Special Procedure for Collection of Federal excise duty on Telecommunication services.

GOVERNMENT OF PAKISTAN (REVENUE DIVISION) CENTRAL BOARD OF REVENUE **** Islamabad, the 24th September, 2005. NOTIFICATION (FEDERAL EXCISE) S.R.O. 1004(I)/2005.--- In exercise of the powers conferred by section 40 of the Federal Excise Act, 2005, the Central Board of Revenue is pleased to direct that the following amendment shall be made in the Federal Excise Rules, 2005, namely: - In the aforesaid Rules, for rule 43 the following shall be substituted, namely:- “43 - Special Procedure for Collection of Federal excise duty on Telecommunication services.- (1) Every person, firm or company, hereinafter referred to as the said person, providing or rendering telecommunication services shall pay the Federal excise duty leviable under section 3 of the Act at the rate specified in the First Schedule. (2) The duty shall be paid by the said person on the total amount of charges in the following manner, namely:- (a) the duty due for a month in respect of all prepaid telecommunication services including pay-phone cards used in public telephone booths, prepaid calling cards used on land lines, prepaid cellular phone cards, and prepaid WLL cards shall be paid by the 21st day of the following month and the proof of payment of duty shall be furnished to the Collector of Federal Excise in whose jurisdiction the head office of the said person is located, by the end of the same month. (b) the duty due for a month in respect of all post-paid telecommunication services shall be paid by the 21st day of the following second month and the proof of payment of duty shall be furnished to the Collector of Federal Excise in whose jurisdiction the head office of the said person is located, by the end of the same month. Explanation.- For the purpose of these rules, the term prepaid telecommunication service represents the procedure where the charges are collected from the customers by the said person before the use of telecommunications services and the term post-paid telecommunication service means the service in respect of which charges are collected by the said person after the use of the telecommunication services. (3) The head office of the said person shall, along with the proof of payment of duty, submit its separate revenue office-wise statements by the dates specified in clauses (a) and (b) of sub-rule (2) in the following forms respectively, namely:- FORM-I MONTHLY RETURN FOR PREPAID TELECOM SERVICES RENDERED BY M/s ____________ DURING THE BILLING MONTH OF ______________ Name of the revenue office | Description of pre-paid telecommunication service | Tariff-heading / sub- heading | No. of prepaid cards supplied during the month | Amount billed or ought to be billed during the month (1) | (2) | (3) | (4) Federal excise duty payable | Federal excise duty paid | Balance payable | No. and date of Treasury challan | Remarks (5) | (6) | (7) | (8) | (9) FORM-II MONTHLY RETURN FOR POST-PAID TELECOM SERVICES RENDERED BY M/s ____________ DURING THE BILLING MONTH OF ______________ Name of the revenue office | Description of post-paid telecommunication service | Tariff-heading / sub- heading | Amount billed or ought to be billed during the month (1) | (2) | (3) | (4) Federal excise duty payable | Federal excise duty paid | Balance payable | No. and date of Treasury challan | Remarks (5) | (6) | (7) | (8) | (9) (4) In case duty is not paid by the due dates, as specified in sub-rule (2), the head office of the said person shall, in addition to the payment of duty and default surcharge, be liable to a penalty under the Act. (5) In addition to the record mentioned in sub-rule (3), the head office of the said person shall maintain such other records and submit such other returns as may be specified, with prior approval of the Board, by the Collector of Federal Excise in charge of the area where the head office of the said person is located. (6) The records maintained by the head office of the said person shall be open to inspection and audit by such officer or officers as are deputed by the Collector of Federal Excise in whose jurisdiction the head office is located”. ________________________________________________________________ [C. No. 1(7)CEB/99] (Wajid Ali) Secretary (ST&FE-Budget)