Exemption for International Freight Forwarders

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS & REVENUE CENTRAL BOARD OF REVENUE ***** Islamabad, the 18th October 2004. O R D E R (SALES TAX) S. R. O. 858(I)/2004.- WHEREAS, the Shipping Agents including NVOCCs, International Freight Forwarders, Consolidators and Slot Carriers were brought to the tax net in the Budget FY 2004-05; and central excise duty (in GST mode) @ 15% of the commission charges was levied on them. The rate of CED in respect of NVOCCs, International Freight Forwarders, Consolidators and Slot Carriers was subsequently reduced from the standard rate of 15% to Rs. 200/- per ‘House Bill of Lading’ issued by them, vide Notification No. SRO 621(I)/2004, dated the 17th July, 2004; AND WHEREAS, the levy imposed on International Freight Forwarders was a new levy and they were previously not in the registration net, therefore, a number of International Freight Forwarders could not file their sales tax returns within the due dates, as defined under sub-section (9) of section 2 of the Sales Tax Act, 1990, due to the lack of knowledge of Sales Tax law and procedures; NOW, THEREFORE, in exercise of the powers conferred under section 34A of the Sales Tax Act, 1990, the Central Board of Revenue is pleased to exempt, as a special case, whole of the amount of additional tax and penalty chargeable from the persons registered as International Freight Forwarders due to late filing of returns in the tax period of the months of June, July, August and September, 2004, subject to the following conditions, namely:- (i) they shall file all outstanding returns by the 25th day of October, 2004; (ii) no such exemptions shall be available to the International Freight Forwarders who fail to file outstanding tax returns by the aforesaid date; and (iii) no refund of additional tax or penalty, if already paid on account of late filing of tax returns for the aforesaid tax periods, shall be admissible. ______________________________________________________________________________________________________ [C. No. 1 (6) STR/2004] (Muhammad Iqbal Bhawana) Secretary (STR)