Excise Duty on Property - Amendments in the Federal Excise Rules, 2005

Government of Pakistan Revenue Division Federal Board of Revenue Inland Revenue k k*k* Islamabad, the Sh September, 2024. NOTIFICATION S.R.O. No. 1376(1/2024.- In exercise of the powers conferred by section 40 of the Federal Excise Act, 2005, the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Federal Excise Rules, 2005, namely: - In the aforesaid Rules, after Chapter XVI, the following new Chapter shall be added, namely: Chapter XVII EXCISE DUTY ON PROPERTY 90. Application. The provisions of this Chapter shallapply to collection and payment of duty on property in terms of entries in columns (2) to (4) againstS. No.1 in column (1) of Table-III of the First Schedule to the Act. 91. Definitions. In this Chapter, unless there is anything repugnant in the subject or context, (a) developer" means a person engaged in development of land for conversion into residential or commercial plots and sale thereof and includes a housing society, a cooperative society, a development authority or a similar entity engaged in the development of land for conversion into residential or commercial plots and sale thereof; (b) builder" means a person engaged in construction of residential or commercial buildings for sale thereof, and includes a housing society, a cooperative society, a development authority or a similar entity engaged in the same construction activity; (c) "dutiable property" means excisable property as specified in the Table III of the First Schedule to the Act; and (d) *open plot" means any immovable property without a superstructure. 92. Procedure for collection of duty. -(1) Every developer or builder at the time of allotment or transfer of commercial property and first allotment or first transfer of open plots or residential property shall collect duty at the rate of

(a) 3% of gross amount of consideration involved where the buyer is appearing on active taxpayer list maintained under section 181A of theOrdinance on the date of acquisition of the property; (b) 5% of gross amount of consideration involved where the buyer has not filed the income tax return by due date as specified in proviso to rule IA of Tenth Schedule to the Ordinance; or (c) 7% of gross amount of consideration involved where the buyer iS not appearing on active taxpayer list maintained under section 181A of theOrdinance, on the date of acquisition of the property. (2) The duty collected by developer or builder shall be credited tothe Federal Government on the same day through a computerized payment receipt (CPR) or SWAPS payment receipt (SPR) as set out in the Form 'A' attached to these rules. (3) The developer or builder shall furnish to the Commissioner a monthly statement as per Form 'B' attached to these rules. (4) Where, for any reason, the duty is not paid or short paid, by way of credit to the Federal Government, by the developer or builder, the Officer Inland Revenue having jurisdiction over the developer or builder for the purposes of the Act, shall proceed to collect the amount of duty so unpaid or short paid under section 14 of the Act and the amount of default surcharge under section 8 of the Act on the duty unpaid or short paid for the period commencing on the date on which the duty was due and ending on the date on which it was paid (5) Where at the time of recovery of duty it is established that the duty that was to be collected from a person has meanwhile been paid by that person, no recovery shallbe made from the developer or builder who had failed to collect the duty but the developer or builder shall be liable to pay the default surcharge at the rate as provided under section 8 of the Act from the date the person failed to collect the duty to the date the duty was paid.

Form 'A' [see rule 92(2)] SALES TAX DEPARTMENT FBR COMPUTERIZED PAYMENT RECEIPT (CPR -FE) SBP Banking Services Corporation Alternative Delivery Channel - ADC (0101): CPR No FE-NNNNNNNN-NNNN-NNNNNNN Payment Date : D0-MM-YYYY Tax Year Province: Province Name District: Distnict Name Tax Office Name Tax Office Tehsil Town |Housing Authority Islamabad Capital Territory Buyer ATL Status: AT/Non-ATYLate Filer A. PARTICULARS OF BUYER(S) Sr. CNIC/NTNPP No. of Buyer Name of Purchaser %Age Share Buyer Type 1|NNNNN-NNNNNNN-N Name Owner B. PARTICULARS OF SELLER(S) Sr CNICNTNPP No. of Seller Name of Seller %Age Share Seller Type 1|NNNNN-NNNNNNN-N Name Principal Seller C. LOCATION & PARTICULARS OF PROPERTY Type Commercial Residential Land Size Acre(s) Kanal(s) Marla(s) Sarsai(s) SqYards Sq Feet Covered Area Sq Yards Sq Feet Address Plot / House /Flat / Shop/ Office No. Street / Lane etc. No. Sector / Phase / Mohalla/ Block etc. Khasra/Khewat/Acre/etc. No. Province District/Tehsil/Housing Society Date of Purchase/Acquisition by the Current Seller Do/MM/Y Purchase Price / Value NAM Code: B02485 FED Rate FED Amount Amount payable in words D. PAYMENT DETAILS Amount of Tax Amount of Tax in Words Payment Mode Amount Date AC/Ref No Bank & Branch ADC (e-payment) DD-MM-YYYY FE-NNNNNNNN-NNNN-NNNNNNN Signature &Stamp of Manager / Authorized officer

Form B' [see rule 92(3)] FederalExcise Duty on Property Tax Period: MMYY NTN Name of developer or builder: S. # Name Location Area Consideration FED FED CPR # of the of received rate paid buyer preparty (1) (2) (3) (4) (5) (6) (7) 8 IC. No, 3(3)/ST&FE-POLICY/2024] (TZkar Zreri Second Secretary (ST&FE-Rolicy