
12. Exemptions.--(1) Notwithstanding the provisions of
sections 3 and 10, the Authority may, with the approval of the Government and
subject to such conditions, limitations or restrictions as it may impose, by
notification in the official Gazette, exempt--
(a) taxable
service or services from the whole or any part of the tax;
(b) taxable
service or services provided by a person or class of persons from the whole or
any part of the tax;
(c) recipient
or recipients of service or services, including international organizations and
institutions, from the payment of the whole or any part of the tax; and
(d) a
class of persons, any area or areas of the
(2) The
exemption under sub-section (1) may be allowed from any previous date specified
in the notification issued under sub-section (1).
13.
Effect of change in the rate of tax.--If there is a change in the rate of tax, the
taxable services shall be charged to tax at such rate as is in force at the
time the service is provided.
14. Special procedure and tax withholding
provisions.--(1)
Notwithstanding anything contained in this Act, the Authority may, by
notification in the official Gazette, prescribe a special procedure for the
payment of tax, registration, book keeping, invoicing or billing requirements,
returns and other related matters in respect of any service or class of
services, as may be specified.
(2) Notwithstanding
other provisions of this Act, the Authority may require any person or class of
persons whether registered or not for the purpose of this Act to withhold full
or part of the tax charged from such person or class of persons on the
provision of any taxable service or class of taxable services and to deposit
the tax so withheld, with the Government within such time and in such manner as
it may, by notification in the official Gazette, specify.
15. Delegation of power to collect,
administer and enforce tax on certain services--(1) The Government may, in accordance with
Article 147 of the Constitution of the Islamic Republic of Pakistan, authorize
the Federal Board of Revenue or any other Federal agency or person to
administer, collect and enforce the levy of tax on such taxable services as it may
notify and in such mode and manner and for such period as may be prescribed and
subject to such limitations, restrictions and conditions as it may deem
appropriate.
(2) The
Government may, by notification in the official Gazette, authorize any Provincial
agency, department, organization or person to administer, collect and enforce the
levy of tax on such taxable services as it may notify in such mode and manner
and for such period as it may prescribe and subject to such restrictions and
conditions as it may impose.
(3) At
the end of the period prescribed under sub-section (1), the tax on taxable services
notified under sub-section (1) shall be administered, collected and enforced by
the Authority in the same mode and manner as all other taxable services.
16. Adjustments.--(1) The Authority may, subject to such
conditions and restrictions as it may specify, allow registered persons to
claim adjustments or deductions, including refunds arising as a result thereof,
in respect of the tax paid under any other law on any account in respect of any
taxable service or goods or class of taxable services or goods provided by
them.
(2) For
purposes of sub-section (1), the Authority may adopt the principles or concepts
laid down in such other law in respect of adjustments, deductions or refunds including
zero-rating principle.
(3) For
the purpose of removal of any doubt it is clarified that no adjustment or deduction
of any tax payable under any other law shall be claimed by any person except in
the manner and to the extent specified in the notification issued under sub-section
(1).
CHAPTER
– III
PAYMENT
AND COLLECTION OF TAX ON
TAXABLE SERVICES
17.
Collection of excess tax.--(1) Any person who has collected or collects
the tax or charge, whether under misapprehension of any provision of this Act
or otherwise, which was not payable as tax or charge or which was in excess of
the tax or charge actually payable and the incidence of which had been passed
on to the person to whom the service was provided, shall pay the amount of tax
or charge so collected to the Government.
(2) Any
amount payable to the Government under sub-section (1) shall be deemed to be an
arrear payable under the Act and shall be recovered accordingly.
(3) 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 person to whom the service is provided shall
be on the person collecting the tax or charge.
18. Time, manner and mode of payment.--(1) The tax in respect of a taxable service provided
during a tax period shall be paid by a person at the time of filing the return
in respect of that period under Chapter VI.
(2) For
purposes of sub-section (1), a taxable service shall be considered to have been
provided in the tax period during which--
(a) it
was provided to the recipient;
(b) an
invoice for the value of the taxable service was issued or was due to be issued
or sent or due to be sent to the recipient; or
(c) consideration
for the same was received--
whichever is earlier.
(3) Notwithstanding
anything contained in sub-section (1), the Authority may, by a notification in
the official Gazette, direct that the tax in respect of any taxable service or such
class of taxable services shall be charged, collected and paid in any other
way, mode, manner or time as may be specified in the notification.
(4) The
tax due on taxable services shall be paid by any of the following modes:--
(a) through
deposit in a bank designated by the Authority; or
(b) through
such other mode and manner as may be specified by the Authority.
19. Joint and several liability of registered
persons where tax unpaid.--(1)
Where a registered person receiving a taxable service from another registered
person is in the knowledge of or has reasonable grounds to suspect that some or
all of the tax payable in respect of that taxable service provided would go
unpaid as against the requirements of this Act, such person as well as the
person providing the taxable service shall be jointly and severally liable for
payment of such unpaid amount of the tax.
(2) The
Authority may, by notification in the official Gazette, exempt any person,
service or transaction or class of persons, services or transactions from the
provision of sub-section (1).
20. Sales of taxable activity or transfer of
ownership.--(1) Where the
ownership of any business providing taxable services is sold, transferred or
otherwise disposed of as an ongoing concern or activity, the fact of such sale,
transfer or other disposition shall be intimated to the Commissioner within one
month of the occurrence of such fact by the former owner.
(2) The
tax chargeable on the taxable services provided in the business referred to in
sub-section (1) shall be accounted for and paid by the person to whom sale or
other disposition of such business is made or ownership thereof is transferred
and every such person shall be liable to registration under this Act.
21. Estate of deceased person.--The tax liability of a deceased registered
person under this Act shall be the first charge on his estate in the hands of
his successors.
22.
Estate in bankruptcy.--(1) Where a registered person is declared
bankrupt, the tax liability under this Act shall pass on to the estate in
bankruptcy if it continues to operate the business.
(2) Where the tax liability is incurred by an
estate in bankruptcy, the tax shall be deemed to be a current expenditure in
the operations of the estate in bankruptcy and shall be paid before the claims
of all other creditors are settled.
23. Liability for payment of tax in case of
private companies or business enterprises.--Where any private company or business enterprise is wound up and any tax
chargeable on or payable by 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 the company or business enterprise
during the relevant period shall, jointly and severally with such persons be
liable for payment of such tax.
24. Assessment of tax.--(1) Where on the basis of any information
acquired during an audit, inquiry, inspection or otherwise, an officer of the
Authority is of the opinion that a registered person has not paid the tax due
on taxable services provided by him or has made short payment, the officer
shall make an assessment of the tax actually payable by that person and shall
impose a penalty and charge default surcharge in accordance with sections 48
and 49.
(2) No
order under sub-section (1) shall be made unless a notice to show-cause is given
to the person in default within five years from the conclusion of the tax
period to which the assessment relates specifying the grounds on which it is
intended to proceed against him and the said officer shall take into
consideration the representation made by such person and provide him with an
opportunity of being heard if the person so desires.
(3) An
order under sub-section (1) shall be made within one hundred and twenty days of
issuance of the show-cause notice or within such extended period as the officer
may, for reasons to be recorded in writing, fix provided that such extended
period shall ordinarily not exceed sixty days.
(4) In
computing the period specified in sub-section (3), any period during which the proceedings
are adjourned on account of a stay order or proceedings under Section 69 or the
time taken through adjournments by the person shall be excluded.
(5) An
order passed by an officer under sub-section (1) may be further amended as may
be necessary when on the basis of any additional information acquired during an
audit, inquiry, inspection or otherwise, the officer is satisfied that--
(a) any
tax has been under-assessed or assessed at a low rate; or
(b) any
taxable service provided by the person has escaped assessment.
(6) The
provisions of sub-sections (2), (3) and (4) shall be applicable to an order passed
under sub-section (5).
CHAPTER
IV
REGISTRATION
25. Registration.--(1) A person shall register under this Act,
who--
(a) provides
any taxable service from his office or place of business in the
(b) is
otherwise required to be registered under any of the provisions of the Act or the
rules; or
(c) fulfills
any other criteria or requirements which the Authority may prescribe under sub-section
(2).
(2) The
registration under this section will be regulated in such manner and subject to
such conditions and restrictions as the Authority may, by notification in the
official Gazette, prescribe.
(3) A
person who receives a service, which is a taxable service by virtue of sub-section
(2) of Section 3, and is not a registered person shall be deemed to be a registered
person for the purposes of the tax period in which--
(a) such
person receives the service;
(b) an
invoice for the value of the service is issued or sent to or received by the person;
or
(c) consideration
for the service is paid by the person--
whichever
is earlier and all the provisions of this Act and the rules shall be applicable
to such person for that particular tax period and any matters relating to,
arising out of, or concerning that tax period as if that person had provided
the service.
(4) The
Authority may publish on its website a list of persons registered under this
Act.
(5) It
shall be reasonable for a person to believe that another person is registered under
this Act if that other person is on the list placed on the website of the
Authority.
26.
Voluntary registration.--(1) A person who carries on an economic
activity but is not required to be registered may apply for voluntary
registration at any time.
(2) If
a person who is not required to be registered applies for voluntary
registration, the Authority may register the person if the Authority is
satisfied that--
(a) the
person is providing, or shall provide a service that is taxable service if the person
was registered;
(b) the
person has a place of business at which he carries on an economic activity;
(c) there
are reasonable grounds to believe that the person shall keep proper records and
file regular returns as prescribed under this Act and the rules; and
(d) if
the person has commenced carrying on an economic activity, the person has--
(i) kept proper records in relation to his
economic activity; and
(ii) complied with his obligations under
other applicable taxation laws.
27. Compulsory registration.--(1) If the Authority is satisfied that a
person who is required to be registered and has not applied for registration,
the Authority shall register the person and shall, not later than fifteen days
before the day on which the registration takes effect, notify the person of the
registration, the day on which it takes effect, and the registration number
issued to the person.
(2) No
person shall be registered compulsorily without being given an advance notice
and an opportunity of being heard in such manner as the Authority may specify.
(3) The
Authority may, by notification in the official Gazette, authorize any officer
to perform any of the functions under this section relating to compulsory
registration of a person for any of the taxable services.
28. Suspension of registration.--(1) Subject to sub-section (3), the Authority
may temporarily inactivate the registration of a person if it is satisfied that
the person—
(a) is
not entitled to be registered; or
(b) has
failed to comply with obligations under this Act or the rules.
(2) The
Authority shall give notice to a registered person stating the reasons for temporary
inactivation of the person's registration and the remedial actions required to be
taken by the person in such time as may be specified in the notice.
(3) In
case the Authority is not satisfied with the response of the person or the remedial
action taken by him or does not receive any response in the specified time, the
Authority may suspend that person's registration.
(4) The
suspension of registration shall be effected by removing the name of the person
from the list of registered persons published on the Authority's website.
(5) At
any time within a period of sixty days of suspension, the Authority may withdraw
the suspension if it is satisfied with the remedial actions taken by the
person.
(6) Where,
after sixty days, the suspension has not been withdrawn, the Authority may--
(a) institute
proceedings against the person in respect of the alleged non-compliance under
this Act;
(b) reinstate
the person's registration; or
(c) if
neither of the actions in clauses (a) and (b) is done, cancel the person's registration.
(7) No
registration shall be cancelled unless the Authority either through enquiry, investigation
or audit is satisfied that circumstances exist necessitating such cancellation
and under no circumstances, the cancellation of registration shall absolve the
person of his other obligations and liabilities under the Act or the rules.
29. De-registration.--(1) The Authority may de-register a
registered person or such class of registered persons not required to be
registered under this Act.
(2) Where
any person registered under this Act believes that he does not satisfy the requirements
for registration specified in Section 25, he may make an application to the Authority
to be de-registered.
(3) If
upon receiving such an application, the Authority is satisfied that the person
is not required to be registered under this Act and has fulfilled the
obligations under the Act, it shall de-register such person.
(4) Where
the Authority receives an application under sub-section (2), it shall dispose
of the application within a period of three months from the date of the receipt
of the application, or within such extended period, not exceeding sixty days,
as the Authority may, for reasons to be recorded in writing, fix.
CHAPTER
V
BOOK
KEEPING AND AUDIT PROCEEDINGS
30.
Issuance of tax invoices.--(1) A registered person providing a taxable
service shall issue a numbered and dated tax invoice containing the following
particulars:--
(a) name,
address and registration number of the service provider;
(b) name,
address and registration number, if any, of the service recipient;
(c) description
of service or services;
(d) value
exclusive of the tax;
(e) amount
of the tax; and
(f) value
inclusive of the tax.
(2) The
Authority may, by notification in the official Gazette, specify such modified invoices
for different services or persons and prescribe the manner and procedure for regulating
the issuance and authentication of tax invoices.
(3) A
registered person providing a taxable service may, subject to such conditions and
restrictions as the Authority may, by notification in the official Gazette,
specify, issue invoices to another registered person or other recipient of
taxable service electronically and transmit images or statements of such
invoices to the Authority as well as to the Commissioner, as may be specified.
31. Records.--(1) A registered person providing taxable service shall maintain and
keep at his business premises or registered office in English or Urdu the
following records of taxable service (including exempt service) provided 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 taxable service provided indicating--
(i) the description and type of service;
(ii) the value of the service;
(iii) the particulars of the person to whom the
service was provided; and
(iv) any other information as may be specified
by the Authority;
(b) records
of exempt service; and
(c) such
other records as may be specified by the Authority.
(2) The
Authority may, by notification in the official Gazette, require a registered person
or class of registered persons to declare and use as many number of business bank
accounts as may be specified by the Authority in such notification to make or receive
payments on account of providing services for the purpose of this Act and the rules
and to make payment of due tax from such accounts.
(3) The
Authority may, by notification in the official Gazette, specify that any person
or class of persons registered under this Act shall use such electronic fiscal
cash registers in such manner as are approved by the Authority.
(4) The
Authority may, by notification in the official Gazette, prescribe the procedure
or software for electronic invoicing or billing, maintenance of records, filing
of tax returns and for any other matter or approve any software for electronic
invoicing or billing, maintenance of records and filing of returns by a
registered person or class of such persons under this Act.
(5) 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 the tax due and any deficiency in the tax paid by the registered
person.
32.
Retention and production of records and
documents.--(1) A person,
who is required to maintain any record or documents under this Act, shall
retain the record and documents for a period of five years after the end of the
tax period to which such record or documents relate or till the final decision
in any proceedings including proceedings for assessment, appeal, revision,
reference or petition, whichever is later.
(2) A
person who is required to maintain any record or documents under this Act or
any other law shall, as and when required by an officer not below the rank of
the Assistant Commissioner, produce records or documents which are in his
possession or control or in the possession or control of his agent, and where
such records or documents have been stored as electronic data, he shall allow
to such officer full and free access to, and use of, such data of any machine.
33. Audit proceedings.--(1) An officer authorized by the Authority or
the Commissioner may, on the basis of the return or returns submitted by a
registered person or the records maintained under this Act and the rules,
conduct an audit of such person.
(2) In
case the Authority or the Commissioner has any information showing that any registered
person is involved in tax fraud or evasion of tax, it or as the case may be, he
may authorize an officer not below the rank of the Assistant Commissioner, to
conduct an inquiry or investigation, which may or may not be in addition to any
audit carried out for the same period.
(3) Where
the officer is to conduct an audit under sub-section (1), he shall issue a notice
of audit to the person informing him of the audit proceedings and direct him to
produce any records or documents which such officer may require for conducting
the audit.
(4) The
officer shall conduct audit and issue an audit observation or observations pointing
out the contraventions of this Act or the rules and the amount of the tax
evaded or short paid, and the registered person may, within a period of twenty
one days of the receipt of the audit observation, submit his reply in writing.
(5) If
no reply is received within the specified time or the reply furnished by the registered
person is found unsatisfactory, the, officer shall issue an audit report specifying
the amount of the tax or charge that has not been levied or has been short levied
or any other violation of any provision of the Act or the rules.
(6) After
completion of the audit under this section or any other provision of this Act or
the rules, an officer having pecuniary jurisdiction in terms of Section 60
shall, if required, pass an order determining the correct amount of payable
tax, charging default surcharge and imposing a penalty.
(7) Notwithstanding
the penalties prescribed in Section 48--
(a) if
a registered person wishes to deposit the amount of the tax short paid or evaded
along with default surcharge voluntarily, whenever it comes to his notice, he
may, before receipt of notice of audit, file a revised return and may deposit
the amount of tax short paid or evaded along with default surcharge, in which
case no penalty shall be recovered from him;
(b) if
a registered person wishes to deposit the amount of the tax short paid or evaded
along with default surcharge during the audit, or at any time before issuance
of show-cause notice in lieu of the audit report, he may file a revised return
and may deposit the short paid or evaded amount of the tax, default surcharge
under Section 49 and twenty per cent of the penalty payable under Section 48,
in which case the show-cause notice in lieu of the audit report shall not be
issued in the matter;
(c) if
a registered person wishes to deposit the amount of tax short paid or evaded
along with default surcharge after issuance of show-cause notice, he may file a
revised return and may deposit the short paid or evaded amount of the tax,
default surcharge under Section 49, and fifty per cent of the penalty payable
under Section 48 and, thereafter, the show-cause notice shall abate.
34.
Special audit by chartered accountants
or cost accountants.--(1)
The Authority may, by notification in the official Gazette, appoint a Chartered
Accountant as defined under Chartered Accountants Ordinance, 1961 (X of 1961)
or a firm of Chartered Accountants or a Cost and Management Accountant within
the meaning of the Cost and Management Accountants Act, 1966 (XIV of 1966) or a
firm of Cost and Management Accountants, for conducting a special audit of the
records of any registered person.
(2) Notwithstanding
that the records of a registered person have been audited by an officer
appointed under Section 39, the Authority or a Commissioner may direct an auditor
appointed under sub-section (1) to audit the records of any registered person
for the same period.
(3) An
auditor appointed under sub-section (1), shall have such powers of an officer as
may be conferred by the Authority to such auditor under any of the provisions
of this Act or the rules.
(4) For
purposes of this section or Section 33, the audit of records includes audit of the
tax affairs of the registered person under this Act and the rules.
CHAPTER
VI
RETURNS
35. Return.--(1) Every registered person shall furnish, not later than the due date,
a true, correct and properly filled-up return in the prescribed form to a
designated bank or any other office specified by the Authority, indicating the
tax due and paid during a tax period and such other information or particulars
as may be prescribed by the Authority.
(2) Notwithstanding
anything in sub-section (1), the Authority may, by notification in the official
Gazette, require any registered person or class of registered persons to submit
returns on a quarterly, six monthly or annual basis in lieu of monthly return.
(3) Notwithstanding
anything in sub-section (1), the Authority may, by notification in the official
Gazette, require any registered person to submit such returns, as may be
prescribed, on any period basis in addition to other returns required to be
filed by such person.
(4) A
return filed electronically on the web or any magnetic media or any other computer
readable media as may be specified by the Authority shall be deemed to be a return
for the purpose of sub-section (1), (2) or (3) and the Authority may, by notification
in the official Gazette, prescribe the criteria for eligibility of the data of
such returns and e-intermediaries who shall digitize the data of such returns
and transmit the same electronically under their digital signatures.
(5) If
there is a change in the rate of the tax during a tax period, a separate return
in respect of each portion of tax period showing the application of different
rates of tax shall be furnished.
(6) A
registered person may, after prior permission from the Commissioner, file a revised
return within one hundred and twenty days of filing a return under sub-section (1),
(2) or (3), to correct any omission or wrong declaration made therein and to
deposit any amount of the tax not paid or short paid.
36. Special returns.--In addition to the return or returns
specified under Section 35, the 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.
37. Final return.--If a person applies for de-registration in
terms of Section 29, he shall before such de-registration, furnish a final
return to the Authority or the Commissioner in the specified form in such
manner and at such time as may be directed by the Authority or the
Commissioner.
38. Return deemed to have been made.--A return purporting to be made on behalf of a
person by his duly appointed representative or agent shall, for all purposes of
this Act or the rules, be deemed to have been made by such person or under his
authority unless proved to the contrary.
CHAPTER VII
APPOINTMENT OF AUTHORITIES AND THEIR POWERS
39. Appointment of authorities.--(1) For purposes of this Act and the rules,
the Authority may, in the prescribed manner and by notification in the official
Gazette, appoint in relation to any area or cases specified in the
notification, any person to be a--
(a) Commissioner;
(b) Commissioner
(Appeals);
(c) Additional
Commissioner of the Authority;
(d) Deputy
Commissioner;
(e) Assistant
Commissioner;
(f) Audit
Officer of the Authority;
(g) Inspector
of the Authority; or
(h) An
officer of the Authority with any other designation.
(2) The
Commissioner (Appeals) and the Commissioner shall be subordinate to the Authority.
(3) The
Additional Commissioners, Deputy Commissioners and the Assistant Commissioners
shall be subordinate to the Commissioner and unless otherwise directed by the
Authority or the Commissioner, both the Deputy Commissioner and the Assistant
Commissioner shall also be subordinate to the Additional Commissioner.
(4) The
Audit Officers and Inspectors and the officers of other such equal or lower designations,
if any, shall be subordinate to the Deputy Commissioner or to the Assistant
Commissioner.
(5) The
Authority may designate any Deputy Commissioner supervisory incharge of any
Assistant Commissioner either by name or by designation in any of its
subordinate offices or formations.
(6) The
Authority may distribute the work and related functions amongst the above designations
in a manner it deems appropriate and make changes in such work distribution as
and when deemed proper.
(7) The
Authority may, by notification in the official Gazette, prescribe uniform
including shoulder strips and badges for different classes of the officers or
officials of the Authority.
(8) All
jurisdictional and competency issues arising under this Act or the rules shall be
decided by the Authority in such manner as it thinks fit.
40. Powers.--(1) An officer appointed under Section 39
shall exercise such powers and discharge such duties as are conferred on him
under this Act and the rules and he shall also be empowered and competent to
exercise all powers and discharge all duties or functions conferred upon any
officer subordinate to him.
(2) The
Authority may, by general or special order, impose such limitations,
restrictions or conditions on the exercise of such powers and discharge of such
duties or functions as it deems fit.
41. Distribution of powers.--(1) The Authority may, by notification in the
official Gazette, and subject to such limitations or conditions, empower by
name or by designation--
(a) an
Additional Commissioner to exercise or perform any of the powers or functions
of a Commissioner;
(b) a
Deputy Commissioner to exercise or perform any of the powers or functions of an
Additional Commissioner;
(c) an
Assistant Commissioner to exercise or perform any of the powers or functions of
a Deputy Commissioner; and
(d) any
other officer to exercise or perform any of the powers or functions of an Assistant
Commissioner.
(2) The
Authority may confer powers and functions of any officer as additional duties to
any officer of the same rank or a step senior or junior in rank.
(3) An
officer to whom any powers or functions are conferred under this section shall not
assign such powers or functions to any other officer except with the prior
permission of the Authority.
42. Special Judges.--(1) The Government may, by notification in
the official Gazette, appoint any person who is serving or has served as District
and Sessions Judge for a period of at least five years as Special Judge and,
where it appoints more than one Special Judge, it shall specify in the
notification the headquarters of each Special Judge and the territorial limits
within which he shall exercise jurisdiction under this Act and the rules.
(2) If
a Special Judge is, for any reasons, unable to perform his duties under this
Act or the rules, the District and Sessions Judge of the District shall perform
the duties of the Special Judge for the District.
43. Cognizance of offence.--(1) The Special Judge may, within the limits
of his jurisdiction, take cognizance of any offence punishable by him upon--
(a) a
report in writing made by an officer, not below the rank of Assistant Commissioner
with the approval of the Commissioner or by an officer especially authorized in
this behalf by the Authority;
(b) receiving
a complaint or information of facts constituting such offence made or communicated
by any person; or
(c) his
knowledge acquired during any proceedings before him.
(2) If
the Special Judge receives a report under clause (a) of sub-section (1), the Special
Judge shall proceed with the trial of the accused.
(3) If
the Special Judge receives a complaint or information under clause (b) of sub-section
(1), on the basis of his own knowledge, the Special Judge shall, before issuing
a summon or warrant for appearance of the person hold a preliminary inquiry for
purposes of ascertaining the truth or falsehood of the complaint, information
or knowledge or direct any Magistrate or any officer to hold such inquiry and
submit a report, and such Magistrate or officer, shall conduct such inquiry and
make a report accordingly.
(4) If,
after conducting such an inquiry or after considering the report of such Magistrate
or officer, the Special Judge may dismiss the complaint if there are no grounds
to proceed further, or may decide to proceed against the person in accordance
with law.
(5) A
Special Judge or a Magistrate or an officer holding an inquiry under sub-section
(3) may hold such inquiry, as nearly as possible, in accordance with the provisions
of Section 202 of the Code of Criminal Procedure, 1898 (V of 1898).
44. Application of the
Code of Criminal Procedure, 1898--(1) The provisions of the Code of Criminal Procedure,
1898 (V of 1898), so far as they are not inconsistent with the provisions of
this Act, shall apply to all proceedings of the Court of a Special Judge and
such Court shall be deemed to be a Court of Session for the purposes of the
said Code and the provisions of Chapter XXII-A of the Code, so far as
applicable and with necessary modifications, shall apply to the trial of cases
by the Special Judge under the Act.
(2) For purposes of sub-section (1), the Code of
Criminal Procedure, 1898 (V of 1898) shall have effect as if an offence
punishable under this Act was one of the offences referred to in sub-section
(1) of Section 337 of the Code.
45. Exclusive
jurisdiction of Special Judge.--
46. Place of sitting.--A Special Judge shall
ordinarily hold sittings at his headquarters provided that keeping in view the
general convenience of the parties or the witnesses, he may hold sittings at
any other place.
47.
Persons who may conduct prosecution.--(1) An officer not below the rank of an
Assistant Commissioner shall be competent to conduct prosecution before a
Special Judge for and on behalf of the Government.
(2) A
prosecution conducted under this Act before the Special Judge may only be
withdrawn by the Authority on the direction or after concurrence of the
Government.
CHAPTER
VIII
OFFENCES AND PENALTIES
48. Offences and penalties.--(1) If a person commits any offence described
in Column 2 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 3.
(2) The
sections referred to in Column 4 of the said Table shall be deemed to be meant
for illustrative purposes only and the corresponding offence described in Column
2 may fall and be prosecuted under other sections of this Act as well.
TABLE
|
S. No. |
Offences |
Penalties |
Section |
|
1 |
2 |
3 |
4 |
|
1. |
Any
person who is required to apply for registration under this Act fails to make
an application for registration before providing any taxable services |
Such
person shall be liable to pay a penalty of ten thousand rupees or five per
cent of the amount of the tax he would have been liable to pay had he been
registered, whichever is higher. In
the case of non-compliance of compulsory registration, the minimum penalty
shall be ten thousand rupees: If
such person who is required to get himself registered under this Act, fails
to get registered within ninety days of providing taxable services, he shall
be further 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 the
amount of the tax he would have been liable to pay had he been registered, or
with both. |
25 |
|
2. |
Where
any person fails to furnish a return within the due date. |
Such
person shall be liable to pay a penalty of five thousand rupees provided if a
return is not filed within fifteen days of the due date, a penalty of hundred
rupees for each day of default shall be levied. |
35 |
|
3. |
Where
any person fails to deposit the amount of the tax due or any part thereof in
the time or manner laid down under this Act or the rules. |
(a) Such person shall be liable to pay a
penalty of ten thousand rupees or five per cent of the tax payable for that
period, whichever is higher, (b) If the amount of the tax due is not paid
even after the expiry of a period of sixty days of issuance of the notice for
such payment by an officer, not below the rank of Assistant Commissioner, the
person shall be further 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 the amount of the unpaid tax, or with both. (c) No penalty shall be levied if any
miscalculation is made for the first time during a year. |
3, 4, 10, 11, 17, 18
and 68 |
|
4. |
Any
person who fails to maintain records required under the Act or the rules. |
Such
person shall pay a penalty of ten thousand rupees or five' per cent of the
total tax payable for the tax period for which he has failed to maintain the
required record whichever is higher. |
30, 31 and 32 |
|
5. |
Where
a registered person who, without any reasonable cause, in non-compliance with
the provisions of this Act fails to produce records on receipt of a notice
from the Authority or any officer of the Authority directing him to produce
such records. |
Where
such a person is a company, it shall be liable to pay a penalty of ten thousand
rupees. Where such person is not a company, he shall be liable to pay a
penalty of five thousand rupees. Where such person fails to produce the
record within sixty days of receipt of a notice, he shall be liable to pay
the penalty prescribed for the offence at serial No.4 above. |
30, 32, 53 and 57 |
|
6. |
Any
person who knowingly or fraudulently— (a) submits a false or forged document to any
officer of the Authority; or (b) destroys, alters, mutilates or falsifies
the records; or (c) makes a false statement, false
declaration, false representation, false personification, or gives any false
information. |
Such
person shall be liable to pay a penalty a twenty five thousand rupees or one
hundred per cent of the tax payable for the tax period to which the offence
relates, whichever is higher. Such person 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 tax
payable for the tax period to which the offence relates, or with both. |
General |
|
7. |
Where
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 accounts or records. |
Such
person shall be liable to pay a penalty of twenty five thousand rupees or one
hundred per cent of the tax payable for the tax period to which the offence
relates, whichever is higher. Such persons shall, further be liable, upon
conviction by a Special Judge, to imprisonment for a term which may extend to
five years, or with a fine which may extend to an amount equal to the tax
payable for the tax period to which the offence relates, or with both. |
31, 32 and 56 |
|
8. |
Where
any person commits, causes to commit or attempts to commit tax fraud, or
abets or connives in the commission of tax fraud equal to twenty five
thousand rupees or more. |
Such
person shall be liable to pay a penalty of up to five hundred thousand
rupees, but not less than twenty five thousand rupees, or one hundred per
cent of the tax payable for the tax period to which the offence relates,
whichever is higher. Such
person 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 tax payable for the tax period to which
the offence relates, or with both. |
2(43) |
|
9. |
Where
any person violates any embargo placed on providing of service in connection
with recovery of the tax. |
Such
person shall be liable to pay a penalty of twenty five thousand rupees or ten
per cent of the amount of the tax sought to be recovered, whichever is
higher. Such
person 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 the tax sought to be recovered, or with both. |
70 |
|
10. |
Where
any person obstructs any officer of the Authority in the performance of his
official duties under this Act or the rules. |
Such
person shall be liable to pay a penalty of twenty five thousand rupees or one
hundred per cent of the tax payable for the tax period to which the offence
relates, whichever is higher. Such person shall be further liable, upon
conviction by a Special Judge, to imprisonment for a term which may extend to
one year or with fine not exceeding fifty thousand rupees or with both. |
General |
|
11. |
Where
any person who fails to fulfill any of the conditions, limitations or restrictions
prescribed in a notification issued under any of the provisions of the Act or
the rules. |
Such
person shall be liable to pay a penalty of five thousand rupees or three per
cent of the tax payable for the tax period to which the offence relates, whichever
is higher. |
General |
|
12. |
Where
any person who contravenes any provision of this Act or the rules for which
no penalty has specifically been provided in this section. |
Such
person shall be liable to pay a penalty of ten thousand rupees or three per
cent of the tax payable for the tax period to which the offence relates,
whichever is higher. |
General |
|
13. |
Where
any person repeats an offence for which a penalty is provided under this Act. |
Such
person shall be liable to pay twice the amount of penalty provided under the
Act for the said offence. |
General |
|
14. |
Where
any person— (a) knowingly and without lawful authority
gains access to or attempts to gain access to the 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 (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. |
Such
person shall pay a penalty of twenty five thousand rupees or one hundred per
cent of the amount equal to the loss caused to the tax revenue. Such
person shall further be liable, upon conviction by the Special Judge, to
imprisonment for a term which may extend to one year, or with fine which may
extend to an amount equal to the loss caused to the tax revenue, or with
both. |
General |
49.
Default surcharge--(1) Notwithstanding the provisions of Section
24, if a registered person does not pay the tax due or any part thereof,
whether willfully or otherwise, on time or in the manner specified under this
Act, rules or notifications or procedures issued thereunder, he shall, in
addition to the tax due and any penalty under Section 48, pay default surcharge
at the rate mentioned below:--
(a) the
person liable to pay any amount of tax or charge shall pay default surcharge at
the rate of inter-bank rate plus three per cent per annum of the amount of the tax
due; and
(b) 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, till such time the entire liability including the amount of default
surcharge is paid.
(2) For
the purpose of calculation of default surcharge, the period of default shall be
reckoned from the sixteenth day 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.
Explanation: For purposes of this section, the tax due
does not include the amount of penalty.
50. Exemption from penalty and default
surcharge.--The Government
may, by a notification in the official Gazette, exempt any registered person or
any taxable service from payment of the whole or any part of the penalty and
default surcharge subject to such conditions and limitations as may be
specified.
51. Compounding of offences.--Notwithstanding anything contained in any
other provision of this Act, where any person has committed any offence
warranting prosecution under the Act, the Authority may, either before or after
the institution of any proceedings for the prosecution of such offence,
compound the offence and terminate the proceedings if such person pays the
amount of the tax due along with such default surcharge and penalty as is
determined by the Authority under the provisions of this Act and the rules.
52. Recovery of tax not levied or
short-levied.--(1) Where by
reason of inadvertence, error, misconstruction or for any other reason, any tax
or charge has not been levied or has been short levied, the person liable to
pay such amount of the tax or charge shall be served with a notice, within
three years of the relevant tax period requiring him to show-cause for payment
of the amount specified in the notice.
(2) Where
by reason of some collusion, abetment, deliberate attempt, mis-statement,
fraud, forgery, false or fake documents--
(a) any
tax or charge has not been paid or is, short paid, the person liable to pay such
tax shall be served with a notice within five years of relevant tax period, requiring
him to show-cause for non-payment of such tax; and
(b) any
amount of the tax is refunded which is not due, the person obtaining such refund
shall be served with a notice within five years of the receipt of such refund
to show-cause for recovery of such refund.
(3) The
officer shall, after considering the objections of the person served with a notice
under sub-section (1) or (2) or if the objections are not received within the stipulated
period, determine the amount of the tax or charge payable by him and such person
shall pay the amount so determined.
(4) Any
order under sub-section (3) shall be made within one hundred and twenty days of
issuance of the notice to show-cause or within such extended period as the officer
may, for reasons to be recorded in writing, fix provided that such extended
period shall not ordinarily exceed sixty days.
(5) In
computing the period specified in sub-section (4), any period during which the proceedings
are adjourned on account of a stay order or proceedings under Section 69 or the
time taken through adjournments by the petitioner not exceeding thirty days
shall be excluded.
53. Power to summon persons to give evidence
and produce documents.--(1)
An officer may summon any person whose attendance he considers necessary either
to tender evidence or to produce documents or any other thing in any audit,
inquiry, investigation or proceedings which such officer is making for any of
the purposes of this Act and the rules.
(2)
Any person summoned under sub-section (1) shall be bound to attend
either in person or by an authorized agent, as the officer may direct.
(3) Notwithstanding
anything in sub-sections (1) and (2), a person who is exempt from personal
appearance in a Court under sections 132 and 133 of the Code of Civil Procedure
1908 (V of 1908), shall not be required to appear in person.
(4) Any
proceedings under this Act or the rules before an officer shall be deemed to be
judicial proceedings within the meaning of sections 193 and 228 of the Pakistan
Penal Code 1860 (XLV of 1860).
54. Power to arrest and prosecute.--(1) An officer authorized by the Authority by
notification in the official Gazette in this behalf, who on the basis of
material evidence has reasonable cause to believe that any person has committed
a tax fraud or any offence warranting prosecution under this Act, may cause
arrest of such person.
(2) All
arrests made under this Act shall be carried out in accordance with the relevant
provisions of the Code of Criminal Procedure, 1898 (V of 1898).
(3) Where
the person suspected of tax fraud or any offence warranting prosecution under
this Act is a company, every director or officer of that company whom the
officer has reason to believe is personally responsible for actions of the
company contributing to the tax fraud or any offence warranting prosecution
under this Act shall be liable to arrest provided that such arrest shall not
absolve the company from the liabilities of payment of the tax, default
surcharge and any penalty imposed or due under this Act.
55.
Procedure to be followed on arrest of a
person.--(1) When an officer
arrests a person under Section 54, he shall immediately intimate the fact of
arrest of that person to the Special Judge who may direct such officer to
produce that person at such time and place and on such date as the Special
Judge considers expedient.
(2) Notwithstanding
anything contained in 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 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 of the Magistrate.
(3) When
any person is produced under sub-section (2) before the Special Judge, the Special
Judge 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.
(4) Nothing
contained herein 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 considers that the affording
of such opportunity shall defeat the purpose of this Act.
(5) When
such person is produced under sub-section (2) before a Magistrate, such Magistrate
may, after authorizing his detention in 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 or produced.
(6) Nothing
in sub-sections (2), (3) and (4) shall preclude the Special Judge or the Magistrate
from remanding any such person to the custody of the officer holding an inquiry
or investigation against that person if such officer makes a request in writing
to that effect, and the Special Judge or the 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 but
the total period of such custody shall not exceed fourteen days.
(7) When
any person is arrested under this Act, the arresting officer shall record the fact
of arrest and other relevant particulars in the register specified in
sub-section (11) 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, and he may, after producing such person before the Special Judge or
the Magistrate, make a request for his further detention in his custody.
(8)
While holding an inquiry under sub-section (7), the officer shall
exercise the same powers as are conferred upon or exercisable by an officer
incharge of a police station under the Code of Criminal Procedure, 1898 (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.
(9) If
the officer, after holding an inquiry, is of the opinion that there is no
sufficient evidence or reasonable ground for suspicion against such person, he
shall release him on his 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.
(10) 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.
(11) The
officer holding an inquiry under this section shall maintain a register to be called
register of arrests and detentions in the form prescribed by the Government 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 entries shall be produced
before the Special Judge, whenever it is directed by the Special Judge.
(12) After
completing the inquiry, the officer shall, as early as possible, submit to the 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.
(13) Any
Magistrate of the first class may record any statement or confession during inquiry
or investigations under this Act in accordance with the provisions of Section 164
of the Code of Criminal Procedure, 1898 (V of 1898).
56. Authorized officers to have access to
premises, stocks, accounts and records.--(1) Any officer, authorized in this behalf by the Authority by
notification in the official Gazette, shall have free and full access to the
business premises, registered office or any other place where any business
records or documents required under this Act and the rules are kept or
maintained by any registered person or a person liable for registration or
whose business activities are covered under this Act and the rules 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 records, data, documents, correspondence, accounts, 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 other law maintained in any form
or mode and may take into his custody such records, statements, diskettes or
documents, in original or copies, in such form as the officer may deem fit
against a signed receipt.
(2) The
registered person, his agent or any other person specified in sub-section (1), shall
answer any question or furnish such information or explanation as may be asked by
the authorized officer.
(3) All
other Government departments, local bodies, autonomous bodies, corporations or such
other institutions shall supply requisite information and render necessary
assistance to the authorized officer in the course of inquiry or investigation
under this section.
57. Obligation to produce documents and provide
information.--(1)
Notwithstanding anything contained in this Act or any other law, any person
required to maintain any record under this Act and the rules, shall, on demand
by an officer, not below the rank of an Assistant Commissioner, by notice in
writing, as and when specified in the notice--
(a) produce
for examination, such documents or records which the officer considers necessary
or relevant to the audit, inquiry or investigation under this Act;
(b) allow
the officer to take extracts from or make copies of such documents or records;
and
(c) appear
before the officer and answer any question put to him concerning the documents
and records relating to the audit, inquiry or investigation referred to in
clause (a).
(2) An
officer conducting an audit, inquiry or an investigation under the Act and the rules,
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, is relevant to such audit,
inquiry or investigation.
(3) The
Authority may require, in writing, any person, department, company or organization,
to provide any information or data held by that person, department, company or
organization, which, in the opinion of the Authority, is required for purposes of
formulation of policy or administering or implementing this Act and the rules.
(4) Every
person, department, company or organization shall furnish the information requisitioned
by the Authority or the officer under sub-sections (2) or (3), within the time specified
in the notice issued by the Authority.
58. Searches under warrants--(1) Where any officer 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 are kept in any place, he may after
obtaining a warrant from the Magistrate or from the Commissioner, enter that place
and cause a search to be made at any time.
(2) All
searches made under sub-section (1) shall be carried out in accordance with the
relevant provisions of the Code of Criminal Procedure, 1898 (V of 1898).
59.
Posting of an officer to business
premises.--(1) Subject to
such conditions and restrictions as it deems fit to impose, the Authority may
post an officer to the premises of a registered person to monitor the provision
of services by such registered person.
(2) Notwithstanding
anything contained in sub-section (1), if a Commissioner, on the basis of
material evidence, has reasonable cause to believe that a registered person is involved
in evasion of the tax or tax fraud, he may, by recording the grounds in
writing, post an officer of the Authority to the premises of such registered
person to monitor provision of services by such person.
(3) A
person to whose premises, an officer of the Authority is posted under this section,
shall provide on his own cost, all facilities required to meet the departmental
requirements of such posting as determined by the Authority or the
Commissioner.
60.
Powers of adjudication.--(1) In respect of cases involving
determination of tax liability, assessment of the tax, charging of default
surcharge, imposition of penalty and recovery of amount erroneously refunded or
any other contravention or violation including tax fraud under this Act or the
rules, the jurisdiction and powers of adjudication of the officers shall be as
follows:--
(a) Additional Commissioner: Cases without
any restriction as to the amount of the tax involved or amount erroneously
refunded;
(b) Deputy Commissioner: Cases where the
amount of the tax involved or the amount erroneously refunded exceeds one
million rupees, but does not exceed two and a half million rupees;
(c) Assistant Commissioner: Cases where the
amount of the tax involved or the amount erroneously refunded does not exceed
one million rupees; and
(d) Other officers of the Authority: Such
cases, other than those mentioned above, as may be prescribed.
(2) The
Commissioner may adjudicate any case falling in the jurisdiction and powers of any
officer subordinate to him and appeal against the order passed by the Commissioner
in such case shall lie to the Appellate Tribunal.
(3) The
Authority may regulate the system of adjudication including transfer of cases and
extension of time limit.
Explanation: For purposes of this section, the tax means
the principal amount of the tax other than default surcharge and in case where
only default surcharge is involved the amount of default surcharge.
61. Revision by the Commissioner.--(1) The Commissioner may, of his own motion
or on an application made in writing by a registered person for revision, call
for and examine the record of any proceedings under this Act in which an order
has been passed by an officer subordinate to him.
(2) If
after examining the record under sub-section (1), the Commissioner is not satisfied
with the legality or propriety of any order passed by an officer, the Commissioner
may make such revision to the order as he may think fit.
(3) No
order imposing or enhancing any penalty or fine requiring payment of a greater amount
of the tax than the originally levied amount shall be passed unless the person affected
by such order has been given an opportunity of showing cause and of being
heard.
(4) The
Commissioner shall not revise any order under sub-section (2) if--
(a) an
appeal under Section 63 is pending or the matter has been referred for resolution
under Section 69;
(b) where
an appeal against the order lies under Section 63, the time within which such
appeal can be made has not expired or the person has not waived in writing his
right of appeal;
(c) in
the case of an application made by a person, the application has not been made
within ninety days of the date on which such order was served on the person,
unless the Commissioner is satisfied that the person was prevented by
sufficient cause from making the application within the time allowed; and
(d) in
the case where the Commissioner has on his own motion called for and examined
an order passed by a subordinate officer, more than five years have lapsed from
the date of the original order.
(5) No
application for revision of an assessment shall be made under sub-section (1) unless
the amount of the tax due under the assessment, as is not in dispute, has been paid
by the taxpayer.
62. Revision by the Authority.--(1) The Authority may, of its own motion,
call for and examine the record of any departmental proceedings under this Act
or the rules for the purpose of satisfying itself as to the legality or
propriety of any decision or order passed therein by an officer.
(2) If
after examining the record under sub-section (1), the Authority is not
satisfied with the legality or propriety of any decision or order passed by an
officer, it may pass such order as it may think fit.
(3) No
order imposing or enhancing any penalty or fine requiring payment of a greater amount
of the tax than the originally levied amount shall be passed unless the person affected
by such order has been given an opportunity of showing cause and of being
heard.
(4) No
proceeding under this section shall be initiated in a case where an appeal
under Section 66 is pending or the matter has been referred for resolution
under Section 69.
(5) No
order shall be made under this section after the expiry of five years from the
date of the original decision or order of the subordinate officer referred to
in sub-section (1).
CHAPTER
IX
APPEALS
63. Appeals.--(1) Any person, other than the Authority or any of its employees, aggrieved
by any decision or order passed under Section 60 by an officer of the Authority
other than Commissioner may, within thirty days of the date of receipt pf such decision
or order, prefer an appeal to the Commissioner (Appeals).
(2) 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 fee specified in sub-section (3); and
(e) be
lodged with the Commissioner (Appeals) within the time set out in sub-section
(4).
(3) The
prescribed fee shall be
(a) where
the appellant is a company, one thousand rupees; or
(b) where
the appellant is not a company, two hundred rupees.
(4) An
appeal shall be preferred to the Commissioner (Appeals) within thirty days of the
receipt of the decision or order passed under Section 60.
(5) The
Commissioner (Appeals) may, upon application in writing by the appellant, admit
an appeal after the expiration of the period specified in sub-section (4) if
the Commissioner (Appeals) is satisfied that the appellant was prevented by
sufficient cause from lodging the appeal within that period.
64.
Procedure in appeal.--(1) The Commissioner (Appeals) shall give
notice of the day fixed for the hearing of the appeal to the appellant and to
the officer of the Authority against whose order the appeal has been made.
(2) The
Commissioner (Appeals) may adjourn the hearing of the appeal from time to time.
(3) The
Commissioner (Appeals) may, before the hearing of an appeal, allow the appellant
to file any new ground of appeal not specified in the grounds of appeal already
filed by the appellant where the Commissioner (Appeals) is satisfied that the
omission of the ground from the form of the appeal was not willful or
unreasonable.
(4) The
Commissioner (Appeals) may stay the recovery of any tax due by virtue of the
decision or order being appealed against and any such order made by the Commissioner
(Appeals) shall remain operative for not more than fifteen days during which
period a notice shall be issued to the respondent and after hearing the
parties, the order staying recovery may be confirmed, varied or vacated as the
Commissioner (Appeals) deems fit but the stay order so confirmed or varied
shall remain operative for not more than sixty days, including any period for
which the recovery may have been stayed prior to the confirmation or variation
of the stay order.
(5) The
Commissioner (Appeals) may, before disposing of an appeal, call for such particulars,
documents, records or information as the Commissioner (Appeals) may require
respecting the matters arising in the appeal or cause further inquiry to be
made by the officer of the Authority.
65. Decision in appeal.--(1) In disposing of an appeal lodged under Section
63, the Commissioner (Appeals) may pass such order as he thinks fit,
confirming, varying, altering, setting aside or annulling the decision or order
appealed against.
(2) In
deciding an appeal, the Commissioner (Appeals) may make such further inquiry as
may be necessary provided that he shall not remand the case for de novo consideration.
(3) The
Commissioner (Appeals) shall not increase the amount of any tax payable by the
appellant unless the appellant has been given an opportunity of showing cause against
such increase.
(4) The
Commissioner (Appeals) shall communicate his order to the appellant and the
Authority.
(5) An
order passed by the Commissioner (Appeals) under sub-section (1) shall be passed
not later than one hundred and twenty days from the date of filing of appeal or
within such extended period, not exceeding sixty days, as the Commissioner
(Appeals) may, for reasons to be recorded in writing, fix.
(6) In
computing the aforesaid time period, any period during which the proceedings are
adjourned on account of a stay order or proceedings under Section 69 or the
time taken through adjournments by the appellant shall be excluded.
(7) Where
the Commissioner (Appeals) has not made an order under sub-section (1) before
the expiration of one hundred and eighty days from the end of the month in which
the appeal was lodged, the Commissioner (Appeals) shall transfer his appeal to the
Appellate Tribunal and the Tribunal shall decide the appeal under this Act as
if it has been filed against the order of the Commissioner (Appeals).
(8) While
transferring the undecided appeal to the Appellate Tribunal, the Commissioner
(Appeals) shall attach his comprehensive report explaining the circumstances
and reasons due to which the appeal could not be decided within time.
(9) For
purposes of sub-section (5), any period during which the hearing of an appeal
is adjourned on the request of the appellant shall be excluded in the
computation of the period mentioned in the sub-section.
66.
Appeal to the Appellate Tribunal.--(1) Where the taxpayer or the officer not
below the rank of Additional Commissioner objects to any order passed by the
Commissioner (Appeals), including an order under sub-section (4) of Section 64,
the taxpayer or the officer may appeal to the Appellate Tribunal against such
order.
(2) An appeal under sub-section (1) shall be--
(a) in
the prescribed form;
(b) verified
in the prescribed manner;
(c) accompanied,
except in case of an appeal preferred by an officer by the fee specified in
sub-section (3); and
(d) preferred
to the Appellate Tribunal within sixty days of the date of receipt of the order
of the Commissioner (Appeals) by the taxpayer or the officer.
(3) The
fee for an appeal shall be two thousand rupees.
(4) The
Appellate Tribunal may, upon application in writing, admit an appeal after the expiration
of the period specified in clause (d) of sub-section (2) if it is satisfied
that the person appealing was prevented by sufficient cause from filing the appeal
within that period.
67.
Disposal of appeals by the Appellate
Tribunal.--(1) The Appellate
Tribunal may, before disposing of an appeal, call for such particulars,
documents, records or information as it may require in respect of the matters
arising from the appeal or cause further inquiry to be made by the officer of
the Authority.
(2) The
Appellate Tribunal shall afford an opportunity of being heard to the parties to
the appeal and, in case of default by any of the parties on the date of
hearing, the Tribunal may, if it deems fit, dismiss the appeal in default, or
may proceed ex-parte to decide the appeal on the basis of the available record
but the Appellate Tribunal shall decide the appeal within six months from the
date of filing of the appeal.
(3) The
Appellate Tribunal may stay the recovery of any tax due by virtue of the
decision or order being appealed against and any such order made by the
Appellate Tribunal shall remain operative for no more than thirty days during
which period a notice shall be issued to the respondent and after hearing the
parties, the order staying recovery may be confirmed, varied or vacated as the
Appellate Tribunal deems fit but the stay order so confirmed or varied shall
remain operative for not more than ninety days including any period for which
the recovery may have been stayed prior to the confirmation or variation of the
stay order.
(4) In
deciding the appeal, the Appellate Tribunal may, without prejudice to the powers
specified in sub-section (2), make an order to—
(a) affirm,
modify or annul the order being appealed against; or
(b) remand
the case to the officer or the Commissioner (Appeals) for making such inquiry
or taking such action as the Tribunal may direct.
(5) The
Appellate Tribunal shall not increase the amount of any tax payable, penalty or
default surcharge unless the taxpayer has been given a reasonable opportunity
of showing cause against such increase.
(6) The
Appellate Tribunal shall communicate its order to the taxpayer and the Commissioner.
(7) Save
as provided in any other law, the decision of the Appellate Tribunal on an appeal
shall be final.
68. Deposit of the tax demand while appeal is
pending.--Where in any
appeal, the decision or order appealed against relates to any tax demanded
under this Act, the person who has filed the appeal shall, pending the appeal,
deposit the admitted amount of the tax based on the return filed under Section
35 or as may be determined by the Commissioner (Appeals) or the Appellate
Tribunal where such return has not been filed.
69.
Alternate dispute resolution.--(1) Notwithstanding any other provisions of
this Act or the rules, any registered person aggrieved in connection with any
dispute pertaining to--
(a) the
liability of the tax against the registered person;
(b) the
extent of waiver of default surcharge and penalty;
(c) relaxation
of any procedural or technical irregularities and condonation of any prescribed
time limitation; and
(d) any
other specific relief required to resolve the dispute, may apply to the Authority
for the appointment of a committee for the resolution of any dispute mentioned
in detail in the application.
(2) Notwithstanding
anything contained in sub-section (1), the Authority shall not accept an
application under sub-section (1) where criminal proceedings have been initiated
or where the Authority is of the opinion that the interpretation of a question
of law having a larger impact on revenue or on a number of similar cases is
involved.
(3) The
Authority may, after examination of the application of a registered person,
appoint a committee of not less than three persons within thirty days of
receipt of such application, consisting of an officer of the Authority not
below the rank of an Additional Commissioner and nominees from the notified
panel consisting of chartered or cost accountants, advocates, representatives
of trade bodies or associations, retired officers of the rank of not less than BS-20,
retired judges, or any other reputable taxpayers, for the resolution of the
dispute.
(4) The committee constituted under sub-section
(3) shall examine the issue and may, if it deems fit, conduct an inquiry, seek
expert opinions, direct any officer of the Authority or any other person to
conduct an audit and shall make recommendations to the Authority within ninety
days of its constitution in respect of the dispute.
(5) If
the committee fails to make recommendations within the said period, the Authority
may dissolve the committee and constitute a new committee which shall decide
the matter within a further period of ninety days and even if after the expiry
of that period the dispute is not resolved, the matter shall be taken up before
the appropriate forum provided under this Act for decision.
(6) The
Authority may, on the recommendation of the committee, pass such order, as it
may deem appropriate within forty-five days of the receipt of the
recommendations of the committee.
(7) The
registered person may make payment of the tax as determined by the Authority in
its order under sub-section (6), and such order of the Authority shall be submitted
before the forum, Appellate Tribunal or the Court where the matter is pending adjudication
for consideration of orders as deemed appropriate.
CHAPTER
X
RECOVERY
OF ARREARS
70.
Recovery of arrears of tax.--(1) Subject to sub-section (2), where any
amount of the tax is due from any person, the officer of the Authority may--
(a) deduct
the amount from any money owing to the 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 the Authority;
(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 is recoverable to pay to such
officer the amount specified in the notice;
(c) require
by a notice in writing any bank to attach that person's bank accounts;
(d) seal
the person's business premises till such time as the amount of the tax is paid
or recovered in full;
(e) attach
and sell or sell without attachment any movable or immovable property of the
person from whom the tax is due; and
(f) recover
such amount by attachment and sale of any movable 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.
(2) If
any arrears of tax, default surcharge, penalty or any other amount which is
payable by any person cannot be recovered in any manner whatsoever, the
Authority or the Commissioner if so authorized by the Authority, may for
reasons to be recorded in writing write off the arrears or amount in the manner
in the prescribed manner.
CHAPTER
XI
AGENTS,
REPRESENTATIVES AND E-INTERMEDIARIES
71.
Agent.--(1) For purposes of this Act and subject to
sub-sections (2) and (3), the expression 'agent' 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, financial gains or benefits, funds,
money or property 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
(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
(e) where
the person is an association of persons, a director or a manager or secretary
or accountant or any similar 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 sub-division of the government;
or
(h) when
any person is expressly or impliedly authorized by a registered person to be
his agent for all or any of the purposes of this Act.
(2) Where
Court of Wards, Administrator General, 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 agent of the person
for purposes of this Act.
(3) Notwithstanding
anything in this section, any registered person may expressly or impliedly
authorize another person to be his agent for all or any of the purposes this
Act.
72. Liability and obligations of agents.--(1) Every agent of a person shall be
responsible for performing any duties or obligations imposed by or under this
Act and the rules on the person, including the payment of the tax;
(2) Subject
to sub-section (5) of this section, the tax that by virtue of sub-section (1), is
payable by an agent of a registered person shall be recoverable from the agent
only to the extent of any assets of the registered person that are in the
possession or under the control of the agent.
(3) Every
agent of a registered person who pays any tax owing to 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 agent's possession or under the agent's control.
(4) Any
agent, or any person who apprehends that he may be assessed as an agent, may
retain out of any money payable by him to the person on whose behalf he is liable
to pay the 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 such an agent or a person as to the
amount to be so retained, such agent or person may obtain from the 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 conclusive
authority for retaining that amount.
(5) Every
agent shall be personally liable for the payment of any tax due by the agent
if, while the amount remains unpaid, the agent--
(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 registered person that is
in the possession of the agent or which comes to the agent after the tax is
payable, if such tax could legally have been paid from or out of such moneys or
funds.
(6) Nothing
in this section shall relieve any person from performing any duties imposed by
or under this Act on the person which the agent of the person has failed to
perform.
73.
Liability of the registered person for
the acts of his agent.--A
registered person shall be responsible for any and all acts done by his agent.
74. Appearance by authorized representative.--A registered person required to appear before
the Appellate Tribunal or an officer in connection with any proceedings under
this Act may, in writing, authorize any person having such qualification as may
be prescribed by the Authority, to represent him or appear on his behalf.
75. E-intermediaries to be appointed.--(1) Subject to such conditions, limitations
and restrictions as the Authority may impose, the Authority may, by a
notification in the official Gazette, appoint a person as e-intermediary to
electronically file returns and other electronic documents under this Act and
the rules on behalf of a registered person.
(2) A
registered person may authorize an e-intermediary to electronically file
returns or any other documents on his behalf as specified in sub-section (1).
(3) 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.
(4) Where
this Act requires anything to be done by a 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, such thing shall be deemed to have been
done with the knowledge and consent of the 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.
(5) Where
an e-intermediary, authorized by a registered person under sub-section (2) to
act on his behalf, knowingly or willfully submits false or incorrect
information or document or declaration with an intent to avoid payment of the
tax due or any part thereof, such e-intermediary shall be jointly and severally
responsible for recovery of the amount of tax short paid as a result of such
incorrect or false information or document or declaration, without prejudice to
any other action that may be taken against him or the registered person under
the relevant provisions of the law.
(6) The
Authority 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 and restrictions as specified in such rules.
CHAPTER
XII
GENERAL
ADMINISTRATION
76. Power to make rules.--(1) The Authority may, with the approval of
the Government and by notification in the official Gazette, make the rules for
carrying out the purposes of any of the provisions of this Act.
(2) All
rules made under sub-section (1) during a financial year shall be laid in Provincial
Assembly of the
(3) The
rules made under this Act shall be collected, arranged and published along with
general orders and departmental instructions, directions, notifications and
rulings, if any, at appropriate intervals and sold to the public at a
reasonable price.
77. Computerized system.--(1) The Authority may prescribe the use of a
computerized system for carrying out the purposes of this Act and the rules
including the receipt of applications for registration, returns and such other
declarations or information required to be provided under this Act and the
rules from such date and for such registered persons or class of persons as the
Authority may, by notification in the official Gazette, specify.
(2) The
Authority may regulate the conduct and transaction of business in relation to the
submission of returns or other information to the Authority by the persons
required to transmit or receive any information through the computerized
system, including matters such as the grant of authorization, suspension and
cancellation of authorization and for security of the information transmitted
or received through the computerized system.
(3) 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.
(4) 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 or be provided any access to such information.
78. Service of orders and decisions.--(1) Subject to this Act, any notice, order or
requisition required to be served on an individual 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
the agent of the individual;
(b) sent
by registered post or courier service to the individual's usual or last known address
in
(c) served
on the individual in the manner prescribed for service of a summons under the
Code of Civil Procedure, 1908 (V of 1908).
(2) Subject
to this Act, any notice order or requisition required to be served on any
person, other than an individual to whom sub-section (1) applies, for the purposes
of this Act, shall be treated as properly served on the person if--
(a) personally
served on the agent 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; or
(c) served
in the manner prescribed for service of a summons under the Code of Civil
Procedure, 1908 (V of 1908).
(3) Where
an association of persons is dissolved, any notice, order or requisition required
to be served under this Act, on the association or a 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.
(4) Where
a 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 agent at the
time of discontinuance.
(5) The
validity of any notice issued under this Act or the validity of any service of
a notice shall not be called into question after the notice has been complied
with in any manner.
(6) Any
registered person may indicate, in the manner prescribed by the Authority, that
he wishes to electronically receive all or specific communications, including notifications,
orders, assessments and requisitions from the Authority, the Appellate Tribunal
or any officer of the Authority.
(7) The
Authority may, by notification in the official Gazette, direct that all or
specific communications, including notifications, orders, assessments and
requisitions from the Authority, the Appellate Tribunal or any officer to a
specific registered person or class of registered persons shall be made
electronically.
(8) For
purposes of sub-sections (6) and (7), a registered person shall be considered
to have received the electronic communication within seventy two hours of the
sending of the electronic communication by the Authority, Appellate Tribunal or
the officer of the Authority.
(9) For
purposes of sub-sections (6), (7) and (8), an electronic communication includes
a communication sent by email.
79.
Correction of clerical errors.--(1) Any clerical or arithmetical error in any
assessment, adjudication order or decision may, at any time, be corrected by
the officer of the Authority who made the assessment or adjudication or passed
such order or decision or by his successor in office, through an order made
under this section.
(2) Before
any correction is made under sub-section (1), a notice shall be given to the
registered person likely to be affected by such correction.
80.
Issuance of duplicate of the tax
documents.--An officer of
the Authority not below the rank of the Assistant Commissioner may, on payment
of one hundred rupees, issue an attested copy of any document filed by a
registered person with the Authority.
81. Power to issue orders, instructions and
directions.--The Authority
may issue such orders, instructions and directions, not inconsistent with this
Act and the rules, to all officers of the Authority, as it may deem necessary
to implement, administer or enforce the provisions of this Act and the rules.
82. Officers of the Authority to follow orders.--(1) All officers of the Authority and other
persons employed in the administration of this Act and the rules shall observe
and follow the orders, instructions and directions of the Authority.
(2) No
such orders, instructions or directions shall be given so as to interfere with
the powers or discretion of officers of the Authority in the exercise of their
judicial or quasi-judicial functions.
CHAPTER
XIII
MISCELLANEOUS
83.
Computation of limitation period.--In computing the period of limitation
prescribed for any appeal or application under this Act, the day on which the
order complained of was served and, if the concerned person was not furnished
with a copy of the order, the time requisite for obtaining a copy of such order
shall be excluded.
84. Condonation of time-limit.--(1) Where any time or period has been
specified under any of the provisions of the Act or the rules within which any
act or thing, including submission of an application, filing of a return or
payment of tax, is to be done, the Authority may permit such application to be
made or such act or thing to be done within such time or period as it may
consider appropriate.
(2) The
Authority may, by notification in the official Gazette, and subject to such
limitations or conditions as may be specified therein, empower any Commissioner
or the officer of the Authority to exercise the powers under this section in
any case or class of cases.
85. Bar of suits, prosecution and other legal
proceedings.--(1) No suit
shall be brought in any civil Court to set aside or modify any order passed,
any assessment made, any tax levied, any penalty or default surcharge imposed
or collection of any tax made under this Act.
(2) No
suit, prosecution or other legal proceeding shall lie against the Government or
against any public servant in respect of any order passed in good faith under
this Act.
(3) Notwithstanding
anything in any other law, no investigation or inquiry shall be undertaken or
initiated by any government agency against any officer or official for anything
done in his official capacity under this Act, except with the permission of the
Authority.
86. Removal of difficulties.--(1) The Government may pass such order for
removing any difficulty or for bringing the provisions of this Act
into-effective operation direct that provisions of this Act shall, during such
period as may be specified in the order, have effect subject to such
adaptations whether by way of modification or addition or omission as it may
deem to be necessary or expedient.
(2) The power under this section shall not be
exercised after the expiry of two years from the commencement of this Act.
87. Repeal and savings.--(1) The Punjab Sales Tax Ordinance, 2000 (II
of 2000) is hereby repealed.
(2) Any
proceeding under the repealed Ordinance pending on the date notified under sub-section
(3) of Section 1 before any authority, forum or any Court by way of adjudication,
assessment, appeal, reference, revision or prosecution shall be continued and
disposed of as if this Act has not come into force.
(3) Where
the Government or the Authority takes any action, makes any decision or orders,
issues any instructions, directions, clarifications or notifications in
pursuance of or in exercising of powers conferred under any provision of any
law in respect of any matter relating to the tax and allied issues covered
under this Act or the rules, such actions, decisions, orders, instructions,
directions, clarifications and notifications shall be deemed to have been
validly issued to serve the purposes of this Act and the rules.
(4) Where
so directed by the Government, any tax payable but not paid under the Punjab
Sales Tax Ordinance, 2000 (II of 2000) may be recovered under this Act, but without
prejudice to any action already taken for the recovery of the amount under the said
Ordinance.
FIRST
SCHEDULE
(Classification
of Services)
(see
sub-section (38) of Section 2)
|
Classification |
Description |
|
|
98.01 |
Services provided by hotels,
restaurants, marriage halls, lawns, clubs and caterers. |
|
|
9801.1000 |
Services provided by hotels |
|
|
9801.2000 |
Services provided by restaurants |
|
|
9801.3000 |
Services provided by marriage halls and lawns |
|
|
9801.4000 |
Services provided by clubs |
|
|
9801.5000 |
Services provided by caterers, suppliers of food and drinks |
|
|
9801.6000 |
Ancillary services provided by hotels, restaurants, marriage halls,
lawns, caterers |
|
|
9801.7000 |
Services provided by messes and hostels |
|
|
9801.9000 |
Other |
|
|
98.02 |
Advertisements |
|
|
9802.1000 |
Advertisements on T.V. |
|
|
9802.2000 |
Advertisements on Radio |
|
|
9802.3000 |
Advertisements on closed circuit T.V. |
|
|
9802.4000 |
Advertisements in newspapers and periodicals |
|
|
9802.5000 |
Advertisements on cable T.V. network |
|
|
|
Advertisements on poles |
|
|
|
Advertisements on bill boards |
|
|
9802.9000 |
Other |
|
|
98.03 |
Facilities for travel |
|
|
9803.1000 |
Travel by air of passengers within the territorial jurisdiction of |
|
|
9803.1100 |
Travel by air of passengers embarking on international journey from |
|
|
9803.2000 |
Domestic travel by train |
|
|
9803.2100 |
International travel by train |
|
|
9803.9000 |
Other |
|
|
98.04 |
Services provided for inland
carriage of goods. |
|
|
9804.1000 |
Carriage of goods by air |
|
|
9804.2000 |
Carriage of goods by train |
|
|
9804.9000 |
Other |
|
|
98.05 |
Services provided by persons authorized to
transact business on behalf of others. |
|
|
9805.1000 |
Shipping agents |
|
|
9805.2000 |
Stevedores |
|
|
9805 2100 |
Ship management
service |
|
|
9805.3000 |
Freight
forwarding agents |
|
|
9805.4000 |
Customs agents |
|
|
9805.5000 |
Travel agents |
|
|
9805.5100 |
Tour operators |
|
|
9805.6000 |
Recruiting agents |
|
|
9805.7000 |
Advertising
agents |
|
|
9805.8000 |
Ship chandlers |
|
|
9805.9000 |
Share transfer
agent |
|
|
9805.9100 |
Sponsorship
services |
|
|
9805.9200 |
Business support
services |
|
|
9805.9090 |
Other |
|
|
98.06 |
Services provided in matters of hire. |
|
|
9806.1000 |
Purchase or sale
of moveable or immovable goods or property |
|
|
9806.2000 |
Property dealers |
|
|
9806.3000 |
Car/automobiles
dealers |
|
|
9806.9000 |
Dealers of
second hand goods other than automobiles other |
|
|
9807.0000 |
Services provided by property developers
and promoters. |
|
|
9808.0000 |
Courier services |
|
|
9809.0000 |
Services provided by persons engaged in
contractual execution of work or furnishing supplies. |
|
|
9810.0000 |
Services provided for personal care by
beauty parlors/clinics, slimming clinics and others. |
|
|
9811.0000 |
Services provided by laundries, dry
cleaners. |
|
|
98.12 |
Telecommunication services. |
|
|
9812.1000 |
Telephone
services |
|
|
9812.1100 |
Fixed line voice
telephone service |
|
|
9812.1200 |
Wireless
telephone |
|
|
9812.1210 |
Cellular
telephone |
|
|
9812.1220 |
Wireless Local |
|
|
9812.1300 |
Video telephone |
|
|
9812.1400 |
Payphone cards |
|
|
9812.1500 |
Prepaid calling
cards |
|
|
9812.1600 |
Voice mail
service |
|
|
9812.1700 |
Messaging
service |
|
|
9812.1710 |
Short Message
service (SMS) |
|
|
9812.1720 |
Multimedia
message service (MMS) |
|
|
9812.1910 |
Shifting of
telephone connection |
|
|
9812.1920 |
Installation of
telephone extension |
|
|
9812.1930 |
Provision of
telephone extension |
|
|
9812.1940 |
Changing of
telephone connection |
|
|
9812.1950 |
Conversion of
NWD connection to non NWD or vice versa |
|
|
9812.1960 |
Cost of
telephone set |
|
|
9812.1970 |
Restoration of
telephone connection |
|
|
9812.1990 |
Others |
|
|
9812.2000 |
Bandwidth
services |
|
|
9812.2100 |
Copper line
based |
|
|
9812.2200 |
Fibre-optic
based |
|
|
9812.2300 |
Co-axial cable
based |
|
|
9812.2400 |
Microwave based |
|
|
9812.2500 |
Satellite based |
|
|
9812.2900 |
Others |
|
|
9812.3000 |
Telegraph |
|
|
9812.4000 |
Telex |
|
|
9812.5000 |
Telefax |
|
|
9812.5010 |
Store and
forward fax services |
|
|
9812.5090 |
Others |
|
|
9812.6000 |
Internet
services |
|
|
9812.6100 |
Internet
services including email services |
|
|
9812.6110 |
Dial-up internet
services |
|
|
9812.6120 |
Broadband
services for DSL connection |
|
|
9812.6121 |
Copper line
based |
|
|
9812.6122 |
Fibre-optic
based |
|
|
9812.6123 |
Co-axial cable
based |
|
|
9812.6124 |
Wireless based |
|
|
9812.6125 |
Satellite based |
|
|
9812.6129 |
Others |
|
|
9812.6130 |
Internet/email/Data/SMS/MMS
services on WLL networks |
|
|
9812.6140 |
Internet/email/Data/SMS/MMS
services on cellular mobile networks |
|
|
9812.6190 |
Others |
|
|
9812.6200 |
Data
Communication Network services (DCNS) |
|
|
9812.6210 |
Copper Line
based |
|
|
9812.6220 |
Co-axial cable
based |
|
|
9812.6230 |
Fibre-optic
based |
|
|
9812.6240 |
Wireless/Radio
based |
|
|
9812.6250 |
Satellite
based |
|
|
9812.6290 |
Others |
|
|
9812.6300 |
Value added
data services |
|
|
9812.6310 |
Virtual
private Network services (VPN) |
|
|
9812.6320 |
Digital
Signature service |
|
|
9812.6390 |
Others |
|
|
9812.9000 |
Audio text
services |
|
|
9812.9100 |
Tele-text
services |
|
|
9812.9200 |
Trunk radio
services |
|
|
9812.9300 |
Paging
services |
|
|
9812.9400 |
Voice
paging services |
|
|
9612.9410 |
Radio
paging services |
|
|
9812.9490 |
Vehicle
tracking services |
|
|
9812.9500 |
Burglar
alarm services |
|
|
9812.9090 |
Others |
|
|
98.13 |
Services provided by banking companies,
insurance companies, cooperative financing societies modarbas, musharikas,
leasing companies, foreign exchange dealers, non-banking financial
institutions and other persons dealing in any such services. |
|
|
9813.1000 |
Services
provided in respect of insurance to a policy holder by an insurer, including
a reinsure. |
|
|
9813.1100 |
Goods
insurance |
|
|
9813.1200 |
Fire
insurance |
|
|
9813.1300 |
Theft
insurance |
|
|
9813.1400 |
Marine
insurance |
|
|
9813.1500 |
Life
insurance |
|
|
9813.1600 |
Other
insurance |
|
|
9813.2000 |
Services
provided in respect of advances and loans |
|
|
9813.3000 |
Services
provided in respect of leasing |
|
|
9813.3010 |
Financial
leasing |
|
|
9813.3020 |
Commodity
or equipment leasing |
|
|
9813.3030 |
Hire-purchase
leasing |
|
|
9813.3090 |
Other |
|
|
9813.3900 |
Services
provided in respect of musharika financing |
|
|
9813.4000 |
Services
provided by banking companies in relation to; |
|
|
9813.4100 |
Guarantee |
|
|
9813.4200 |
Brokerage |
|
|
9813.4300 |
Letter of
credit |
|
|
9813.4400 |
Issuance of
pay order and demand draft |
|
|
9813.4500 |
Bill of
exchange |
|
|
9813.4600 |
Transfer of
money including telegraphic transfer, mail transfer and electronic transfer |
|
|
9813.4700 |
Bank
guarantee |
|
|
9813.4800 |
Bill
discounting commission |
|
|
9813.4900 |
Safe
deposit lockers |
|
|
9813.4910 |
Safe vaults |
|
|
9813.5000 |
Issuance,
processing and operation of credit and debit cards |
|
|
9813.6000 |
Commission
and brokerage of foreign exchange dealings |
|
|
9813.7000 |
Automated
Teller Machine operations, maintenance and management |
|
|
9313.8000 |
Service
provided as banker to an issue |
|
|
9813.8100 |
Other |
|
|
9813.9000 |
Service
provided by a foreign exchange dealer or exchange company or money changer |
|
|
98.14 |
Services provided by architects, town
planners, contractors, property developers or promoters, interior decorators. |
|
|
9814.1000 |
Architects
or town planners |
|
|
9814.2000 |
Contractors
of building (including water supply, gas supply and sanitary works), roads
and bridges, electrical and mechanical works (including air conditioning),
horticultural works, multi-discipline works (including turn-key projects) and
similar other works. |
|
|
9814.3000 |
Property
developers or promoters |
|
|
9814.4000 |
Landscape
designers |
|
|
9814.9000 |
Other |
|
|
98.15 |
Services provided by professionals and
consultants etc. |
|
|
9815.1000 |
Medical
practitioners and consultants |
|
|
9815.2000 |
Legal
practitioners and consultants |
|
|
9815.3000 |
Accountants
and auditors |
|
|
9815.4000 |
Management
consultants |
|
|
9815.5000 |
Technical,
scientific, engineering consultants |
|
|
9815.6000 |
Software or
IT based system development, consultants |
|
|
9815.9000 |
Other
consultants |
|
|
9816.0000 |
Services provided by pathological
laboratories. |
|
|
98.17 |
Services provided by medical diagnostic
laboratories including X-Rays, CT Scan, M.R. Imaging etc. |
|
|
9817.1000 |
Scientific
laboratories |
|
|
9817.2000 |
Mechanical
laboratories |
|
|
9817.3000 |
Chemical
laboratories |
|
|
9817.4000 |
Electrical
or electronic laboratories |
|
|
9817.9000 |
Other such
laboratories |
|
|
98.18 |
Services provided by specialized agencies. |
|
|
9818.1000 |
Security
agency |
|
|
9818.2000 |
Credit
rating agency |
|
|
9818.3000 |
Market
research agency |
|
|
9818.9000 |
Other such
agencies |
|
|
98.19 |
Services provided by specified persons or
businesses |
|
|
9819.1000 |
Stockbrokers |
|
|
9819.1100 |
Under
writers |
|
|
9819.1200 |
Indenters |
|
|
9819.1300 |
Commission
agents |
|
|
9819.1400 |
Packers |
|
|
9819.2000 |
Money
exchanger |
|
|
9819.3000 |
Rent a car |
|
|
9819.4000 |
Prize bond
dealers |
|
|
9819.5000 |
Surveyors |
|
|
9819.6000 |
Designers |
|
|
9819.7000 |
Outdoor
photographer |
|
|
9819.8000 |
Art painter |
|
|
9819.9000 |
Cable TV
operators |
|
|
9819.9100 |
Auctioneers |
|
|
9819.9200 |
Public
relations services |
|
|
9819.9300 |
Management
consultants |
|
|
9819.9400 |
Technical
testing and analysis service |
|
|
9819.9500 |
Service
provided by a registrar to an issue |
|
|
9819.9090 |
Others |
|
|
98.20 |
Services provided by specialized workshops
or undertakings |
|
|
9820.1000 |
Auto-workshops |
|
|
9820.2000 |
Workshops
for industrial machinery construction and earth-moving machinery or other
special purpose machinery etc. |
|
|
9820.3000 |
Workshops
for electric or electronic equipments or appliances etc including computer
hardware |
|
|
9820.4000 |
Car washing
or similar service stations |
|
|
9820.9000 |
Other
workshops |
|
|
98.21 |
Services provided in specified fields. |
|
|
9821.1000 |
Healthcare
center, gyms or physical fitness center etc. |
|
|
9821.2000 |
Indoor
sports and games center |
|
|
9821.3000 |
Baby care
center |
|
|
9821.4000 |
Body
massage center |
|
|
9821.5000 |
Pedicure
center |
|
|
98.22 |
Services provided for specified purposes. |
|
|
9822.1000 |
Fumigation
services |
|
|
9822.2000 |
Maintenance or
cleaning services |
|
|
9822.3000 |
Janitorial
services |
|
|
9822.4000 |
Dredging or
desilting services |
|
|
9822.9000 |
Other similar
services |
|
|
9823.0000 |
Franchise services |
|
|
9824.0000 |
Construction services |
|
|
9825.0000 |
Consultancy services |
|
|
9826.0000 |
Management services including fund and asset
management services |
|
|
9827.0000 |
Market research agencies |
|
|
9828.0000 |
Program producers |
|
|
9829.0000 |
Brokerage (other than stock) and indenting
services |
|
|
9830.0000 |
Race Clubs |
|
|
9831.0000 |
General insurance agents |
|
|
9832.0000 |
Exhibition or convention services |
|
|
9833.0000 |
Data processing and provision of
information, services of engineers, handling and storage of goods |
|
|
9834.0000 |
Fashion designers |
|
|
9835.0000 |
Cable operators |
|
|
9836.0000 |
Internet cafe |
|
|
9837.0000 |
Pandal and shamiana service |
|
|
9838.0000 |
Airport services |
|
|
9839.0000 |
Intellectual property services |
|
|
9840.0000 |
Forward contract services |
|
|
9841.0000 |
Packaging services |
|
|
9842.0000 |
Services provided in matters of hire |
|
|
9843.0000 |
Purchase or sale of moveable or immovable
goods or property |
|
|
9844.0000 |
Property dealers and realtors |
|
|
9845.0000 |
Automobile dealers |
|
|
9846.0000 |
Dealers of second hand goods other than
automobiles |
|
|
9847.0000 |
Cosmetic and plastic surgery |
|
|
9848.0000 |
Beauty parlor and beauty clinics |
|
|
9849.0000 |
HR consultants |
|
|
9850.0000 |
Corporate law consultants |
|
|
9851.0000 |
Tax consultants |
|
|
9852.0000 |
Human resources & personnel development
services |
|
|
9853.0000 |
Coaching centers |
|
|
9854.0000 |
Vocational centers |
|
|
9855.0000 |
Actuarial services |
|
|
9856.0000 |
Training services |
|
|
9857.0000 |
Tracking services |
|
|
9858.0000 |
Security alarm services |
|
|
9859.0000 |
Human resource development |
|
|
9860.0000 |
Building maintenance and service provider |
|
|
9861.0000 |
Quality control services (ISO certification
authority) |
|
|
9862.0000 |
Services provided by motels, guest houses
and farm houses. |
|
|
9863.0000 |
Debt collection agencies |
|
|
9864.0000 |
Amusement parks |
|
|
9865.0000 |
Call centres |
|
|
9866.0000 |
Film and drama studios including mobile
stage shows or cinemas |
|
|
9867.0000 |
Entertainment services |
|
|
9868.0000 |
Services provided in respect of
manufacturing or processing on toll basis. |
|
SECOND
SCHEDULE
(Taxable Services)
(See
Section 3)
|
S.No. |
Description |
Classification |
Rate of Tax |
|
(1) |
(2) |
(3) |
(4) |
|
1. |
Services
provided by hotels, clubs and caterers. |
9801.1000
9801.4000 and 9801.5000 |
Sixteen per
cent |
|
2. |
Advertisement
on television and radio, excluding advertise ments— (a) sponsored
by an agency of the Federal or Provincial Government for health education; (b) financed
out of funds provided by a Government under grant-in-aid agreement; and (c) conveying
public service message, if telecast on television by the World Wide Fund for
Nature (WWF) or United Nations Children's Fund (UNICEF). |
9802.1000
and 9802.2000 |
Sixteen per
cent |
|
3. |
Services
provided by persons authorized to transact business on behalf of others— (a) customs agents; (b) ship chandlers; and (c) stevedores. |
805.4000
9805.8000 and 9805.2000 |
Sixteen per
cent |
|
4. |
Courier
services. |
9808.0000 |
Sixteen per
cent |
|
5. |
Advertisement
on a cable television. |
9802.5000 |
Sixteen per
cent |
|
6. |
Telecommunication
services— (a) telephone
services; (b) fixed
line voice telephone service; (c) wireless
telephone; (d) cellular
telephone; (e) wireless
local loop telephone; (f) video
telephone; (g) payphone
cards; (h) pre-paid
calling cards; (i) voice
mail service; (j) messaging
service; (k) short
message service (SMS); (l) multimedia
message service (MMS); (m) bandwidth services used for
voice and video telecommunication services— (i) copper line based; (ii) fiber-optic based; (iii) co-axial cable based; (iv) microwave based; (v) satellite based; (n) telegraph; (o) telex, (p) telefax; (q) store
and forward fax services; (r) audio-text
services; (s) tele-text
services; (t) trunk
radio services; (u) paging
services; (v) voice
paging services; (w) radio
paging services; (x) vehicle
tracking services; and (y) burglar
alarm services; EXCLUDING: (a) internet
services whether dialup or broadband including email services, data
communication network services (DCNS) and value added data services. (b) Such
charges payable on the international leased lines or bandwidth services used
by— (i) software
exporting firms registered with the (ii) data
and internet service providers licensed by the Pakistan Telecommunication
Authority. (c) Such
amounts received by the Long Distance International license holders including
Pakistan Telecommunication Company Limited on International incoming calls
under agreements with the foreign telecommunication companies. |
98.12 |
Nineteen
and a half per cent |
|
7. |
Services provided in respect of insurance lo a policy holder by an
insurer, including a re-insurer— (a) goods insurance; (b) fire insurance; (c) theft insurance; (d) marine insurance; and (e) other insurance. EXCLUDING: (a) Marine insurance for export;
(b) Life insurance; (c) Health insurance; and (d) Crop insurance. |
98.13 |
Sixteen per cent of the gross premium paid |
|
8. |
Services
provided by Banking Companies or Non-Banking Financial Institutions including
but not limited to all non-interest based services provided against a
consideration in form or a fee or commission or charge. |
98.13 |
Sixteen per
cent |
|
9. |
Services
provided by the stock brokers |
9819.1000 |
Sixteen per
cent |
|
10. |
Services
provided by shipping agents |
9805.1000 |
Sixteen per
cent |
|
11 |
Any other service
notified by the Provincial Government in the official Gazette. |
|
|
------------------------
ACT XLIII OF
2012
An
Act to provide for the establishment of
[Gazette
of
No.PAP-Legis-2(135)/2012/713.--The Punjab Revenue Authority Bill, 2012,
having been passed by the Provincial Assembly of the Punjab on 21 June 2012,
and assented to by the Governor of the Punjab on 26 June 2012, is hereby
published as an Act of the Provincial Assembly of the Punjab.
Preamble.--Whereas it is expedient to reform and
modernize the system of taxation, to provide assistance to tax payers, to
promote compliance with fiscal laws, to establish a progressive and
professionally efficient tax management organization, and to provide for
ancillary matters;
It is enacted as follows:--
CHAPTER
- I
PRELIMINARY
1. Short title, extent and commencement.--(1) This Act may be cited as the Punjab
Revenue Authority Act, 2012.
(2) It
extends to whole of the
(3) It
shall come into force on such date as the Government may, by notification, specify.
2. Definitions.--In this Act--
(a) "Advisory
Council" means the Advisory Council of the Authority;
(b) "Appellate
Tribunal" means the Appellate Tribunal established under the Act;
(c) “Authority”
means the Punjab Revenue Authority;
(d) "Chairperson"
means the Chairperson of the Authority;
(e) "committee"
means a committee of the Authority;
(f) "employee"
means a person in the employment and service of the Authority;
(g) "Federal
Board of Revenue" means the Federal Board of Revenue established under the
Federal Board of Revenue Act, 2007 (IV of 2007);
(h) "fiscal
law" means the law of the Punjab relating to tax, duty or charge including
stamp duty, excise duty on alcoholic liquors, opium and other narcotics, land
revenue, sales tax on services, taxes on agricultural income, motor vehicles,
immovable property and entertainments, capital gains tax on immovable property,
capital value tax, asset tax, tax on professions, trades, callings or
employment or such other law imposing any tax, levy, duty, fee, charge or
surcharge as the Government may specify;
(i) "Government"
means Government of the
(j) "member"
means any person appointed as a member of the Authority;
(k) "person"
includes—
(i) an individual;
(ii) a company or association of persons;
(iii) the Federal Government;
(iv) a Provincial Government;
(v) a local authority or Local Government;
and
(vi) a Foreign Government, a political
subdivision of a Foreign Government, or an International Organization;
(1) "prescribed"
means prescribed by the rules or regulations;
(m) "Public
Account" means the Public Account of the Province in terms of Article 118
of the Constitution of the Islamic Republic of Pakistan;
(n) "Provincial
Consolidated Fund" means the Provincial Consolidated Fund in terms of
Article 118 of the Constitution of the Islamic Republic of Pakistan;
(o) "regulations"
means the regulations framed under the Act; and
(p) "rules"
means the rules made under the Act.
CHAPTER
II
3. The Authority.--(1) The Government shall, by notification,
establish an Authority to be called the Punjab Revenue Authority.
(2) The
Authority shall be a body corporate, having perpetual succession and a common
seal, with power to enter into agreements, acquire, hold, manage and, subject
to sub-section (3), dispose of property and to sue and be sued in its name.
(3) The
Authority shall not dispose of any immovable property except with the prior approval
of the Government and through competitive bidding.
(4) The
Authority shall consist of the Chairperson and not less than four members to be
appointed by the Government in such manner and on such terms and conditions as may
be prescribed, and until so prescribed as may be determined by the Government.
(5) No
person shall be appointed as the Chairperson unless he possesses--
(a) a
master's degree from a recognized University;
(b) ample
knowledge of tax systems in
(c) twenty
years work experience, including five years' experience in tax administration
or financial management.
(6) The
qualifications, experience and other requirements for appointment as Secretary
or a member shall be such as may be prescribed.
(7) The
Government may designate a member as senior member.
(8) If
the office of the Chairperson is vacant or the Chairperson is absent or is
unable to perform the functions of the Chairperson owing to any cause, the
senior member shall perform the functions of the Chairperson but, if at any
time, the office of senior member is also vacant or the senior member is absent
or is unable to perform the functions of the Chairperson owing to any cause,
the Government shall make such temporary arrangements for the performance of
the duties of the Chairperson as it may deem fit.
4. Secretary.--(1) The Chairperson, on the recommendations
of the Authority, shall appoint Secretary of the Authority on such terms and
conditions as may be prescribed, and until so prescribed as may be determined
by the Government.
(2) The
Secretary shall perform such functions as may be prescribed or as may be assigned
by the Chairperson or the Authority.
(3) In
the performance of his functions, the Secretary shall be responsible to the Chairperson.
5. Powers and functions of the Authority.--(1) The Authority shall exercise such powers and
perform such functions as are necessary to achieve the purposes of this Act.
(2) Without prejudice to the generality of the
powers mentioned in sub-section (1), the Authority shall have powers to—
(a) administer
and collect such taxes, duties and other levies as are assigned to the
Authority under a fiscal law;
(b) implement,
with the approval of the Government, the tax administration reforms;
(c) promote
voluntary tax compliance;
(d) implement
comprehensive policies and programmes for education and facilitation of
taxpayers, stakeholders and employees to improve the quality of the performance
of the Authority as a service oriented entity;
(e) adopt
modern effective tax administration methods, information technology systems and
policies to consolidate assessments, improve processes, organize registration of
tax payers, widen the tax base, and make departmental remedies more efficient
including enforcement of, or reduction or remission in duty, penalty or tax, in
accordance with the relevant fiscal law;
(f) improve
productivity through a comprehensive and effective human resource strategy;
(g) identify
and select a transparent manner, qualified work force on such terms and
conditions and in such manner as may be prescribed;
(h) grant
such performance based additional allowances or incentives and rewards to the
employees and members of the Authority as may be prescribed;
(i) take
appropriate measures including internal controls to combat corruption in the
organizations under the Authority and to provide checks to ensure that the
integrity of the employees is verified periodically through applicable
procedures and the said verification shall constitute one of the criteria for
purposes of grant of incentives and consideration for promotion;
(j) direct
or advise, where necessary, investigation or inquiry into suspected duty or tax
evasion and tax or commercial fraud;
(k) introduce
and maintain a system of accountability of performance, competence and conduct
of the employees;
(l) implement
the mandate and provisions of a fiscal law if so authorized by such law;
(m) establish,
with the approval of the Government, a foundation for the welfare of the
present and retired employees and their families, and for creating,
establishing, organizing and assisting them in the social and cultural
facilities;
(n) frame
regulations, policies, programmes, strategies in order to carry out the
purposes of the Act;
(o) set
up mechanism and processes for remedying the grievances and complaints of the
tax payers;
(p) develop
a website and adopt, in the prescribed manner, electronic communication in
respect of all taxation matters such as e-filing, e-payments, e-notice,
e-notification, digital imaging, protocols or agreements;
(q) practice
transparency and public participation as a norm for all its processes and
policies;
(r) review
the existing fiscal laws and suggest improvements, if necessary;
(s) forma
committee and assign or delegate functions to the committee; and
(t) perform
such other functions as may be prescribed or are incidental to the above
functions or assigned by the Government.
(3) Subject to the provisions of this Act and the
relevant fiscal law, the Authority may, where appropriate, issue notifications,
circulars and instructions for the enforcement of any of the provisions of the
Act or any other fiscal law administered by the Authority.
6. Human resource management.--(1) The Authority may, in respect of its
employees—
(a) develop
and implement human resource management policies;
(b) assess,
identify, create, increase, decrease or designate or re-designate posts and
prepare and execute the internal job posting regime;
(c) lay
down qualifications and criteria for the posting of employees against specialized
or available posts;
(d) implement
a transparent and objective evaluation process to determine that an employee is
qualified for posting against a specialized or available post;
(e) make
assessment of integrity and proficiency of the employees for purposes of evaluation,
posting, promotion, transfer or other incidental matters;
(f) transfer,
select or post any employee against any post on the basis of transparent
criteria of selection in any entity administered by the Authority;
(g) take
action, issue orders, regulations, guidelines, code of conduct to achieve the purposes
of this Act;
(h) appoint,
with or without remuneration, such advisers, commissioners, consultants,
experts, interns, liaison officers and other staff as may be prescribed;
(i) fix,
with the approval of the Government, an honorarium or remuneration for the services
rendered by advisers, consultants, experts, fellows, interns, officers and staff
of the Authority, liaison officers and other staff engaged by the Authority;
and
(j) impart
the requisite training to its employees for purposes of better tax
administration.
(2) Notwithstanding
anything contained in this Act, an appointment of a person to a post in the
Authority shall not confer any right on such person to continue to serve in the
said post.
7. Meetings.--(1) The Authority shall meet at least once in
a month but the Chairperson may, at any time, call a meeting of the Authority.
(2) The
Authority shall conduct its meetings, take decisions and keep record of the
proceedings of the meetings in such manner as may be prescribed, and until so
prescribed as may be determined by the Authority.
8. Validity of proceedings.--No act, proceeding, decision or order of the
Authority or a committee of the Authority shall be invalid by reason only of
the existence of vacancy or any defect in the constitution of the Authority or
a committee.
9. Data bank.--(1) The Authority shall create and maintain a
data bank containing information from third parties necessary to achieve the purposes
of this Act.
(2) The
Authority shall use the data, amongst other things, to increase the taxpayers' base,
ensure accuracy of information, financial analysis and to evaluate the performance
of the employees.
(3) The
Authority may share its data with, or request for data from, the Government or
any of its statutory body, law enforcement entity or utility company, stock
exchange, State Bank of Pakistan, banks, financial institutions or other
organizations including any ministry, body or authority of the Federal
Government or of any other Province.
10. Properties and assets to vest in the
Authority.--(1) All
properties, assets and records transferred to, or purchased or acquired by, the
Authority and all intellectual property rights arising from technical or
professional reports, analysis, or system, written, prepared or developed by
the employees of the Authority or procured by the Authority shall vest in the
Authority and shall be the property of the Authority.
(2) The
Authority may create its own logo, insignia, stationary, forms, returns, challans
and online communication mechanism.
11.
Authority may impose any fee or
charges.--The Authority may,
with the approval of the Government, levy any fee or charges for provision of
additional or enhanced facilities to the taxpayers, or may direct reimbursement
of such cost or expense as is incurred by the Authority on that account.
CHAPTER
III
ADVISORY
COUNCIL
12. Advisory Council.--(1) There shall be an Advisory Council of the
Authority consisting of the following:--
(a) Minister
for Finance of the Government;
(b) Chief
Secretary of the Government;
(c) Chairperson;
(d) Secretary
to the Government, Finance Department;
(e) Four
private members to be nominated by the Government from amongst the eminent
economists, tax experts, bankers, chartered accountants, representatives of
Chambers of Commerce and Industry or civil society organizations; and
(f) any
other member co-opted by the Authority.
(2) The
Advisory Council shall be an advisory body of the Authority and shall propose
to the Authority appropriate recommendations and guidelines pertaining to policy,
planning, reforms, budget and any other matter referred to it by the
Government.
(3) Minister
for Finance of the Government and, in his absence the Chief Secretary, shall be
the Convener of the Advisory Council.
(4) The
Advisory Council shall perform its functions in such manner as may be prescribed.
CHAPTER IV
ADMINISTRATION OF TAXES
13. Registration of tax payers.--A person registered or to be registered, licensed
or to be licensed under the relevant fiscal law administered by the Authority,
shall be deemed to be validly registered for purposes of this Act.
14. Assessment, collection and returns of
taxes.--(1) Where necessary,
the Government may declare separate assessment, billing and collecting branches
in the Authority for purposes of administration of the taxes as are assigned to
the Authority.
(2) Subject
to the provisions of the relevant fiscal law, the Authority shall follow such procedure
and manner for purposes of assessment, billing, collection and filing of returns
of the taxes as the Government may prescribe.
(3) The
Authority shall, in the prescribed manner, deposit all the proceeds of the taxes
in the Provincial Consolidated Fund or the Public Account.
CHAPTER V
FINANCIAL PROVISIONS
15. Fund.--(1) There shall be established a Fund to be known as the Punjab Revenue
Authority Fund which shall be administered and controlled by the Authority.
(2) The Fund shall consist of--
(a) budgetary
releases from the Government;
(b) grants
made by the Government, the Federal Government or any other authority or
agency;
(c) fee
and charges collected and profits earned by the Authority; and
(d) income
from any other source.
16. Budget and accounts.--(1) The Authority, before the commencement of
a financial year, prepare a statement of the estimated receipts and expenditure
of the Authority for the financial year in the prescribed manner and submit it
to the Government for consideration and approval.
(2) The
Authority shall maintain proper accounts and other records relating to its financial
affairs including its income and expenditures and its assets and liabilities in
such form and manner as may be prescribed.
(3) As
soon as may be, after the end of each financial year, the Authority, in the manner
prescribed, shall cause to be prepared for that financial year statements of account
of the Authority, which shall include a balance-sheet and an account of income
and expenditure.
(4) The
Authority may open and maintain its accounts at such scheduled banks as it may
determine.
17. Audit.--(1) The Auditor General of
(2) The
Government, in addition to the audit under sub-section (1), may cause the
annual accounts of the Authority audited, in the prescribed manner, by a
Chartered Accountant or a firm of Chartered Accountants.
CHAPTER VI
APPEALS AND REFERENCES
18. Appellate Tribunal.--(1) The Appellate Tribunal shall consist of
such number of judicial and accountant members as the Government may, from time
to time, determine.
(2) The
Government shall appoint judicial members of the Appellate Tribunal from amongst
the District and Sessions Judges in consultation with the Lahore High Court.
(3) A
person may be appointed as an accountant member of the Appellate Tribunal if he
is--
(a) a
Commissioner (Appeals) in the Authority or the Federal Board of Revenue having
at least two years' experience in that capacity; or
(b) a
Commissioner in the Authority or the Federal Board of Revenue, other than the
Commissioner mentioned at (a), having at least three years' experience as
Commissioner of the Authority or the Federal Board of Revenue; or
(c) an
officer of Excise and Taxation Department of the Government with at least three
years' service in BS-20 or above; and
(d) less
than fifty-seven years of age.
(4) The
Government shall designate the senior most judicial member of the Appellate
Tribunal as its Chairperson.
(5) The
Appellate Tribunal may exercise its powers and discharge its functions in the prescribed
manner in such Benches as the Chairperson may constitute from amongst the
members of the Appellate Tribunal.
(6) Subject
to the provisions of sub-section (5), the Appellate Tribunal shall have the power
to regulate its own procedure, and the procedure of the Benches of the
Appellate Tribunal in all matters relating to the discharge of its functions
including the places at which the Benches shall hold their sittings.
19. Appeal--A taxpayer or the Authority aggrieved by any
final order of the highest appellate forum in the Authority, may, within sixty
days from the date of communication of the order, prefer an appeal to the
Appellate Tribunal which shall decide the appeal in the prescribed manner in
accordance with the provisions of the relevant fiscal taw.
20. Reference to the High Court.--(1) A reference to the High Court shall lie
only if a question of law is involved in a case.
(2) Any
person or the Authority may, within sixty days from the date of communication
of the final order of the Appellate Tribunal, prefer a reference in the prescribed
form along with a statement of the facts of the case and the question of law involved
in the case.
(3) The
High Court may dismiss a reference in limine if it is satisfied that the reference
does not contain any question of law for determination.
(4) The
reference under this section shall be heard by a Bench of at least two Judges
of the High Court and the provisions of Section 98 of the Code of Civil Procedure
1908 (V of 1908) shall, as far as possible, apply to such reference.
(5) The
High Court shall send a copy of the judgment under the seal of the Court to the
Appellate Tribunal.
(6) Notwithstanding
that a reference has been preferred in the High Court, the tax shall be paid in
accordance with the order of the Appellate Tribunal.
(7) If
the tax liability is reduced by the High Court and the Authority decides to
seek leave to appeal to the Supreme Court, the Authority may, within thirty
days of the receipt of the judgment of the Court, apply to the High Court to
postpone the refund until the decision by the Supreme Court.
(8) Section
5 of the Limitation Act 1908 (IX of 1908) shall apply to a reference under sub-section
(1).
CHAPTER
VII
MISCELLANEOUS
21. Staff.--(1) The Authority may employ such persons as
may be necessary for the efficient performance of its functions in such manner
and on such terms and conditions as may be prescribed.
(2) The
employees of the Authority shall hold office during the pleasure of the Authority
and shall be liable to such disciplinary action as may be prescribed.
(3) The
Authority may, in the manner prescribed, absorb in its service an employee who
is on deputation with the Authority, subject to prior approval of the
Government or the employer and consent of the employee.
(4) The
terms and conditions of service of an employee, on absorption, shall not be less
favourable than those admissible to such employee immediately before his absorption
in the service of the Authority.
22. Delegation by the Government.--(1) The Government may delegate any of its powers
to the Authority on such terms and conditions as the Government may determine.
(2) The
Government may, by notification, assign or delegate to the Authority any powers
or functions under any fiscal law.
23. Directions from the Government.--The Government may, from time to time, give such
general or specific directions to the Authority as may be necessary for the
efficient performance of its functions and achieving the objectives of the Act
and the Authority shall implement such directions.
24. Delegation by the Authority.--The Authority may, with the concurrence of
the Government, delegate any of its functions and powers to any department,
agency or employee of the Government.
25. Annual report.--(1) The Authority shall, within three months
of the close of a financial year, submit to the Government an annual report.
(2) The
report shall consist of--
(a) the
statement of accounts;
(b) a
comprehensive statement of the work, activities and performance of the Authority
during the preceding financial year; and
(c) such
other matters as may be prescribed and as the Authority may consider appropriate.
(3) The
Government shall, within two months of receiving the report from the Authority,
shall give notice for laying the report in the Provincial Assembly of the
26. Public servants.--The Chairperson, Secretary, members,
officers, employees and other persons authorized to perform or exercise any
function or power under this Act or render services to the Authority as agents,
advisors or consultants shall be deemed to be public servants within the
meanings of Section 21 of the Pakistan Penal Code 1860 (XLV of 1860).
27.
Indemnity.--(1) No prosecution, suit or other legal
proceeding shall lie against the Authority, Appellate Tribunal, Chairperson,
members, officers and other employees of the Authority or of the Appellate
Tribunal for anything done in good faith for carrying out the purposes of the
Act, rules or regulations.
(2) No
Government department or agency shall initiate any enquiry or investigation
against the official conduct of any of the employees of the Authority without
prior approval of the Authority.
28.
Representation.--(1) Any person aggrieved by any action or
decision taken for the enforcement of the relevant fiscal law or by any act of
maladministration, corruption and misconduct by any employee of the Authority
or by any unnecessary delay or hardship caused due to any administrative
process may file a representation to the Chairperson.
(2) The
Chairperson or any other officer designated by the Chairperson shall, after affording
an opportunity of hearing to both the parties, make such order as may be necessary
and inform the applicant accordingly.
(3) Pending
final action or order on the representation, the Chairperson may stay further
proceedings in the matter at any subordinate level.
29. Power to conduct surveys.--The Authority may conduct or cause to be conducted
such surveys as it may deem, necessary to broaden the tax-base and to widen tax
coverage under any fiscal law.
30. Assistance to the Authority.--All departments, agencies, organizations,
entities, formations and bodies of the Government shall, on request, be under
obligation to extend necessary and due cooperation and assistance to the
Authority in the performance of its functions under this Act, rules or
regulations.
31. Directorates.--(1) The Authority may, with the approval of
the Government, establish such directorates for such tax-related specialized
functions like intelligence and investigation, internal audit and inspection or
training and research as may be necessary.
(2) The Authority shall assign and regulate the
powers and functions of the said directorates in such manner as it may deem
proper.
32. Act to override other laws.--The provisions of this Act shall have effect notwithstanding
anything to the contrary contained in any other law.
33. Rules.--The Government may, by notification, make
rules to carry out the purposes of this Act
34. Regulations.--(1) Subject to this Act and the rules, the
Authority may frame regulations for giving effect to the provisions of the Act.
(2) Without
prejudice to the foregoing powers, such regulations may provide for appointment
of its officers, staff, employees and other persons, terms and conditions of
their service and performance of functions by the Authority.
35. Removal of difficulties.--If any difficulty arises in giving effect to
or applying the provisions of this Act, rules or regulations, the Government
may make such order, not inconsistent with the Act or the rules and
regulations, as may be necessary to remove the difficulty.
---------------------------
ACT XXXVIII
OF 2012
EVACUEE
PROPERTY AND DISPLACED PERSONS LAWS (REPEAL) (AMENDMENT) ACT, 2012
An
Act further to amend the Evacuee Property and Displaced Persons Laws (Repeal)
Act, 1975.
[Gazette
of
No.PAP-Legis-2(112)/2011/706.--The Evacuee Property and Displaced Persons
Laws (Repeal) (Amendment) Bill, 2011,
originally passed by the Provincial Assembly of the
Preamble.--Whereas it is expedient further to amend the
Evacuee Property and Displaced Persons Laws (Repeal) Act, 1975 (XIV of 1975)
for purposes hereinafter appearing;
It is enacted as follows:--
1. Short title and commencement.--(1) This Act may be cited as the Evacuee Property
and Displaced Persons Laws (Repeal) (Amendment) Act, 2012.
(2) It
shall come into force at once.
2. Insertion of Section 1-A in Act XIV of
1975.--In the Evacuee Property
and Displaced Persons Laws (Repeal) Act, 1975 (XIV of 1975), hereinafter
referred to as the said Act, after Section 1, the following Section 1-A shall
be inserted:--
"1-A. Definitions.--In this Act--
(a) "Board
of Revenue" means the Board of Revenue established under the Punjab Board
of Revenue Act, 1957 (XI of 1957); and
(b) "Government"
means Government of the
3. Amendments in Section 2 of Act XIV of
1975.--In the said Act, in Section
2--
(i) in
sub-section (2)--
(a) for the words "Provincial
Government", the word "Government" shall be substituted; and
(b) for the words "a High Court",
the words "the Lahore High Court" shall be substituted; and
(ii) in
sub-section (4), for the words "Board of Revenue of the Province",
the words "Board of Revenue" shall be substituted.
4. Amendments in Section 3 of Act XIV of
1975.--In the said Act, in Section
3--
(i) for
sub-section (1), the following shall be substituted:--
"(1) All properties, both urban or rural,
including agricultural land, other than such properties attached to charitable,
religious or educational trusts or institutions, whether occupied or
un-occupied, which may be available for disposal immediately before the repeal
of the aforesaid Acts and Regulations or which may become available for
disposal after such repeal as a result of a final order passed under
sub-section (3) of Section 2, shall stand transferred to the Government, for
disposal—
(a) in the case of urban properties, by the
Government under a scheme to be prepared by it; and
(b) in case of rural properties, by the
Board of Revenue under a scheme to be prepared by the Government."; and
(ii) in
sub-section (2)--
(a) for the words "Federal
Government", the word "Government" shall be substituted; and
(b) in the third proviso, for the words
"Provincial Government" and "that Government", the words
"Government" and "the Government" shall respectively be
substituted.
5. Amendment in Section 4 of Act XIV of
1975.--In the said Act, in Section
4, for the words "Board of Revenue of the Province", the words
"Board of Revenue" shall be substituted.
6. Amendment in Section 5 of Act XIV of
1975.--In the said Act, in Section
5, for the words "Provincial Government", the word
"Government" shall be substituted.
--------------------------
ACT XXXIX OF
2012
SETTLEMENT
COMMISSIONERS (VALIDATION OF ORDERS) (REPEAL) ACT, 2012
An
Act to repeal the Settlement Commissioners (Validation of Orders) Act, 1972.
[Gazette
of
No. PAP-Legis-2(111)/2011/707. The Settlement Commissioners (Validation of
Orders) (Repeal) Bill 2011, originally passed by the Provincial Assembly of the
Preamble.--Whereas it is expedient to repeal the
Settlement Commissioners (Validation of Orders) Act, 1972 (VI of 1972);
It is enacted as follows:--
1. Short title and commencement.--(1) This Act may be cited as the Settlement Commissioners
(Validation of Orders) (Repeal) Act, 2012.
(2) It
shall come into force at once.
2. Repeal of Act VI of 1972.--The Settlement Commissioners (Validation of
Orders) Act, 1972 (VI of 1972) is hereby repealed.
(2) Notwithstanding the repeal of the Settlement
Commissioners (Validation of Orders) Act, 1972 (VI of 1972), any action taken
or order made under that Act shall be deemed to have been taken or made under
this Act.
-----------------------
ACT XL OF
2012
An
Act to repeal the
[Gazette
of
No.
PAP-Legis-2(108)/2011/708.--The
Punjab Public Defender Service Act, 2007 (Repeal) Bill, 2011, originally passed
by the Provincial Assembly of the Punjab on the 8th day of March 2012, was sent
to the Governor of the Punjab for assent. The Governor returned the Bill for
reconsideration by the Assembly. The Provincial Assembly of the
Preamble.--Whereas it is expedient to repeal the Punjab
Public Defender Service Act, 2007 (XIV of 2007);
It is enacted as follows:--
1. Short title and commencement.--(1) This Act may be cited as the Punjab
Public Defender Service Act, 2007 (Repeal) Act, 2012.
(2) It
shall come into force at once.
2. Repeal of Act XIV of 2007.--The Punjab Public Defender Service Act 2007
(XIV of 2007) is hereby repealed.
-------------------------
ACT XLI OF
2012
An
Act to amend certain laws relating to taxes and duties
in the Punjab
[Gazette
of
No.
PAP-Legis-2(140)/2012/711.--The
Punjab Finance Bill, 2012, having been passed by the Provincial Assembly of the
Punjab on 21 June 2012, and assented to by the Governor of the Punjab on 25
June 2012, is hereby published as an Act of the Provincial Assembly of the
Punjab.
Preamble.--Whereas, it is expedient to amend certain
laws relating to tax and duties in the
It is enacted as follows:--
1. Short title, extent and commencement.--(1) This Act may be cited as the Punjab Finance
Act, 2012.
(2) It
extends to whole of the
(3) It
shall come into force on the first day of July 2012.
2. Amendment in Act II of 1899.--In the Stamp Act, 1899 (II of 1899)--
(a) in
Section 27-A, in sub-section (1), for the expression "Articles 23, 31 or
33", the expression "Articles 23, 27-A, 31 or 33" shall be
substituted; and
(b) in
Schedule I, in Article 45, in column 3, after the proviso, the following
Exception shall be inserted:--
"Exception.--Notwithstanding
anything contained herein, a fixed stamp duty of five hundred rupees shall be
charged, in respect of an instrument of partition relating to an urban or rural
property including agricultural land, which is partly or wholly based on
opening of inheritance."
3. Amendment in Act V of 1958.--In the
(a) in
Section 2, for clause (h), the following shall be substituted:--
"(h) "tax" means the tax leviable
under the Act and includes the late payment surcharge in terms of Section 12;"
(b) in
Section 3, in sub-section (5), for the expression "31st day of
August", the expression "30th day of September" shall be
substituted;
(c) for
Section 12, the following shall be substituted:--
"12. Payment of Tax and late payment surcharge.--(1) Subject to sub-section (2), the tax shall
be paid on yearly basis on or before 30th day of September of the year for
which the tax pertains.
(2) The Government may, by notification in
the official Gazette, direct that the tax in any rating area for any specified
period shall be paid separately.
(3) In addition to the proceedings for the
recovery of the tax under this Act, a late payment surcharge at the rate of one
per cent of the gross payable tax shall stand imposed on the first day of every
month of delay if the tax payable for any year is not paid by 30th day of
September of the said year:
Provided
the late payment surcharge on the arrears of tax as on 30th day of June 2012
shall stand levied on and from 1st day of July 2012."; and
(d) in
Section 16, after the expression "Section 3", wherever occur, the
expression "or the late payment surcharge levied under Section 12"
Shall be inserted.
4. Amendment in Act XXXII of 1958.--In the
(a) in
Section 3, in sub-section (1), in the last proviso, after the word
"cabin", the words "or a motor vehicle (motor car or jeep) up to
1000 CC" shall be inserted; and
(b) in the Schedule, in Sr. No. 4--
(i) in Column No.2, in
"(i) A lump sum tax of rupees ten thousand
shall be charged for motorcars and jeeps up to 1000cc at the time of
registration:
Provided
that in case of a motor vehicle registered before 1st day of July 2012, the
amount of tax already paid shall be deducted from the payable tax of rupees ten
thousand and the remaining amount shall be paid lump sum at the time of payment
of the tax due."; and
(ii) in column No.3, the expression
"Rs.600/- per annum" shall be omitted.
5. Amendment in
Act XV of 1977.--In the Punjab Finance Act 1977 (XV of 1977), in the Second Schedule, at
S.No.1, in column 2, for the expression "Companies registered under
Companies Ordinance, 1984 with paid up capital", the expression
"Companies registered under the Companies Ordinance, 1984, modarbas,
mutual funds or any other bodies corporate with the paid-up capital or, as the
case may be, the reserves in the preceding year--" shall be substituted.
6. Amendment in
Act VI of 2010.--In the Punjab Finance Act, 2010 (VI of 2010), for Section 6, the
following shall be substituted:-
"6. Capital value tax on immovable property.--(1) This section shall have
effect notwithstanding anything contained in any other law.
(2) For purposes of this section--
(a) "association of persons"
includes a firm, a Hindu undivided family, a juridical person and a body of
persons formed under a foreign law, but does not include a company;
(b) "Board of Revenue" means the
Board of Revenue established under the Punjab Board of Revenue Act, 1957 (XI of
1957);
(c) "Collector" means the
Collector of the district appointed under the Punjab Land Revenue Act, 1967
(XVII of 1967) and includes the Collector of a subdivision or any other officer
specially empowered by the Board of Revenue to exercise and perform the
functions of Collector;
(d) "company" means--
(i) a
company as defined in the Companies Ordinance, 1984 (XLVII of 1984);
(ii) a
body corporate formed by or under any law in
(iii) a
modarba;
(iv) a
body incorporated by or under the law of a country outside
(v) a
trust, a co-operative society or a finance society or any other society
established or constituted by or under any law; and
(vi) a
foreign association, whether incorporated or not, which the Government has, by
general or special order, declared to be a company for purposes of this
section;
(e) "Government" means Government
of the
(f) "person" includes--
(i) an individual;
(ii) an association of persons;
(iii) a company;
(iv) a foreign government;
(v) a political subdivision of foreign
government; and
(vi) a public international organization;
(g) "recorded value" means the
value declared by the transferee in the instrument, provided that the declared
value of the property shall not be less than the value specified in the
valuation table notified by the Collector of the district;
(h) "registration authority"
includes the person responsible for registering or attesting or recording the
transfer of an immovable property or of the right to use an immovable property
for more than twenty years, and in the case of a cooperative society or a
private housing society, its principal officers including president, secretary,
accountant or any similar officer declared by the Collector as the principal
officer of the society;
(i) "tax" means capital value tax
and includes any penalty, fee and charge or any sum or amount leviable or
payable under this section;
(j) "urban area" means an area
which is--
(i) a rating area under the Punjab Urban
Immovable Property Tax Act, 1958 (V of 1958) except the area where the rate of
tax is zero in terms of Section 117 of the Punjab Local Government Ordinance,
2001 (XIII of 2001); or
(ii) an area notified by the Board of Revenue
in the official Gazette.
(3) A
tax on the capital value of an immovable property shall be payable by a person
who acquires an immovable property by purchase, gift, exchange or power of
attorney, surrender or relinquishment of right by the owner or a right to use
thereof for twenty years or more or renewal of lease so that the total period
of lease in favour of the same lessee is twenty years or more at the rates
specified in sub-section (5).
(4) The
tax shall not be payable if--
(a) immovable property is acquired through
inheritance; or
(b) immovable property is acquired through
gift between spouses, father, mother, son, daughter, grandparents and
grandchildren, siblings, or from one wife or widow to another wife or widow of
the same husband; or
(c) power of attorney is executed between
spouses or from one wife or widow to another wife or widow of the same husband,
or father, mother, son, daughter, grandparents, grandchildren and siblings.
(5) The
rate of tax in respect of immovable property is as under:--
(a) Immovable property other than commercial
or industrial property, plaza or multi-storeyed building situated in urban area
measuring atleast two hundred and fifty square yards or ten marla, whichever is
less--
|
No. |
Description |
Rate
of tax |
|
(i) |
Where the value of the immovable property is recorded. |
Two percent of the recorded value of the landed area, |
|
(ii) |
Where the value of the immovable property is not recorded. |
One hundred rupees per square feet of the landed area. |
|
(iii) |
Where the immovable property is a constructed property. |
Ten rupees per square feet of the constructed area in addition to the
value worked out above. |
(b) Commercial or industrial immovable
property other than plaza or multi-storeyed building of any size situated in an
urban area--
|
No. |
Description |
Rate of tax |
|
(i) |
Where the value of the immovable property
is recorded. |
Two per cent of the recorded value of the
landed area. |
|
(ii) |
Where the value of the immovable property is not recorded. |
One hundred rupees per square feet of the landed area. |
|
(iii) |
Where the immovable property is a constructed property. |
Ten rupees per square feet of the constructed area in addition to the
value worked out above. |
(c) Immovable property whether commercial,
residential or composite in plazas and muiti-storeyed buildings of any size
situated in an urban area--
|
No. |
Description |
Rate
of tax |
|
(i) |
Where the value of the immovable property is recorded. |
Two per cent of the recorded value of the immovable property or one
hundred rupees per square feet of the constructed area, which ever is higher.
|
|
(ii) |
Where the value of the immovable property is not recorded. |
One hundred rupees per square feet of the constructed area of the immovable
property. |
(6) The tax shall be collected at the time of registering or
attesting the transfer by the person responsible for registering or attesting
the transfer of the immovable property for which the tax is payable.
(7) The registration authority or any other person mentioned in
sub-section (6) shall submit to the Collector a monthly statement by 10th of
the succeeding month in such Form as may be prescribed.
(8) In case the statement mentioned in sub-section (7) is not
submitted within the prescribed time, Collector of the district may impose a
penalty on the registration authority or any other person mentioned in
sub-section (6) up to rupees one hundred thousand.
(9) The Collector of the district or any authority to whom he is
subordinate, may himself or through a person or agent appointed by him for the
purpose conduct or cause to be conducted the audit of the capital value tax
including examination of accounts and records of that registration authority or
any other person mentioned in sub-section (6) and may make an assessment of the
tax on the basis of such audit.
(10) The Collector may, by notice in writing, require any person--
(a) to
furnish to the Collector or an officer authorised by him any information or
produce any accounts, documents or computer stored information in his
possession and relevant to the tax specified in the notice; and
(b) to attend
at such time and place as mentioned in the notice for purposes of examining him
on oath by the Collector or the authorised officer in respect of the matters
relating to the tax.
(11) The Collector may impound any accounts or documents produced in
terms of sub-section (10) and retain the documents so long as may be deemed necessary
for purposes of examination.
(12) Where a hard copy or computer disk of information stored on a
computer is not made available as required under sub-section (10), the
Collector may require production of the computer on which the information is
stored, and impound and retain the computer for such period as may be
necessary.
(13) For purposes of this section, the Collector shall have the same
powers as are vested in a Court under the Code of Civil Procedure, 1908 (V of 1908),
in respect of the following matter--
(i) enforcing
the attendance of any person and examining the person on oath or affirmation;
(ii) compelling
the production of any accounts, records, computer stored information, or
computer;
(iii) receiving
evidence on affidavit; or
(iv) issuing
commissions for the examination of witnesses.
(14) Where a registration authority or any other person mentioned in
sub-section (6) fails to--
(i) furnish prescribed monthly statement;
or
(ii) provide
information or produce documents or record in terms of sub-section (10) within
the stipulated time, Collector of the district may make an assessment of the
tax on the basis of the information or material available to him.
(15) As soon as may be after making an assessment under sub-section
(9) or sub-section (14), Collector of district shall issue the assessment order
to the registration authority or any other person, stating--
(i) the amount of tax due;
(ii) the
time, place and manner of filing an appeal against the assessment order.
(16) The powers under sub-section (9) or sub-section (14) shall not
be exercised after the expiry of five years from the conclusion of the
financial year to which the assessment relates.
(17) Where the tax is not collected from the person liable to pay
it, the tax may be collected by an officer designated by the Board of Revenue
in this behalf from the said person and the provisions of the Punjab Land
Revenue Act 1967 (XVII of 1967) shall, so far as may be, apply to the
collection of the tax as they apply to the recovery of arrears of land revenue.
(18) Where any person fails to collect the tax or having collected
fails to deposit the tax into the Government Treasury, he shall be personally
liable to pay the tax along with default surcharge at the rate of fifteen
percent per annum for the period for which such tax or part thereof remains
unpaid, and the Collector may recover it from the said person as arrears of
land revenue after giving him an opportunity of hearing.
(19) Where, at the time of recovery of tax under sub-section (18),
it is established that the tax collected from the person has meanwhile been
paid by the person liable to tax, no recovery shall be made from the person who
had failed to collect the tax but the said person shall be liable to pay
default surcharge at the rate of fifteen percent per annum from the date he
failed to collect the tax to the date the tax was paid.
(20) A person personally liable for any amount of tax under
sub-section (18) as a result of failing to collect the tax shall be entitled to
recover the tax from the person from whom the tax should have been collected.
(21) The recovery of tax under sub-section (17) does not absolve a
person who failed to collect the tax from any other legal action in relation to
the failure or from a charge of default surcharge.
(22) The order passed by an officer under this section shall be
deemed to be an order passed by a Revenue Officer under the Punjab Land Revenue
Act, 1967 (XVII of 1967).
(23) The provisions of Sections 13 and 14 of the Punjab Land Revenue
Act 1967 (XVII of 1967), shall apply to the cases under this section.
(24) For purposes of appeal, review or revision, an order passed
under this section shall be deemed to be an order of a Revenue Officer within
the meanings of sections 161, 162, 163 and 164 of the Punjab Land Revenue Act
1967 (XVII of1967).
(25) Where the tax has been recovered from a person not liable to
pay the same or in excess of the amount actually payable, an application may,
in writing, be made to the Collector for the refund of the tax or the excess
amount.
(26) The proceeds of the tax collected under this section shall be
credited to the Provincial Consolidated Fund under the head specified by the
Government.
(27) The Board of Revenue may, by notification in the official
Gazette, make provisions relating to the collection and recovery of the tax or
regarding any ancillary matters.
(28) The Government may, by notification in the official Gazette,
exempt a class of immovable property or a class of persons or a mode of
transfer of property from the levy or recovery of the tax subject to such
conditions as may be specified in the notification.
7. Amendment in Act XV of 2011.--In the
(a) in Section 6--
(i) for
sub-section (1), the following shall be substituted and shall be deemed to have
always been so substituted--
"(1) This
section shall have effect, notwithstanding anything contained in any other law.
(1A) The
provisions of this section shall not apply to the rating areas in terms of the
Punjab Urban Immovable Property Tax Act, 1958 (V of 1958) where the property
tax is levied but shall apply to the rating areas which are zero rated in terms
of Section 117 of the Punjab Local Government Ordinance, 2001 (XIII of 2001)."
(ii) in
sub-section (2), in clause (c), the full stop shall be replaced by a semi-colon
and the following new clause shall be inserted--
"(d) "total
minimum area" means the total land area including the area under farming
even though the farm house is constructed on a portion of such area of
land.";
(b) in Section 7--
(i) in
sub-section (2), for clauses (b) and (c), the following shall be substituted :--
(b) "amenities"
include facilities of sports, swimming, gymnasium, fitness, conferences,
ceremonies, musical concerts and other social amenities;
(c) "dub"
means an association or organization offering members amenities, services,
meals or temporary residence with initial membership fee of rupees two hundred
thousand for any category of members and notified as club by the Government;
(d) "initial
membership fee" includes all subscriptions or payments, charges, donations
made by an applicant for membership of the club;
(e) "Government"
means Government of the
(f) “services”
means all types of services provided by the club and includes goods sold at the
club premises”.
(ii) after
sub-section (3), the following shall be inserted:--
"(3A) Notwithstanding
any reduction of initial membership fee after the club has been notified under
sub-section (2), the dub shall remain notified and the cess under this section
shall continue to be levied on such club.
(3B) If a club
is notified for purposes of this section, the cess shall be levied on actual
initial membership paid by the applicant.
(3C) The cess
shall be levied on the services provided to any person or a member regardless
of the date of membership."
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