Amendments in the Sales Tax Special Procedures Rules, 2005

GOVERNMENT OF PAKISTAN CENTRAL BOARD OF REVENUE REVENUE DIVISION ******* Islamabad, the September, 2005 NOTIFICATION (Sales Tax) S.R.O. 1003 (I)/2005. ¾ In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, read with clause (9) of section 2, sections 3, 3AA and 4, sub-section (2) of section 6, section 7A, clause (b) of sub-section (1) of section 8, clause (a) of sub-section (2) of section 13, sub-section (3) of section 22, section 23, sections 26AA and 34A, and the first and second provisos to section 45 thereof, the Federal Government is pleased to direct that the following further amendments shall be made in the Sales Tax Special Procedures Rules, 2005, namely:- In the aforesaid Rules, in CHAPTER IX,¾ (1) in rule 55, in sub-rule (1), in clause (m), the comma and word ”stevedores” shall be omitted; (2) in rule 62, for the word “Five” the word “Four” shall be substituted; (3) in rule 67, after sub-rule (4), the following shall be added, namely:¾ “ PART FOUR STEVEDORES’ SERVICES 68. Tax liability of stevedores. ¾ (1) In case of stevedores, tax shall be charged and paid on the basis of volume of cargo loaded on or discharged from the vessel as per rates specified in the Table below namely:¾ TABLE S.No. | Nature of cargo | Rate of sales tax (1) | Loading and discharge of laden containers at Karachi Port and Port Qasim. | Rs. 170/-per move (2) | Dry bulk or break bulk cargo handled at Karachi Port and Port Qasim. | Rs. 20/- per metric tonne (3) | Liquid bulk cargo handled by commercial tank and bulk terminals at Karachi Port and Port Qasim. | Rs. 5/- per metric tonne (2) Except as allowed hereinafter, no stevedore shall be entitled to any input tax adjustment on any account. (3) Tax liability shall be discharged in respect of any cargo at one stage in that in case of cargo handled by stevedores without involving container terminal operators, tax shall be paid by the stevedores and in case of containerized cargo passing through container terminals, tax shall be paid by the container terminal operators, while in case of bulk cargo, tax shall be paid by the concerned commercial tank terminal operators, or as the case may be, by the bulk terminal operator. (4) Except for bulk cargo (dry, break or liquid bulk), in respect of which the rates given in serial numbers (2) and (3) of the Table in sub-rule (1) shall apply with effect from the first day of September, 2005, the stevedores shall deposit differential tax amounts latest by 15th day of September, 2005, in respect of containerized cargo handled from the first day of July, 2005, onwards and such differential liability shall be worked out availing adjustment of tax already paid at any previous stage of the handling of such cargo either by the stevedore himself or by any other registered person falling under the definition of stevedore given in clause (k) of sub-rule (1) of rule 55, provided that no default surcharge shall be demanded on the payment of such differential amounts by the said date. (5) A stevedore shall issue serially numbered and dated sales tax invoice recording thereon, inter alia, the following information, namely: ¾ (a) name, address and registration number of the service provider (i.e, stevedore); (b) name, address and registration number of the service recipient, if any (i.e, buyer); (c) nature and quantum of the cargo; (d) billed amount (i.e, the total amount charged from the buyer for providing or rendering the services); and (e) the applicable rate and the amount of sales tax charged: Provided that in no case sales tax liability shall be worked out or demanded on the basis of billed amount and such billed amount shall be relevant only for the purpose of section 73 of the Act. (6) Subject to sub-rule (4), a stevedore shall file by 15th of each month, return-cum-payment challan in the format set out in Annex B and deposit sale tax accordingly. (7) For the purposes of the Sales Tax Act, 1990, and the rules made thereunder, cases of all stevedores shall be dealt with in the Large Taxpayers Unit at Karachi. (8) Audit of stevedores shall be conducted annually in the presence of a representative nominated by the concerned association or any other third person as agreed by the Collector and shall be restricted generally to the verification of the accuracy of tax payments on the basis of quantum of cargo handled by the stevedore as certified by the concerned port authority.”; and (4) after Annex A, the following new annexure shall be added, namely: ¾ “ Annex B [See sub-rule (6) of rule 68] Government of Pakistan Sales Tax Return-cum-payment Challan (For persons registered as stevedores) | Please tick the relevant box Regular Revised 01 | Sales tax Registration No. | Tax Period 02 | National Tax No. | - 03 | Name 04 | Address 05 | Services Provided | No. of Moves or Tonnage | Rate | Sales Tax Due (a) | Rs. (b) | Rs. (c) | Rs. (d) | Rs. Total Tax Due | Rs. 06. Arrears being paid i) Principal Amount Rs. ii) Default Surcharge Rs. iii) Penalty Rs. 07. Total Sales Tax Payable (including arrears) 5+6 (I to iii) | Rs. (Head of account 02250000 sales tax on services collected on behalf of Provincial Government) Declaration: I declare that entries in this return are true and correct to the best of my knowledge and belief. Name :_____________________________________________ NIC :_____________________________________________ Designation:______________________________________ | Signature with stamp Date: ____________ For Bank Use: Serial No. ________________ Amount Received | Rs. Amount in words _______________________________________________________________ ” Bank Officer’s Signature Bank Stamp . [C.No.1(24)STR/2004] (Shahid Ahmed) Additional Secretary