Sales Tax Act, 1990, as published 11 March 2019

This is the Sales Tax Act, 1990 as it stood on 11 March 2019. It runs to 193 pages and contains 107 sections, with 15 amendment footnotes.

What this document is

Published by the Federal Board of Revenue as part of the Sales Tax Act, 1990 collection. A consolidation of this kind folds every amendment made up to its cover date into the text, so it shows the law as it stood on 11 March 2019 rather than as originally enacted.

The shape of this version

The operative text holds roughly 59,969 words across 107 sections.

What changed since the previous version

Against the version published 1 July 2017, this one has 3 new sections.

New in this version

• section 11B, Assessment giving effect to an order
• section 30A, Directorate General (Intelligence and Investigation), Inland Revenue
• section 67A, Payment of refund through sales tax refund bonds

The source file

File name	2019531455242611SALESTAXACT1990amendedupto11thmarch2019.pdf
Pages	193
Size	1.65 MB
Text extraction	markitdown
Extraction confidence	high
Position in this collection	4 of 18

SHA-256 of the source PDF:

553f8645872dec86f16b934803e490fc9dbd32d76ff872a1cb33cc9223fbfc66

Checking that value against the file you download confirms it is the same document these figures came from.

A note on these figures

Counts here are produced by software reading the PDF, not compiled by hand. The same method is applied to every document, which makes comparisons between versions meaningful, but a section with unusual formatting can be missed. Treat them as close measurements and the official document as the authority.

This is information, not legal or tax advice. Qanoon Digest is independent and not affiliated with the Federal Board of Revenue or the Government of Pakistan.

---

The full text of this version

All 107 sections as they appear in this document, reproduced from the source PDF. Amendment footnotes follow at the end.

1. Short title, extent and commencement

(1) This Act may be called the Sales Tax 5[…] Act, 1990.

(2) It extends to the whole of Pakistan. 6[(3) It shall come into force on such date as the Federal Government may, by notification in the official Gazette, appoint.]

2. Definitions

In this Act, unless there is anything repugnant in the subject or context,– 8[(1) “active taxpayer” means a registered person who does not fall in any of the following categories, namely:- 1 For Statements of Objects and Reasons see Gazette of Pakistan, dated the 30th March 1951, Pt. V. pp 36 and 37. 2 Substituted for the words “or consumption of goods” by the Finance Act, 1960. 3 Substituted for the words “or consumption of goods” by the Finance Act, 1960. 4 Chapter I to X substituted for Chapters I to XVI by the Finance Act, 1990. 5 Brackets and word “(Amendment)” omitted by the Finance Act, 1991. 6 Came into force by Notification No. S.R.O. 1100(I)/90, dated 28-10-1990 w.e.f. 1st November, 1990. 7 Section 2 Substituted by the Finance Act, 1996. 8 Clauses (1) and (1A) substituted for clause (1) by Finance Act, 2015.

(a) who is blacklisted or whose registration is suspended or is blocked in terms of section 21;

(b) fails to file the return under section 26 by the due date for two consecutive tax periods;

(c) who fails to file an Income Tax return under section 114 or statement under section 115, of the Income Tax Ordinance, 2001(XLIX of 2001), by the due date; and

(d) who fails to file two consecutive monthly or an annual withholding tax statement under section 165 of the Income Tax Ordinance, 2001;

(1A) “Appellate Tribunal” means the Appellate Tribunal Inland Revenue established under section 130 of the Income Tax Ordinance, 2001 (XLIX of 2001);]

(2) “appropriate officer” means an 1[officer of Inland Revenue] authorised by the Board by notification in the official Gazette to perform certain functions under this Act; 2[(2A) “arrears”, in relation to a person, means, on any day, the sales tax due and payable by the person under this Act before that day but which has not yet been paid; ] 3[(3) “associates (associated persons)” means, -

(i) subject to sub-clause (ii), where two persons associate and the relationship between the two 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;

(ii) 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;

(iii) without limiting the generality of sub-clause (i) and subject to sub- clause (iv), the following shall be treated as associates, namely: -

(a) an individual and a relative of the individual;

(b) members of an association of persons; 1 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 2 Clause (2A) substituted by Finance Act, 2008. Earlier it was inserted by Tax Laws (Amendments) Ordinance, 1999. Originally it was inserted by Finance Act, 1991. 3 Clause (3) substituted by Finance Act, 2008.

(c) 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;

(d) a trust and any person who benefits or may benefit under the trust;

(e) 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-

(i) fifty per cent or more of the voting power in the company;

(ii) fifty per cent or more of the rights to dividends; or

(iii) fifty per cent or more of the rights to capital; and

(f) 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 - -

(i) fifty per cent or more of the voting power in both companies;

(ii) fifty per cent or more of the rights to dividends in companies; or

(iii) fifty per cent or more of the rights to capital in both companies.

(iv) two persons shall not be associates under sub-clause (a) or (b) of paragraph (iii) where the 1[Commissioner] is satisfied that neither person may reasonably be expected to act in accordance with the intentions of the other.

(v) In this clause, “relative” in relation to an individual, means-

(a) an ancestor, a descendant of any of the grandparents, or an adopted child, of the individual, or of a spouse of the individual; or

(b) a spouse of the individual or of any person specified in sub- clause (a).] 1 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.

1[(3A) “association of persons” includes a firm, a Hindu undivided family, any artificial juridical person and anybody of persons formed under a foreign law, but does not include a company;] 2[(3AA) “banking company” means a banking company as defined in the Banking Companies Ordinance, 1962 (LVII of 1962) and includes anybody corporate which transacts the business of banking in Pakistan;] 3[(4) “Board” means the Federal Board of Revenue established under section 3 of the Federal Board of Revenue Act, 2007;] 4[(4A) “Chief Commissioner” means a person appointed as the chief Commissioner Inland Revenue under section 30;] 5[(5) “Commissioner” means the Commissioner of Inland Revenue appointed under section 30;] 6[(5A) “common taxpayer identification number” means the registration number or any other number allocated to a registered person;] 7[(5AA) “company” means -

(a) a company as defined in the Companies Ordinance, 1984 (XL VII of 1984);

(b) a body corporate formed by or under any law in force in Pakistan;

(c) a modaraba;

(d) a body incorporated by or under the law of a country outside Pakistan relating to incorporation of companies; 1 Clause (3A) inserted by Finance Act, 2008. 2 Clause (3A) re-numbered as (3AA). Earlier it was inserted by Finance Act, 2004. 3 Clause (4) substituted by Finance Act, 2008. Earlier it was substituted by Finance Act, 2007. 4 Clause (4A) inserted by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made 5 Clause (5) inserted by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made Through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 6 Clause (5A) inserted by Finance Act, 2006. Earlier clause (5A) was omitted by Finance Act, 2004. Earlier it was inserted by Tax Laws (Amendments) Ordinance, 1999. 7 Clause (5AA) inserted by Finance Act, 2008.

(e) a trust, a co-operative society or a finance society or any other society established or constituted by or under any law for the time being in force; or

(f) a foreign association, whether incorporated or not, which the Board has, by general or special order, declared to be a company for the purposes of the Income Tax Ordinance 2001 (XLIX of 2001); 1[(5AAA)] “computerized system” means any comprehensive information technology system to be used by the Board or any other office as may be notified by the Board, for carrying out the purposes of this Act;] 2[(5AB) “cottage industry” means a manufacturer whose annual turnover from taxable supplies made in any tax period during the last twelve months ending any tax period does not exceed 3[ten] million rupees or whose annual utility (electricity, gas and telephone) bills during the last twelve months ending any tax period do not exceed 4[eight] hundred thousand rupees;] 5[(5AC) “CREST” means the computerized program for analyzing and cross matching of sales tax returns, also referred to as COMPUTERISED RISK-BASED EVALUATION of SALES TAX;]

(6) “Customs Act” means the Customs Act, 1969 (IV of 1969), and where appropriate all rules and notifications made under that Act; 6[(6A) “defaulter” means a person and, in the case of company or firm, every director, or partner of the company, or as the case may be, of the firm, of which he is a director or partner or a proprietor and includes guarantors or successors, who fail to pay the arrears;] 7[(6B) “default surcharge” means the default surcharge levied under section 34;]

(7) “distributor” means a person appointed by a manufacturer, importer or any other person for a specified area to purchase goods from him for further supply and includes a person who in addition to being a distributor is also engaged in supply of goods as a wholesaler or a retailer; 1 Clause (5AA) re-numbered as (5AAA) by Finance Act, 2008. Earlier it was inserted by Finance Act, 2006. 2 Clause (5AB) inserted by Finance Act, 2007. 3 Word “five” substituted for the word “ten” by Finance Act, 2016. 4 Word “eight” substituted for the word “seven” by Finance Act, 2015. 5 CREST 5AC inserted by Finance Act, 2013. 6 Clause (6A) inserted by Tax Laws (Amendments) Ordinance, 1999. 7 Clause (6B) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2005.

(8) “document” includes any electronic data, computer programmes, computer tapes, computer disks, micro-films or any other medium for the storage of such data;

(9) “due date” in relation to the furnishing of a return 1[under section 26], 2[ 3[…] 4[….] means the 5[15th] day of the month following the end of the tax period, or such other date as the 6[Board] may, by notification in the official Gazette, specify 7[and different dates may be specified for furnishing of different parts or annexures of the return]; 8[(9A)] “e-intermediary” means a person appointed as e-intermediary under section 52A for filing of electronic returns and such other documents as may be prescribed by the Board from time to time, on behalf of a person registered under section 14;] 9[(9AA) ***]

(10) “establishment” means an undertaking, firm or company, whether incorporated or not, an association of persons or an individual;

(11) “exempt supply” means a supply which is exempt from tax under section 13; 10[(11A)“FBR Refund Settlement Company (Private) Limited” means the company with this name as incorporated under the Companies Ordinance, 1984 (XLVII of 1984), for the purpose of settlement of sales tax and income tax refund claims including payment by way of issuing refund bonds under section 67A’;] 11[10(11B) “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;]

(12) “goods” include every kind of movable property other than actionable claims, money, stocks, shares and securities;

(13) “importer” means any person who 12[ … ] imports any goods into Pakistan; 1[(14) “input tax”, in relation to a registered person, means - 1 The words and figure inserted by Finance Act, 1998. 2 The words and figure inserted by Tax Laws Amendment Ordinance, 2000, dated 24th May, 2000. 3 Comma and words etc. “, sub-section (6) of section 26A” omitted by Finance Act, 2004. 4 The expression “and section 26AA omitted by Finance, Act, 2016. 5 Substituted for “20th” by Finance Act, 1998 6 Substituted for “Federal Government” by Finance Act, 2008 7 Expression inserted through Finance Act, 2016. 8 Clause (9A) inserted by Finance Act, 2006. Earlier clause (9A) was omitted by Finance Act, 2004. Originally it was inserted by Tax Laws (Amendments) Ordinance, 2001. 9 Clause (9AA) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001. 10 Existing clause re-numbered as clause (11B) and new clause (11A) inserted by Finance Supplementary (Second Amendment) Act, 2019 11 Clause (11A) inserted by Finance Act, 2008. 12 Word “lawfully” omitted by Finance Act, 2008

(a) tax levied under this Act on supply of goods to the person;

(b) tax levied under this Act on the import of goods by the person;

(c) in relation to goods or services acquired by the person, tax levied under the Federal Excise Act, 2005 in sales tax mode as a duty of excise on the manufacture or production of the goods, or the rendering or providing of the services; 2[3 ]

(d) 4[…….] [Provincial Sales Tax levied on services rendered or provided to the person; and]

(e) levied under the Sales Tax Act, 1990 as adapted in the State of Azad Jammu and Kashmir, on the supply of goods received by the person;] 6[(14A) the expression “KIBOR” means Karachi Inter-Bank Offered Rate prevalent on the first day of each quarter of the financial year;] 7[(15) “Local Inland Revenue Office” means the office of Superintendent of Inland Revenue or such other office as the Board may, by notification in the official Gazette, specify;]

(16) “manufacture” or “produce” includes –

(a) any process in which an article singly or in combination with other articles, materials, components, is either converted into another distinct article or product or is so changed, transformed or reshaped that it becomes capable of being put to use differently or distinctly and includes any process incidental or ancillary to the completion of a manufactured product;

(b) process of printing, publishing, lithography and engraving; and

(c) process and operations of assembling, mixing, cutting, diluting, bottling, packaging, repacking or preparation of goods in any other manner; 1 Clause (14) substituted by Finance Act, 2008. 2 Word “and” added at the end of clause through Finance, Act, 2016. 3 Word “and” omitted through Tax Laws (Amendment) Ordinance, 2016. 4 Expression omitted through Finance, Act, 2016. 5 Expression re-inserted through Tax Laws (Amendment) Ordinance, 2016 having affect from 01st day of July, 2016.. 6 Clause (14A) inserted by Finance Act, 2009. 7 Clause (15) substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.

(17) “manufacturer” or “producer” means a person who engages, whether exclusively or not, in the production or manufacture of goods whether or not the raw material of which the goods are produced or manufactured are owned by him; and shall include -

(a) a person who by any process or operation assembles, mixes, cuts, dilutes, bottles, packages, repackages or prepares goods by any other manner;

(b) an assignee or trustee in bankruptcy, liquidator, executor, or curator or any manufacturer or producer and any person who disposes of his assets in any fiduciary capacity; and

(c) any person, firm or company which owns, holds, claims or uses any patent, proprietary, or other right to goods being manufactured, whether in his or its name, or on his or its behalf, as the case may be, whether or not such person, firm or company sells, distributes, consigns or otherwise disposes of the goods 1[:] 2[Provided that for the purpose of refund under this Act, only such shall be treated as manufacturer-cum-exporter who owns or has his own manufacturing facility to manufacture or produce the goods exported or to be exported;] 3[(18) “Officer of Inland Revenue” means an officer appointed under section 30;]

(19) “open market price” means the consideration in money which that supply or a similar supply would generally fetch in an open market; 4[(20) “output tax”, in relation to a registered person, means -

(a) tax levied under this Act on a supply of goods, made by the person;

(b) tax levied under the Federal Excise Act, 2005 in sales tax mode as a duty of excise on the manufacture or production of the goods, or the rendering or providing of the services, by the person;

(c) Provincial sales tax levied on services rendered or provided by the person;] 5[(21) “person” means,-

(a) an individual; 1 Substituted for the semi-colon by Finance Ordinance, 2000 2 Proviso inserted by Finance Ordinance, 2000. 3 Clause (18) substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 4 Clause (20) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2007. 5 Clause (21) substituted by Finance Act, 2008.

(b) a company or association of persons incorporated, formed, organized or established in Pakistan or elsewhere;

(c) the Federal Government;

(d) a Provincial Government;

(e) a local authority in Pakistan; or

(f) a foreign government, a political subdivision of a foreign government, or public international organization;]

(22) “prescribed” means prescribed by rules made under this Act; 1[(22A) “Provincial sales tax” means tax levied under, Provincial laws or laws relating to Islamabad Capital Territory, which are declared by the Federal Government, through notification in the official Gazette to be Provincial Sales Tax for the purpose of input tax;]

(23) “registered office” means the office or other place of business specified by the registered person in the application made by him for registration under this Act or through any subsequent application to the 2[Commissioner];

(24) “registration number” means the number allocated to the registered person for the purpose of this Act; 3[(25) “registered person” means a person who is registered or is liable to be registered under this Act: Provided that a person liable to be registered but not registered under this Act 4[…] shall not be entitled to any benefit available to a registered person under any of the provisions of this Act or the rules made thereunder;] 5[(26 ) ***]

(27) “retail price”, with reference to the Third Schedule, means the price fixed by the manufacturer 6[…], inclusive of all 7[duties], charges and taxes (other than sales tax 8[…]) at which any particular brand or variety of any article should be sold to the general body of 1 Clause (22A) inserted by Finance Act, 2008. 2 The word “Collector” was substituted for “Commissioner” by Finance (Amendment) ordinance, 2010 promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259. 3 Clause (25) substituted by Finance Ordinance, 2002. 4 Words “shall remain liable to further tax under sub-section (1A) of section 3 and” omitted by Finance Act, 2004. 5 Clause (26) omitted by Finance Ordinance, 2002. 6 Words “or the importer” omitted by Finance Act, 2005. Earlier these were inserted by Finance Act, 2003. 7 Words and comma inserted by Finance Act, 2007. 8 Words “and octroi” omitted by Finance Act, 1998.

consumers or, if more than one such price is so fixed for the same brand or variety, the highest of such price 1[:]. 2[Provided that the Board may through a general order specify zones or areas for the purpose of determination of highest retail price for any brand or variety of goods.]

(28) “retailer” means a person 3[] supplying goods to general public for the purpose of consumption 4[:]. 5[Provided that any person, who combines the business of import and retail or manufacture or production with retail, shall notify and advertise wholesale prices and retail prices separately, and declare the address of retail outlets 6[].] 7[(28A) ***]

(29) “return” means any return required to be furnished under Chapter-V of this Act; 8[(29A) “sales tax” means - -

(a) the tax, additional tax, or default surcharge levied under this Act;

(b) a fine, penalty or fee imposed or charged under this Act; and

(c) any other sum payable under the provisions of this Act or the rules made thereunder;] 9[(29AA) “sales tax account” means an account representing the double entry recording of sales tax transactions in the books of account;]

(30) “Schedule” means a Schedule appended to this Act; 1 The “semicolon” has been substituted by” colon” in Finance Act, 2014 2 Inserted by Finance Act 2014. 3 Words “not being a manufacturer or producer or an importer” omitted by Finance Act, 2003, after omission the commas become superfluous. Earlier commas and words were inserted by Finance Act, 1998. 4 Substituted for the semi-colon by Finance Act, 2003. 5 Proviso inserted by Finance Act, 2003. 6 The comma, words and figures “, and his total turnover per annum shall be taken into account for the purposes of registration under section 14” omitted by Finance Act, 2015. 7 Clause (28A) omitted by Finance Act, 2008. Earlier it was inserted by Finance Act, 1997. 8 Clause (29A) inserted by Finance Act, 2008. 9 Clause (29A) renumbered as (29AA) by Finance Act, 2008. Earlier it was inserted by Finance Act, 2006.

(31) “similar supply”, in relation to the open market price of goods, means any other supply of goods which closely or substantially 1[resembles] the characteristics, quantity, components and materials of the aforementioned goods; 2[(31A) “special audit” means an audit conducted under section 32A;]

(32) “Special Judge” means the Special Judge appointed under Section 3[37C of the act until such appointment is made by the Special Judge appointed under section] 185 of the Customs Act; 4[(33) “supply” means a sale or other transfer of the right to dispose of goods as owner, including such sale or transfer under a hire purchase agreement, and also includes -

(a) putting to private, business or non-business use of goods produced or manufactured in the course of taxable activity for purposes other than those of making a taxable supply;

(b) auction or disposal of goods to satisfy a debt owed by a person; 5[***]

(c) possession of taxable goods held immediately before a person ceases to be a registered person 6[; and] 7[(d) in case of manufacture of goods belonging to another person, the transfer or delivery of such goods to the owner or to a person nominated by him:] Provided that the Federal Government may, by notification in the official Gazette, specify such other transactions which shall or shall not constitute supply;] 8[(33A) “supply chain” means the series of transactions between buyers and sellers from the stage of first purchase or import to the stage of final supply;] 9[(34)] tax”, unless the context requires otherwise, means sales tax;] 1 Substituted for “resemble” by Finance Act, 2008 2 Clause (31A) inserted by Finance Act, 1998. 3 Words etc. inserted by Finance Act, 2010 w.e.f. June 5, 2010. 4 Clause (33) substituted by Finance Act, 2008. 5 Word “and” omitted by Finance Act, 2015. 6 Semi-colon and word “and” substituted for colon by Finance Act, 2015. Semi-colon and word “and” substituted for colon by Finance Act, 2015. 7 Clause (d) added by Finance Act, 2015. 8 Clause (33A) inserted by Finance Act, 2013. 9 Clause (34) substituted by Finance Act, 2008.

1[(35) “taxable activity”, means any economic activity carried on by a person whether or not for profit, and includes - -

(a) an activity carried on in the form of a business, trade or manufacture;

(b) an activity that involves the supply of goods, the rendering or providing of services, or both to another person;

(c) a one-off adventure or concern in the nature of a trade; and

(d) anything done or undertaken during the commencement or termination of the economic activity, but does not include -

(a) the activities of an employee providing services in that capacity to an employer;

(b) an activity carried on by an individual as a private recreational pursuit or hobby; and

(c) an activity carried on by a person other than an individual which, if carried on by an individual, would fall within sub-clause (b).]

(36) “tax fraction” means the amount worked out in accordance with the following formula: - a 100 + a (‘a’ is the rate of tax specified in section 3);

(37) “tax fraud” means knowingly, dishonestly or fraudulently and without any lawful excuse (burden of proof of which excuse shall be upon the accused) -

(i) doing of any act or causing to do any act; or

(ii) omitting to take any action or causing the omission to take any action, 2[including the making of taxable supplies without getting registration under this Act 3[[; or],] 4[(iii)] falsifying 5[or causing falsification] the sales tax invoices,] 1 Clause (35) substituted by Finance Act, 2008. 2 Words etc. inserted by Finance Act, 2004. 3 Substituted for comma by Finance Act, 2005 4 Sub-clause (iii) inserted by Finance Act, 2005. 5 Words inserted by Finance Act, 2007.

in contravention of duties or obligations imposed under this Act or rules or instructions issued thereunder with the intention of understating the tax liability 1[or underpaying the tax liability for two consecutive tax periods] or overstating the entitlement to tax credit or tax refund to cause loss of tax; 2[(38) ***]

(39) “taxable goods” means all goods other than those which have been exempted under section 13;

(40) “tax invoice” means a document required to be issued under section 23;

(41) “taxable supply” means a supply of taxable goods made 3[…] 4[by an importer, manufacturer, wholesaler (including dealer), distributor or retailer] other than a supply of goods which is exempt under section 13 and includes a supply of goods chargeable to tax at the rate of zero per cent under section 4; 5[(42) ***]

(43) “tax period” means a period of one month or such other period as the Federal Government may 6[, ] by notification in the official Gazette, specify; 7[“(43A) Tier-1 retailers means,-

(a) a retailer operating as a unit of a national or international chain of stores;

(b) a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;

(c) a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees six hundred thousand; and 1 Words inserted by Finance Ordinance, 2000. 2 Clause (38) omitted by Finance Act, 2004. 3 The words “In Pakistan” omitted by Finance Act, 2003. 4 The words and commas inserted by Finance Act, 1998. 5 Clause (42) omitted by Finance Act, 1997. 6 Substituted for semi-colon by Finance Act, 2008 7 Clause (43A) inserted through Finance Act, 2017

(d) a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers;”;] 1[(44) “time of supply”, in relation to,-

(a) a supply of goods, other than under hire purchase agreement, means the time at which the goods are delivered or made available to the recipient of the supply” 2[“or the time when any payment is received by the supplier in respect of that supply, whichever is earlier];

(b) a supply of goods under a hire purchase agreement, means the time at which the agreement is entered into; and

(c) services, means the time at which the services are rendered or provided; 3[Provided that in respect of sub clause ( a) ,(b) or (c), where any part payment is received, -

(i) for the supply in a tax period, it shall be accounted for in the return for that tax period; and

(ii) in respect of exempt supply, it shall be accounted for in the return for the tax period during which the exemption is withdrawn from such supply ;]

(44A) “trust” means an obligation annexed to the ownership of property and arising out of the confidence reposed in and accepted by the owner, or declared and accepted by the owner for the benefit of another, or of another and the owner, and includes a unit trust; (44AA) “unit trust” means any trust under which beneficial interests are divided into units such that the entitlements of the beneficiaries to income or capital are determined by the number of units held;] 4[(45) ***]

(46) “value of supply” means:–

(a) in respect of a taxable supply, the consideration in money including all Federal and Provincial duties 5[and taxes, if any, which the supplier 1 Clause (44) (44 A) and (44 AA) substituted for clause (44) by Finance Act, 2008. 2 Clause (44) amended by Finance Act, 2013. 3 Proviso added by Finance Act, 2013. 4 Clause (45) omitted by Finance Act, 2004. 5 Words inserted by Finance Act, 1999.

receives from the recipient for that supply but excluding the amount of tax: Provided that -

(i) in case the consideration for a supply is in kind or is partly in kind and partly in money, the value of the supply shall mean the open market price of the supply excluding the amount of tax; 1[ … ]

(ii) in case the supplier and recipient are associated persons and the supply is made for no consideration or for a consideration which is lower than the open market price, the value of supply shall mean the open market price of the supply excluding the amount of tax; 2[and] 3[(iii) in case a taxable supply is made to a consumer from general public on installment basis on a price inclusive of mark up or surcharge rendering it higher than open market price, the value of supply shall mean the open market price of the supply excluding the amount of tax.]

(b) in case of trade discounts, the discounted price excluding the amount of tax; provided the tax invoice shows the discounted price and the related tax and the discount allowed is in conformity with the normal business practices;

(c) in case where for any special nature of transaction it is difficult to ascertain the value of a supply, the open market price;

(d) in case of imported goods, the value determined under section 25 4[…] of the Customs Act, including the amount of customs-duties and central excise duty levied thereon; 5[…]

(e) in case where there is sufficient reason to believe that the value of a supply has not been correctly declared in the invoice, the value determined by the Valuation Committee comprising representatives of trade and the 6[Inland Revenue] constituted by the 7[Commissioner] 8[;] and] 9[(f)] in case the goods other than taxable goods are supplied to a registered person for processing, the value of supply of such processed goods 1 Words “and” omitted by Finance Ordinance, 2001. 2 Word inserted by Finance Ordinance, 2001. 3 Sub-clause (iii) inserted by Finance Ordinance, 2001. 4 Words etc. “or 25B” omitted by Finance Act, 2004. 5 The word “and” omitted by Finance Supplementary (Amendment) Act, 1997. Earlier the same amendment was made by Sales Tax (Second Amendment) Ordinance, 1996, dated 2nd November, 1996; and again was made by the Sales Tax (Amendment) Ordinance, 1979. 6 Substituted for “Sales Tax Department” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) ordinance 2010 promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259. 7 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) ordinance 2010 promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259. 8 Word etc. “; and” substituted for “colon” by Finance Supplementary (Amendment) Act, 1997. Earlier it was substituted by Sales Tax (Second Amendment) Ordinance, 1996, dated 2nd November, 1996; and again was made by the Sales Tax (Amendment) Ordinance, 1979. 9 Sub clause (f) inserted by Finance Supplementary (Amendment) Act, 1997. Earlier it was substituted by Sales Tax (Second Amendment) Ordinance, 1996, dated 2nd November, 1996; and again was made by the Sales Tax (Amendment) Ordinance, 1979.

shall mean the price excluding the amount of sales tax which such goods will fetch on sale in the market:] 1[(g)] in case of a taxable supply, with reference to retail tax, the price of taxable goods excluding the amount of retail tax, which a supplier will charge at the time of making taxable supply by him, or such other price as the Board may, by a notification in the official Gazette, specify.] 2[Provided] that, where the Board deems it necessary it may, by notification in the official Gazette, fix the value of any imported goods or taxable supplies or class of supplies and for that purpose fix different values for different classes or description of same type of imported goods or supplies: Provided further that where the value at which import or supply is made is higher than the value fixed by the Board, the value of goods shall, unless otherwise directed by the Board, be the value at which the import or supply is made;] 3[(46A) “whistleblower” means whistleblower as defined in section 72D of the Sales Tax Act, 1990;]

(47) “wholesaler” 4[includes a dealer and] means any person who carries on, whether regularly or otherwise, the business of buying and selling goods by wholesale or of supplying or distributing goods, directly or indirectly, by wholesale for cash or deferred payment or for commission or other valuable consideration or stores such goods belonging to others as an agent for the purpose of sale; and includes 5[a person supplying taxable goods to 6[a person 7[who deducts income tax at source under the Income Tax Ordinance, 2001 (XLIX of 2001)]] 8[…]; and

(48) “zero-rated supply” means a taxable supply which is charged to tax at the rate of zero per cent under section 4.] 1 Sub-Clause (g) inserted by Finance Act, 1997. 2 Provisos substituted by Finance Act, 2006. 3 Clause (46A) added by Finance Act, 2015. 4 Words inserted by Finance Act, 1997. 5 The words, brackets and figures inserted by Finance Act, 1998. 6 Substituted for “person deducting advance tax under sub-section (4) of section 50 of the Income Tax, 1979 (XXXI of 1979)” by Finance Act, 2004. 7 Substituted for “whose income is not liable to tax under the Income Tax Ordinance, 2001 (XLIX of 2001) but has deducted income tax at source under section 153 of the said Ordinance” by Finance Act, 2006. 8 Comma and words “, and a person who in addition to making retail supplies is engaged in wholesale business” omitted by Finance Act, 2008.

CHAPTER-II SCOPE AND PAYMENT OF TAX

3. Scope of tax

(1) Subject to the provisions of this Act, there shall be charged, levied and paid a tax known as sales tax at the rate of 1[seventeen] per cent of the value of-

(a) taxable supplies made 2[…] by a registered person in the course or furtherance of any 3[taxable activity] carried on by him; and

(b) goods imported into Pakistan, 4[irrespective of their final destination in territories of Pakistan]. 5[(1A) Subject to the provision of sub section (6) of section 8 or any notification issued thereunder, where taxable supplies are made to a person who has not obtained registration number, there shall be charged, levied and paid a further tax at the rate of 6[three] percent of the value In addition to the rate specified in sub sections (1), (1B), (2), (5), 7[(6) and section 4] provided that the Federal Govt. may, by notification in the official Gazette, specify the taxable supplies in respect of which the further tax shall not be charged, levied and paid.] 8[(1B) The Board may, by notification in the Official Gazette, in lieu of levying and collecting tax under sub section (1) on taxable supplies, levy and collect tax -

(a) On the production capacity of plants, machinery, undertaking, establishments or installation producing on manufacturing such goods; or

(b) On fixed basis, as it may deem fit, from any person who is in a position to collect such tax due to the nature of the business.] 9[(2) Notwithstanding the provisions of sub-section (1): - 1 Substituted for seventeen vide Finance Act, 2013 2 Words “ in Pakistan” omitted by Finance Act, 2003 3 Words substituted by Finance Act, 1996. 4 Words inserted through Finance Act, 2017 5 Sub section (1A) inserted by Finance Act, 2013. 6 For the word “two” the word “three” inserted by Finance Act, 2018. 7 The expression inserted through Finance Act, 2017 8 Sub section (1B) inserted by Finance Act, 2013. 9 Sub section (2) substituted by Finance Act, 2001

(a) taxable supplies specified in the Third Schedule shall be charged to tax at the rate of 1[seventeen] per cent of the retail price 1[or in case such supplies are also specified in the Eighth Schedule, at the rates specified therein and the retail price thereof,] along with the amount of sales tax shall be legibly, prominently and indelibly printed or embossed by the manufacturer on each article, packet, container, package, cover or label, as the case may be; 2[:]3[ ] 4[Provided that the Federal Government, may, by notification in the official Gazette, exclude any taxable supply from the said Schedule or include any taxable supply therein; 5[…]

(aa) 6[goods specified in the Eighth schedule shall be charged to tax at such rates and subject to such conditions and limitations as specified therein; and] 7[(b) the 8[Federal Government] may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, declare that in respect of any taxable goods, the tax shall be charged, collected and paid in such manner and at such higher or lower rate or rates as may be specified in the said notification.]

(3) The liability to pay the tax shall be,-

(a) in the case of supply of goods9[…], of the person making the supply, and

(b) in the case of goods imported into Pakistan, of the person importing the goods. 10[(3A) Notwithstanding anything contained in clause (a) of sub-section (3), the 11[Federal Government] may, by a notification in the official Gazette, specify the goods in respect of which the liability to pay tax shall be of the person receiving the supply.] 12[(3B) Notwithstanding anything contained in sub section (1) and (3), sales tax on the import and supply of the goods specified in the Ninth Schedule to this Act shall be charged, collected and paid at the rates, in the manner, at the time, and subject to the procedure and conditions as specified therein or as may be prescribed, and the liability to charge, collect and pay the tax shall be on the persons specified therein.] 1 The expression inserted through Finance Act, 2017 2 Substituted for “; and” by Finance Act, 2007. 3 The word ‘; and” omitted by Finance Act, 2014. 4 Proviso inserted by Finance Act, 2007. 5 Word “and” omitted by Finance Bill, 2014. 6 Inserted by Finance Act, 2014 7 Clause (b) substituted by Finance Act, 2015. 8 Words “Federal Government” substituted by Finance Act, 2018. 9 Words “in Pakistan” omitted by Finance Act, 2003. 10 Sub-section 3A inserted by Finance Act, 1998. 11 Words “Federal Government” substituted by Finance Act, 2018. 12 Inserted by Finance Act 2014

1[(4) ***] 2[(5) The 3[Federal Government] may, in addition to the tax levied under sub-section

(1) 4[…], 5[…] sub-section (2) and sub-section (4), levy and collect 6[“tax at such extra rate or amount”] not exceeding 7[seventeen] per cent of the value of such goods or class of goods and on such persons or class of persons, in such mode, manner and at time, and subject to such conditions and limitations as it may, by rules, prescribe.] 8[(6) The Federal Government or 9[the Board] may, in lieu of the tax under sub-section (1), by notification in the official Gazette, levy and collect such amount of tax as it may deem fit on any supplies or class of supplies or on any goods or class of goods and may also specify the mode, manner or time of payment of such amount of tax. 10[(7) The Federal Government may, by notification in the official Gazette, specify any person or class of persons as withholding agent for the purpose of deduction and deposit of tax at the specified rate in such manner and subject to such conditions or restrictions as the Federal Government may prescribe in this behalf.] 11[(8) Notwithstanding anything contained in any law or notification made thereunder 12[, but subject to the provisions of clause (b) of sub-section (2)] in case of supply of natural gas to CNG stations, the Gas Transmission and Distribution Company shall charge sales tax from the CNG stations at the rate of seventeen per cent of the value of supply to the CNG consumers, as notified by the Board from time to time, but excluding the amount of tax, as provided in clause (46) of section 2. 13[(9) Notwithstanding anything contained in subsection (1), tax shall be charged from retailers through their monthly electricity bills, at the rate of five percent where the monthly bill amount does not exceed rupees twenty thousand and at the rate of seven and half per cent where the monthly bill amount exceeds the aforesaid amount, subject to the exclusions, procedure, restrictions and limitations as prescribed in Chapter II of the Sales Tax Special Procedure Rules, 2007: 1 Sub section (4) omitted by Finance Act, 2008. 2 Sub section (5) inserted by Finance Act, 1999. 3 Words “Federal Government” substituted by Finance Act, 2018. 4 Word etc. “and (1 A)” omitted by finance Act, 2004. 5 Word etc. “clause (C) of” omitted by Finance Ordinance, 2002 6 Words substituted by Finance Act, 2013. 7 Rate substituted by Finance Act, 2013. 8 Sub section (6) inserted by Finance Ordinance 2001 9 Substituted for “Central Board of Revenue” by Finance Act, 2007 10 Sub section (7) inserted by Finance Act, 2007. 11 Sub-section 8 Inserted by Finance Act, 2014. 12 Comma and words inserted by Finance Act, 2015. 13 Sub-section 9 inserted by Finance Act, 2014.

Provided that the tax under this sub-section shall be in addition to the tax payable on supply of electricity under sub section (1), (1A) and (5). 1[(9A) Notwithstanding anything contained in this Act, Tier-1 retailers shall pay sales tax at the rate specified in sub-section (1) and shall observe all the applicable provisions of this Act and rules made thereunder, including the requirement to file monthly sales tax returns in the manner prescribed in Chapter II of the Sales Tax Rules, 2006: Provided that the retailers making supplies of finished goods of the five sectors specified in Notification No. S.R.O. 1125(I)/2011, dated the 31st December, 2011 shall pay sales tax in respect of such supplies at the rates prescribed in the said Notification: Provided further that Tier-1 retailers, in lieu of net tax payable at the applicable rate, shall have an option to pay sales tax under the turnover regime at the rate of two percent of their total turnover, including turnover relating to exempt supplies, without adjustment of any input tax whatsoever: Provided also that retailers opting to pay sales tax on the basis of total turnover shall file an option to the Chief Commissioner of Regional Tax Office or Large Taxpayers Unit having jurisdiction by fifteenth day of July opting to pay sales tax on the basis of turnover and such an option shall remain in force for the whole financial year.”; 2[3A. ***] 3[3AA. ***] 4[3AAA. ***]

3B. Collection of excess sales tax etc

(1) Any person who has collected or collects any tax or charge, whether under misapprehension of any provision of this Act or otherwise, 1 Sub-section (9A) inserted through Finance Act, 2017 2 Section (3A) omitted by Finance Act, 2004. 3 Section (3AA) omitted by Finance Act, 2008. 4 Section (3AAA) omitted by Finance Act, 2002.

which was not payable as tax or charge or which is in excess of the tax or charge actually payable and the incidence of which has been passed on to the consumer, shall pay the amount of tax or charge so collected to the Federal Government. 2[(2) Notwithstanding anything contained in any law or judgement of a court, including the Supreme court and a High court, any amount payable to the Federal Government under sub-section (1) shall be deemed to be an arrear of tax or charge payable under this Act and shall be recoverable accordingly and any claim for refund in respect of such amount shall neither be admissible to the registered person nor payable to any court of law or to any person under direction of the court.]

(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 consumer shall be on the person collecting the tax or charge.]

4. Zero rating

Notwithstanding the provisions of section 3 3[except those of sub-section (1A)], 4[…] the following goods shall be charged to tax at the rate of zero per cent:– [(a) goods exported, or the goods specified in the Fifth Schedule;]

(b) supply of stores and provisions for consumption aboard a conveyance proceeding to a destination outside Pakistan as specified in section 24 of the Customs Act, 1969 (IV of 1969); 5[(c) such other goods as the 6[Federal Government] may, by notification in the Gazette, specify:] Provided that nothing in this section shall apply in respect of a supply of goods which –

(i) are exported, but have been or are intended to be re-imported into Pakistan; or

(ii) have been entered for export under Section 131 of the Customs Act, 1969 (IV of 1969), but are not exported 7[***] 8[; or] 1 Old section (3A) renumbered as (3B) by Finance Act, 1996. 2 Sub-section (2) substituted by Finance Act, 2014. 3 The expression inserted through Finance Act, 2017 4 Words “a Supply of” omitted by Finance Act, 2004. 5 Words “a Supply of” omitted by Finance Act, 2004. 6 Words “Federal Government” substituted by Finance Act, 2018. 7 Words “within thirty days of the date of filling of bill of export r such extended period as a collector may allow” omitted. 8 Substituted for full stop by Finance Ac t, 1991

1[(iii) have been exported to a country specified by the Federal Government, by Notification in the official Gazette 2[:]] 3[Provided further that the Federal Government may by a notification in the official Gazette, restrict the amount of credit for input tax actually paid and claimed by a person making a zero-rated supply of goods otherwise chargeable to sales tax. 4[(d) such other goods as may be specified by the Federal Board of Revenue through a general order as are supplied to a registered person or class of registered persons engaged in the manufacture and supply of 5[goods supplied at reduced rate of sales tax.]

5. Change in the rate of tax

If there is a change in the rate of tax-

(a) a taxable supply made 6[***] by a registered person shall be charged to tax at such rate as is in force at the time of supply;

(b) imported goods shall be charged to“tax at such rate as” is in force,-

(i) in case the goods are entered for home consumption, on the date on a 9[goods declaration] is presented under section 79 of the Customs Act, 1969 (IV of 1969);

(ii) in case the goods are cleared from warehouse, on the date on which a 7[goods declaration] for clearance of such goods is presented under section 104 of the Customs Act, 1969 (IV of 1969); Provided that where a 9[goods declaration] is presented in advance of the arrival of the conveyance by which the goods are imported, the tax shall be charged as is in force on the date on which the manifest of the conveyance is delivered: Provided further that if the tax is not paid within seven days of the of the 8[goods declaration] 9[under section 104 of the Customs Act,] the tax shall be charged at the rate as is in force on the date on which tax is actually paid. 1 Inserted by Finance Act, 1991 w.e.f 30th May, 1991 2 Full stop replaced by the colon and thereafter proviso inserted by the Finance Act, 1996. 3 Brackets and figures “(1)” omitted by Finance Act 1996 4 Clause (d) inserted by Finance Act, 2007 5 The words “zero-rated goods” substituted by the words “goods supplied at reduced rate of sales tax” by Finance Act, 2014 6 Words “in Pakistan” omitted by Finance Act, 2003 7 Substituted for “bill of entry” by Finance Act, 2005 8 Substituted for “bill of entry” by Finance Act, 2005 9 Words, figure and comma inserted by the Finance Act, 1996.

6. Time and manner of payment

(1) The tax in respect of goods imported into Pakistan shall be charged and paid in the same manner and at the same time as if it were a duty of customs payable under the Customs Act, 1969 1[and the provisions of the said Act 2[including section 31A thereof], shall, so far as they relate to collection, payment and enforcement 3[including recovery] of tax under this Act on such goods where no specific provision exists in this Act, apply,]. 4[(1A) Notwithstanding anything contained in any other law for the time being in force, including but not limited to the Protection of Economic Reforms Act, 1992 (XII of 1992), and notwithstanding any decision or judgment of any forum, authority or court whether passed, before or after the promulgation of the Finance Act, 1998 (III of 1998), the provisions of section 31-A of the Customs Act, 1969 (IV of 1969), referred to in sub-section (1) shall be incorporated in and shall be deemed to have always been so incorporated in this Act and no person shall be entitled to any exemption from or adjustment of or refund of tax on account of the absence of such a provision in this Act, or in consequence of any decision or judgment of any forum, authority or court passed on that ground or on the basis of the doctrine of promissory estoppel or on account of any promise or commitment made or understanding given whether in writing or otherwise, by any government department or authority.]

(2) The tax in respect of taxable supplies made 5[] during a tax period shall be paid by the registered person 6[by the date as prescribed in this respect] 7[:] 8[Provided that the Board may, by a notification in the Official Gazette, direct that the tax in respect of all or such classes of supplies (other than zero-rated supplies) of all or such taxable goods, as may be specified in the aforesaid notification, shall be charged, collected and paid in any other way, mode, manner or at time as may be specified therein.] 9[(3) The tax due on taxable supplies 1[] shall be paid by any of the following modes, namely:- 1 The Words inserted in place of “IV of 1969” by Finance Act, 1996 2 The words inserted by Finance Act, 1998. 3 Words “including recovery” inserted by Finance Act, 2015. 4 Sub Section (1A) inserted by Sales Tax (amendment) Ordinance, 2002 dated June 07, 2002 and shall be deemed to have always been so inserted. 5 Words “ in Pakistan” omitted by Finance Act, 2013 6 Words substituted through Finance, Act, 2016. 7 Substituted for full stop by Finance Act, 1997 8 Proviso inserted by Finance Act, 1997 9 Sub Section III substituted by Finance Act, 1996.

(i) through deposit in a bank designated by the Board; and

(ii) through such other mode and manner as may be specified by the Board.] 2[4. ***]

7. Determination of tax liability

(1) 3[Subject to the provisions of 4[section 8 and] , for] the purpose of determining his tax liability in respect of taxable supplies made during a tax period, a registered person shall 5[, subject to the provisions of section 73,] be entitled to deduct input tax 6[paid 7[or payable 8[during the tax period for the purpose of taxable supplies made, or to be made, by him] from the output tax 9[excluding the amount of further tax under sub-section (1A) of section 3.] 10[ ] that is due from him in respect of that tax period and to make such other adjustments as are specified in Section 9 11[:] 12[Provided that where a registered person did not deduct input tax within the relevant period, he may claim such tax in the return for any of the six succeeding tax periods.]

(2) A registered person shall not be entitled to deduct input tax from output tax unless,-

(i) in case of a claim for input tax in respect of a taxable supply made 13[***], he holds a tax invoice 14[in his name and bearing his registration number] in respect of such supply for which a return is furnished 15[:] Provided that from the date to be notified by the Board in this respect, in addition to above, if the supplier has not declared such supply in his return or he has not paid amount of tax due as indicated in his return; 1Words “made in Pakistan” omitted by Finance Act, 2003. 2 Sub Section 4 omitted by Finance Act, 1996. 3 Substituted for the word “ for by Finance Act, 2007 4 The word” section” substituted by the words and figure “section 8 and” in Finance Act 2014. 5 Comma and word etc, inserted by Finance Ordinance, 2001 6 Words inserted by Finance Act, 1996 7 Words inserted by Finance Act, 2004. 8 Words inserted by Finance Act, 1998. 9 Inserted by Finance Act 2014 10 Words etc “ excluding the amount of tax” omitted by Finance Act, 2004 11 Substituted for the full stop by Finance Act, 2003 12 Proviso substituted by Finance Act, 2008. 13 Words “in Pakistan” omitted by Finance Act, 2003. 14 Words inserted by Finance Act, 2003. 15 A Colon substituted the semi colon & Proviso added through Finance, Act, 2016.

(ii) 1[in case of goods imported into Pakistan, he holds bill of entry or goods declaration in his name and showing his sales tax registration number, duly cleared by the customs under section 79 2[, section 81] or section 104 of the Customs Act, 1969 (IV of 1969);]

(iii) 3[in case of goods purchased in auction, he holds a treasury challan, 4[in his name and bearing his registration number,] showing payment of sales tax;] 5[(iv) ***] 6[(3) Notwithstanding anything in sub-sections (1) and (2), the 7[Federal Government] may, by a special order, subject to such conditions, limitations or restrictions as may be specified therein allow a registered person to deduct input tax paid by him from the output tax determined or to be determined as due from him under this Act.] 8[(4) Notwithstanding anything contained in this Act or rules made there under, the 9[Federal Government] may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as may be specified therein, allow a registered person or class of persons to deduct such amount of input tax from the output tax as may be specified in the said notification.]

7A. Levy and collection of tax on specified goods on value addition

11[(1) Notwithstanding anything contained in this Act or the rules made there under, the 10[Federal Government] may specify, by notification in the official Gazette, that sales tax chargeable on the supply of goods of such description or class shall, with such limitations or restrictions as may be prescribed, be levied and collected on the difference between the value of supply for which the goods are acquired and the value of supply for which the goods, either in the same state or on further manufacture, are supplied.] 1 Clause (ii) substituted by Finance Act, 2003. 2 Expression “, section 81” inserted by Finance Act, 2015. 3 Clause (iii) inserted by Finance Ordinance, 2002 4 Comma and words inserted by Finance Act, 2004. 5 Clause (iv) omitted by Finance Act, 1997. 6 Sub Section (3) inserted by Finance Ordinance, 2002. 7 Words “Federal Government” substituted by Finance Act, 2018. 8 Sub Section (4) inserted by Finance Act, 2007. 9 Words “Federal Government” substituted by Finance Act, 2018. 10 Section (7A) inserted by Finance Act, 2003. 11 Renumbered by Finance Act, 2004

1[(2) Notwithstanding anything contained in this Act or the rules made there under, the 2[Federal Government] may, by notification in the official Gazette, and subject to the conditions, limitations, restrictions and procedure mentioned therein, specify the minimum value addition required to be declared by certain persons or categories of persons, for supply of goods of such description, or class as may be prescribed, and to waive the requirement of audit or scrutiny of records if such minimum value addition is declared.]

8. Tax credit not allowed

(1) Notwithstanding anything contained in this Act, a registered person shall not be entitled to reclaim or deduct input tax paid on - 4[(a) the goods 5[or services] used or to be used for any purpose other 6[***] for taxable supplies made or to be made by him;]

(b) any other goods or services which the 7[Federal Government] may, by a notification in the official Gazette, specify8[;9[]] 10[(c)] 11[] the goods under 12[sub-section] (5) of section 3 13[:] 14[(ca) the goods 15[or services] in respect of which sales tax has not been deposited in the Government treasury by the respective supplier;] 16[(caa) purchases, in respect of which a discrepancy is indicated by CREST or input tax of which is not verifiable in the supply chain;] 17[(d) fake invoices; 18[***] 1 Sub Section (2) inserted by Finance Act, 2004. 2 Words “Federal Government” substituted by Finance Act, 2018. 3 Section (8) substituted by Finance Act, 1996. 4 Clause (a) substituted by Sales Tax (amendment) Ordinance, 2001 dated February 07, 2001. 5 Words inserted by Finance Act, 2008. 6 Words “for the manufacture of production of manufacture goods or,” omitted by Finance Act, 2007. 7 Words “Federal Government” substituted by Finance Act, 2018. 8 Substituted for full stop by Finance Act, 1999 9 Word “and” omitted by Finance Act, 2004. 10 Clause (c) inserted by Finance Act, 1999 11 Word “on” omitted by Finance Act, 2004. 12 Substituted for subsection (1A) and Finance Act, 2004 13 Substituted for the full stop by Finance Act, 2004 14 Clause (ca) inserted by Finance Act, 2006. 15Words inserted by Finance Act, 2008. 16 Clause (caa) inserted by Finance Act, 2013 17 Clause (d) inserted by Finance Act, 2004. 18 The word “and “omitted by Finance Act 2014.

(e) purchases made by such registered person, in case he fails to furnish the information required by the Board through a notification issued under sub-section (5) of section 26 [;] 1[(f) goods and services not related to the taxable supplies made by the registered person.] 2[(g) goods and services acquired for personal or non-business consumption;] 3[(h) goods used in, or permanently attached to, immoveable property, such as building and construction materials, paints, electrical and sanitary fittings, pipes, wires and cables, but excluding 4[pre-fabricated buildings and] such goods acquired for sale or re-sale or for direct use in the production or manufacture of taxable goods; 5[***]] 6[(i) vehicles falling in Chapter 87 of the First Schedule to the Customs Act, 1969 (IV of 1969), parts of such vehicles, electrical and gas appliances, furniture furnishings, office equipment (excluding electronic cash registers), but excluding such goods acquired for sale or re-sale] 7[;] 8[(j) services in respect of which input tax adjustment is barred under the respective provincial sales tax law;

(k) import or purchase of agricultural machinery or equipment subject to sales tax at the rate of 7% under Eighth Schedule to this Act;

(l) from the date to be notified by the Board, such goods and services which, at the time of filing of return by the buyer, have not been declared by the supplier in his return 9[or he has not paid amount of tax due as indicated in his return; and 10(m) import of scrap of compressors falling under PCT heading 7204.4940.]

(2) If a registered person deals in taxable and non-taxable supplies, he can reclaim only such proportion of the input tax as is attributable to taxable supplies in such manner as may be specified by the Board.

(3) No person other than a registered person shall make any deduction or reclaim input tax in respect of taxable supplies made or to be made by him. 1 Inserted by Finance Act, 2014 2 Inserted by Finance Act, 2014 3 Inserted by Finance Act, 2014 4 Words inserted by Finance Act, 2015. 5 Word “and” omitted by Finance Act, 2015. 6 Inserted by Finance Act, 2014 7 Semi-colon substituted for full stop by Finance Act, 2015. 8 Clauses (j), (k) and (l) added by the Finance Act, 2015. 9 Expression added through Finance Act, 2016. 10 Clause (m) inserted by Finance Act, 2018.

1[(4) ] 2[(5) Notwithstanding anything contained in any other law for the time being in force or any decision of any Court, for the purposes of this section, no input tax credit shall be allowed to the persons who paid fixed tax under any provisions of this Act as it existed at any time prior to the first day of December, 1998.] 3[(6) Notwithstanding anything contained in any other law for the time being in force or any provision of this Act, the Federal Government may, by notification in the official Gazette, specify any goods or class of goods which a registered person cannot supply to any person who is not registered 4[] under this Act.] 5[(7) ***]

8A. Joint and several liability of registered persons in supply chain where tax unpaid

………………………………………………………………………………………. 34 8B. Adjustable input tax. …………………………………………………………………… 35 9. Debit and credit note. …………………………………………………………………….. 35 10. Refund of input tax. ……………………………………………………………………… 36 11. Assessment of Tax and recovery of tax not levied or short levied or erronously refunded…………… …………………………………………………….. ….37 Where a registered person receiving a taxable supply from another registered person is in the knowledge or has reasonable grounds to suspect that some or all of the tax payable in respect of that supply or any previous or subsequent supply of the goods supplied would go unpaid 7[, of which the burden to prove shall be on the department] such person as well as the person making the taxable supply shall be jointly and severally liable for payment of such unpaid amount of tax 8[:]] 9[Provided that the Board may by notification in the official gazette, exempt any transaction or transactions from the provisions of this section.] 1 Sub-Section (4) omitted by Finance Act, 1999. 2 Sub-section (5) inserted by Finance Act, 1999. 3 Sub-section (6) inserted by Sales Tax (Amendment) Ordinance, 2001 dated February 7, 2001. 4 Words “or enrolled” omitted by Finance Act, 2004. 5 Sub-section (7) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001. 6 Section 8A inserted by Finance Act, 2006. 7 Expression added by Finance Act, 2015. 8 Substituted for full stop by Finance Act, 2007 9 Proviso inserted by Finance Act, 2007.

8B. Adjustable input tax

(1) Notwithstanding anything contained in this Act, in relation to a tax period, a registered person shall not be allowed to adjust input tax in excess of ninety per cent of the output tax for that tax period: 2[Provided that the restriction on the adjustment of input tax in excess of ninety percent of the output tax, shall not apply in case of fixed assets or Capital goods:] Provided further that the Board may by notification in the official Gazette, exclude any person or class of persons from the purview of sub-section (1).

(2) A registered person, subject to sub-section (1), may be allowed adjustment 3[or refund] of input tax not allowed under sub-section (1) subject to the following conditions, namely:-

(i) in the case of registered persons, whose accounts are subject to audit under the Companies Ordinance, 1984, upon furnishing a statement along with annual audited accounts, duly certified by the auditors, showing value additions less than the limit prescribed under sub- section (1) above; or

(ii) in case of other registered persons, subject to the conditions and restrictions as may be specified by the Board by notification in the official Gazette. 3) The adjustment or refund of input tax mentioned in sub-sections (2), if any, shall be made on yearly basis in the second month following the end of the financial year of the registered person. 4) Notwithstanding anything contained in sub-sections (1) and (2), the Board may, by notification in the official Gazette, prescribe any other limit of input tax adjustment for any person or class of persons.

(5) Any auditor found guilty of misconduct in furnishing the certificate mentioned in sub-section (2) shall be referred to the Council for disciplinary action under section 20D of Chartered Accountants, Ordinance, 1961 (X of 1961).]

9. Debit and credit note

Where a registered person has issued a tax invoice in respect of a supply made by him and as a result of cancellation of supply or return of goods 1 Section 8B inserted by Finance Act, 2007. 2 Proviso substituted by Finance Act, 2011. 3 Words inserted by Finance Act, 2009.

or a change in the nature of supply or change in the value of the supply or some such event the amount shown in the tax invoice or the return needs to be modified, the registered person may, subject to such conditions and limitations as the Board may impose, issue a debit or credit note and make corresponding adjustment against output tax in the return.

10. Refund of input tax

(1) If the input tax paid by a registered person on taxable purchases made during a tax period exceeds the output tax on account of zero rated local supplies or export made during that tax period, the excess amount of input tax shall be refunded to the registered person not later than forty-five days of filing of refund claim in such manner and subject to such conditions as the Board may, by notification in the official Gazette specify: 2[Provided that in case of excess input tax against supplies other than zero-rated or exports, such excess input tax may be carried forward to the next tax period, along with the input tax as is not adjustable in terms of sub-section (1) of section 8B, and shall be treated as input tax for that period and the Board may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, prescribe the procedure for refund of such excess input tax.] Provided further that the Board may, from such date and subject to such conditions and restrictions as it may impose, by notification in the official Gazette, direct that refund of input tax against exports shall be paid along with duty drawback at the rates notified in the such notification.

(2) If a registered person is liable to pay any tax, default surcharge or penalty payable under any law administered by the Board, the refund of input tax shall be made after adjustment of unpaid outstanding amount of tax or, as the case may, default surcharge and penalty.

(3) Where there is reason to believe that a person has claimed input tax credit or refund which was not admissible to him, the proceedings against him shall be completed within sixty days. For the purposes of enquiry or audit or investigation regarding admissibility of the refund claim, the period of sixty days may be extended up to one hundred 1 Section 10 substituted by Finance Act, 2007. Earlier it was also substituted by Finance Act, 1998 and Finance Act, 1996 2 Proviso substituted by Finance Act, 2008.

and twenty days by an officer not below the rank of an Additional 1[Commissioner Inland Revenue] and the Board may, for reasons to be recorded in writing, extend the aforesaid period which shall in no case exceed nine months.]

11. Assessment of Tax & Recovery of Tax not levied or short levied or erroneously refunded

(1) Where a person who is required to file a tax return fails to file the return for a tax period by the due date or pays an amount which, for some miscalculation is less than the amount of tax actually payable, an officer of Inland Revenue shall, after a notice to show cause to such person, make an order for assessment of tax, including imposition of penalty and default surcharge in accordance with sections 33 and 34: Provided that where a person required to file a tax return files the return after the due date and pays the amount of tax payable in accordance with the tax return along with default surcharge and penalty, the notice to show cause and the order of assessment shall abate.

(2) Where a person has not paid the tax due on supplies made by him or has made short payment or has claimed input tax credit or refund which is not admissible under this Act for reasons other than those specified in sub-section (1), an officer of Inland Revenue shall after a notice to show cause to such person, make an order for assessment of tax actually payable by that person or determine the amount of tax credit or tax refund which he has unlawfully claimed and shall impose a penalty and charge default surcharge in accordance with sections 33 and 34.

(3) Where by reason of some collusion or deliberate Act any tax or charge has not been levied or made or has been short levied or has been erroneously refunded, the person liable to pay any amount of tax or charge or the amount of fund erroneously made shall be served with the notice requiring him to show cause for payment of the amount specified in the notice.

(4) Where, by reason of any inadvertence, error or misconstruction any tax or charge has not been levied or made or has been short-levied or has been erroneously refunded, the person liable to the amount of tax or charge or the amount of refund erroneously made shall be served with a notice requiring him to show cause for payment of the amount specified in the notice; 1 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 2 Section 11 substituted by the Finance Act, 2012. Earlier it was substituted by Finance Act, 1996.

Provided that, where a tax or charge has not been levied under this sub section the amount of tax shall be recovered as tax fraction of the value of supply. 1[(4A) Where any person, required to withhold sales tax under the provisions of this Act or the rules made thereunder, fails to withhold the tax or withholds the same but fails to deposit the same in the prescribed manner, an officer of Inland Revenue shall after a notice to such person to show cause, determine the amount in default].

(5) No order under this section shall be made by an officer of Inland Revenue unless a notice to show cause is given within five years, of the relevant date, to the person in default specifying the grounds on which it is intended to proceed against him and the officer of Sales Tax shall take into consideration the representation made by such person and provide him with an opportunity of being heard: Provided that order under this section shall be made within one hundred and twenty days of issuance of show cause notice or within such extended period as the Commissioner may, for reasons to be recorded in writing, fix provided that such extended period shall in no case exceed ninety days: Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or the time taken through adjournment by the petitioner not exceeding sixty days shall be excluded from the computation of the period specified in the first proviso.

(6) Notwithstanding anything in sub-section (1), where a registered person fails to file a return, an officer of Inland Revenue, not below the rank of Assistant Commissioner, shall subject to such conditions as specified by the Federal Board of Revenue, determine the minimum tax liability of the registered person.

(7) For the purpose of this section, the expression “relevant date” means-

(a) the time of payment of tax or charge as provided under section 6; and

(b) in a case where tax or charge has been erroneously refunded, the date of its refund.]

11A. Short paid amounts recoverable without notice

………………………….. 38 Notwithstanding any of the provisions of this Act, where a registered person pays the amount of tax less than the tax due as indicated in his return, the short paid amount of tax along with default surcharge shall be recovered from such person by stopping removal of any goods from his business premises 1 New sub-section 4A added through Finance Act, 2016. 2 Section 11A Substituted by Finance Act, 2006. Earlier it was inserted by Finance Ordinance, 2002.

and through attachment of his business bank accounts, without giving him a show cause notice and without prejudice to any other action prescribed under section 48 of this Act or the rules made thereunder: Provided that no penalty under section 33 of this Act shall be imposed unless a show cause notice is given to such person.]

11B. Assessment giving effect to an order

…………………………………………. 38

(1) Except where sub-section (2) applies, where, in consequence of, or to give effect to, any finding or direction in any order made under Chapter-VIII by the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court an order of assessment of tax is to be issued to any registered person, the Commissioner or an officer of Inland Revenue empowered in this behalf shall issue the order within one year from the end of the financial year in which the order of the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court, as the case may be, was served on the Commissioner or officer of Inland Revenue.

(2) Where, by an order made under Chapter-VIII by the Appellate Tribunal, High Court or Supreme Court, an order of assessment is remanded wholly or partly and the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is directed to pass a new order of assessment, the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, shall pass the new order within one year from the end of the financial year in which the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is served with the order: Provided that limitation under this sub-section shall not apply, if an appeal or reference has been preferred against the order passed by Appellate Tribunal or a High Court.] 2[12. ***]

13. Exemption

……………………………………………………………………….. 39to40 Chapter-III ……………………………………………………………………………………….. 40 REGISTRATION ……………………………………………………………………………… 41

(1) Notwithstanding the provisions of section 3, supply of goods or import of goods specified in the Sixth Schedule shall, subject to such conditions as may be specified by the 4[Federal Government], be exempt from tax under this Act 1[.] 1 New section 11B added by Finance Act, 2018. 2 Section 12 omitted by Finance Act, 1996. 3 Section 13 substituted by Finance Act, 1996. 4 Substituted for “Board” by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999.

2[***]

(2) Notwithstanding the provisions of sub-section (1) -

(a) the 3[Federal Government may], whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, removal of anomalies in taxes, development of backward areas and implementation of bilateral 4[,] multilateral agreements 5[and matters relating to international financial institutions or foreign government-owned financial institutions] by notification in the official Gazette, exempt any taxable supplies made 6[] or 7[import or supply of] any goods or class of goods, from the whole or any part of the tax chargeable under this Act, subject to the conditions and limitations specified therein; 8[] 9[(b) ***]

(3) The exemption from tax chargeable under sub-section (2) may be allowed from any previous date specified in the notification issued under clause (a) 10[***].] 11[(4) ***] 12[(5) ***] 13[(6) The 14[Board] shall place before the National Assembly all notifications issued under this section in a financial year. 1 Substituted for colon by Tax Laws Amendment Ordinance, 2000, full Stop was substituted for colon by sales tax “(Amendment) Ordinance, 1999, dated 13th August, 1999. 2 Provisos omitted by Tax Laws Amendment Ordinance, 2000, dated 24th May, 2000. Earlier it was omitted by sales Tax (Amendment) Act, 1999 dated 30-03-1999 3 Words “Federal Government may” substituted by Finance Act, 2018. 4 For the word and a comma substituted through Finance Act, 2016. 5 Expression added through Finance Act, 2016. 6 Words “in Pakistan” omitted by Finance Act, 2003. 7 Substituted for “Supply” by Finance Act, 2004 8 Word “and” omitted by Finance Act, 2015. 9 Clause (b) omitted by Finance Act, 2015. 10 Expression “or, as the case may be, order made under clause (b) of that sub-section” omitted by Finance Act, 2015. 11 Sub-section (4) omitted by Finance Act, 2006. 12 Sub-section (5) omitted by Sales Tax (Amendment) Ordinance, 2000. 13 Sub-section (6) and sub-section (7) added by Finance Act, 2015. 14 Substituted for the words “Federal Government” through Finance Act, 2017

(7) Any notification issued under sub-section (2), after 1st July, 2015 shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued 1[: Provided that all such notifications, except those earlier rescinded, shall be deemed to have been in force with effect from the 1st July, 2016 and shall continue to be in force till the 30th June, 2018, if not earlier rescinded: Provided further that all notifications issued on or after the first day of July, 2016 and placed before the National Assembly as required under sub-section (6) shall continue to be in force till thirtieth day of June, 2018, if not earlier rescinded by the Federal Government or the National Assembly.] Chapter-III REGISTRATION

14. Registration

…………………………………………………………………………….. 40

(1) Every person engaged in making taxable supplies in Pakistan, including zero-rated supplies, in the course or furtherance of any taxable activity carried on by him, falling in any of the following categories, if not already registered, is required to be registered under this Act, namely:-

(a) a manufacturer who is not running a cottage industry;

(b) a retailer who is liable to pay sales tax under the Act or rules made thereunder, excluding such retailer required to pay sales tax through his electricity bill under sub-section (9) of section 3;

(c) an importer;

(d) an exporter who intends to obtain sales tax refund against his zero- rated supplies;

(e) a wholesaler, dealer or distributor; and

(f) a person who is required, under any other Federal law or Provincial law, to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act. 1 For the full stop a colon inserted and thereafter new provisos added through Finance Act, 2017 2Section 14 substituted by Finance Act, 2015.

(2) Persons not engaged in making of taxable supplies in Pakistan, if required to be registered for making imports or exports, or under any provisions of the Act, or any other Federal law, may apply for registration.

(3) The registration under this Act shall be regulated in such manner as the Board may, by notification in the official Gazette, prescribe.] 1[15. ***] 2[16. ***] 3[17. *** 18. *** 19. *** 20. ***]

21. De-registration, blacklisting and suspension of registration

(1) The Board or any officer, authorized in this behalf, may subject to the rules, de-register a registered person or such class of registered persons not required to be registered under this Act.

(2) Notwithstanding anything contained in this Act, in cases where the 5[Commissioner] is satisfied that a registered person is found to have issued fake invoices 6[…] or has 7[otherwise] committed tax fraud, he may blacklist such person or suspend his registration in accordance with such procedure as the Board may by notification in the official Gazette, prescribe.] 1Section 15 omitted by the Finance Act, 2014. 2 Section 16 omitted by Finance Act, 2003. 3 Sections 17 to 20 omitted by Finance Act, 2004. 4 Section 21 substituted by Finance Act, 2004. 5 Substituted “for collector” by Finance Act, 2010 6 Comma and words “, evaded tax” omitted by Finance Act, 2005. 7 Word inserted by Finance Act, 2005.

1[(3) During the period of suspension of registration, the invoices issued by such person shall not be entertained for the purposes of sales Tax refund or input tax credit, and once such person is black listed, the refund or input tax credit claimed against the invoices issued by him, whether prior or after such black listing, shall 2[…] be rejected through a self- speaking appealable order and after affording an opportunity of being heard to such person.] 3[(4) Notwithstanding anything contained in this Act, where the Board, the concerned Commissioner or any officer authorized by the Board in this behalf has reasons to believe that a registered person is engaged in issuing fake or flying invoices, claiming fraudulent input tax or refunds, does not physically exist or conduct actual business, or is committing any other fraudulent activity, the Board, concerned Commissioner or such Officer may after recording reasons in writing, block the refunds or input tax adjustments of such person and direct the concerned Commissioner having jurisdiction for further investigation and appropriate legal action.]

21A. Active taxpayers list

The Board shall have the power to maintain active taxpayers list in the manner as may be prescribed by rules and such rules may provide for the restrictions and limitations to be imposed on a person who ceases to be an active taxpayer.] Chapter-IV BOOK KEEPING AND INVOICING REQUIREMENTS

22. Records

(1) A registered person making taxable supplies shall maintain and keep at his business premises or registered office in English or Urdu language the following records of goods purchased 6[, imported] and supplied (including zero-rated and exempt 1 Sub Section (3) inserted by Finance Act, 2011 2 Words and figure omitted by Finance Act, 2013. 3 Sub section (4) inserted by Finance Act, 2013. 4 Section 21A inserted by Finance Act, 2015. 5 Section 22 substituted by Finance Act, 1996. 6 The comma and words inserted by Finance Act, 2005.

supplies) made 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 supplies made shall indicate the description, quantity and value of goods, name and address of the person to whom supplies were made and the amount of the tax charged;

(b) records of goods purchased shall show the description, quantity and value of goods, name, address and registration number of the supplier and the amount of the tax on purchases; 1[(c) records of goods imported shall show the description, quantity and value of goods and the amount of tax paid on imports;] 2[(d)] records of zero-rated and exempt supplies; 3[(da) double entry sales tax accounts;] 4[(e)] invoices, credit notes, debit notes, bank statements, 5[banking instruments in terms of section 73,] inventory records, 6[utility bills, salary and labour bills, rental agreements, sale purchase agreements and lease agreements]; 7[…] 8[(ea) Record relating to Gate passes, inward or outward and transport receipts.] 9[(f)] such other records as may be specified by the Board: 10[Provided that the persons paying 11[…] retail tax shall keep such record as may be specified by the Board.] 12[(1A) Notwithstanding anything in any other law for the time being in force, the Board may require, by notification in the official Gazette, a registered person or class of registered persons to declare and use only as many number of business bank accounts as may be specified by the Board in such notification to make or receive payments on account of 1 Clause (c) inserted by Finance Act, 2005. 2 Existing clause (c) re-lettered as clause (d) by Finance Act, 2005. 3 Clause (da) inserted by Finance Act, 2006. 4 Existing clause (d) re-lettered as clause (e) by Finance Act, 2005. 5 The words, comma and figure inserted by Finance Act, 2004. 6 The commas and words inserted by Finance Act, 1999. 7 The word “and” omitted by Finance Act, 2013. 8 Clause (ea) inserted by Finance Act, 2013. 9 Existing clause (e) re-lettered as clause (f) by Finance Act, 2005 10 Proviso substituted by the Finance Act, 1997. 11 The words “turnover tax or” omitted by Finance Act, 2005. 12 Sub-section (1A) inserted by Finance Act, 2007.

purchase and sale transactions for the purpose of this Act or rules made thereunder and to make payment of due tax from such accounts only.]

(2) The Board may, by notification in the official Gazette, specify for any class of taxable persons or any other person registered under this Act to keep such other records for the purposes of this Act. 1[(2A) The Board may, by notification in the Official Gazette, specify for any class of taxable persons registered under this Act to use such electronic fiscal cash registers as are approved by the Board in the manner as may be prescribed.] 2[(3) The Board may, by notification in the official gazette, prescribe the procedure or software for electronically maintenance of records, filing of sales tax returns or refunds and for any other matter or approve any software for electronic maintenance of records and filing of returns or refunds by a person or class of such persons.]] 3[(4) 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 due tax by the registered person.]

23. Tax Invoices

……………………………………………………………………………… 45

(1) A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars, namely: -

(a) name, address and registration number of the supplier;

(b) name 4[, address and registration number] of the recipient;

(c) date of issue of invoice;

(d) description and quantity of goods; 1 Sub-section (2A) inserted by Finance Act, 1999. 2 Sub Section (3) substituted by Finance Act, 2003. 3 Sub Section (4) inserted by Finance Act, 2007. 4 Substituted for “and address” by Finance Act, 1998.

(e) value exclusive of tax;

(f) amount of sales tax; and 1[(ff) ***]

(g) value inclusive of tax: 2[Provided that the Board may, by notification in the official Gazette, specify such modified invoices 3[…] for different persons or classes of persons: Provided further that not more than one tax invoice shall be issued for a taxable supply.] 4[(2) No person other than a registered person or a person paying 5[*** 6[***]] 7[retail tax] shall issue an invoice under this section. 8[(3) A registered person making a taxable supply may, subject to such conditions, restrictions and limitations as the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically and to the Board as well as to the 9[Commissioner], as may be specified.] 10[(4) The Board may, by notification in the Official Gazette, prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.]

24. Retention of record and documents for six years

…………………………… 46 A person, who is required to maintain any record or documents under this Act, shall retain the record and documents for a period of 8[Six] years after the end of the tax period to which such record or documents relate 3[or till such further period the final decision in any proceedings including 1 Clause (ff) omitted by Finance Act, 2004. 2 Proviso substituted by Finance Act, 1996. 3 Comma and words “, including replacement invoice,” omitted by Finance Act, 1997. 4 Sub Section (2) inserted by Finance Act, 1996. 5 Words “turnover tax or” omitted by Finance Act, 2004. 6 Words “or retailer tax” added by Finance Act, 1997. 7 Words inserted by Finance Act, 1997. 8 Sub section (3) inserted by Finance Act, 2005. 9 Substituted for “Collector” by Finance Act, 2010 10 Sub Section (4) inserted by Finance Act, 2007.

proceedings for assessment, appeal, revision, reference, petition and any proceedings before an alternative Dispute Resolution Committee is finalized].]

25. Access to record, documents, etc

…………………………………………… 47to47 5[(1) A person who is required to maintain any record or documents under this Act 6[or any other law] shall, as and when required by 5[Commissioner],produce record or documents which are in his possession or control or in the possession or control of his agent; and where such record or documents have been kept on electronic data, he shall allow access to [the officer of Inland Revenue authorized by the Commissioner] and use of any machine on which such data is kept.] 7[(2) The officer of Inland Revenue authorized by the Commissioner, on the basis of the record, obtained under sub-section (1), may, once in a year, conduct audit: Provided that in case the Commissioner has information or sufficient evidence showing that such registered person is involved in tax fraud or evasion of tax, he may authorize an officer of Inland Revenue, not below the rank of Assistant Commissioner, to conduct an inquiry or investigation under section 38: Provided further that nothing in this sub-section, shall bar the officer of Inland Revenue from conducting audit of the records of the registered person if the same were earlier audited by the office of the Auditor-General of Pakistan: 8[Provided also that audit under this section shall be conducted only once in every three years.] 9[(3)] After completion of Audit under this section or any other provision of this Act, the officer of Inland Revenue may, after obtaining the registered person’s explanation on all the issues raised in the audit shall pass an order under section (11) 1[***].] 1 Section (24) substituted by Finance Act, 1996. 2 Substituted for “Five” by Finance Act, 2010. 3 Words and Commas inserted by Finance Act, 2010. 4 Section (25) substituted by Finance Act, 1995. 5 Numbered by Finance Act, 2003 6 Words inserted by Finance Act, 1999. 7 Substituted for “Such Officer of Sales tax” by Finance Act, 2010 8 New proviso added by Finance Act, 2018. 9 Sub Section 3 substituted by Finance Act, 2010.

2[(4) ***] 3[(4A) ***] 4[ (5) Notwithstanding the penalties prescribed in section 33, if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with 5[default surcharge] voluntarily, whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him: Provided if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with [default surcharge] during the audit, or at any time before issuance of show cause notice 6[…] he may deposit the evaded amount of tax, 2[default surcharge] under section 34, and twenty five per cent of the penalty payable under section 33: Provided further that if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with 7[default surcharge] after issuance of show cause notice, he shall deposit the evaded amount of tax, 2[default surcharge] under section 34, and full amount of the penalty payable under section 33 and thereafter, the show cause notice, shall stand abated.] 8[Explanation.- For the purpose of sections 25, 38, 38A, 38B and 45A and for removal of doubt, it is declared that the powers of the Board, Commissioner or officer of Inland Revenue under these sections are independent of the powers of the Board under section 72B and nothing contained in section 72B restricts the powers of the Board, Commissioner or Officer of Inland revenue to have access to premises, stocks, accounts, records, etc. under these sections or to conduct audit under these sections.] 1 Words, figures and comma “or section 36, as the case may be” omitted by Finance Act, 2015. 2 Sub Section 4 omitted by Finance Act, 2010. 3 Sub Section (4A) expired. 4 Sub Section (5) inserted By Finance Act, 2003. 5 Substituted for “Additional Tax” by Finance Act, 2005 6 Words in lieu of Audit report omitted by Finance Act, 2010 7 Substituted for the words “additional tax” by Finance Act, 2005. 8 Explanation added by Finance Act, 2013.

25A. Drawing of samples

…………………………………………………………………. 49 25AA. Transaction between Associates…………………………………………………48 Chapter-V ………………………………………………………………………………………… 49 RETURNS ……………………………………………………………………………………….. 49 26. Return. …………………………………………………………………………………. 49to50 26A. Omitted ……………………………………………………………………………………. 52 26AA.Omitted……………………………………………………………………………..51 27. Special Returns. …………………………………………………………………………… 52 28. Final Return. ……………………………………………………………………………….. 52 29. Return deemed to have been made. ………………………………………………… 52 Chapter-VI ……………………………………………………………………………………….. 52 APPOINTMENT OF OFFICER OF SALES TAX & THEIR POWERS …. 53 30. Appointment of Authorities ……………………………………………………. 53to53 30A. Directorate General, (Intelligence and Investigation) Inland Revenue54 30B. Directorate General Internal Audit. ……………………………………………… 55 30C. Directorate General of Training and Research. ……………………………… 55 30D. Directorate General of Valuation. ……………………………………………….. 55 30DD. Directorate of Post Clearance Audit . ……………………………………….. 55 30DDD. Directorate General of Input Output Co-efficient Organization….55 30E. Powers and Functions of Directorate etc. ……………………………………… 55 31. Powers. ………………………………………………………………………………………. 56 32. Delegation of powers ……………………………………………………………………. 56 32A. Audit by Special Audit Panels ……………………………………………… 57to57 32AA. Omitted. ………………………………………………………………………………… 58 Chapter-VII ………………………………………………………………………………………. 58 OFFENCES AND PENALTIES …………………………………………………………. 58 33. Offences and penalties. …………………………………………………………… 58to64 34. Default Surcharge. ……………………………………………………………………….. 65 34A. Exemption from penalty and default surcharge. ……………………………. 66 35. Omitted. ……………………………………………………………………………………… 66 Where an authorized officer of 2[Inland Revenue] considers it necessary to take a sample of any goods or raw materials, for the purpose of determining their liability to sales tax or for the purpose of establishing their value or for any other reason, he may remove a minimum quantity of goods or raw materials sufficient to enable a proper examination or analysis to be made. At the time of taking the sample the person in possession of the goods shall be informed and given the opportunity to sign the representative samples, so drawn, and take a corresponding sample for his record. Any sample taken under this section shall be taken against a proper receipt a copy each of which shall be kept in the record by the registered person and the 3[Large Taxpayers Unit or Regional Tax Office, as the case may be].]

25AA. Transactions between Associates

The Commissioner or an office of Inland Revenue may, in respect of any transaction between persons who are associates, determine the transfer price of taxable supplies between the persons as is necessary to reflect the fair market value of supplies in an arm’s length transaction.] Chapter-V RETURNS

26. *** Return

(1) Every registered person 7[…] shall furnish not later than the due date a true and correct return in the prescribed form to a designated bank 1[or any other 1 Section 25A inserted by Finance Act, 1999. 2 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 3 Substituted for “Collectorate” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 4 Section (25AA) by Finance Act, 2010 w.e.f. june5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 5 Section 26 substituted by Finance Act, 1996 6 Word “monthly” omitted by Finance Act, 2006. 7 Words “making taxable supplies” omitted by Finance Act, 1999.

office] specified by the Board, indicating the purchases and the supplies made during a tax period, the tax due and paid and such other information, as may be prescribed 2[;] 3[Provided that the Board may, by notification in the official Gazette, require any person or class of persons to submit return on quarterly basis: Provided further that the Board may, by notification in the official Gazette, require any person or class of persons to submit such return as may be prescribed annually in addition to the monthly return or quarterly return: Provided also that the return filed electronically on the web or any magnetic media or any other computer readable media as may be specified by the Board shall also be deemed to be a return for the purpose of sub-section (1) and the Board may, by notification in the official Gazette, make rules for determining eligibility of the data of such returns and e- intermediaries who will digitize the data of such returns and transmit the same electronically under their digital signatures.] 4[…]

(2) 5[….] omitted 6[(3) A registered person may, subject to approval of the 7[Commissioner Inland Revenue] having jurisdiction, file a revised return within 8[one hundred and twenty] days of the filing of return under sub-section (1) or, as the case may be, sub-section (2), 9[ or under 1 Words inserted by Finance Act, 2006. 2 In the proposed amendment “a full stop is substituted for a colon” while colon is already appearing. 3 Proviso inserted by Finance Act, 2006. 4 Proviso omitted by Finance Act, 2006 5 Sub-section (2) omitted through Finance Act, 2016. 6 Sub section (3) substituted by Finance Act, 2006. 7 Substituted for collector of Sales tax by Finance Act, 2010 8 Substituted for “ninety” by Finance Act, 2008. 9 Words inserted by Finance Act, 2011.

clause (a) or clause (b) of section 27], to correct any omission or wrong declaration made therein.] 1[(4) Notwithstanding the penalties prescribed in section 33, if a registered person wishes to file revised return voluntarily along with deposit of the amount of tax short paid or amount of tax evaded along with 2[default surcharge], whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him: Provided that in case the registered person wishes to deposit the amount of tax as pointed out by the officer of 3[Inland Revenue] during the audit, or at any time before issuance of the show cause notice 4[…], he may deposit the evaded amount of tax, [default surcharge] under section (34), and twenty five percent of the penalty payable under section 33 along with the levied return: Provided further that in case the registered person wishes to deposit the amount after issuance of show cause notice, he shall deposit the evaded amount of sales tax 5[…],6[default surcharge] under section 34, and full amount of leviable penalty under section 33 along with the revised return and thereafter, the show cause notice, shall stands abated.] 7[(5) The Board may, by notification in the official Gazette, require any person or class of persons, for any goods of such description or class, to furnish such summary or details or particulars pertaining to the imports, purchases and supplies during any tax period or periods, in such format as may be specified.] 1 Subsection (4) inserted by Finance Act, 2003. 2 Substituted for “Additional Tax” by Finance Act, 2005 3 Substituted for “Sales tax” by Finance Act, 2010 4 Words “in lieu of the audit report” omitted by Finance Act, 2010 5 Words “etc alongwith the amount of further tax as per provision of sub section (1A) of section 3, if applicable omitted by Finance Act, 2004 Substituted for words “additional tax” by Finance Act, 2005. 7 Sub section (5) inserted by Finance Act, 2004.

1[26A. ***] 2[26AA. ***]

27. Special Returns

In addition to the return specified under section 26 -

(a) a person registered 4[ 5[ ] under this Act] shall furnish special return within such date and in such form indicating information such as quantity manufactured or produced, purchases made, goods supplied or payment of arrears made, etc, for such period as the Board may, by a notification in official gazette, specify; and

(b) the 6[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.]

28. Final Return

If a person applies for de-registration in terms of section 21, he shall before such de-registration, furnish a final return to the 8[commissioner] in the specified form in such manner and at such time as directed by the 9[commissioner]].

29. Return deemed to have been made

A return purporting to be made on behalf of a person 10[by his duly appointed representative] shall, for all purposes, be deemed to have been made by such person or under his authority unless proved to the contrary. Chapter-VI 1 Section 26 A omitted by Finance Act, 2004. 2 Section 26AA omitted by Finance Act, 2008. 3 Section 27 substituted by the Finance Ordinance, 2000. 4 Substituted for words and figure “under section 14” by sales tax (Amendments) Ordinance, 2000, dated September 05, 2000. 5 Words “or enrolled” omitted by Finance Act, 2004. 6 Substituted for “Collector” by Finance Act, 2010 7 Section 28 substituted by Finance Act, 1996. 8 Substituted for “Collector” by Finance Act, 2010 9 Substituted for “Collector” by Finance Act, 2010 10 Words inserted by Finance Act, 1996.

APPOINTMENT OF 1[OFFICERS OF SALES TAX] & THEIR POWERS

30. Appointment of Authorities

(1) For the purposes of this Act, the Board may, appoint in relation to any area, person or class of persons, any person to be - Assistant Director Audit Inland Revenue;] an Inland Revenue Auditor Officer 5[…]; 6[(ia) (j) an officer of Inland Revenue with any other designation.

(2) The Chief Commissioner Inland Revenue and Commissioner Inland Revenue (Appeals) shall be sub-ordinate to the Board and Commissioner Inland Revenue shall be sub- ordinate to the Chief Commissioner Inland Revenue.

7[(2A) The Chief Commissioners Inland Revenue shall perform their functions in respect of such persons or classes of persons or such areas as the Board may direct.

1 Any reference to the “Sales Tax Officer” shall be construe as reference to an “Officer of “Inland Revenue” by virtue of section 72 of the Sales Tax Act, 1990.

2 Section 30 substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, Published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at Pages 229 to 259. Earlier it was substituted by Finance Act, 1996.

3 Clause (ea) inserted through Finance Act, 2017 4 Clause (fa) inserted through Finance Act, 2017 5 Word “and” omitted by Finance Act, 2011.

6 Clause “(ia)” inserted by Finance Act, 2011

7 Sub-sections (2A) & (2B) inserted through Finance Act, 2017

5(2B) The Commissioners Inland Revenue shall perform their functions in respect of such persons or classes of persons or such areas as the Chief Commissioner, to whom they are sub-ordinate, may direct.]

(3) Additional Commissioner Inland Revenue, Deputy Commissioners Inland Revenue 1[, District Taxation Officer Inland Revenue], Assistant Commissioner Inland Revenue 6[, Assistant Director Audit Inland Revenue], Superintendent Inland Revenue, Inland Revenue Audit Officer, Inland Revenue Officer 2[, Inspector Inland Revenue], and officer of Inland Revenue with any other designation shall be sub-ordinate to the Commissioner Inland Revenue and shall perform their functions in respect of such persons or classes of persons or such areas as the Commissioners, to whom they are sub ordinate, may direct.

(4) Deputy Commissioner Inland Revenue 3[, District Taxation Officer Inland Revenue], Assistant Commissioner Inland Revenue 1[, Assistant Director Audit Inland Revenue], Superintendent Inland Revenue, Inland Revenue Audit Officer, Inland revenue Officer, 4[Inspector Inland Revenue Officer] an officer of Inland Revenue with any other designation shall be sub-ordinate to the Additional Commissioner Inland Revenue.]

30A. Directorate General (Intelligence and Investigation), Inland Revenue

(1) The Directorate General (Intelligence and Investigation) Inland Revenue shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the Board may, by notification in the official Gazette, post.

(2) The Board may, by notification in the official Gazette,-

(a) specify the functions and jurisdiction of the Directorate General and its officers; and

(b) confer the powers of authorities specified in section 30 upon the Directorate General and its officers.] 1 Expressions inserted through Finance Act, 2017 2 Comma and words inserted by Finance Act, 2011. 3 Expression inserted through Finance Act, 2017 4 Comma and words inserted by Finance Act, 2011 5 Section 30A substituted by Finance Act, 2018.

30B. Directorate General … Internal Audit

The Directorate General 2[…] Internal Audit shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the Board, may by notification in the official Gazette, appoint.

30C. Directorate General of Training and Research

-The Directorate General of Training and Research shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the Board, may by notification in the official Gazette, appoint.

30D. Directorate General of Valuation

-The Directorate General of Valuation 5[…] shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the Board, may by notification in the official Gazette, appoint.

30DD. Directorate of Post Clearance Audit

The Directorate of Post clearance Audit shall consist of a Director and as many Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

30DDD. Directorate General of Input Output Co-efficient Organization

The Directorate General of Input Output Coefficient Organization (IOCO)-Inland Revenue shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]

30E. Powers and Functions of Directorate, etc

The Board may, by notification in the official Gazette, specify the functions, jurisdiction and powers of the Directorates 1 Section 30B inserted by Finance Act, 2005. 2 Words “of inspection and” omitted by Finance Act, 2007. 3 Section 30C inserted by Finance Act, 2005. 4 Section 30D inserted by Finance Act, 2005. 5 Words “and Post Clearance Audit” omitted by Finance Act, 2007. 6 Section 30DD inserted by Finance Act, 2007. 7 New section 30DDD added through Finance Act, 2016. 8 Section 30E inserted by Finance Act, 2005.

General as specified in the preceding sections and their officers by notification in the official Gazette.]

31. Powers

An officer of 1[Inland Revenue] appointed under section 30 shall exercise such powers and discharge such duties as are conferred or imposed on him under this Act; and he shall also be competent to exercise all powers and discharge all duties conferred or imposed upon any officer subordinate to him: Provided that, notwithstanding anything contained in this Act or the rules, the Board may, by general or special order, impose such limitations or conditions on the exercise of such powers and discharge of such duties as it deems fit.

32. Delegation of powers

3[(1) The Board or the Chief Commissioner, with the approval of the Board, may, by an order and subject to such limitations or conditions as may be specified therein, empower by name or designation - [(a) any Additional Commissioner Inland Revenue or Deputy Commissioner Inland Revenue to exercise any of the powers of a Commissioner Inland Revenue under this Act; and

(b) any Deputy Commissioner Inland Revenue or Assistant Commissioner Inland Revenue to exercise any of the powers of an Additional Commissioner Inland Revenue under this Act;

(c) any Assistant Commissioner Inland Revenue to exercise any of the powers of a Deputy Commissioner Inland Revenue under this Act; and

(d) any other officer of Inland Revenue to exercise any of the powers of an Assistant Commissioner Inland Revenue under this Act.] 4[(2) ***]

(3) The officer to whom any powers are delegated under this section shall not further delegate such powers.] 1 Substituted for “sales tax” by Finance Act, 2010 w.e.f June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No.III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259 2 Section 32 substituted by Finance Act, 1996. 3 Sub Section (1) substituted by Finance Act, 2010 w.e.f. June 5, 2010. Earlier clause (a) to (d) substituted by Finance (2) omitted by the Finance Act, 2010 4 Sub Section (2) omitted by the Finance Act, 2010.

1[32A. 2[Audit by Special Audit Panels]. 3[(1) The Board may appoint as many special audit panels as may be necessary, comprising two or more members from the following, -

(a) an officer or officers of Inland Revenue;

(b) a firm of chartered accountants as defined under the Chartered Accountants Ordinance, 1961 (X of 1961);

(b) a firm of cost and management accountants as defined under the Cost and Management Accountants Act, 1966 (XIV of 1966); or

(d) any other person as directed by the Board, to conduct audit of a registered person or persons, including audit of refund claims and forensic audit and the scope of such audit shall be determined by the Board or the Commissioner Inland Revenue on a case-to-case basis. In addition, the Board may, where it considers appropriate, also get such audit conducted jointly with similar audits being conducted by provincial administrations of sales tax on services.]

(2) Notwithstanding that records of a registered person have been audited by an officer appointed under section 30, the Board or a 4[Commissioner] may direct 5[special audit panel] appointed under sub-section (1) to audit the records of any registered person.

(3) 6[Every member of special audit panel] appointed under sub-section (1), shall have the powers of an officer of 7[Inland Revenue] under sections 25, 37 and 38. 1 Section 32A inserted by Finance Act, 1998. 2 Substituted for the words “Special Audit by Chartered Accountants or Cost Accountants” by Finance Act, 2015 3 Substituted for sub-section (1) by Finance Act, 2015 4 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259. 5 Substituted for the words “an auditor” by Finance Act, 2015 6 Substituted for the words “An Auditor” by Finance Act, 2015 7 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010.The same was made by Finance (Amendment) Ordinance, 2010, promulgated as ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part-I at Pages 229 to 259.

1[(4) Each special audit panel shall be headed by a chairman who shall be an officer of Inland Revenue.

(5) If any one member of the special audit panel, other than the chairman, is absent from conducting an audit, the proceedings of the audit may continue and the audit conducted by the special audit panel shall not be invalid or be called in question merely on the ground of such absence.

(6) The Board may prescribe rules in respect of constitution, procedure and working of special audit panel.] 2[32AA. ***] Chapter-VII OFFENCES AND PENALTIES

33. Offences and penalties

4[…] Whoever commits any offence described in column (1) 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 (2) thereof: - TABLE Offences Penalties Section of the Act to which offence has reference

(1) (2) (3) 1. Where any person Such person shall pay a penalty of five 26 1 Sub-sections (4), (5) and (6) inserted by Finance Act, 2015. 2 Section 32 AA omitted by Finance Act, 2008, earlier it was inserted by Tax Laws Amendment Ordinance, 2000, dated may 24, 2000. 3 Section 33 substituted by Finance Act, 2005. 4 Bracket and figure “one” omitted by Finance Act, 2008.

fails to furnish a thousand rupees: return within the due date. Provided that in case a person files a return within 1[ten] days of the due date, he shall pay a penalty of one hundred rupees for each day of default. 2. Any person who fails Such person shall pay a penalty of five 23 to issue an invoice thousand rupees or three per cent of when required under the amount of the tax involved, this Act. whichever is higher. 3. Any person who un- Such person shall pay a penalty of ten 3, 7 and 23 authorizedly issues an thousand rupees or five per cent of the invoice in which an amount of the tax involved, whichever amount of tax is is higher. specified. 4. Any person who fails Such person shall pay a penalty of five 14 to notify the changes thousand rupees. of material nature in the particulars of registration of taxable activity. 5. Any person who fails Such person shall pay a penalty of ten 3, 6, 7 and 48 to deposit the amount thousand rupees or five per cent of the of tax due or any part amount of the tax involved, whichever thereof in the time or is higher: manner laid down under this Act or rules Provided that, if the amount of tax or or orders made there any part thereof is paid within 2[ten] under. days from the due date, the defaulter shall pay a penalty of five hundred rupees for each day of default: Provided further that no penalty shall be imposed when any miscalculation is made for the first time during a year: Provided further that if the amount of tax due is not paid even after the expiry of a period of sixty days of issuance of the notice for such payments by an officer of 3[Inland Revenue, not below the rank of Assistant Commissioner Inland Revenue], the defaulter shall, further be 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 1 Substituted for the word “fifteen” by Finance Act, 2015 2 Substituted for the word “fifteen” by Finance Act, 2015 3 Substituted for “Sales tax”, not below the rank of Assistant Collector of sales tax” by Finance Act, 2010

involved, or with both. 6. Any person who Such person shall pay a penalty of five 7 and 26 less than the actual tax due is paid. 7. Any person who is Such person shall pay a penalty of ten 14 involved, or with both.

8. Any person who fails Such person shall pay a penalty of ten 22 and 24 under. 9. Where a registered such person shall pay a penalty of five 25 such person shall pay a penalty of fifty thousand rupees.

first notice;

second notice; and third notice. 10. Any person who fails Such person shall pay a penalty of ten 26 by the Board through

under sub-section (5) of section 26. 11. Any person who, - Such person shall pay a penalty of 2(37) and General (a) submits a false or hundred per cent of the amount of tax for a term which may extend to three

(b) destroys, alters, years, or with fine which may extend

any false information forged or false. 12. Any person who Such person shall pay a penalty of 25, 38 , 4[38A and 40B]

accounts or records or 3[38A or 40B]. 13. Any person who Such person shall pay a penalty of 2(37)

1 Any reference to “officer of Sales Tax” shall be construed as reference to an ‘officer of Inland Revenue” by virtue of Section 72A of the Sales Tax Act, 1990.

2 Substituted for the words “Sales Tax” by the Finance Act, 2010

3 Substituted for “or 38A” by Finance Act, 2009

4 Substituted for “or 38A” by Finance Act, 2009

years, or with fine which may extend involved, or with both. 14. Where any person Such person shall pay a penalty of 48

15. Any person who Such person shall pay a penalty of 31 and General his official duties. 16. Any person who fails Such person shall pay a penalty of five 73 this Act. 17. Any person who fails Such person shall pay a penalty of five 71 and General provisions of this Act. 18. Where any officer of Such officer of 2[Inland Revenue] shall General 1[Inland any such act. 19. Any person who Such person shall pay a penalty of five General.]

1 Words “Sales Tax” substituted for Inland Revenue by Finance (Amended) Ordinance, 2010.

2 Substituted for “Sales Tax” by Finance Act, 2010

which no penalty has, section. 3[21. Where any person Such person shall pay twice the General. this Act 22. Any person who,- Such person shall pay a penalty of 50A.] (a) knowingly and hundred per cent of the amount of tax year, or with fine which may extend to

(b) unauthorizedly otherwise disseminates information obtained from the computerized system; or information stored computerized system; or dishonestly

1 Words added through Finance Act, 2016. 2 Serial No. 20 omitted by Finance Act, 2008.

3 Serial No. 21 and 22 inserted by Finance Act, 2006.

computerized system; or dishonestly medium on which any information obtained from the computerized stored; or

(f) unauthorizedly user to authenticate computerized system; or

(g) fails to comply contravenes any of the conditions security of unique user identifier. 1[23. Any person who (i) Such cigarette stock shall be 40C(2)]

1 S.No. 23 and entries relating thereto in columns (1), (2) and (3) inserted through Finance Act, 2017

vehicle used for transportation of non- packs; and counterfeited, tax stamps, banderoles, premises used for such sale be sealed for a period not exceeding fifteen days.

34. Default Surcharge

(1) Notwithstanding the provisions of section 11, if a registered person does not pay the tax due or any part thereof, whether wilfully or otherwise, in time or in the manner specified under this Act, rules or notifications issued thereunder or claims a tax credit, refund or makes an adjustment which is not admissible to him, or incorrectly applies the rate of zero per cent to supplies made by him, he shall, in addition to the tax due, pay default surcharge at the rate mentioned below:- 2[…] the

(a) person liable to pay any amount of tax or charge or the amount of refund erroneously made, shall pay default surcharge at the rate of 3[twelve per cent per annum], of the amount of tax due or the amount of refund erroneously made; 4[and]

5[(b) (c) 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 or the amount of refund fraudulently claimed, till such time the entire liability including the amount of default surcharge is paid.

(2) For the purpose of calculation of default surcharge, -

1 Section 34 substituted by Finance Act, 2005. Earlier it was also substituted by Finance Act, 1996.

2 Words and comma “for the first six months of default,” omitted by Finance Act, 2008.

3 Words twelve substituted by Finance Act, 2018. 4 Word inserted by Finance Act, 2008.

5 Clause (b) omitted by Finance Act, 2008.

(a) in the case of inadmissible input tax credit or refund, the period of default shall be reckoned from the date of adjustment of such credit or, as the case may be, refund is received; and

(b) in the case of non-payment of tax or part thereof, the period of default shall be reckoned from the 16th day of a month (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 the purpose of this section tax due does not include the amount of penalty.

34A. Exemption from penalty and default surcharge

-The Federal Government may, by a notification in the official Gazette, or the 3[Board] by a special order published in Gazette for reasons to be recorded in writing, exempt any person or class of persons from payment of the whole or part of the penalty and 4[default surcharge] imposed under sections 33 and 34 subject to such conditions and limitations as may be specified in such notification or, as the case may be, special order.] 5[35. ***] 6[35A. ***] 1 Section 34A substituted by Finance Ordinance 2001. Earlier it was inserted by Sales Tax (Amendment) Act, 1999 which comes into force from the first day of December, 1998. Earlier the same was amendment was made by Sales Tax (Second Amendment) Ordinance, 1988, dated 01-12-1998. 2 Substituted for “additional tax” by Finance Act, 2005 3 Substituted for “Central Board of revenue” by Finance Act, 2007 4 Substituted for “additional tax” by Finance Act, 2005 5 Section 35 omitted by Finance Act, 1996. 6 Section 35A omitted by Finance Act, 1996. Earlier it was inserted by Finance Act, 1992.

1[36. ***]

37. Power to summon persons to give evidence and produce documents in inquiries under the Act

(1) Any officer of 2[Inland Revenue] shall have powers to summon any person whose attendance he considers necessary either to tender evidence or to produce documents or any other thing in any inquiry which such officer is making for any of the purposes of this Act.

(2) Any person summoned under sub-section (1) shall be bound to attend either in person or by an authorised agent, as the officer of 4[Inland Revenue] may direct; Provided that a person who is exempted from personal appearance in a court under section 132 and 133 of the Code of Civil Procedure (Act V of 1908), shall not be required to appear in person.

(3) Any inquiry before an officer of 3[Inland Revenue] shall be deemed to be a judicial proceeding within the meaning of section 193 and 4[228] of the Pakistan Penal Code (Act XLV of 1860).

37A. Power to arrest and prosecute

• (1) An officer of 6[Inland Revenue not below the rank of an Assistant Commissioner of Inland Revenue] or any other officer of equal rank authorised by the 7[Board] in this behalf, who on the basis of material evidence has reason to 1 Section 36 omitted by Finance Act, 2012. Earlier it was substituted by Finance Act, 1996. Before this it was substituted by the Finance Act, 1994. 2 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 3 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 4 Substituted for the figure “223” by Finance Act, 1994 5 Section 37A substituted by Finance Act, 1996. 6 Substituted for “sales tax”, not below the rank of an Assistant Collector of Sales tax by Finance Act, 2010 w.e.f June 5, 2010, the same amendment was made by Finance (amendment) Ordinance, 2010, promulgated as Ordinance No.III of 2010, dated February 6, 2010, published in the Official Gazette of Pakistan Extraordinary part I at pages 23 to 53. 7 Substituted for “Central Board of Revenue” by Finance Act, 2007

believe that any person has committed a tax fraud 1[or any offence warranting prosecution under this Act] 2[…], 3[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 (Act V of 1898). 4[(3) ***]

(4) Notwithstanding anything contained in sub-section (1) to subsection (3) or any other provision of this Act, where any person has committed a tax fraud 5[or any offence warranting prosecution under this Act], the 6[Commissioner] may, either before or after the institution of any proceedings for recovery of tax, compound the offence if such person pays the amount of tax due along with such 7[default surcharge] and penalty as is determined under the provisions of this Act.

(5) Where the person suspected of tax fraud 8[or any offence warranting prosecution under this Act] is a company, every director or officer of that company whom the authorised officer has reason to believe is personally responsible for actions of the company contributing the tax fraud 9[or any offence warranting prosecution under this Act] shall be liable to arrest; provided that any arrest under this sub-section shall not absolve the company from the liabilities of payment of tax, 10[default surcharge] and penalty imposed under this Act.] 1 Words inserted by Finance Act, 2007. 2 Words “in respect of a supply or supplies made by him” omitted by Finance Act, 2007. 3 Substituted for the words “may arrest such person” by Finance Act, 2003 4 Sub-section (3) omitted by Finance Act, 2005. 5 Words inserted by Finance Act, 2007. 6 Substituted for “Collector” by Finance Act, 2010 w.e.f. june5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 7 Substituted for “additional tax” by Finance Act, 2005 8 Words inserted by Finance Act, 2007. 9 Words inserted by Finance Act, 2007. 10 Substituted for “additional tax” by Finance Act, 2005

37B. Procedure to be followed on arrest of a person

• (1) When a Sales Tax Officer authorized in this behalf arrests a person under Section 37A, he shall immediately intimate the fact of the arrest of that person to the Special Judge who may direct such Officer to produce that person at considers such time and place and on such date as the Special Judge considers expedient and such Officer shall act accordingly.

(2) Notwithstanding anything contained in the 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 Judicial 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, as the case may be, of such Magistrate.

(3) When any person is produced under sub-section (2) before the Special Judge, he 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: Provided that nothing herein contained 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 considered that the affording of such opportunity shall defeat the purposes of this Act.

(4) When such person is produced under sub-section (2) before a Judicial Magistrate, such Magistrate may, after authorising 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. 1 Section 37B inserted by Finance Act, 1995.

(5) Nothing in sub-section (3) or sub-section (4) shall preclude the Special Judge or the Judicial Magistrate from remanding any such person to the custody of the Sales Tax Officer holding inquiry against that person if such officer makes a request in writing to that effect, and the Special Judge or the Judicial 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: Provided that in no case the period of such custody shall exceed fourteen days.

(6) When any person is arrested under this Act, the Sales Tax Officer shall record the fact of arrest and other relevant particulars in the register specified in sub-section (10) 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, excluding the time necessary for journey as aforesaid, he may, after producing such person before the Special Judge or the nearest Judicial Magistrate, make a request for his further detention in his custody.

(7) While holding an inquiry under sub-section (6), the Sales Tax Officer shall exercise the same powers as are exercisable by an officer in charge of a police station under the Code of Criminal Procedure, 1898 (Act 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.

(8) If the Sales Tax Officer, after holding an inquiry as aforesaid, 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.

(9) 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.

(10) Sales Tax Officer empowered to hold inquiry under this section shall maintain a register to be called “Register of Arrests and Detentions” in the prescribed form 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 aforesaid entries shall be produced before the Special Judge, whenever such Officer is so directed by him.

(11) After completing the inquiry, the Sales Tax Officer shall, as early as possible, submit to 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.

(12) Magistrate of the first class may record any statement or confession during inquiry under this Act, in accordance with the provisions of Section 164 of the Code of Criminal Procedure, 1898 (Act V of 1898).

(13) Without prejudice to the foregoing provisions of this section, the Federal Government may, by notification in the official Gazette, authorize any other officer working under the 1[Board] to exercise the powers and perform the functions of a Sales Tax Officer under this section, subject to such conditions, if any, that it may deem fit to impose.]

37C. Special Judges

(1) The Federal Government may by notification in the official Gazette, appoint as many Special Judges as it considers necessary and, where it appoints more than one Special Judge, it shall specify in the notification the headquarter of each Special Judge and the territorial limits within which he shall exercise jurisdiction under this Act. 1 Substituted for “Central Board of Revenue” by Finance Act, 2007 2 Section 37C inserted by Finance Ac, 2010 earlier a different section 37C was omitted by Finance Act, 2005 which was inserted by Finance Act, 1997.

(2) No person shall be appointed as a Special Judge unless he is or has been a Sessions Judge.]

37D. Cognizance of Offences by Special Judges

(1) Notwithstanding anything contained in this Act or any other law for the time being in force, a Special Judge may, within the limits of his jurisdiction, take cognizance of any offence punishable under this Act:

(a) Upon a report in writing made by an officer of Inland Revenue or by any other officer especially authorized in this behalf by the Federal Government; or

(b) Upon receiving a complaint or information of facts constituting such offence made or communicated by any person; or

(c) Upon his own knowledge acquired during any proceeding before him under this act or under any other law for the time being in force.

(2) Upon the receipt of report under clause (a) of sub-section (1), the Special Judge shall proceed with trial of the accused.

(3) Upon the receipt of a complaint or information under clause (b), or acquired in the manner referred to in clause (c) of sub-section (1), the Special Judge may, before issuing a summon or warrant for appearance of the person complained against, hold a preliminary inquiry for the purpose of ascertaining the truth or falsehood of the complaint, or direct any magistrate or any officer of Inland Revenue or any police officer to hold such inquiry and submit a report, and such Magistrate or officer shall conduct such inquiry and make report accordingly.

(4) If, after conducting such inquiry or after considering the report of such Magistrate or officer, the Special Judge is of the opinion that- -

(a) there is no sufficient ground for proceeding, he may dismiss the complaint, or

(b) there is sufficient ground for proceeding, he may proceed against the person complained against in accordance with law. 1 Section 37D to 371 inserted by Finance Act, 2010.

(5) A special Judge or a Magistrate or an officer holding inquiry under sub-section

(3) may hold such inquiry, as early as possible, in accordance with the provision of section 202 of the Code of Criminal Procedure, 1898 (Act V of 1898).

37E. Special Judge, etc. to have exclusive jurisdiction

Notwithstanding anything contained in this Act or in any other law for the time being in force,-

(a) no court other than the Special Judge having jurisdiction, shall try an offence punishable under this Act;

(b) no other court or officer, except in the manner and to the extent specifically provided for in this Act, shall exercise any power, or perform any function under this Act;

(c) no court, other than the High Court, shall entertain, hear or decide any application, petition or appeal under chapters XXXI and XXXII of the Code of Criminal Procedure, 1898 (Act V of 1898), against or in respect of any order or direction made under this Act; and

(d) no court, other than the Special Judge or the High Court, shall entertain any application or petition or pass any order or give any direction under chapters XXXVII, XXXIX, XLIV or XLV of the aforesaid Code.]

37F. Provisions of Code of Criminal Procedure, 1898, to apply

(1) The provision of the Code of Criminal procedure, 1898 (Act V of 1898), so far as they are not inconsistent with the provisions of this Act, shall apply to the proceedings of the court of a Special Judge and such court shall be deemed to be a court of Sessions for the purpose of the said Code and the provisions of Chapter XXIIA of the foresaid Code, so far as applicable and with the necessary modifications, shall apply to the trial of cases by the Special Judge under this Act.

(2) For the purposes of sub-section (1), the Code of Criminal Procedure, 1898 (Act V of 1898), shall have effect as if an offence punishable under this Act were one of the offences referred to in sub-section (1) of section 337 of the said Code.

37G. Transfer of cases

(1) Where more than one Special Judge are appointed within the territorial jurisdiction of a High Court, the High Court, and where not more than one Special Judge is so appointed, the Federal Government, may by order in writing direct the transfer, at any stage of the trial, of any case from the court of one Special Judge to the Court of another Special Judge for disposal, whenever it appears to the High Court or, as the case

may be, the Federal Government, that such transfer may promote the ends of justice or tend to the general convenience of the parties or witnesses.

(2) In respect of a case transferred to a Special Judge under sub-section (1), such Special Judge shall not by reason of the said transfer, be bound to recall and rehear any witness whose evidence has been recorded in the case before the transfer and may act upon the evidence already recorded or produced before the court which tried the case before the transfer.]

37H. Place of Sittings

A Special Judge shall ordinarily hold sittings at his headquarters but, keeping in view the general convenience of the parties or the witnesses, he may hold sittings at any other place.

37I. Appeal to the High Court

(1) Any person, including the Federal Government, the Board, the Commissioner or Director of Intelligence and Investigation or any other officer authorized in this behalf by the Board, aggrieved by any order passed or decision made by a Special Judge under this Act or under the Code of Criminal Procedure, 1898 (Act V of 1898), may, subject to the provisions of Chapters XXXI and XXXII of the said Code, within Sixty days from the date of the order or decision, prefer an appeal to the High Court.

(2) Except as otherwise provided in sub-section (1), the provisions of the Limitation Act, 1908 (IX of 1908), shall apply to an appeal preferred under sub-section (1).] 1[38. Authorised officers to have access to premises, stocks, accounts and records - (1) Any officer authorised in this behalf by the Board 2[or the Commissioner 3[***]] shall have free access to business or manufacturing premises, registered office or any other place where any stocks, business records or documents required under this Act are kept or maintained belonging to any registered person or a person liable for registration or whose business activities are covered under this Act 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 goods, stocks, records, data, documents, correspondence, accounts and 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 1 Section 38 Substituted by Finance Act, 1996. 2 Words inserted by Finance Act, 2010 w.e.f. June 5, 2010. 3 The words “or the Collector” were omitted by Finance Act, 2009.

documents, including those which are required under any of the Federal, Provincial or local laws maintained in any form or mode and may take into his custody such records, statements, diskettes, documents or any part thereof, in original or copies thereof in such form as the authorised officer may deem fit against a signed receipt.

(2) The registered person, his agent or any other person specified in sub-section

(1) shall be bound to answer any question or furnish such information or explanation as may be asked by the authorised officer.

(3) The department of’ direct and indirect taxes or any other Government department, local bodies, autonomous bodies, corporations or such other institutions shall supply requisite information and render necessary assistance to the authorised officer in the course of inquiry or investigation under this section.]

38A. Power to call for information

The 2[Commissioner] may, by notice in writing, require any person, including a banking company, to furnish such information or such statement in connection with any investigation or inquiry in cases of tax fraud, as may be specified in such notice 3[:]] 4[Provided that the 5[Commissioner] may require any regulatory authority to provide information concerning the licenses and authorizations issued by it.]

38B. Obligation to produce documents and provide information

(1) Notwithstanding anything contained in this Act or any other law for the time being in force, any person 1 Section 38A inserted by Finance Act, 2004. 2 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 3 Substituted for full stop by Finance Act, 2007 4 Proviso inserted by Finance Act, 2007. 5 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010

required to maintain the record under the Act, on demand by an officer, not below the rank of 2[an Assistant] 3[Commissioner Inland Revenue] , by notice in writing, as and when specified in the notice, shall,-

(a) produce for examination, such documents or records which the officer of 4[Inland Revenue] considers necessary or relevant to the audit, inquiry or investigation under the Act;

(b) allow the officer of 5[Inland Revenue] to take extracts from or copies of such documents or records; and

(c) appear before the officer of 6[Inland Revenue] and answer any question put to him concerning the documents and records relating to the audit or inquiry or investigation referred to in clause (a) above.

(2) An officer of 7[Inland Revenue] conducting an audit, inquiry or, as the case may be, an investigation under the Act, 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 of 8[Inland Revenue], is relevant to such audit, inquiry or investigation.

(3) The Board may require, in writing, any person, department, company or organization, as the case may be, to provide any information or data held by that person, department, company or organization, which, in the opinion of the Board, is required for purposes of formulation of policy or administering the Customs, Sales Tax, Federal Excise or Income Tax.

(4) Every person, department, company or organization shall furnish the information requisitioned by the Board or the officer of Sales Tax under sub-section (2) or 1 Section 38B inserted by Finance Act, 2006. 2 Substituted for “a Deputy” by Finance Act, 2011 3 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 4 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 5 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 6 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 7 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 8 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010

(3), within the time specified in the notice issued by the Board or, as the case may be, the officer of 1[Inland Revenue].] 2[39. ***]

40. Searches under warrant

(1) Where any officer of 4[Inland Revenue] 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, enter that place and cause a search to be made at any time. 2) The search made 5[in his presence] under sub-section (1) shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (V of 1898).] 6[40A. ***]

40B. Posting of Inland Revenue Officer

Subject to such conditions and restrictions, as deemed fit to impose, the 8[Board], 9[omitted..] may post Officer of 6[Inland Revenue] to the premises of registered person or class of such persons to monitor production, sale of taxable goods and the stock position 10[.] 11[omitted..]

40C. Monitoring or Tracking by Electronic or other means

(1) Subject to such conditions, restrictions, and procedures, as it may being fit to impose or specified, the Board may, by notification in the official Gazette, specify any registered person or class of 1 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 2 Section 39 omitted by Finance act, 1996. 3 Section 40 substituted by Finance Act, 2004. 4 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 5 The word and comma, inserted by the Finance Act, 2005 6 Section 40A omitted by Finance Act, 2006. 7 Section 40B inserted by Finance Act, 2003. 8 Substituted for “Central Board of revenue” by Finance Act, 2007 9 Words “or Chief Commissioner” omitted by Finance Act, 2018. 10 Colon omitted and full stop inserted by Finance Act, 2018. 11 Proviso and explanation omitted by Finance Act, 2018. 12 Section 40C inserted by Finance Act, 2013.

registered persons or any good or class of goods in respect of which monitoring or tracking of production, sales, clearances, stocks or any other related activity may be implemented through electronic or other means as may be prescribed

(2) From such date as may be prescribed by the Board, no taxable goods shall be removed or sold by the manufacturer or any other person without affixing tax stamp, bandrole stickers, labels, 1[barcodes,] etc. in any such form, style and manner as may be prescribed by the Board in this behalf.] 2[(3) Such tax stamps, banderols, stickers, labels, barcodes etc., shall be acquired by the registered person referred to in sub-section (2) from a licensee appointed by the Board for the purpose, against price approved by the Board, which shall include the cost of equipment installed by such licensee in the premises of the said registered person.] 3[41. *** 42. ***] Chapter-VIII 4[APPEALS] 5[43. *** 44. ***] 6[45. ***]

45A. Power of the Board and Commissioner to call for records

• (1) The Board may, of its own motion 3[, or otherwise] call for and examine the record of any 1 Word and comma inserted by Finance Act, 2015 2 Sub-section (3) added by Finance Act, 2015. 3 Sections 41 and 42 omitted by Finance Act, 1996 4 Heading of chapter Adjudication substituted for cases by finance act 1996 5 Sections 43 and 44 omitted by Finance Act, 1996 6 Section 45 omitted by Finance Act, 2010 7 Section 45A added by Finance Act, 1993.

departmental proceedings under this Act or the rules made there under for the purpose of satisfying itself as to the legality or propriety of any decision or order passed therein by an Officer of 4[Inland Revenue], it may pass such order as it may think fit: Provided that no order imposing or enhancing any penalty or fine requiring payment of a greater amount of [Sales Tax] than the originally levied shall be passed unless the person affected by such order has been given an opportunity of showing cause and of being heard.

(2) No proceeding under 5[this section] shall be initiated in a case where an appeal under Section 6[45B] or Section 46 is pending.

(3) No order shall be made under this Section after the expiry of 7[five] years from the date of original decision or order of the sub-ordinate officer referred to in sub-section (1). 8[(4) The 9[Commissioner] may, suo moto, call for and examine the record of any proceeding under this Act or the rules made thereunder for the purpose of satisfying himself as to the legality or propriety of any decision or order passed by an officer of 10[Inland Revenue] subordinate to him, and pass such order as he may deem fit.]] 1 Substituted for “Collector and Collector (Adjudication)” by Finance Act, 2005. Earlier these were substituted for “and Collector” by Finance Act, 2003. 2Substituted for “Collector” by Finance Act, 2010 w.e.f. June 05, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extra Ordinary Part I at pages 229 to 259. 3 Words inserted by Finance Act, 2015. 4 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 5 Substituted for “sub-section (1)” by Finance Act, 2008 6 Substituted for the figure “45” by Finance Ordinance, 2002 7 Substituted for “three” by Finance Ordinance, 2000 8 Sub-section (4) substituted by Finance Act, 2005 9 Substituted for the word “Collector” by Finance Act, 2010 10 Substituted for the words “Sales Tax” by Finance, Act, 2010

45B. Appeals

2[(1) Any person, other than the Sales Tax Department, aggrieved by any decision or order passed under sections 10, 11, 25, 36, or 66, by an officer of Inland Revenue may, within thirty days of the date of receipt of such decision or order, prefer appeal to the Commissioner Inland Revenue (Appeals): Provided that an appeal preferred after the expiry of thirty days may be admitted by the Commissioner Inland Revenue (Appeals) if he is satisfied that the appellant has sufficient cause for not preferring the appeal within the specified period: Provided further that the appeal shall be accompanied by a fee of one thousand rupees to be paid in such manner as the Board may prescribe.] 3[(1A) Where in a particular case, the Commissioner (Appeals) is of the opinion recovery of tax levied under this act, shall cause undue hardship to the taxpayer, he, after affording opportunity of being heard to the commissioner or officer of Inland revenue against whose orders appeal has been made, may stay the recovery of such tax for a period not exceeding thirty days in aggregate.]

(2) The 4[Commissioner Inland Revenue] (Appeals) may, after giving both parties to the appeal an opportunity of being heard, pass such order as he thinks fit, confirming, varying, altering, setting aside or annulling the decision or order appealed against 5[:] 6[Provided that such order shall be passed not later than 7[one hundred and twenty] days from the date of filing of appeal or within such extended period as the 8[Commissioner] (Appeals) may, for reasons to be recorded in writing fix: Provided further that such extended period shall, in no case, exceed 9[sixty] days 10[:]] 1 Section 45B inserted by Finance Ordinance, 2002 2Subsection (1) Substituted by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 3Inserted through Finance Act, 2013 4 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259 5 Colon inserted through Finance, Act, 2005 6 Two provisos inserted by Finance Act, 2005 7 Substituted for “ninety” by Finance Act, 2008. 8 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 05, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan 9 Substituted for “one hundred and twenty” by Finance Act, 2009, earlier it was substituted for “ninety” by Finance Act, 2008. 10 Substituted for full stop by Finance Act, 2009

1[Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or the time taken through adjournment by the petitioner not exceeding thirty days shall be excluded from the computation of aforesaid periods.]

(3) In deciding an appeal, the 1[Commissioner of Inland Revenue] (Appeals) may make such further inquiry as may be necessary provided that he shall not remand the case for de novo consideration. 2[(4) ***]

46. Appeals to Appellate Tribunal

3[(1) Any person including an officer of 4[Inland Revenue] (not below the rank of an 5[Additional Commissioner], aggrieved by any order passed by- -

(a) the 6[Commissioner Inland Revenue] (Appeals) under section 45B,

(b) the 7[Commissioner Inland Revenue] through adjudication or under any of the provisions of this Act or rules made thereunder,

(c) the Board under section 45A, may, within sixty days of the receipt of such decision or order, prefer appeal to the Appellate Tribunal.] 8[(2) The Appellate Tribunal may admit, hear and dispose of the appeal as per procedure laid down in sections 9[131 and 132 of the Income tax Ordinance, 2001(XLIX of 2001, and rules made thereunder.] 1 Proviso inserted by Finance Act, 2009 2Sub-section (4) omitted y Finance Act, 2006. 3 Sub Section (1) substituted by Finance Act, 2008. Earlier it was substituted by the Finance ordinance 2002. 4 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 05, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan. 5 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 05, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan. 6 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 7 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 8 Sub-Section (2) substituted by Finance Act, 2009. 9 Substituted for “194A, 194B and 194C of the customs Act, 1969 (IV of 1969)” by Finance Act, 2010.

1[(2A) All appeals and proceedings under this Act pending before the customs, Excise and Sales Tax Appellate Tribunal Constituted under section 194 of the customs Act 1969(IV of 1969) shall stand transferred to the Appellate Tribunal constituted under section 130 of the Income Tax Ordinance 2001 (XLIX of 2001) with effect from 28th Day of October , 2009.] 2[(3) ***

(4) ***

(5) ***

(6) ***

(7) ***

(8) ***

(9) ***]

47. Reference to the High Court

(1) Within ninety days of the communication of the order of the Appellate Tribunal under sub-section (4[2]) of section 46, the aggrieved person or any officer of 5[Inland Revenue] not below the rank of an 6[an Additional [Commissioner], authorized by the 7[Commissioner] may prefer an application in the prescribed form along with a statement of the case to the High Court, stating any question of law arising out of such order.

(2) The statement to the High Court referred to in sub-section (1), shall set out the facts, the determination of the Appellate Tribunal and the question of law, which arises out of its order. 1 Sub Section (2A) inserted by Finance Act w.e.f. June 5, 2010. 2 Sub-sections (3), (4), (5), (6), (7), (8) and (9) omitted by Finance Act, 2009. 3 Section 47 substituted by Finance Act, 2005. Earlier it was substituted by Finance Act, 1997 4 Substituted for “5” by Finance Act, 2010 w.e.f. June 05, 2010 5 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 6Substituted for “Deputy Collector” by Finance Act, 2006 7 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010

(3) Where, on an application made under sub-section (1), the High Court is satisfied that a question of law arises out of the order referred to in sub-section (1), may proceed to hear the case.

(4) A reference to the High Court under this section shall be head by a bench of not less than two judges of the High Court and, in respect of the reference, the provisions of section 98 of the Code of Civil Procedure, 1908 (Act V of 1908) shall apply, so far as may be, notwithstanding anything contained in any other law for the time being in force.

(5) The High Court upon hearing a reference under this section shall decide the question of law raised by the reference and deliver judgment thereon specifying the grounds on which such judgment is based and the order of the Tribunal shall stand modified accordingly. The Court shall send a copy of the judgment under the seal of the Court to the Appellate Tribunal.

(6) The cost of any reference to the High Court shall be in the discretion of the Court.

(7) Notwithstanding that a reference has been made to the High Court, the tax shall be payable in accordance with the order of the Appellate Tribunal: Provided that, if the amount of tax is reduced as a result of the judgment in the reference by the High Court, and amount of tax found refundable by the High Court, the High Court may on application 1[by an Additional 2[Commissioner] authorized] by the 2[Commissioner] within thirty days of the receipt of the judgment of the High Court that he intends to seek leave to appeal to the Supreme Court, make an order authorizing the Collector to postpone the refund until the disposal of the appeal by the Supreme Court. 1 Words inserted by Finance Act, 2006. 2 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010

(8) Where recovery of tax has been stayed by the High Court by an order, such order shall cease to have effect on the expiration of a period of six months following the day on which it is made unless the reference is decided, or such order is withdrawn, by the High Court earlier.

(9) Section 5 of the Limitation Act, 1908 (IX of 1908), shall apply to an application made to the High Court under sub-section (1).

(10) An application under sub-section (1) by a person other than the 1[Additional 2[Commissioner] authorized by the] 2[Commissioner] shall be accompanied by a fee of one hundred rupees.] 1[(11) Notwithstanding anything contained in any provision of this Act, where any reference or appeal was filed with the approval of 2[Commissioner] by the officer of lower rank than the 2[Commissioner], and the reference or appeal is pending before an appellate forum or the Court, such reference or appeal shall always be deemed to have been so filed by the 2[Commissioner].

47A. Alternative Dispute Resolution

(1) Notwithstanding any other provision of this Act, or the rules made thereunder, an aggrieved person in connection with any dispute pertaining to-

(a) the liability of tax against the aggrieved person, or admissibility of refunds, as the case may be;

(b) the extent of waiver of default surcharge and penalty; or

(c) any other specific relief required to resolve the dispute, may apply to the Board for the appointment of a Committee for the resolution of any hardship or dispute mentioned in detail in the application, which is under litigation in any Court of Law or an Appellate Authority, except where criminal proceedings have been initiated or where interpretation of question of law is involved having effect on other cases. 1 Sub section (11) inserted by Finance Act, 2006. 2 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010 3 Section 47A substituted by Finance Act, 2018.

(2) The Board may, after examination of the application of an aggrieved person, appoint a Committee, within sixty days of receipt of such application in the Board, comprising,-

(i) an officer of Inland Revenue not below the rank of a Commissioner;

(ii) a person to be nominated by the taxpayer from a panel notified by the Board comprising,-

(a) senior chartered accountants and senior advocates having experience in the field of taxation; and

(b) reputable businessmen as nominated by Chambers of Commerce and Industry: Provided that the taxpayer shall not nominate a Chartered Accountant or an advocate if the said Chartered Accountant or the advocate is or has been an auditor or an authorized representative of the taxpayer; and

(iii) a retired Judge not below the rank of District and Sessions Judge, to be nominated through consensus by the members appointed under clauses (i) and (ii).

(3) The aggrieved person, or the Commissioner, or both, as the case may be, shall withdraw the appeal pending before any Court of Law or an Appellate Authority, after constitution of the Committee by the Board under sub-section (2).

(4) The Committee shall not commence the proceedings under sub-section (5) unless the order of withdrawal by the Court of Law or an Appellate Authority is communicated to the Board: Provided that if the order of withdrawal is not communicated within seventy five days of the appointment of the Committee, the said Committee shall be dissolved and provisions of this section shall not apply.

(5) The Committee appointed under sub-section (2) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of the Inland Revenue or any other person to conduct an audit and shall decide the dispute by majority, within one hundred and twenty days of its appointment:

Provided that in computing the aforesaid period of one hundred and twenty days, the period, if any, for communicating the order of withdrawal under sub-section (4) shall be excluded.

(6) The recovery of tax payable by a taxpayer in connection with any dispute for which a Committee has been appointed under sub-section (2) shall be deemed to have been stayed on withdrawal of appeal upto the date of decision by the Committee.

(7) The decision of the committee under sub-section (5) shall be binding on the Commissioner and the aggrieved person.

(8) If the Committee fails to decide within the period of one hundred and twenty days under sub-section (5), the Board shall dissolve the Committee by an order in writing and the matter shall be decided by the Court of Law or the Appellate Authority which issued the order of withdrawal under sub-section (4) and the appeal shall be treated to be pending before such a Court of Law or the Appellate Authority as if the appeal had never been withdrawn.

(9) The Board shall communicate the order of dissolution to the Court of Law or the Appellate Authority and the Commissioner.

(10) The aggrieved person, on receipt of the order of dissolution, shall communicate it to the Court of Law or the Appellate Authority which shall decide the appeal within six months of the communication of said order.

(11) The aggrieved person may make the payment of sales tax and other taxes as decided by the Committee under sub-section (5) and all decisions, orders and judgments made or passed shall stand modified to that extent.

(12) The Board may prescribe the amount to be paid as remuneration for the services of the members of the Committee, other than the member appointed under clause (i) of sub- section (2).

(13) The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.]

Chapter-IX RECOVERY OF ARREARS

48. Recovery of arrears of tax

…………………………………………………….. 87to89 Chapter-X ………………………………………………………………………………………… 89 MISCELLANEOUS ………………………………………………………………………….. 89 -(1) 1[Subject to sub-section (1A), where] any amount of tax 2[…] is due from any person, the officer of 3[Inland Revenue] may:-

(a) deduct the amount from any money owing to 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 Income Tax, Customs or Central Excise Department;

(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 may be recoverable to pay to such officer the amount specified in the notice;

(c) stop removal of any goods from the business premises of such person till such time the amount of tax is paid or recovered in full; 4[(ca) require by a notice in writing any person to stop clearance of imported goods or manufactured goods or attach bank accounts;]

(d) seal the business premises till such time the amount of tax is paid or- recovered in full;

(e) attach and sell or sell without attachment any movable or immovable property of the registered person from whom tax is due 5[; and]

(f) 6[…] recover such amount by attachment and sale of any moveable or- immovable property of the guarantor, person, company, bank or financial institution, where a guarantor or any other person, company, 1 Words etc. “levied, penalty imposed or demand raised under any bond or other instrument executed under this Act” omitted by Finance Ordinance, 2002. 2 Substituted for “where” by Finance Act, 2007 3 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 4 Clause (ca) inserted by Finance Act, 1999. 5 Semi-colon and the word “’ and” at the end of clause (e) and thereafter clause (f) inserted by Finance Act, 1997. Earlier it was omitted by Finance Act, 1996. Originally it was inserted by Finance Act, 1994. 6 Word “may” omitted by Finance Act, 2007.

bank or financial institution fails to make payment under such guarantee, bond or instrument 1[: Provided that the Commissioner Inland Revenue or any officer of Inland Revenue shall not issue notice under this section or the rules made thereunder for recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal under section 45B in respect of the order under which the tax sought to be recovered has become payable and the appeal has not been decided by the Commissioner (Appeals), subject to the condition that 2[ten] per cent of the amount of tax due has been paid by the taxpayer.] 3[(1A) If any arrears of tax, default surcharge, penalty or any other amount which is adjudged or payable by any person and which cannot be recovered in the manner prescribed above, the Board or any officer authorized by the Board, may, write off the arrears in the manner as may be prescribed by the Board.]

(2) For the purpose of recovery of tax, penalty or any other demand raised under this Act, the officer of 4[Inland Revenue] shall have the same powers which under the Code of Civil Procedure 1908 (V of 1908), a Civil Court has for the purpose of recovery of an amount due under a decree. 1 For the full stop a colon substituted and thereafter proviso added through Finance Act, 2017 2 Word ten substituted by Finance Act, 2018. 3 Sub-section (1A) inserted by Finance Act, 2007. 4 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.

Chapter-X MISCELLANEOUS

49. Sales of taxable activity or transfer of ownership

• …………………………. 89 49A. Liquidators. ………………………………………………………………………… 89to91 50. Power to make rules. ……………………………………………………………………. 91 50A. Computerized system. ……………………………………………………………….. 91 50B. Electronic scrutiny and intimation………………………………………………. 92 51. Bar of suits, prosecution and other legal proceedings……………………….. 92 52. Appearance by authorised representative. ……………………………………….. 93 52A. e-intermediaries to be appointed. ………………………………………………… 93 53. Estate of deceased person. …………………………………………………………….. 94 54. Estate in bankruptcy. ……………………………………………………………………. 94 55. Removal of difficulties. ………………………………………………………………… 94 56. Service of order, decisions, etc. ……………………………………………….. 94to96 56A. Agreement for the exchange of information…………………………………..96 56B. Disclosure of information by a public servant…………………………………..97 56C. Prize schemes to promote tax culture………………………………………………97 57. Rectification of Mistake ……………………………………………………………….. 96

58. Liability for payment of tax in the case of private companies or business enterprises ……………………………………………………………………………………. 98 58A. Representatives. ………………………………………………………………………… 98 58B. Liability and obligations of representatives. …………………………. 98to100 59. Tax paid on stocks acquired before registration ………………………………. 99 60. Powers to deliver certain goods without payment of tax …………………. 100 61. Repayment of tax in certain cases. ……………………………………………….. 101 61A. Repayment of tax to persons registered in Azad Jammu and Kashmir.101 -(1) In case of termination of taxable activity or part thereof or its sale or transfer of ownership to a non-registered person, the possession of taxable goods or part thereof by the registered person shall be deemed to be a taxable supply and the registered person shall be required to account for and pay the tax on the taxable goods held by him: Provided that if the tax payable by such registered person remains unpaid, the amount of unpaid tax shall be the first charge on the assets of the business and shall be payable by the transferee of business. 2[(2) In the case of sale or transfer of ownership of a taxable activity or part thereof to another registered person as an ongoing concern, the taxable goods or part thereof shall be transferred to the new owner through a zero-rated invoice and the sales tax chargeable thereon shall be accounted for and paid by the registered person to whom such taxable activity or part thereof is transferred.]

49A. Liquidators

(1) Every person (hereinafter referred to as a “liquidator”) who is -

(a) a liquidator of a company;

(b) a receiver appointed by a Court or appointed out of Court;

(c) a trustee for a bankrupt; or

(d) a mortgagee in possession; shall, within fourteen days of being appointed or taking possession of an asset in Pakistan, whichever occurs first, give written notice thereof to the 4[Commissioner]. (2) The 4[commissioner] shall, within three months of being notified under sub-section (1), notify the 1 Section 49 Substituted by Finance Act, 1996 2 Sub-section (2) substituted through Finance Act, 2016. 3 Section 49A inserted by Finance Act, 2004. 4 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.

liquidator, in writing, of the amount which appears to the 1[Commissioner] to be sufficient to provide for any sales tax which is or will become payable by the person whose assets are in the possession of the liquidator.

(3) A liquidator shall not, without leave of the 1[Commissioner]. Part with any asset held as liquidator until the liquidator has been notified under sub-section (2).

(4) A liquidator: -

(a) shall set aside, out of the proceeds of sale of any asset by the liquidator, the amount notified by the 1[Commissioner] under sub- section (2), or such amount as is subsequently agreed to by the 1[Commissioner]: and

(b) shall be liable to the extent of the amount set aside for the Sales tax liability of the person who owned the asset.

(5) A liquidator shall be personally liable to the extent of any amount required to be set-aside under sub-section (4) for the tax referred to in sub-section (2) if, and to the extent that, the liquidator fails to comply with the requirements of this section.

(6) Where the proceeds of sale of any asset are less than the amount notified by the 1[Commissioner] under sub-section (2), the application of sub-sections (4) and (5) shall be limited to the proceeds of sale.

(7) This section shall have effect notwithstanding anything contained in any other law for the time being in force.] 1 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.

50. Power to make rules

1[(1)] The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this Act 2[, including rules for charging fee for processing of return, claims and other documents and for preparation of copies thereof.] 3[(2) All rules made under sub-section (1) or any other provisions of this Act, shall be collected, arranged and published along with general orders and departmental instructions and rulings, if any, at appropriate intervals and sold to the public at reasonable price.]

50A. Computerized system

(1) The Board may prescribe the use of computerized system for carrying out the purposes of this Act, including the receipt of applications for registration, returns and such other declarations or information required to be provided under this Act and the rules made thereunder, from such date and for such registered persons or class of persons as the Board may, by notification in the official Gazette, specify.

(2) The Board may make rules for regulating the conduct and transaction of business in relation to the submission of returns or other information to the Board by the persons required to transmit or receive any information through the computerized system, including 5[matters such as grant of] authorization, suspension and cancellation of authorization and for security of the information transmitted or received through the computerized system.] 6[(3) Unless otherwise proved, 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. 1 Brackets and figure inserted by Finance Act, 2008. 2 Comma and words inserted by Finance Act, 1994 3 Sub-section (2) inserted by Finance Act, 2008. 4 Section 50A inserted by Finance Act, 2006. 5 Substituted for “their” by Finance Act, 2007 6 Sub-section (3) and (4) inserted by Finance Act, 2007.

(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 for any access to such information.]

50B. Electronic scrutiny and intimation

• (1) The Board may implement a computerized system for the purpose of automated scrutiny, analysis and cross-matching of returns and other available data relating to registered persons and to electronically send intimations to such registered persons about any issue detected by the system.

(2) The intimation sent by the computerized system under sub-section (1) shall be in the nature of an advice or advance notice, aimed at allowing the registered person to clarify the issue, rectify any mistake or take other corrective action before any legal or penal action is initiated.

(3) The computerized system shall be so implemented so as to keep record of the issues detected, intimations sent, responses received and actions taken, and to present such information to the officer of Inland Revenue and to the Board in the prescribed manner.

(4) The Board may prescribe procedures and specifications for the smooth and efficient operation of the computerised system.]

51. 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 imposed or collection of any tax made under this Act.

(2) No suit, prosecution or other legal proceeding shall lie against the Federal Government or against any public servant in respect of any order passed in good faith under this Act. 2[(3) Notwithstanding anything in any other law for the time being in force, no investigation or inquiry shall be undertaken or initiated by any governmental agency against any officer or official for anything done in his official capacity under this Act, rules, instructions or direction made or issued thereunder without the prior approval of the Board.] 1 Section 50B inserted by Finance Act 2014 2 Sub section (3) inserted by Finance Act, 2004.

52. Appearance by authorised representative

A registered person required to appear before the Appellate Tribunal or an officer of 1[Inland Revenue] in connection with any proceedings under this Act may, in writing, authorise any person2[having such qualification as may be prescribed] to represent him or appear on his behalf.

52A. e-intermediaries to be appointed

(1) Subject to such conditions, limitations and restrictions, the Board may, by a notification in the official Gazette, appoint a person to electronically file return under Chapter V and such other documents electronically, as may be prescribed from time to time, on behalf of a person registered under section 14.

(2) A person registered under section 14 may authorize an e-intermediary to electronically file return or any other documents, 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 the 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, shall be deemed to have been done with the knowledge and consent of such 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 wilfully submits a false or incorrect information or document or declaration with an intent to avoid payment of tax due or any part thereof or claiming a tax credit or a refund that is not due to the registered person, such e-intermediary shall be jointly and severally responsible for recovery of the amount of tax short paid or the amount refunded in excess as a result of such incorrect or false information or document or 1 Substituted for “Sales Tax Act” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 2 Words inserted by Sales Tax (Amendment) Ordinance, 2000, dated September 5, 2000 3 Section 52A inserted by Finance Act, 2006.

declaration, without prejudice to any other action that may be taken against him under the relevant provisions of the law.

(6) The Board 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 as specified therein.]

53. Estate of deceased person

The tax liability of a deceased registered person under the Act shall be the first charge on his estate in the hands of his successors.

54. Estate in bankruptcy

(1) If 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) If tax liability is incurred by an estate in bankruptcy, the tax is deemed to be a current expenditure in the operations of the estate in bankruptcy and shall be paid before the claims preferred by other creditors are settled.

55. Removal of difficulties

If any difficulty arises in giving effect to the provisions of this Act or the rules made or notifications issued there under, the Board may through a general order or otherwise, issue instructions or directions, not inconsistent with the provisions of this Act, for such actions to be taken by an officer of Inland Revenue or any other person as it considers necessary or expedient for the purpose of removing the difficulty.]

56. Service of orders; decisions etc

(1) subject to this Act , any notice, order or requisition required to be served on a resident individual, other than in a representative capacity 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 or a non-residents individual the representative of the individual;

(b) sent by register post or courier service specified in clause (b) of sub- section (2) or to the individual’s usual or last known address in Pakistan; 3[..]

(c) served on the individual in the manner prescribed for service of a summons under the code of civil procedure, 1908(Act V of 1908) 1[; or 1 Substituted vide Finance Ordinance, 2001 2 Section 56 substituted vide Finance Act, 2010 3 The words “or” omitted through Finance Act, 2017

(d) sent electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal excise returns by the limited companies, both public and private.]

(2) Subject to this Act, any notice order or requisition required to be served on any person, other than a resident individual to whom sub-section (1)applies, for the purposes of this Act, shall be treated as properly served on person if -

(a) personally served on the representative 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; 2[..]

(c) served on the Person in the manner prescribed for service of a summons under the code of civil procedure, 1908(Act V of 1908) 3[; or

(d) sent electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal excise returns by the limited companies, both public and private.]

(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, 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 representative at the time of discontinuance.

(5) The validity of service of a notice under this Act shall not be called into question after the notice has been complied with in any manner.]

56A. Agreement for the exchange of information

(1) The Federal Government may enter into bilateral or multilateral agreements with provincial governments or with 1 Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017 2 The words “or” omitted through Finance Act, 2017 3 Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017

governments of foreign countries for the exchange of information, including electronic exchange of information, with respect to sales tax imposed under this Act or any other law of Pakistan and under the corresponding laws of such countries and may, by notification in the official Gazette, make such provisions as may be necessary for implementing such agreements.

(2) The provisions of section 107 of the Income Tax Ordinance, 2001 (XLIX of 2001) shall, mutatis mutandis, apply to the provisions of this section. 2[56B. Disclosure of information by a public servant.─ (1) Any information acquired under any provision of this Act shall be confidential and no public servant shall disclose any such information, except as provided under section 216 of the Income Tax Ordinance, 2001 (XLIX of 2001).

(2) Notwithstanding anything contained in sub-section (1) and the Freedom of Information Ordinance, 2002 (XCVI of 2002), any information received or supplied in pursuance of bilateral or multilateral agreements with government of foreign countries for exchange of information under section 56A shall be confidential.]

56C. Prize schemes to promote tax culture

The Board may prescribe prize schemes to encourage the general public to make purchases only from registered persons issuing tax invoices.]

57. Rectification of Mistake

(1) The officer of Inland Revenue, Commissioner, the Commissioner (Appeals) or the Appellate Tribunal may, by an order in writing, amend any order passed by him to rectify any mistake apparent from the record on his or its own motion or any mistake brought to his or its notice by a taxpayer or, in the case of the Commissioner (Appeals) or the Appellate Tribunal, the Commissioner.

(2) No order under sub section (1) which has the effect of increasing an assessment, reducing a refund or otherwise applying adversely to the taxpayer shall be made unless the taxpayer has been given a reasonable opportunity of being heard.

(3) Where a mistake apparent on the record is brought to the notice of the officer of Inland Revenue, Commissioner or Commissioner (Appeals), as the case may be, and no order 1 Sections 56A, 56B and 56C added by Finance Act, 2015 2 Section 56B substituted through Finance Act, 2016. 3 Section 57 is substituted by Finance Act, 2013.

has been made under sub section (1), before the expiration of the Financial year next following the date on which the mistake was brought to their notice, the mistake shall be treated as rectified and all the provisions of this Act shall have effect accordingly.

(4) No order under sub-section (1) shall be made after five years from the date of the order sort to be rectified.]

58. Liability for payment of tax in the case of private companies [or business enterprises

Notwithstanding anything contained in the 1[Companies Act, 2017 (XIX of 2017], where any private company [or business enterprise] is wound up and any tax chargeable on 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 a [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 the payment of such tax.

58A. Representatives

(1) For the purpose of this Act and subject to sub-sections

(2) and (3), the expression “representative” 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 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 Pakistan), a director or a manager or secretary or agent or accountant or any similar officer of the company;

(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 Pakistan, any individual responsible for accounting for the receipt and payment of money or funds on behalf of the Provincial Government or local authority;

(e) where the person is an association of persons, a director or a manager or secretary or agent 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 1 Words substituted by Finance Act, 2018. 2 Section 58A and 58B inserted by Finance Act, 2008

(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 subdivision of the government.

(2) Where the Court of Wards, the Administrator General, the 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 representative of the person for the purposes of this Act.

(3) Subject to sub-section (4), where a person is a non-resident person, the representative of the persons for the purpose of this Act for a tax year shall be any person in Pakistan: - -

(a) who is employed by, or on behalf of, the non-resident person;

(b) who has any business connection with the non-resident person;

(c) from or through whom the non-resident person is in receipt of any income, whether directly or indirectly;

(d) who holds, or controls the receipt or disposal of any money belonging to the non-resident person;

(e) who is the trustee of the non-resident person; or

(f) who is declared by the 1[Commissioner] by an order in writing to be the representative of the non-resident person.

(4) No person shall be declared as the representative of a non-resident person unless the person has been given an opportunity by the 1[Commissioner] of being heard.]

58B. Liability and obligations of representatives

(1) Every representative of a person shall be responsible for performing any duties or obligations imposed by or under this Act on the person, including the payment of tax.

(2) Subject to section 58 and sub-section (5) of this section, any tax that, by virtue of sub-section (1), is payable by a representative of a registered person shall be recoverable 1 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.

from the representative only to the extent of any assets of the registered person that are in the possession or under the control of the representative.

(3) Every representative of a registered person who pays any tax owing by 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 representative’s possession or under the representative’s control.

(4) Any representative, or any person who apprehends that he may be assessed as a representative, may retain out of any money payable by him to the person on whose behalf he is liable to pay 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 a representative or a person as to the amount to be so retained, such representative or person may obtain from the 1[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 authority for retaining that amount.

(5) Every representative shall be personally liable for the payment of any tax due by the representative in a representative capacity if, while the amount remains unpaid, the representative: -

(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 person that is in the possession of the representative or which comes to the representative 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 representative of the person has failed to perform.]

59. Tax paid on stocks acquired before registration

The tax 3[. . .] paid on goods purchased by a person who is subsequently required to be registered under section 14 due to 1 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010 2Section 59 inserted by Finance Act, 1999. Earlier it was omitted by Finance Act, 1997. Earlier it was substituted through Finance Act, 1996. 3 Commas and words “, other than the turnover tax” omitted by Finance Act, 2004.

new liabilities or levies or gets voluntary registration under 1[this Act or the rules made thereunder], shall be treated as input tax, provided that such goods were purchased by him from a registered person against an invoice issued under section 23 during a period of thirty days before making an application for registration and constitute his verifiable unsold stock on the date of compulsory registration or on the date of application for registration or for voluntary registration: Provided that where a person imports goods, the tax paid by him thereon during a period of ninety days before making an application for registration shall be treated as an input tax subject to the condition that he holds the bill of entry relating to such goods and also that these are verifiable unsold or un-consumed stocks on the date of compulsory registration or on the date of application for registration or for voluntary registration.]

60. Powers to deliver certain goods without payment of tax

Subject to such conditions, limitations or restrictions as it thinks fit to impose, 3[Federal Government] may authorise the 4[import] of goods or class of goods, without payment of the whole or any part of the tax payable thereon to the following persons, namely: -

(i) registered importers importing such goods temporarily with a view to subsequent exportation; 5[(ii) registered manufacturer-cum-exporters who import raw materials and intermediary products for further manufacture of goods meant for export;] 6[(iii) ***] 1 Substituted for “section 18” by Finance Act, 2004 2 Section 60 Substituted by Finance Act, 1998. 3 Words substituted by Finance Act, 2018. 4 Substituted for “delivery” by Finance Act, 1999 5 Clause (ii) substituted by the Finance Act, 1999. 6 Clause (iii) omitted by Finance Act, 1999.

61. Repayment of tax in certain cases

Subject to such conditions, limitations or restrictions as it thinks fit to impose, the Board may authorise the repayment in whole or in part of the tax paid on 1[…] any goods of such class or description as it may determine, which have been used in the production, manufacture, processing, repair or refitting in Pakistan of goods of such class or description as it may determine.

61A. Repayment of tax to persons registered in Azad Jammu and Kashmir

Subject to such conditions, limitations or restrictions as it may deem fit to impose, the Board may authorize the repayment in whole or in part of the input tax paid on any goods acquired in or imported into Pakistan by the persons registered in Azad Jammu and Kashmir as are engaged in making of zero-rated supplies.]

62. Drawback allowable on re-export

• ……………………………………………… 101 63. Drawback on goods taken into use between importation and re-exportation.101 64. Power to declare what goods are identifiable and to prohibit drawback in case of specified foreign territory. ………………………………………………… 102 65. Exemption of tax not levied or short levied as a result of general practice 66. Refund to be claimed within one year. ………………………………………….. 102 67. Delayed Refund. ………………………………………………………………………… 103 68. Liability of the registered person for the acts of his agent. ………………. 104 69. Issuance of duplicate of sales tax documents. ………………………………… 105 70. Computation of limitation period. ………………………………………………… 105 71. Special procedure. ……………………………………………………………………… 105 72. Officers of Sales Tax to follow Board’s orders, etc. ……………………….. 106 72A. Reference to the authorities……………………………………………………….106 72B. Selection of audit by the Board…………………………………………………..106 72C. Reward to Inland Revenue Officers and Officials…………………………107 72D. Reward to whistleblowers………………………………………………………….107 73. Certain transactions not admissible. ………………………………….. ………….108 74. Condonation of time-limit. ………………………………………………………….. 109 74A. Validation. ……………………………………………………………………………… 109 75. Application of the provisions of Act IV of 1969 to Sales Tax…….. 109 SCHEDULES ……………………… ……………………………………….. 110 THE FIRST SCHEDULE (omitted) ………………………………………………….. 110 THE SECOND SCHEDULE (omitted) ……………………………………………… 110 THE THIRD SCHEDULE ……………………………………………………….. 110to111 THE FOURTH SCHEDULE (omitted) ……………………………………………… 111 THE FIFTH SCHEDULE ………………………………………………………… 112to114 THE SIXTH SCHEDULE ………………………………………………………… 115to170 THE SEVENTH SCHEDULE (omitted)…………………………………………….. 173 THE EIGHT SCHEDULE…………………………………………………………..173to190 THE NINTH SCHEDULE…………………………………………………………..191to193

The Sales Tax Act, 1990 1[Act No. III of 1951 as Amended by Act VII of 1990] An Act to consolidate and amend the law relating to the levy of a tax on the sale 2[, importation, exportation, production, manufacture or consumption] of goods WHEREAS it is expedient to consolidate and amend the law relating to the levy of a tax on the sale 3[, importation, exportation, Production, manufacture or consumption] of goods; It is hereby enacted as follows:- 4[Chapter-I PRELIMINARY When any goods which have been imported into Pakistan and on which tax has been paid on importation are re-exported outside Pakistan and such goods as are capable of being identified, seven-eighth of such tax shall, except as otherwise hereinafter provided, be repaid as drawback, and the provisions of Customs Act, 1969 (IV of 1969), relating to drawback of customs duties shall, so far as may be apply to such tax, as they apply for the purposes of that Act: Provided that no such drawback shall be repaid unless the re-export is made within a period of two years from the date of importation as shown in the records of the Custom House: Provided further that the Board may, on sufficient cause being shown, in any case extend the said period by a further period of one year.

63. Drawback on goods taken into use between importation and re- exportation

Notwithstanding anything contained in section 62, the repayment of sales tax as drawback in respect of goods which have been taken into use between importation and re- exportation shall be subject to such orders, conditions or limitations as may be passed or imposed by the Board in each case,-

(a) modifying the amount of tax which shall be repaid as drawback on any such goods or class of goods; or

(b) prohibiting the repayment of tax as drawback on any such goods or class of such goods; or 1 Words “the importation of” omitted by Finance Ordinance, 2002 2 Section 61A inserted by Finance Act, 2008.

(c) varying the condition for the grant of drawback on any such goods or class of such goods by restricting the period after importation within which the goods must be re-exported.

64. Power to declare what goods are identifiable and to prohibit drawback in case of specified foreign territory

The Federal Government may, from time to time, by notification in the official Gazette, prohibit the payment of drawback upon the exportation of goods or any specified goods or class of goods to any specified foreign port or territory.

65. Exemption of tax not levied or short levied as a result of general practice

Notwithstanding anything contained in this Act, if in respect of any supply the 1[Federal Government] is satisfied that inadvertently and as a general practice: -

(a) tax has not been charged in any area on any supply which was otherwise taxable, or according to the said practice the amount charged was less than the amount that should have actually been charged;

(b) the registered person did not recover any tax prior to the date it was discovered that the supply was liable to tax; and

(c) the registered person started paying the tax from the date when it was found that the supply was chargeable to tax; it may, by a notification in the official Gazette, direct that the tax not levied or short levied as a result of that inadvertent practice, shall not be required to be paid for the period prior to the discovery of such inadvertent practice.

66. Refund to be claimed within one year

No refund of tax claimed to have been paid or over paid through inadvertence, error or misconstruction 2[or refund on account of input adjustment not claimed within the relevant tax period, ] shall be allowed, unless the claim is made within one year of the date of payment 3[:] 4[Provided that in a case where a registered person did not deduct input tax within the relevant tax period, the 5[Commissioner] may, after satisfying himself that input tax 1 Words substituted by Finance Act, 2018. 2 Words inserted by Finance Act, 1998. 3 Substituted for the full-stop by Finance Ordinance, 2001 4 Proviso inserted by Finance Ordinance, 2002. 5 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.

adjustment is due and admissible, allow the registered person to take such adjustment in the tax period as specified by the 4[Commissioner]:] 1[ Provided 2[further] that in a case where the refund has become due on account of any decision or judgement of any officer of 3[Inland Revenue] or court or the Tribunal, the period of one year shall be reckoned from the date of judgement or decision of such officer, court or Tribunal4[:]] Provided further that the application or claim filed under this section shall be disposed of within a period not exceeding ninety days from the date of filing of such application or claim.] 5[Provided also that no refund shall be admissible under this section if incidence of tax has been passed directly or indirectly to the consumer.]

67. Delayed Refund

Where a refund due under section 10 is not made within 7[the time specified in section 10 from the date] of filling of 8[refund claim], there shall be paid to the claimant in addition to the amount of refund due to him, a further sum equal to 9[KIBOR] per annum of the amount of refund due, from the date following the expiry of [the time specified 10[as aforesaid], to the day preceding the day of payment of refund: Provided that where there is reason to believe that a person has claimed the refund which is not admissible to him, the provision regarding the payment of such additional amount shall not apply till the investigation of the claim is completed and the claim is either accepted or rejected.] 1 Proviso inserted by Finance Ordinance, 2001. 2 Word inserted by Finance Ordinance, 2002. 3 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 4 Substituted for full stop by Finance Act, 2005 5 Proviso inserted by Finance Act, 2011. 6 Section 67 substituted by Finance Act, 1996. 7 Substituted for “thirty days” by Finance Act, 1997 8 Substituted for “return” by Finance Act, 2007 9 Substituted for “Six percent” by Finance Act, 2009, earlier the word “six” was substituted for “fourteen” by the Finance Act, 2004, before that it was substituted for “ten” by Finance Supplementary (Amendment) Act, 1997. Which came into force on March 28, 1997, prior to this it was substituted by Sales Tax (Second Amendment) Ordinance 1996, dated 2nd November, 1996. 10 Substituted for the words and figures “in section 10 from the date” by Finance Act, 2007.

67A. Payment of refund through sales tax refund bonds

(1) Notwithstanding anything contained in section 67, the sales tax refunds payable under this Act may also be paid through sales tax refund bonds to be issued by FBR Refund Settlement Company (Private) Limited, in book-entry form through an establishment licensed by the Securities and Exchange Commission of Pakistan as a central depository under the Securities Act, 2015, (111 of 2015), in lieu of payment to be made through issuance of cheques or bank debit advice.

(2) The Board shall issue a promissory note to FBR Refund Settlement Company (Private) Limited, hereinafter referred to as the company, incorporating the details of refund claimants and the amount of refund determined as payable to each for issuance of sales tax refund bonds, hereinafter referred to as the bonds, of the same amount.

(3) The bonds shall be issued in values in multiples of one hundred thousand rupees.

(4) The bonds so issued shall have a maturity period of three years and shall bear annual simple profit at ten per cent.

(5) The bonds shall be traded freely in the country’s secondary markets.

(6) The bonds shall be approved security for calculating the statutory liquidity reserve.

(7) The bonds shall be accepted by the banks as collateral.

(8) There shall be no compulsory deduction of Zakat against the bonds and Sahib-e- Nisab may pay Zakat voluntarily according to Shariah.

(9) After period of maturity, the company shall return the promissory note to the Board and the Board shall make the payment of amount due under the bonds, along with profit due, to the bond holders.

(10) The bonds shall be redeemable in the manner as in the preceding sub-section before maturity only at the option of the Board along with simple profit payable at the time of redemption in the light of general or specific policy to be formulated by the Board.

(11) The refund under sub-section (1) shall be paid in the aforesaid manner to the claimants who opt for payment in such manner.

(12) The Federal Government may notify procedure to regulate the issuance, redemption and other matters relating to the bonds, as may be required.]

68. Liability of the registered person for the acts of his agent

When any person is expressly or impliedly authorised by a registered person to be his agent for all or 1 New section 67A inserted by Finance Supplementary (Second Amendment) Act, 2019

any of the purposes of this Act, the registered person shall be responsible for the act done by his agent.

69. Issuance of duplicate of sales tax documents

An officer of 2[Inland Revenue not below the rank of Assistant Commissioner] may, on payment of one hundred rupees, issue an attested duplicate of any sales tax document as is available with the department or has been filed under this Act or rules made thereunder to a relevant registered person applying for the same.]

70. 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.

71. Special procedure

4[(1)] Notwithstanding anything contained in this Act, the 5[Federal Government] may, by notification in the official Gazette, prescribe special procedure for scope and payment of tax, registration, book keeping and invoicing requirements and returns, etc. in respect of such supplies as may be specified therein.] 6[(2) ***] 7[(3) Notwithstanding anything contained in this Act or any other law for the time being in force or any decision of any court, the trade enrolment Certificate Schemes immediately in force before the commencement of the Finance Act, 1999, shall be deemed to be validly made under this Act.]

72. Officers of Sales Tax to follow Board’s orders, etc

All officers of 9[Inland Revenue] and other persons employed in the execution of this Act shall observe and follow the orders, instructions and directions of the Board: 1 Section 69 substituted by the Finance Act, 2008. 2 Substituted for the words “Sales Tax not below the rank of Assistant Collector” by the Finance Act, 2010 3 Section 71 inserted by Finance supplementary (Amendment) Act, 1997, which came into force on March 28, 1997. Earlier the same amendment was made by Sales Tax (Second Amendment) Ordinance, 1996 and by Sales Tax (Amendment) Ordinance, 1997. 4 Section 71 re-numbered as sub-section (1) by Finance Act, 1999 5 Words substituted by Finance Act, 2018. 6 Sub-section (2) omitted by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999. Earlier it was inserted by Finance Act, 1999. 7 Sub-section (3) inserted by Finance Act, 1999. 8Sub-section (3) inserted by Finance Act, 1999. 9 Section 72 inserted by Finance Act, 1998.

Provided that no such orders, instructions or directions shall be given so as to interfere with the discretion of [officers of 6[Inland Revenue] in the exercise of their quasi-judicial functions.]

72A. Reference to the authorities

Any reference to the Collector, Additional Collector, Deputy Collector, Assistant Collector, Superintendent, Senior Auditor and an officer of Sales Tax wherever occur in this Act and rules, notifications, clarifications general orders or order made or issued there under, shall be construed as reference to the Commissioner Inland Revenue, Additional Commissioner Inland Revenue,” Deputy Commissioner Inland Revenue, Assistant Commissioner Inland Revenue, Superintendent Inland Revenue, Inland Revenue Audit Officer and an officer of Inland Revenue, respectively.]

72B. Selection of audit by the Board

(1) The Board may selects persons or classes of persons for audit of tax affairs through computer ballot which may be random or parametric as the Board may deem fit.

(2) Audit of tax affairs of persons selected under sub-section (1) shall be conducted as per procedure given in section 25 and all the provisions of this Act shall apply accordingly.

(3) For the removal of doubt, it is hereby declared that the Board shall be deemed always to have had, the power to select any persons or classes of persons for audit of tax affairs under this section.]

72C. Reward to Inland Revenue Officers and Officials

(1) In cases involving concealment or evasion of sales tax and other taxes, cash reward shall be sanctioned to the 9 Substitued for the Words “Sales Tax” by Finance Act, 2010. 1 Substituted for “sales” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 2 Section 72A inserted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 3Section 72C substituted by Finance Act, 2013.

officers and officials of Inland Revenue for their meritorious conduct in such cases and to the informer providing credible information leading to such detection, as may be prescribed by the Board, only after realization of part or whole of a taxes involve in such cases.

(2) The Board may, by notification in the official Gazette, prescribed the procedure in this behalf and specify the apportionment of reward sanctioned under this section for individual performance or to collective welfare of the officers and officials of Inland Revenue.]

72D. Reward to whistleblowers

• (1) The Board may sanction reward to whistleblowers in cases of concealment or evasion of tax, tax fraud, corruption or misconduct providing credible information leading to such detection of evasion of tax fraud.

(2) The Board may, by notification in the official Gazette, prescribe the procedure in this behalf and also specify the apportionment of reward sanctioned under this section for whistleblowers.

(3) The claim for reward by the whistleblower shall be rejected, if-

(a) the information provided is of no value;

(b) the Board already had the information;

(c) the information was available in public records; or

(d) no collection of taxes is made from the information provided from which the Board can pay the reward.

(4) For the purpose of this section, “whistleblower” means a person who reports concealment or evasion of sales tax and tax fraud leading to detection or collection of taxes, fraud, corruption or misconduct, to the competent authority having power to take action against the person or a sales tax authority committing fraud, corruption, misconduct, or involved in concealment or evasion of taxes.]

73. Certain transactions not admissible

(1) Notwithstanding anything contained in this Act or any other law for the time being in force, payment of the amount for a transaction exceeding value of fifty thousand rupees, excluding payment against a utility bill, 1 Section 72D added by Finance Act, 2015. 2 Section 73 substituted by Finance Act, 2004. Earlier it was substituted by Finance Act, 2003, which was inserted by Tax Laws (Amendments) Ordinance, 1999.

shall be made by a crossed cheque drawn on a bank or by crossed bank draft or crossed pay order or any other crossed banking instrument showing transfer of the amount of the sales tax invoice in favour of the supplier from the business bank account of the buyer 1[:] 2[Provided that online transfer of payment from the business account of buyer to the business account of supplier as well as payments through credit card shall be treated as transactions through the banking channel, subject to the condition that such transactions are verifiable from the bank statements of the respective buyer and the supplier.]

(2) The buyer shall not be entitled to claim input tax credit, adjustment or deduction, or refund, repayment or draw-back or zero-rating of tax under this Act if payment for the amount is made otherwise than in the manner prescribed in sub-section (1), provided that payment in case of a transaction on credit is so transferred within one hundred and eighty days of issuance of the tax invoice.

(3) The amount transferred in terms of this section shall be deposited in the business bank account of the supplier, otherwise the supplier shall not be entitled to claim input tax credit, adjustment or deduction, or refund, repayment or draw-back or zero-rating of tax under this Act. Explanation- For the purpose of this section, the term “business bank account” shall mean a bank account utilized by the registered person for business transactions, declared to the 3[Commissioner] in whose jurisdiction he is registered 4[through Form STR-1 or change of particulars in registration database.]] 1Substituted for full stop by Finance Act, 2005 2 Proviso inserted by Finance Act, 2005. 3 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 4 Words inserted by Finance Act, 2013.

74. Condonation of time-limit

Where any time or period has been specified under any of the provisions of the Act or rules made there under within which any application is to be made or any act or thing is to be done, the 2[Board] may, in any case or class of cases, permit such application to be made or such act or thing to be done within such time or period as it may consider appropriate [:] Provided that the Board may, by notification in the official Gazette, and subject to such limitations or conditions as may be specified therein, empower any [Commissioner] to exercise the powers under this section in any case or class of cases. Explanation.- For the purpose of this section, the expression “any act or thing is to be done” includes any act or thing to be done by the registered person or by the authorities specified in section 30 of this Act.]

74A. Validation

4[(1) All notifications and orders issued and notified in exercise of the powers conferred upon the Federal Government, before the commencement of Finance Act, 5[2018] shall be deemed to have been validly issued and notified in exercise of those powers.] 6[(2) Notwithstanding any omission, irregularity or deficiency in the establishment of or conferment of powers and functions on the Directorate General (Intelligence and Investigation), Inland Revenue and authorities specified in section 30A, all orders passed, notices issued and actions taken, before commencement of the Finance Act, 2018, in exercise or purported exercise of the powers and functions of the officers of Inland Revenue under this Act by the Director General (Intelligence and Investigation), Inland Revenue or the authorities specified in section 30A shall be deemed to have been validly passed, issued and taken under this Act.]

75. Application of the provisions of Act IV of 1969 to Sales Tax

The Federal Government may, by notification in the official Gazette, declare that any of the provision of the Customs Act, 1969 (IV of 1969), relating to the levy of, and exemption from, customs duties, draw-back of duty, warehousing, confiscation, and procedure relating to offences and 1 Section 74 added by the Finance Ordinance, 2002. 2 Substituted for the words “Central Board of Revenue” by Finance Act, 2007. 3 Section 74A inserted through Finance Act, 2017 4 Existing provision numbered as sub-section (1) by Finance Act, 2018. 5 Figure substituted by Finance Act, 2018. 6 New sub-section (2) added by Finance Act, 2018.

appeals shall, with such modifications and alterations as it may consider necessary or desirable to adapt them to the circumstances, be applicable in regard to like matters in respect of the tax imposed by section 3.]

*************** SCHEDULES

The FIRST SCHEDULE 1[***]

The SECOND SCHEDULE 2[***]

3[The THIRD SCHEDULE See 4[clause (a)] of sub-section (2) of section 3] juices 7[7 11 Perfumery and cosmetics Respective sub-headings of 33.03 and

1 The first schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997. 2 The Second Schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997. 3 The Third Schedule Substituted by Finance Act, 1998, earlier it was inserted by Finance Act, 1996. 4 Substituted for the words, brackets and letter “clause (c)” by Finance Ordinance, 2002 5 Substituted for the figure “21.05” through Finance Act, 2017 6 Serial No.6 and entries relating thereto substituted by Finance Act, 2005, earlier these were inserted by Sales Tax (Amendment) Ordinance, 2002, dated March 21, 2002. 7 Serial No.7 to 11 and entries relating thereto added by Finance Act, 2005

33.04.] 1[12 *** 13 ***] 2[14 Tea Respective sub-headings of 09.02 15 Powder drinks 21.06 16 Milky drinks 2106.9090] 3[17 Toilet paper and tissue paper 4818.1000 and 4818.2000] 4[18. Spices sold in retail packing 09.04, 09.06, 09.08 and 09.10 bearing brand names and trade marks 5[19. *** 20. ***] 21. Shoe polish and shoe cream 3405.1010] 5[22. ***] 6[23. *** 24. *** 25. *** 26. *** 27. *** 28. *** 29. *** 30. *** 31. ***] 32. Fertilizers Respective heading 33. Cement sold in retail packing Respective heading 34. *** 35. ***] 7[36. ]] 8[37. Mineral/bottled water Respective headings] The FOURTH SCHEDULE 9[] 1 Serial No.12 to 13 and entries relating thereto omitted by Finance Act, 2008 2 Serial No.14 to 16 and entries relating thereto added by Finance Act, 2005 3 Serial No.17 and entries relating thereto added by Finance Act, 2005 4 Serial No.18 to 21 and entries relating thereto added by Finance Act, 2006 5 Serial No.19 to 20 and entries relating thereto omitted by Finance Act, 2008 6 Serial Nos. 23 to 31, 34 and 35 entries relating thereto omitted by Notification No. S.R.O. 895(I)/2013, dated 4th October, 2013. 7 Serial Nos. 22 and 36 and entries relating thereto omitted Notification No. S.R.O. 681(I)/2013, dated 26th July, 2013. 8 New Serial number added through Finance Act, 2016 9 Fourth Schedule omitted by Finance Act, 1998.

1[The FIFTH SCHEDULE [See section 4] Serial Description No.

(1) (2) 1. (i) Supply, repair or maintenance of any ship which is neither;

(a) a ship of gross tonnage of less than 15 LDT; nor

(b) a ship designed or adapted for use for recreation or pleasure.

(ii) Supply, repair or maintenance of any aircraft which is neither;

(a) an aircraft of weight-less than 8000 kilograms; nor

(b) an aircraft designed or adapted for use for recreation or pleasure.

(iii) Supply of spare parts and equipment for ships and aircraft falling under (i) and (ii) above.

(iv) Supply of equipment and machinery for pilot age, salvage or towage services.

(v) Supply of equipment and machinery for air navigation services.

(vi) Supply of equipment and machinery for other services provided for the handling of ships or aircraft in a port or Customs Airport. 2. Supply to diplomats, diplomatic missions, privileged persons and privileged organizations which are covered under various Acts, Orders, Rules, Regulations and Agreements passed by the Parliament or issued or agreed by the Government of Pakistan.] 2[3. Supplies to duty free shops, provided that in case of clearance from duty free shops against various baggage rules issued under the Customs Act, 1969, (IV of 1969), the supplies from duty free shops shall be treated as import for the purpose of levy of sales tax. 3[4. ***]] 4[5. Supplies of raw materials 5[, components and goods for further] manufacture of goods in the Export Processing Zones.] 6[6. Supplies of such locally manufactured plant and machinery 7[8[] to petroleum and gas sector Exploration and Production companies, their contractors and sub-contractors] as may be specified by the Federal Government, by notification in the official Gazette, subject to such conditions and restrictions as may be specified in such notification.] 1 Fifth Schedule added by Finance Act, 1996. 2Serial Nos. 3 and 4 added by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997. 3Serial No. 4 and entry relating thereto omitted by Finance Act, 2012 4 Serial No. 5 added by the Finance Act, 1997. 5 Substituted for the words “and components for” by the Sales Tax (Amendment) Ordinance, 1999 6 Serial No. 6 added by the Finance Act, 2001. 7 Words “to the Export Processing Zones and” omitted by Finance Act, 2015. 8 The words “and to petroleum and gas….” inserted by the Finance Ordinance, 2002.

1[6A. Supplies of locally manufactured plant and machinery of the following specifications, to manufacturers in the Export Processing Zone, subject to the conditions, restrictions and procedure given below, namely:-

(i) Plant and machinery, operated by power of any description, as is used for the manufacture or production of goods by that manufacturer;

(ii) Apparatus, appliances and equipments specifically meant or adapted for use in conjunction with the machinery specified in clause (i);

(iii) Mechanical and electrical control and transmission gear, meant or adapted for use in conjunction with machinery specified in clause (i); and

(iv) Parts of machinery as specified in clauses (i), (ii) and (iii), identifiable for use in or with such machinery. Conditions, restrictions and procedures:-

(a) the supplier of the machinery is registered under the Act;

(b) proper bill of export is filed showing registration number;

(c) the purchaser of the machinery is an established manufacturer located in the Export Processing Zone and holds a certificate from the Export Processing Zone Authority to that effect;

(d) the purchaser submits an indemnity bond in proper form to the satisfaction of the concerned Commissioner Inland Revenue that the machinery shall, without prior permission from the said Commissioner, not be sold, transferred or otherwise moved out of the Export Processing Zone before a period of five years from the date of entry into the Zone;

(e) if the machinery is brought to tariff area of Pakistan, sales tax shall be charged on the value assessed on the bill of entry; and

(f) breach of any of the conditions specified herein shall attract legal action under the relevant provisions of the Act, besides recovery of the amount of sales tax along with default surcharge and penalties involved.] 2[7. Supplies made to exporters under the Duty and Tax Remission Rules, 2001 subject to the observance of procedures, restrictions and conditions prescribed therein.] 3[8. Imports or supplies made to Gawadar Special Economic Zone, excluding vehicles falling under heading 87.02 of the Pakistan Customs Tariff, subject to such conditions, limitations and restrictions as the 4[Board] may impose. ] 1 Serial 6A and the entry relating thereto in column (2) inserted by Finance Act, 2015 2Serial No. 7 added by Finance Ordinance, 2001 3 Serial No. 8 and entries relating thereto inserted by Finance Act, 2004 4Substituted f Revenue” by Finance Act, 2007

1[9. Goods exempted under section 13, if exported by a manufacturer 2[***]. 10. Petroleum Crude Oil (PCT heading 2709.0000). 11. Raw materials, components, sub-components and parts, if imported or purchased locally for use in the manufacturing of such plants and machinery as is chargeable to sales tax at the rate of zero percent, subject to the condition that the importer or purchaser of such goods holds a valid sales tax registration showing his registration category as “manufacturer”; and in case of import , all the conditions, restrictions, limitations and procedures as are imposed by notification under section 19 of the Customs Act,1969(IV of 1969), shall apply. 12. The following goods and the raw materials, packing materials, sub-components, components, sub-assemblies and assemblies imported or purchased locally for the manufacture of the said goods, subject to the conditions, limitations and restrictions as specified in Chapter XIV of the Sales Tax Special Procedure Rules, 2007:– 3[(i) to (ix) [……]] 4[(x) …

(xi) …

(xii) …

(xiii) …

(xiv) …

(xv) …

(xi) …]

(xvii) 5[Preparations suitable for infants, put up for retail sale] (PCT Heading 1901.1000)

(xviii) 6[…..]

(xix) Bicycles (PCT heading 87.12).

(xx) 7[Colors in sets (PCT heading 3213.1000).

(xxi) Writing, drawing and marking inks (PCT heading. 3215.9010 and 3215.9090)

(xxii) Erasers (PCT heading 4016.9210 and 4016.9290)

(xxiii) Exercise books (PCT heading 4820.2000)

(xxiv) Pencil sharpeners (PCT heading 8214.1000)

(xxv) Geometry boxes (PCT heading 9017.2000)

(xxvi) Pens, ball pens, markers and porous tipped pens (PCT heading 96.08)

(xxvii) Pencils including color pencils ( PCT heading 96.09)”.] 1 S. Nos. 9 to 12 and entries relating thereto inserted by Finance Act, 2014 2 Words “who makes local supplies of both taxable and exempt goods” omitted by Finance Act, 2015. 3 Serial numbers (i) to (ix) omitted through Finance Act, 2016. 4 Clauses (x) to (xvi) omitted by Finance Act, 2015 5 Expression substituted through Finance Act, 2017 6 Serial number (xviii) omitted through Finance Act, 2016. 7 New clauses (xx) to (xxvii) inserted by Finance Act, 2018.

1[The SIXTH SCHEDULE [See section 13(1)] Table-1 (Imports or Supplies) Serial Description Heading Nos. of the First Schedule No to the Customs Act, 1969 (IV of 1969)

(1) (2) (3) 1. Live Animals 2[and live poultry.] 3[0101.2100], 4[0101.3000], 0101.9000, 5[..], 6[0102.2110], 7[0102.2120], 8[0102.2130], 9[0102.2190], 10[0102.3900], 11[0102.2910], 12[0102.2920], 13[0102.2930], 14[0102.2990, 0102.9000], 0104.1000, 0104.2000, 0105.1100, 0105.1200, 5[..], 15[0105.9400], 0105.9900, 0106.1100, 0106.1200, 0106.1900, 0106.2000, 0106.3110, 0106.3190, 0106.3200, 0106.3900 and 0106.9000 0101.9000, 0102.1010,4[0102.21 2. 16[Meat of bovine animals, sheep and 02.01, 02.02 and 02.04.] goat, excluding poultry and offal, whether or not fresh, frozen or otherwise, preserved. 17[3. Fish and crustaceans excluding live fish 03.02, 03.03, 03.04, 03.05 and 03.06] whether or not fresh, frozen or otherwise preserved. 18[4. *** 5. *** 6. *** 1Sixth Schedule substituted by Finance Act, 2005. Earlier it was substituted by Finance Act, 1998. Originally it was inserted by Finance Act, 1996. 2The words added by Finance Act, 2007. 3Substituted for PCT heading “0101.1000” by Finance Act, 2012 4 The figure substituted through Finance Act, 2017 5 The figures “0102.1010” & “0105.1900” omitted through Finance Act, 2017 6Substituted for “0102.1020” by Finance Act, 2012 7Substituted for “0102.1030” by Finance Act, 2012 8 Substituted for “0102.1040” by Finance Act, 2012 9 Substituted for “0102.1090” by Finance Act, 2012 10 Substituted for “0102.9010” by Finance Act, 2012 11 Substituted for “0102.9020” by Finance Act, 2012 12 Substituted for “0102.9030” by Finance Act, 2012 13 Substituted for “0102.9040” by Finance Act, 2012 14 Substituted for “0102.9090” by Finance Act, 2012 15 Substituted for the figures and comma “0105.9200 0105.9300” by Finance Act, 2007 16 Substituted by Finance Act, 2007 17 S. No. 3 substituted by Finance Act, 2007. 18 S. Nos. 4 to10 and entries relating thereto omitted by Finance Act, 2006

7. *** 8. *** 9. *** 10. ] 11. Eggs including eggs for hatching 1[0407.1100, 0407.1900] and 2[0407.2100, 0407.2900] 12. Live plants including bulbs, 3[roots and 0601.1010, 0601.1090, 0601.2000, the like.] 0602.1000, 0602.2000, 0602.3000, 0602.4000, 0602.9010 and 0602.9090 13. Edible vegetables including roots and 0701.1000, 7[], 0702.0000, 8[], tubers, 4[except ware potato and onions], 0703.2000, 0703.9000, 0704.1000, whether fresh, frozen or otherwise 0704.2000, 0704.9000, 0705.1100, preserved (e.g. in cold storage) but 0705.1900, 0705.2100, 0705.2900, excluding those bottled 5[or] canned 0706.1000, 0706.9000, 0707.0000, 6[]. 0708.1000, 0708.2000, 0708.9000, 0709.1000, 0709.2000, 0709.3000, 0709.4000, 0709.5100, 9[0709.5910, 0709.5990], 0709.6000, 0709.7000, 0709.9000, 0710.1000, 0710.2100, 0710.2200, 0710.2900, 0710.3000, 0710.4000, 0710.8000, 0710.9000, 0712.2000, 0712.3100, 0712.3200, 0712.3300, 0712.3900 and 0712.9000 14. Pulses. 0713.1000, 10[0713.2010, 0713.2020, 0713.2090], 0713.3100, 0713.3200, 0713.3300, 0713.3910, 0713.3920, 0713.3990, 0713.4010, 0713.4020, 0713.5000, 0713.9010, 0713.9020 and 0713.9090 15. Edible fruits excluding imported fruits 13[..], 0804.1010, 0804.1020, (except fruits imported from Afghanistan) 0804.2000, 0804.3000, 0804.4000, whether fresh, frozen or otherwise 0804.5010, 0804.5020, 0804.5030, preserved but excluding those bottled 0805.1000, 14[0805.2910, 0805.2100, 11[or] canned 12[***]. 0805.2200 and 0805.2990], 0805.4000, 0805.5000, 0805.9000, 0806.1000, 0806.2000, 0807.1100, 1Substituted for PCT heading “0407.0010” by the Finance Act, 2012 2 Substituted for PCT heading “0407.0090” by the Finance Act, 2012 3 Substituted for the words and comma “and tubers, etc.” by the Finance Act, 2007. 4 The words inserted by the Finance Act, 2009. 5Substituted for the comma by the Finance Act, 2008 6The words “or package” omitted by the Finance Act, 2008. 7The figure and comma “0701.9000,” omitted by the Finance Act, 2009 8 The figure and comma “0703.1000,” omitted by the Finance Act,2009 9 Substituted for the figure and comma “0709.5200, 0709.5900” by the Finance Act,2007 10Substituted for the figure and comma “0713.2000” by the Finance Act, 2009 11Substituted for the comma by the Finance Act, 2008 12The words “or packaged” omitted by the Finance Act, 2008 13 The figure “0803.0000” omitted through Finance Act, 2017 14 The figures “0805.2010” and “0805.2090” substituted through Finance Act, 2017

0807.1900, 0807.2000, 0808.1000, 1[0808.3000, 0808.4000], 0809.1000, 0809.2000, 0809.3000, 0809.4000, 0810.1000, 0810.2000, 2[], 0810.4000, 0810.5000, 0810.6000, 0810.9010, 0810.9090, 0811.1000, 0811.2000, 0811.9000, 0813.1000, 0813.2000, 0813.3000, 0813.4010, 0813.4020 and 0813.4090 16. Red chillies excluding those sold in retail 3[0904.2110] and 4[0904.2210] packing bearing brand names and trademarks. 17. Ginger excluding those sold in retail 5[09.10] packing bearing brand names and trademarks. 18. Turmeric excluding those sold in retail 0910.3000 packing bearing brand names and trademarks. 19. 6[Cereals and products of milling 1001.1000, 1001.9000, 1002.0000, industry.] 1003.0000, 1004.0000, 1005.1000, 1005.9000,7[8[] 1006.1090], 1006.2000, 1006.3010, 1006.3090, 1006.4000, 1007.0000, 1008.1000, 1008.2000, 1008.3000, 1008.9000, 1101.0010, 1101.0020, 1102.1000, 1102.2000, 9[..], 1102.9000, 1103.1100, 1103.1300, 1103.1900, 10[1104.2200, 1104.2300, 1104.2900 and 1104.3000] 20. Seeds, fruit and spores of a kind used for 11[1006.1010, 9[..], 1209.2100, sowing. 1209.2200, 1209.2300, 1209.2400, 1209.2500, 12[…], 1209.2900, 1209.3000, 1209.9110, 1209.9120, 1209. 9130, 1209.9190 and 1209.9900 21. Cinchona bark. 1211.9000 22. Sugar beet. 1212.9100 23. Sugar cane. 13[1212.9300] 1 Substituted for PCT heading “0808.2000” by the Finance Act, 2012 2 The figures and comma “0810.3000,” omitted by the Finance Act, 2007 3 Substituted for PCT heading “0904.2010” by the Finance Act, 2012 4 Substituted for PCT heading “0904.2020” by the Finance Act, 2012 5 Substituted for the figure “0910.1000” through Finance Act, 2017 6Substituted for “Cereals whether or not milled, hulled, polished, packed for retail sale.” by the Finance Act, 2007. 7Substituted for “1006.1000” by the Finance Act, 2009 8 Figure and comma “1006.1010,” omitted by the Finance Act, 2015 9 The figures “1102.3000” & “1209.1010” omitted by Finance Act, 2017 10Substituted for the words and figures “and respective headings of 1104” by the Finance Act, 2007 11 Substituted for the figure “1209.1000” by Finance Act, 2015 12The figures and comma “1209.2600,” omitted by Finance Act, 2007 13 Substituted for the figure “1212.9990” by Finance Act, 2017

24. Edible oils and vegetable ghee, including 1507.9000, 1508.9000, 1509.1000, 1509.9000, 1510.0000, 3[1511.1000,] Duty is charged, levied and collected 1[by 4[***], 1511.9020, 1511.9030, a registered manufacturer or importer] as 1512.1900, 1513.1900, 1513.2900, if it were a tax payable under section 3 of 1514.1900, 1514.9900, 1515.2900, 1515.5000, 1516.2010, 1516.2020 5[, the Act.

25. Fruit juices, whether fresh, frozen or 2009.1100, 2009.1200, 2009.1900, otherwise preserved but excluding those 2009.2100, 2009.2900, 2009.3100, bottled, canned or packaged. 2009.3900, 2009.4100, 2009.4900, 2009.5000, 2009.6100, 2009.6900, 2009.7100, 2009.7900, 8[..] and 2009.9000 under brand names or trademarks.

salt sold in retail packing bearing brand names and trademarks. . 13[4901.9910, 8523.2100, 8523.2910, 31. Holy Quran, complete or in parts, with or without translation; Quranic Verses 8523.2990, 14[8523.4910], recorded on any analogue or digital 15[8523.4920], 16[8523.4190] 8523.5910, 8523.5990, 8523.8010, 8523.8020 and 8523.8090]

1 The words inserted by the Finance Act, 2007 2 Explanation inserted by the Finance Act, 2007 3 The figure and comma inserted by the Finance Act, 2014 4 The figure and comma “1511.9010” omitted by the Finance Act, 2007 5 The comma and figure inserted by Finance Act, 2008 6 The figure and comma “1517.1000” omitted by the Finance Act, 2007 7 S. No. 25 and the entries relating thereto omitted by the Finance Act, 2013 8 The figure “2009.8000” omitted by Finance Act, 2017 9 Serial No. 28 and entries relating thereto omitted by Finance Act, 2015 10 S. Nos. 29A and 29B omitted by the Finance Act, 2011 11 S. No. 29C inserted by the Finance Act, 2007 12 S. No. 30 omitted by the Finance Act, 2011

13Substituted for the words and figures “4901.9910 and respective headings of 85.24” by the Finance Act, 2007

14 Substituted for PCT heading “8523.4010” by Finance Act, 2012

15 Substituted for PCT heading “8523.4030” by Finance Act, 2012

16 Substituted for PCT heading “8523.4090” by Finance Act, 2012

32. 1[Newsprint, newspapers], journals, 3[4801.0000,] 4901.9100, 4901.9990, periodicals, books 2[***] but excluding 4[4902.1000, 4902.9000] and directories. 4903.0000 33. Currency notes, bank notes, shares, stocks 5[49.07] and bonds. 6[34. *** 35. ***] 36. Silver, in unworked condition. 7[7106.1000, 7106.9110 and 7106.9190] 37. Gold, in un-worked condition. 8[7108.1100, 7108.1210 and 7108.1290] 38. Monetary gold. 9[7108.1390] 10[and 7108.2090] 11[39. ***] 12[40. ***] 13[41. *** 42. *** 43. *** 44. ] 45. Dextrose and saline infusion giving sets 9018.3910, 9018.3920, 9021.3100, 14[] along with empty non-toxic bags 15[9021.3900] and 9027.8000 for infusion solution, Dextrose and saline infusion giving sets, Artificial parts of the body, Intra-Ocular lenses and Glucose testing equipment. 46. 16[Goods imported by various agencies of 99.01, 99.02, 99.03 and 99.06 the United Nations, diplomats, diplomatic missions, privileged persons and privileged organizations which are covered under various Acts and, Orders, rules and regulations made thereunder; and agreements by the Federal Government provided that such goods are charged to zero-rate of customs duty under Customs Act, 1969 (IV of 1969), and the conditions laid therein] 47. Import of articles of household and 99.05 personal effects including vehicles and also the goods for donation to projects 1 Substituted for the word “Newspapers” by the Finance Act, 2009 2 The comma, word and full stop “, etc.” omitted by the Finance Act, 2008 3 The figures, full stop and comma inserted by the Finance Act, 2009 4 Substituted for the figures and comma “4902.1010, 4902.1090, 4902.9010, 4902.9090” by the Finance Act, 2009 5 Substituted for the figure “4907.0000” by Finance Act, 2017 6 S. Nos. 34 & 35 omitted by the Finance Act, 2011 7 Substituted for the word and figures “7106.1000 and 7106.9100” by the Finance Act, 2007 8 Substituted for the word and figures “7108.1100 and 7108.1200” by the Finance Act, 2007 9 Substituted for the figure “7108.2000” by Finance Act, 2017 10 The word and figures added by the Finance Act, 2007 11 S. No. 39 and entries relating thereto omitted by Finance Act, 2015 12 S. No. 40 omitted by the Finance Act, 2006 13 S. Nos. 41 to 44 omitted by the Finance Act, 2011 14 The word “imported” omitted by the Finance Act, 2007 15 Substituted for the figures “9201.3900” by the Finance Act, 2007 16 Substituted by the Finance Act, 2007

established in Pakistan imported by any of the rulers of Gulf Sheikhdoms who is in possession of residential accommodation in Pakistan and goods including vehicles by the United Arab Emirates dignitaries as are listed in column (2) against heading No. 99.05 in column (1) of the First Schedule to the Customs Act, 1969 (IV of 1969) for their personal use and for donation to welfare projects established in Pakistan subject to the similar conditions as are envisaged for the purposes of applying zero-rate of customs duty on such goods under the said Act. 48. Goods imported or supplied under grants- 99.03 in-aid for which a specific consent has been obtained from the 1[Board]; supplies and imports under agreements signed by the Government of Pakistan before the 30th June, 1996, provided the agreements contained the provision for exemption of tax at the time of signing of agreement. 49. Import of all goods received, in the event 99.07, 99.08 and 99.11 of a natural disaster or other catastrophe, as gifts and relief consignments, including goods imported for the President’s Fund for Afghan Refugees, relief goods donated for Afghan Refugees, gifts for President’s Fund for Assistance of Palestine and gifts received by Pakistani organizations from Church World Services or the Catholic Relief Services subject to the similar conditions as are envisaged for the purposes of applying zero-rate of customs duty under the Custom Act, 1969. 50. Articles imported through post as 99.09 unsolicited gifts, subject to the same conditions as are envisaged for the purposes of applying zero-rate of customs duty under the Customs Act, 1969. (IV of 1969). 51. Imported samples, subject to the same 99.10 conditions as are envisaged for the purposes of applying zero-rate of customs duty under the Customs Act, 1969. (IV of 1969). 52. Goods imported by or donated to hospitals 99.13, 99.14, and 99.15 run by the Federal Government or a Provincial Government; and non-profit making educational and research 1 Substituted for the words “Central Board of Revenue” by Finance Act, 2007

institutions subject to the similar restrictions, limitations, conditions and procedures as are envisaged for the purpose of applying zero-rate of customs duty on such goods under the Customs Act, 1969, (IV of 1969). 1[52A. Goods supplied to hospitals run by the Respective headings] Federal or Provincial Governments or charitable operating hospitals of fifty beds or more or the teaching hospitals of statutory universities of two hundred or more beds. 53. Import of all such gifts as are received, 99.12, 99.13 and 99.14 and such equipment for fighting tuberculosis, leprosy, AIDS and cancer and such equipment and apparatus for the rehabilitation of the deaf, the blind, crippled or mentally retarded as are purchased or otherwise secured by a charitable non-profit making institution solely for the purpose of advancing declared objectives of such institution, subject to the similar conditions as are envisaged for the purposes of applying zero-rate of customs duty under the Customs Act, 1969 (IV of 1969). 54. Educational, scientific and cultural 99.15 material imported from a country signatory to UNESCO Agreement or a country signatory to bilateral commodity exchange agreement with Pakistan, subject to the same conditions as are envisaged for the purposes of exemption under the Customs Act, 1969 (IV of 1969). 55. Import of replacement goods supplied free 99.16 of cost in lieu of defective goods imported, subject to similar conditions as are envisaged for the purposes of applying zero-rate of customs duty under the Customs Act, 1969. 2[56. Omitted.] 57. Goods (including dry fruits imported from 99.19, 99.20 and 99.21 Afghanistan) temporarily imported into Pakistan, meant for subsequent exportation charged to zero-rate of customs duty subject to the similar restrictions, limitations, conditions and 1 Serial No. 52A and entries relating thereto inserted by the Finance Act, 2008 2 Serial No. 56 and entries relating thereto omitted by Finance Act, 2015

procedures as are envisaged for the purpose of applying zero-rate of customs duty on such goods under the Customs Act, 1969 (IV of 1969). 58. Import of ship stores, subject to the 99.22 procedures, conditions and restrictions as may be specified by the Collector of Customs in this behalf including those consignments of such stores that have been released without charging sales tax since the 1st July, 1998, but excluding such consignments of ship stores as have been cleared on payment of sales tax. 59. Artificial kidneys, eye cornea, 99.24 3[, 99.25 4[,99.37] and 99.38] hemodialysis machines, hemodialyzers, A.V. fistula needles, hemodialysis fluids 1[,] and powder, blood tubing tines for dialysis and reverse osmosis plants for dialysis, double lumen catheter for dialysis, catheter for renal failure patient and peritoneal dialysis solution, 2[cochlear implants systems] and angioplasty equipment (balloons, catheters, wires and stents), subject to the similar conditions and procedures as are envisaged for the purpose of applying zero-rate of customs duty on these goods under the Customs Act, 1969 (IV of 1969). 60. Contraceptives and accessories thereof. 5[3926.9020 and 4014.1000] 61. Goods produced or manufactured in and Respective headings exported from Pakistan which are subsequently imported in Pakistan within one year of their exportation, provided conditions of section 22 of the Customs Act, 1969 (IV of 1969), are complied with. 6[62. ***] 63. Personal wearing apparel and bona fide Respective headings baggage imported by overseas Pakistanis and tourists, if imported under various baggage rules and is exempt from Customs duties. 1[64. *** 1 Substituted for the word “and” by the Finance Act, 2008 2 The comma and words inserted by the Finance Act 2014 3 Substituted for the word and figures “and 99.25” by the Finance Act, 2008 4 The comma and figure inserted by the Finance Act 2014 5 Substituted for the words “Respective headings” by the Finance Act, 2007 6 S. No. 62 omitted by the Finance Act, 2011

2[71. Goods and services purchased by non- Respective headings] and exhibitions subject to reciprocity and such conditions and restrictions as may be specified by the Board. sweetening matter, excluding that sold in retail packing under a brand name packing under a brand name packing under a brand name packing under a brand name packing under a brand name packing under a brand name packing under a brand name excluding that sold in retail packing under a brand name and similar products of poultry meat or meat offal 83. Meat and similar products of prepared 1602.3200,1602.3900,1602.5000, frozen or preserved meat or meat offal of 1604.1100,1604.1200,1604.1300, all types including poultry, meat and fish. 1604.1400,1604.1500,1604.1600, 1604.1900,1604.2010.1604.2020, 1604.2090, 6[..]. for retail sale]

1 S. Nos. 64 to 70 omitted by the Finance Act, 2011 2 S. No. 71 inserted by the Finance Act, 2008 3 S. Nos. 72 to 116 inserted by the Finance Act, 2014 4 Substituted for S. Nos. 73 to 80 by Finance Act, 2015 5 Substituted f or the figure “1207.2000” by Finance Act, 2017 6 The figure “1604.3000” omitted by Finance Act, 2017 7 The expression substituted by Finance Act, 2017

86. Colors in sets(Poster colors) 3213.1000 87. Writing, drawing and making inks 3215.9010and 3215.9090 88. Erasers 4016.9210 and 4016.9290 89. Exercise books 4820.2000 90. Pencil sharpeners 8214.1000 91. Energy saver lamps 1[8539.3110] 92. Sewing machines of the household type 8452.1010 and 8452.1090 93 Bicycles 87.12 94. Wheelchairs 8713.1000 and 8713.9000 95. Vessels for breaking up 89.08 96. Other drawing, marking out or 9017.2000 mathematical calculating instruments (geometry box) 97. 2[Pens, ball pens, markers and porous 96.08 tipped pens] 98. Pencils including color pencils 96.09 99. Compost (non-commercial fertilizer) Respective Heading produced and supplied locally 100. Construction materials to 3[Gwadar] Respective headings Export processing Zone’s investors and to Export Processing Zone 3[Gwadar] for development of Zone’s infrastructure 4[100A Materials and equipment 5[(plant, Respective Headings machinery, equipment, appliances and accessories)] for construction and operation of 3[Gwadar] Port and development of Free Zone for 3[Gwadar] Port as imported by or supplied to China Overseas Ports Holding Company Limited (COPHCL) and its operating companies namely (i) China Overseas Ports Holding Company Pakistan (Private) Limited (ii) Gwadar International Terminal Limited,

(iii) Gwadar Marin Services Limited and

(iv) Gwadar Free Zone Company Limited, their contractors and sub-contractors; and Ship Bunker Oils bought and sold to the ships calling on/visiting 3[Gwadar] Port, having Concession Agreement with the Gwadar Port Authority, for a period of forty year, subject to the following conditions and procedure, namely,- (A). Conditions and procedure for imports.-

(i) This exemption shall be admissible only to China Overseas 1 Substituted for the figure “8539.3910” by Finance Act, 2017 2 The expression substituted by Finance Act, 2017 3 Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017 4 New serial numbers 100A & 100B added through Finance Act, 2016. 5 The expression inserted through Finance Act, 2017

Ports Holding Company Limited (COPHCL) and its operating companies, their contractors and sub-contractors which hold the Concession Agreement;

(ii) Ministry of Ports and Shipping shall certify in the prescribed manner and format as per Annex-I that the imported materials and equipments are bonafide requirement for construction and operation of 1[Gwadar] Port and development of Free Zone for 1[Gwadar] Port. The authorized officer of that Ministry shall furnish all relevant information online to Pakistan Customs against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In already computerized Collectorate or Customs station, where the computerized system is not operational, the Project Director or any other person authorized by the Collector in this behalf shall enter the requisite information in the Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis, provided that this condition shall not apply to ship bunker oils; and

(iii) The goods so imported shall not be sold or disposed of without prior approval of the FBR and payment of sales tax leviable at the time of import, provided that this condition shall not apply to ship bunker oils. (B). Conditions and procedure for local supply.-

(i) This exemption shall be admissible only to China Overseas Ports Holding Company Limited (COPHCL) and its operating companies, their contractors and sub- contractors which hold 1 Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017

Concession Agreement; equipment for the construction development of Free Zone for 1[Gwadar] Port from the sales tax registered persons only;

(iii) invoice of the exempt supply, required under section 23 of the operating company mentioning thereon that the said invoice is notification; summarizing all the particulars monthly statement shall be got operating company, confirming that supplies mentioned in the duly received; copy of the monthly statement registered person, duplicate by the operating company and the

1 Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017

Collector of Sales Tax having jurisdiction, by twentieth day of the month following the month in which exempt supplies to the operating companies were made; and

(vi) the registered person making the exempt supplies shall keep the aforesaid record for presentation to the sales tax department as and when required to do so. 1[100B Supplies made by the businesses to be Respective headings ] established in the Gwadar Free Zone for a period of twenty-three years within the Gwadar Free Zone, subject to the condition that the sales and supplies outside the Gwadar Free Zone and into the territory of Pakistan shall be subjected to sales tax. 1[100C Vehicles imported by China Overseas Respective headings . Ports Holding Company Limited (COPHCL) and its operating companies namely (i) China Overseas Ports Holding Company Pakistan (Private) Limited (ii) Gwadar International Terminal Limited,

(iii) Gwadar Marine Services Limited and

(iv) Gwadar Free Zone Company Limited, for a period of twenty-three years for construction, development and operations of Gwadar Port and Free Zone Area subject to limitations, conditions prescribed under PCT heading 9917 (3)] 101. Raw and pickled hides and skins, wet blue Respective headings hides and skins, finished leather, and accessories, components and trimmings, if imported by a registered leather goods manufacturer, for the manufacture of goods wholly for export, provided that conditions, procedures and restrictions laid down in rules 264 to 278 of the Customs Rules, 2001 are duly fulfilled and complied with. 102. Machinery, equipment and materials Respective headings imported either for exclusive use within the limits of Export Processing Zone or for making exports therefrom, and goods 1 New S.No. 100C and entries relating thereto inserted through Finance Act, 2017

imported for warehousing purpose in Export Processing Zone, subject to the conditions that such machinery, equipment, materials and goods are imported by investors of Export Processing Zones, and all the procedures, limitations and restrictions as are applicable on such goods under the Customs Act, 1969 (IV of 1969) and rules made thereunder shall mutatis mutandis, apply. 103. Import and supply thereof, up to the year Respective headings 2020, of ships 1[….] and all floating crafts including tugs, dredgers, survey vessels and other specialized crafts purchased or bare-boat chartered by a Pakistan entity and flying the Pakistan flag, except ships or crafts acquired for demolition purposes or are designed or adapted for use for recreation or pleasure purposes, subject to the condition that such ships or crafts are used only for the purpose for which they were procured and in case such ships or crafts are used only for the purpose for which they were procured, and in case such ships or crafts are used for demolition purposes within a period of five years of their acquisition, sales tax applicable to such ships purchased for demolition purposes shall be chargeable. 104. Substances registered as drugs under the Respective Headings Drugs Act, 1976 (XXXI of 1976) and medicaments as are classifiable under chapter 30 of the First Schedule to the Customs Act, 1969 (IV of 1969) except the following, even if medicated or medicinal in nature, namely:-

(a) filled infusion solution bags imported with or without infusion given sets;

(b) scrubs, detergents and washing preparations;

(c) soft soap or no soap;

(d) adhesive plaster;

(e) surgical tapes;

(f) liquid paraffin;

(g) disinfectants, and

(h) cosmetics and toilet 1 Expression “of gross tonnage of less than 15 LDT” omitted through Finance Act, 2016

preparations. 105. Raw materials for the basic manufacture Respective headings. of pharmaceutical active ingredients and products, provided that in case of import, only such raw materials shall be entitled to exemption which are liable to customs duty not exceeding 1[eleven] per cent ad valorem, either under the First Schedule 2[or Fifth Schedule] to the Customs Act, 1969 (IV of 1969) or under a notification issued under section 19 thereof. 106. Import of Halal edible offal of bovine 0206.1000, 3[..],0206.8000 and brand names and trademarks whether or not sold in retail packing. 4[3824.8400]

(h) Al-oxide Suspension

1 For the word “ten” word “eleven” substituted through Finance Act, 2016. 2 Inserted by Finance Act, 2015 3 The figure “0206.2000” omitted by Finance Act, 2017 4 Substituted for the figure “3824.9090” by Finance Act, 2017

109. Goods imported temporarily with a view Respective Headings by the Board, including passenger service Airlines. 1[for ending on the 30th June, 2023]:-

(g) PV modules along with related 8541.4000 , 8504.4090, 9032.8990 2[Tubular day lighting device. hybrid) with provision for direct connection/input from renewable Maximum Power Point Tracking (MPPT). 112. Following cardiology/cardiac surgery, Respective headings

1 Expression inserted by Finance Supplementary (Second Amendment) Act, 2019 2 Against S.No.110, after sub-serial “g” new sub-serials “h, i and j” added through Finance Act, 2016. 3 For the figure “8539.3990” the figure “8539.3290” substituted through Finance Act, 2016. 4 For the figure “9405.1090” the figures “8539.3290, 8543.7090 and 9405.4090” substituted through Finance Act, 2016. 5 Substituted for figure “8543.7090” by Finance Act, 2017 6 Serial No. 111, expression “White crystalline sugar” omitted through Finance Act, 2016.

1[Optical (OCT) System 8. OCT Catheters 9. Intravascular Ultrasound (IVUS) 10. Fractional Flow Reserve (FFR/IFR) System 11. IVUS/FFR/IFR Catheters and wires and Angled) 13. Drug Coated Angioplasty Balloon 14. Coronary and Peripheral Micro Coils 15. Thrombectomy Device 16. Thrombus Aspiration Catheters (Coronary/Peripheral) 18. Vessel Closure Devices 19. Embolic Protection Devices 20. Renal Stents 21. Vena-cava Filters 22. Coronary and Peripheral Snares 23. Atherectomy Devices 24. IABP Consoles & Catheters Machine & Catheters]

B. ANGIOGRAPHY PRODUCTS

1. Angiography Catheters 2. Sheaths 3. Guide Wires 4. Contrast Lines 5. Pressure Lines 6. Mannifolds Closure]

1 New sub-serial No(s) 7 to.25 under entry A of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.

2 New sub-serial No. 7 under entry B of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.

C. CONTRAST MEDIA FOR ANGIOGRAPHY/ANGIOPLAST Y 1. Angiography Accessories 2. ASD Closure Devices 3. ASD Delivery Systems 4. VSD Closure Devices 5. VSD Delivery System 6. Guide Wires 7. Sizing Balloons 8. Sizing Plates 9. PDA Closure Devices 10. PDA Delivery System D. TEMPORARY PACEMAKERS (with leads, connectors and accessories) E. PERMANENT PACEMAKER. (with leads, connectors and accessories) F. HEART FAILURE DEVICES (with leads, connectors and accessories) G. IMPLANTABLE CARDIOVERTES (with leads, connectors and accessories) H. CARDIAC ELECTRO- PHYSIOLOGY PRODUCTS 1. Electrophysiology catheters 2. Electrophysiology cables 3. Electrophysiology connectors 4. 1[Excimer Laser System with Accessories 5. Laser Sheath, Occlusion Balloons, Dilator Sheaths (Rotation & Manual) 6. Intra Cardiac Echocardiography (ICE) System and Accessories 7. Lead Locking Devices and Accessory Kit 8. Remote EP Monitoring Device and Accessories 9. Ablation catheters New sub-serial No(s) 4 to 11 under entry H of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.

10. 3-D Cardiac Mapping System 11. Cryoballoon System and Accessories] I. LEAR CARDIOLOGY PRODUCTS 1. Radioactive isotopes I. Cold kits (cardiolotic MAA, DTPA etc.) J. CARDIAC SURGERY PRODUCTS 1. Oxygenators 2. Cannulas 3. Prosthetic Heart Valves 4. Luminal shunts for heart surgery 5. Artificial limbs and appliances 6. 1[High-Flow, Low-Profile Percutaneous Heart Pump PHP Console and Catheters 7. Tandem Heart / Tandem Lung and Accessories 8. Ventricular Assist Device System (a) Heart Mate-II

(b) Heart Mate-III

(c) Centri Meg LEOV 9. Beating Heart Surgery stabilizers & Coronary Shunts 10. Minimally invasive surgery equipment & Instruments 11. RF Ablation equipment for AF (Surgical) 12. Heart Lung Machines] K. EQUIPMENT 1. Cardiac Angiography Machine 2. Echocardiography Machines 3. ETT Machines 4. Gamma Camera for Nuclear Cardiology Studies 5. 2[Left Ventricular Assist Device / System (LVAD) and Catheters 6. MitraClipTranscatheter Mitral Valve System 7. MitraClip Guide Catheter, Clip and Delivery System New sub-serial No(s) 6 to 12 under entry J of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018. New sub-serial No(s) 5 to 18 under entry K of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.

8. Patent Foramen Ovale (PFO) Closure Device 9. Left Atrial Appendage (LAA) Occluder 10. Transcatheter Aortic / Heart Valve System (TAVI/TAVR) 11. Cerebral Retrievable Stents 12. Aortic Stent Grafts 13. Embolization Coils, Delivery System, Filling Coil 14. Abdominal Aortic Aneurysm (EVAR) System and Accessories/ thoracic EVAR/ extension 15. Insertable Cardiac Monitor (ICM) 16. Carotid Stents 17. Vascular Clips 18. MRI Compatible Cardiac Monitor, Infusion Pump, Anesthesia Machine with Accessories] L. PERIPHERAL INTERVENTIONS EQUIPMENT Disposables and other equipment for peripheral interventions including stents (including carotid and wall stents), balloons, sheaths, catheters, guide wires, filter wires, coils, needles, valves (including rotating homeostatic valves), connecting cables, inflation devices adapters 1[“Drug Eluting Peripheral Stents”]. 113. High Efficiency Irrigation Equipment (If used for agriculture sector)

(1) Submersible pumps (up to 75 lbs 8413.7010 and head 150 meters)

(2) Sprinklers including high and low 2[8424.4100], 8424.2010 pressure (centre pivotal) system, conventional sprinkler equipment, water reel travelling sprinkler, drip or trickle irrigation equipment, mint irrigation sprinkler system

(3) Air release valves, pressures gauges, 8481.1000, 8481.3000, 9026.2000, water meters, back flow 9032.8990 preventers, and automatic controllers. 1 Words “Drug Eluting Peripheral Stents” under entry L of S.No. 112 added by Finance Supplementary (Amendment) Act, 2018. 2 Substituted for the figure “8424.8100” by Finance Act, 2017

114. Green House Framing and Other Green House Equipment (If used for Agriculture Sector)

(1) Tunnel farming equipment 2[3920.1000, 3926.9099, 5608.1900, 1[consisting of plastic covering and 5608.9000,] mulch film, anti-insect net and shade net]

(2) Green houses (prefabricated) 3[9406.1010 and 9406.9010] 115. Plant, machinery and equipment imported Respective headings for setting up fruit processing and preservation units in Gilgit-Baltistan, Balochistan Province and Malakand Division upto the 30th June, 2019 subject to the same conditions and procedure as are applicable for import of such plant, machinery and equipment under the Customs Act, 1969 (IV of 1969). 116. Plant, machinery and equipment imported Respective headings.] for setting up industries in FATA upto 30th June 2019 subject to the same conditions and procedure as are applicable for import of such plant, mach inery and equipment under the Customs Act, 1969 (IV of 1969). Appliances and items required for ostomy 99.25 procedures as specified in the Chapter 99 3a[4[117 of the First Schedule to the Customs Act, 1969, subject to same conditions as . specified therein] 5118. [omitted] [……] 119. 6[…….] omitted [……] 120. Diagnostic kits or equipment, namely:- 3822.0000 HIV Kits 4C Es Trionyx 5C Cell control Lnormal Bovine precision multi sera Pregnancy test 1 Words and comma inserted by Finance Act, 2015 2 Inserted for the figures and comma “8430.3100, 8430.3900” by Finance Act, 2015 3 Substituted for the figure “9406.0010” by Finance Act, 2017 3a Serial number 117 to 129 inserted by Finance Act, 2017 4 S.No. 117 substituted by Finance Supplementary (Second Amendment) Act, 2019 5 S.No. 118 omitted by Finance Supplementary (Second Amendment) Act, 2019 6 Serial No. 119, expression “Tubular day..” omitted through Finance Act, 2016.

DNA SSP DRB Generic IC Reticulocyte count (control) retic C Control Kit for vitamin B estimation Ferritin kit HEV (Hepatitis E virus) ID-DA Cell Urine Analysis Strips Albumin beg Cratinin sysi Ring Detektiion cups ISE Standard Alkaline phosphatase (Alb) Bilirubin kit HDL Cholesterol Ck creatinin kinase (mb) Ck nac Glulcose kit Ammonia Modular Lac Ldh kit (lactate dehydrogenase kit) Urea uv kit Ua plus Tina quant Crp control Aslo tin Proteins Lipids HDL/LDL cholesterol Protein kit U Control Sera Pac Control HCV

UIBC (Unsaturated iron binding capacity) U/CSF Inorganic Phosphorus kit Kit amplicon kit (for PCR) Ige Lc hsv Oligo NA/K/CL Hcy Standard [or calibrated] Hla B27 Liss Coombs Typhoid kit HCV amp Urine test strips Strips for sugar test Blood glucose test strips Kits for automatic cell separator for collection of platelets Elisa or Eclia kit PCR kits Immunoblast (western blot test). I.C.T. (Immunochromatographic kit) CBC Reagent (For hematology analyzer) Complete blood count reagent 121. Blood Bag CPDA-1 with blood Respective headings transfusion set pack in aluminium foil with set. 122. Urine drainage bags Respective headings 123. Aircraft, whether imported or acquired on 8802.4000 wet or dry lease 1[:] Provided that in case of import or acquisition on wet or dry lease by Pakistan International Airlines Corporation, this exemption shall be available with effect from 19th March, 1 Colon and proviso added through Finance Act, 2016.

2016. Maintenance kits for use in trainer Respective headings aircrafts of PCT headings 8802.2000 and 8802.3000 125. Spare parts for use in aircrafts, trainer Respective headings aircrafts or simulators 126. Machinery, equipment and tools for Respective headings Division. 127. Operational tools, machinery, equipment Respective headings basis for setting up Greenfield airports by Division. 128. Aviation simulators imported by airline Respective headings Division. 129. Import of plant, machinery and production Respective headings] line equipment used for the manufacturing Telecommunication Authority. 1[130. 2[Sodium Iron (Na Fe EDTA), and other Respective Headings, and subject to premixes of vitamins, minerals and micro- conditions imposed for importation nutrients (food grade) and subject to under the Customs Act, 1969; conditions imposed for importation under the Customs Act, 1969] not incorporating multimedia kit namely:-

derivative Mixed xylene isomers 2902.4400

1 Serial No(s) 130 to 133 added through Finance Act, 2016. 2 The expression substituted by Finance Act, 2017

• Polyvinyl Alcohol - Methyglycol Acetate hexanones benzene and ethyle benzene) cyclopropane carboxylate (4, chloro phenyl)-3 mehtyl butyrate methyl cyclopropane carboxalate

1 The words “ingredients for pesticides” and the figure “2903.3040” omitted by Finance Act, 2017 2 The words “Cadusafos Technical Material” and figure “2903.6900” omitted by Finance Act, 2017 3 The words “ingredients for pesticides” and the figure “2918.9010” omitted by Finance Act, 2017 4 The words “ingredients for pesticides” and the figure “2919.0010” omitted by Finance Act, 2017 5 The words “other ingredients for pesticides” and the figure “2919.0090” omitted by Finance Act, 2017 6 The words “Tiethanolamine and its salts” and the figure “2922.1300” omitted by Finance Act, 2017 7 The words “ingredients for pesticides” and the figure “2924.2930” omitted by Finance Act, 2017

Fenpropathrin, Esfenvalerate, Bifenthrin Imidacloprid Technical Material- Material- Bromoxynil Technical Material Material thiosulphate, 3-thiosulfourropane thiosulphate propane Material - Dimethysulfoxid methyl-carbamate - Carbosulfan Technical Material Technical Material -Dicopper chloride trihydroxide Material

1 Substituted for the figure “2939.9910” by Finance Act, 2017

3402.9000 foreign government or organization by the Federal or Provincial Governments or any recommendations of the Cabinet Division and concurrence by the Federal Board of Revenue. 2[135. Sunflower and canola hybrid seeds meant Respective heading for sowing Provincial Governments and Nashiran-e- Quran as per quota determined by IOCO commercial value, distributed free of cost by the exhibitors Hearing assessment equipment;

(a) Audiometers

(b) Tympanometer

(c) ABR

(d) Oto Acoustic Omission stock 145. Plant, machinery, equipment including Respective heading imported by M/s China State Construction CSCECL) for the construction of Karachi - Peshawar Motorway (Sukkur - Multan Section) and M/s China Communication

1 Substituted for the figure “3824.9099” by Finance Act, 2017 2 New S.No(s) 134, 135 & 136 and entries relating thereto inserted through Finance Act, 2017 3 New S.No(s) 137 to 149 and entries relating thereto inserted through Finance Act, 2018.

Construction Company (M/s CCCC) for the construction of Karakorum Highway (KKH) Phase-II (Thakot - Havellian Section) subject to the following conditions:

(i) that the exemption under this serial number shall only be available to contractors named above;

(ii) that the equipment and construction machinery imported under this serial number shall only be used for the construction of the respective allocated projects;

(iii) that the importer shall furnish an indemnity bond, in the prescribed manner and format as set out in Annex-A, at the time of import to the extent of sales tax exempted under this serial number on consignment to consignment basis;

(iv) that the Ministry of Communications shall certify in the prescribed manner and format as set out in Annex-B that the imported equipment and construction machinery are bona fide requirement for construction of Sukkur - Multan Section (392.0 km) of Karachi - Peshawar Motorway or for the construction of Karakorum Highway(KKH) Phase-II - Thakot to Havellian Section (118.057 km) as the case may be;

(v) for the clearance of imported goods through Pakistan Customs Computerized System the authorized officer of the Ministry shall furnish all relevant information, as set out in Annex- B, online against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Director Reforms and Automation or any other person authorized by the Collector in this behalf shall enter the requisite information in the

Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis;

(vi) that the equipment and construction machinery, imported under this serial number, shall not be re- exported, sold or otherwise disposed of without prior approval of the FBR. In case goods are sold or otherwise disposed of with prior approval of FBR the same shall be subject to payment of sales tax as may be prescribed by the FBR;

(vii) in case the equipment and construction machinery, imported under this serial number, is sold or otherwise disposed of without prior approval of the FBR in terms of para (vi) above, the same shall be subject to payment of statutory rates of sales tax as were applicable at the time of import;

(viii) notwithstanding the condition at para (vi) and (vii) above, equipment and construction machinery, imported under this serial number, may be surrendered at any time to the Collector of Customs having jurisdiction, without payment of any sales tax , for further disposal as may be prescribed by the FBR;

(ix) the indemnity bond submitted in terms of para (iii) above by the importer shall be discharged on the fulfillment of conditions stipulated at para (vi) or (vii) or (viii) above, as the case may be; and

(x) that violation of any of the above mentioned conditions shall render the goods liable to payment of statutory rate of sales tax leviable on the date of clearance of goods in addition to any other penal action under relevant provisions of the law. 146. Equipment imported by M/s China Respective heading Railway Corporation to be furnished and

installed in Lahore Orange Line Metro Train Project subject to the following conditions:

(a) that the equipment imported under this serial number shall only be used in the aforesaid Project;

(b) that the importer shall furnish an indemnity bond, in the prescribed manner and format as set out in Annex-C to this serial number, at the time of import to the extent of sales tax exempted under this serial number on consignment to consignment basis;

(c) that the Punjab Mass Transit Authority, established under the Punjab Mass Transit Authority Act, 2015 (ACT XXXIII of 2015), hereinafter referred as the Regulatory Authority, shall certify in the prescribed manner and format as set out in Annex-D to this serial number that the imported equipment is bona fide requirement of the Project under the Contract No. PMA-CR-NORINCO-OL, dated 20.04.2015, hereafter referred as the contract, signed between the Regulatory Authority and CR-NORINCO;

(d) in the event a dispute arises whether any item is entitled to exemption under this serial number, the item shall be immediately released by the Customs Department against a corporate guarantee, valid for a period of six months, submitted by the importer. A certificate from the Regulatory Authority duly verified by the Transport and Communication Section of the Ministry of Planning, Development and Reform, that the item is covered under this serial number shall be given due consideration by the Customs Department towards finally resolving the dispute;

(e) for the clearance of imported equipment through Pakistan Customs Computerized System the authorized officer of the Regulatory Authority shall furnish all relevant information, as set out in Annex-D to this serial number, online against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In Collectorates or Customs stations where the Pakistan Customs Computerized

System is not operational, the Director Reforms and Automation or any other person authorized by the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis;

(f) that the equipment, imported under this serial number, shall not be re- exported, sold or otherwise disposed of without prior approval of the Federal Board of Revenue (FBR). In case goods are sold or otherwise disposed of with prior approval of FBR the same shall be subject to payment of sales tax as may be prescribed by the FBR;

(g) in case the equipment, imported under this serial number, is sold or otherwise disposed of without prior approval of the FBR in terms of condition (f), the same shall be subject to payment of statutory rates of sales tax as were applicable at the time of import;

(h) notwithstanding the condition (f) and (g), equipment imported under this serial number may be surrendered at any time to the Collector of Customs having jurisdiction, without payment of any sales tax, for further disposal as may be prescribed by the FBR;

(i) the indemnity bond submitted in terms of condition (b) above shall stand discharged on submission of a certificate from the Regulatory Authority to the effect that the equipment has been installed or consumed in the said Project. In case the equipment is not consumed or installed in the project the indemnity bond shall be discharged on fulfillment of conditions stipulated at (f) or (g) or (h), as the case may be; and

(j) that violation of any of the above conditions shall render the goods liable to payment of statutory rate of sales tax leviable on the date of clearance of goods in addition to any other penal action under relevant provisions of the law. Explanation. For the purpose of this provision, “equipment” shall mean

machinery, apparatus, materials and all things to be provided under the contract for incorporation in the works relating to Lahore Orange Line Metro Train Project. 147. Goods supplied to German Development Respective heading Agency (Deutsche Gesellschaft für Internationale Zusammenarbeit) GIZ 148. Imported construction materials and Respective heading goods imported by M/s China State Construction Engineering Corporation Limited (M/s CSCECL), whether or not locally manufactured, for construction of Karachi-Peshawar Motorway (Sukkur- Multan Section) subject to fulfilment of same conditions, limitations and restrictions as are specified under S. No. 145 of this table, provided that total incidence of exemptions of all duties and taxes in respect of construction materials and goods imported for the project shall not exceed ten thousand eight hundred ninety-eight million rupees including the benefit of exemption from duties and taxes availed before 30th June, 2018 under the provisions of the Sales Tax Act, 1990, the Customs Act, 1969, the Federal Excise Act, 2005 and the Income Tax Ordinance, 2001 and Notifications issued thereunder; 149. Micro feeder equipment 8437.8000 1[150 Plant and machinery excluding consumer Chapters 84 and 85] durable goods and office equipment as imported by greenfield industries, intending to manufacture taxable goods, during their construction and installation period subject to conditions noted below and issuance of exemption certificate by the Commissioner Inland Revenue having jurisdiction:- Conditions:

(a) the importer is registered under the Act on or after the first day of July, 2019; and

(b) the industry is not established by splitting up or reconstruction or reconstitution of an undertaking already in existence or by transfer of machinery or plant from another industrial undertaking in Pakistan 1 New S.No.150 inserted by Finance Supplementary (Second Amendment) Act, 2019

1[Annex-I [see serial No. 100A & 100B]

Header Information Details of materials and equipments (to be filled in by the Goods imported (Collectorate

(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)

Header Information authorized officer of the Ministry of Ports and Shipping) e

NOTE 1.- Before certifying, the authorized officer of the Ministry of Ports and Shipping shall ensure that the goods are genuine and bona fide requirement for construction and operation of Gwadar Port and development of Free Zone for Gwadar Port.

1 Annexure-I inserted through Finance Act, 2016.

Signature________________________ Designation ________________________ NOTE 2.- In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished online against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969 (IV of 1969).

1[Annex-A [See condition 145(iii)] INDEMNITY BOND ( On appropriately stamped non-judicial paper ) THIS DEED OF INDEMNITY is made on the _________ date of BETWEEN Messrs_ having registered office at _________(hereinafter called “the importers” which means and includes their successors, administrators, executors and assignees) of the one part, AND the President of Pakistan through the Collector of Customs _________ (hereinafter called the “Collector of Customs”), of the other part. WHEREAS the Federal Government, by its decision contained in serial number 145 or serial number 148 of this table, as the case may be, and subject to the conditions given in the said serial number 145 or serial number 148 of this table, as the case may be, has been pleased to direct that such equipment and construction machinery, as are not manufactured locally, shall be exempt from the whole of sales tax leviable thereon, in accordance with the said serial number 145 or serial number 148 of this table, as the case may be, if imported for :-

(i) construction of Sukkur - Multan Section (392.0 km) of Karachi - Peshawar Motorway or

(ii) for the construction of Karakorum Highway (KKH) Phase-II - Thakot to Havellian Section (118.057 km). AND WHEREAS M/S.____________ having registered office at __________ (hereinafter called the importers) have imported the equipment and/or construction machinery mentioned in the said serial number 145 or serial number 148 for purposes of construction of above mentioned project(s) in accordance with the conditions given in the said serial number 145 or serial number 148 of this table, as the case may be; NOW, THEREFORE, in consideration of the release of the equipment and/or construction machinery without recovery of leviable sales tax, the importers bind themselves to pay on demand to the Government of Pakistan the sum of Rs. __________ being the sales tax and charges leviable on the machinery, if the importers fail to fulfill the condition (vi) or (vii) or (viii) of the said serial number 145 or serial number 148 of this table, as the case may be. The importers further agree and bind themselves that the amount covered by this Bond shall be recovered as arrears of sales tax under section 202 of the Customs Act, 1969. This Bond shall become void when the Collector of Customs is satisfied that the importers have fulfilled all the conditions of the said serial number 145 or serial number 148 of this table, as the case may be. Signed by importers on this ____________________ day of ____________201. Managing Director (Name and permanent address) Collector of Customs (On behalf of President) Witness _____________________________________________________ (signature, name, designation and full address) Witness _____________________________________________________ (signature, name, designation and full address) 1 New Annexures A, B, C & D inserted by Finance Act, 2018.

Note: The bond shall be written on appropriate non-judicial stamp paper and shall be witnessed by a Government servant in BPS 17 or above, an Oath Commissioner, a Notary Public or an officer of a Schedule Bank. Annex-B [See condition 145 (iv) and (v)] NTN or FTN of Importer Approval No. (I) (II) Details of input goods (to be filled by the authorized officer of the Regulatory Authority) to be imported Descripti Quantity/UOM L/C No. or bank IGM No. Date Remarks, if any. on and contract No. and & Index No. specificat B/L. ions.

(1) (2) (3) (4) (5) CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY AUTHORITY: It is hereby certified that the description, quantity and other details mentioned above are true and correct. Goods imported are in commensuration with the project requirement and are bona fide requirement of the project. It is further certified that the above items shall not be used for any other purpose except for the project. Signature: ________________________ Name & Designation: ________________________ Official Stamp: ________________________ Date: ________________________ Note: - For the purposes of this serial number 145, the expression “not manufactured locally” shall mean the goods which are not listed in the locally manufactured items in the Customs General Order issued by the Federal Board of Revenue from time to time. Annex-C [See condition 146(b)] INDEMNITY BOND (On appropriately stamp non-judicial paper attested by a Government servant in BPS 17 or above, an Oath Commissioner, a Notary Public or an officer of a Scheduled Bank) THIS DEED OF INDEMNITY is made on the _________ date of BETWEEN Messrs_ having registered office at _________ (hereinafter called “the importers” which means and includes their successors, administrators, executors and assignees) of the one part, AND the President of the Islamic Republic of Pakistan through the Collector of Customs _________ (hereinafter called the “Collector of Customs”), of the other part. WHEREAS the Federal Government, by its decision contained in serial number 146 and subject to the conditions given in the said serial number 146, has been pleased to direct that such equipment shall be exempt from the whole of sales tax leviable thereon, in accordance with the said serial number 146, if imported for Lahore Orange Line Metro Train Project. AND WHEREAS M/S.____________, the importers have imported the equipment mentioned in the said serial number 146 for the above mentioned project in accordance with the conditions given in the said serial number 146; NOW, THEREFORE, in consideration of the release of the equipment without recovery of leviable sales tax, the importers bind themselves to pay on demand to the Government of Pakistan the sum of Rs. __________ being the sales tax and charges leviable on the equipment, if the importers fail to fulfill the condition (f) or (g) or (h) of the said serial number 146, as the case may be.

The importers further agree and bind themselves that the amount covered by this Indemnity Bond shall be recovered as arrears of sales tax under section 202 of the Customs Act, 1969. This Bond shall stand revoked automatically when the Collector of Customs is satisfied that the importers have fulfilled all the conditions of the said serial number 146. Signed by importers on this ______________ day of ________________201. Managing Director or person next in hierarchy duly authorized by MD (Name and permanent address) Collector of Customs (On behalf of President) Witness (1) ___________________________________________________ (signature, name, designation and full address) Witness (2) ___________________________________________________ (signature, name, designation and full address) Annex-D [See conditions 146 (c) and (e)] NTN or FTN of Importer Approval No. Details of equipment (to be filled by the authorized officer of the Regulatory Authority) to be imported Descripti Quantity/UOM L/C No. or bank IGM No. Date Remarks, if any. on and contract No. and & Index No. specificat B/L. ions.

(1) (2) (3) (4) (5) CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY AUTHORITY: It is hereby certified that the description, quantity and other details mentioned above are true and correct. Goods imported are in commensuration with the project requirements and are bona fide requirement of the Project under the Contract. It is further certified that the above items shall not be used for any other purpose except for the Project. Signature: ________________________ Name and Designation: ________________________ Official Stamp: ________________________ Date: ________________________”]

Table-2 (Local Supplies only)

1969. conditions as the Board may specify. 2. Supply of locally produced crude Respective headings. produced seeds 1[other than cotton seed], undergone any process except the process of washing. 2[3. 3[Supplies made by cottage industry.] Respective headings.] 4. Raw material and intermediary goods Respective headings. manufacture of goods subject to sales tax. 6. Supply of fixed assets against which input Respective headings. notification issued in terms of clause (b) of sub-section (1) of section 8 of the Sales Tax Act, 1990. 7. Breads prepared in tandoors and bakeries, Respective headings. bun, rusk. 8. Foodstuff cooked or prepared in-house Respective headings. and served in messes run on the basis of workers. 9. Foodstuff and other eatables prepared in Respective headings. consumption on-board in local flights. 10. Agricultural produce of Pakistan, not Respective headings. manufacture. 5[11. [S upply [oSfu wppalrye opfo twataor ea npdo toantoio annsd onion s 0701 .9000 and 0 700730.11.090000]0 an d 0703.1000]

1 The words inserted by the Finance Act, 2012 2 S. No. 3 substituted by the Finance Act, 2007 3 Substituted by the Finance Act, 2014 4 S. No. 5 omitted by the Finance Act, 2011 5 S. No. 11 inserted by the Finance Act, 2009 6 S. No. 12 omitted by the Finance Act, 2013 7 S. Nos. 13 to 16 added by the Finance Act, 2014 8 S. No. 13 & 14 omitted by the Finance Act, 2015

b. Drip Equipment c. Spray Pumps and nozzles 1[17. Raw and pickled hides and skins, wet blue 41.01, 41.02, 41.02, 4104.1000, 4106.9000 18. Supplies made by manufacturers of Respective headings marble and granite having annual turnover less than five million rupees even if their hundred thousand rupees 3[21. Poultry feed, cattle feed, sunflower seed 2306.3000, 2306.4900 and respective meal (compression-ignition internal combustion piston engines) of 3 to 36 HP. 4[24. LED or SMD lights and bulbs meant for 8539.5010, 8539.5020, 9405.1030 and

Notes:–

1. For the purpose of this Schedule, for entries against which classification of headings or sub-headings has been specified, exemption shall be admissible on the basis of description of goods as mentioned in column 2 of the Schedule Pakistan Customs Tariff classification of headings is provided for ease of reference and commodity classification purposes only.

2. For the purposes of determining classification of any goods, the general rules for interpretation of the First Schedule to the Customs Act, 1969 (IV of 1969) and Explanatory Notes to the Harmonized Commodity Description and Coding System (relevant version) as amended from time to time shall be considered authentic source of interpretation.

3. For the purposes of exemption of sales tax under serial numbers 46, 47, 49, 50, 51, 52, 53, 56, 57, 59, 60 and 62 of this Schedule, the definitions, restrictions, limitations, conditions and procedures and all the provisions of Chapter 99 of the First Schedule to the Customs Act,

1 S. Nos. 17 to 21 added by Finance Act, 2015. 2 New S.No. 22 and entries relating thereto inserted by Finance Act, 2017. 3 New S.No. 23 and entries relating thereto inserted by Finance Act, 2018. 4 New S.No. 24 and entries relating thereto inserted by Finance Supplementary (Amendment) Act, 2018.

1969 (IV of 1969), for the purposes of applying zero-rate of customs duty shall, mutatis mutandis, apply and shall be deemed and construed to be part of this Schedule. ——— 1[TABLE-3 The plant, machinery, equipment and apparatus, including capital goods, specified in column (2) of the Annexure below, falling under the HS Codes specified in column (3) of that Annexure, shall be exempt from the whole of Sales tax, subject to the following conditions, besides the conditions specified in column (4) of the Annexure, namely:-

(i) The imported goods as are not listed in the locally manufactured items, notified through a Customs General Order issued by the Board from time to time or, as the case may be, certified as such by the Engineering Development Board.

(ii) except for S. No. 9, 14, 2[14A and 15] of the Annexure, the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify in the prescribed manner and format as per Annex-A that the imported items are the company’s bona fide requirement. He shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969. In already computerized Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Project Director or any other person authorized by the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis; and

(iii) in case of partial shipments of machinery and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furnish complete details of the machinery, equipment and components required for the complete plant, duly supported by the contract, layout plan and drawings: Explanation.- For the purpose of Table-3, capital goods mean any plant, machinery, equipment, spares and accessories, classified in Chapters 84, 85 or any other chapter of the Pakistan Customs Tariff, required for-

(a) the manufacture or production of any goods and includes refractory bricks and materials required for setting up a furnace, catalysts, machine tools, packaging machinery and equipment, refrigeration equipment, power generating sets and equipment, instruments for testing, research and development, quality control, pollution control and the like; or 1Inserted by Finance Act, 2014 2 The figure and words inserted through Finance Act, 2017

(b) used in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock, dairy and poultry industry.

1[ANNEXURE plants, coal firing system, gas processing plants and oil and gas field prospecting. 2. Following machinery, (a) The project requirement shall equipment, apparatus, and be approved by the Board of medical, surgical, dental and Investment (BOI). The authorized veterinary furniture, materials, officer of BOI shall certify the fixtures and fittings imported item wise requirement of the by hospitals and medical or project in the prescribed format (IV of 1969);

(b) the goods shall not be sold or otherwise disposed of without prior taxes at statutory rates leviable at the time of import. Breach of this criminal offence under the Customs Act, 1969 (IV of 1969) or veterinary furniture Lights. mechanical fittings

1 Inserted by Finance Act, 2014.

(for use in Angiography & MRI etc). Equipment catheter. sterile syringes. Equipments 3. 1. Machinery, equipment, Respective 1. This concession shall be materials, capital goods, Headings available to those mineral specialized vehicles (4x4 non- explorations and extraction luxury) i.e. single or double companies or their authorized cabin pickups, accessories, operators or contractors who hold spares, chemicals and permits, licences, lease and who consumables meant for mine enter into agreements with the vehicles, excluding passenger shall be cleared against a security in vehicles, imported on the form of a post-dated cheque for temporary basis as required the amount of sales tax, along with for mine construction or an under-taking to pay the sales tax conclusion of the project. 3. The goods shall not be sold or otherwise disposed of without prior payment of sales tax leviable at the transferred to other entitled mining the Board; and

1 Substituted for the figure “3824.9099” by Finance Act, 2017

4. Coal mining machinery, Respective (a) This concession shall be equipment, spares, including Headings available to those mining vehicles for site use i.e. single companies or their authorized or double cabin pick-ups operators or contractors who hold 1[and dump trucks], imported permits, licenses, leases and who Provincial Government.

(b) The goods shall not be sold or otherwise disposed of without prior taxes leviable at the time of import. These shall, however, be allowed to approval of the Board. 5. 1. Machinery, equipment and Respective (i) This concession shall also be spares meant for initial Headings available to primary contractors of installation, balancing, the project upon fulfilment of the power generation through oil, (a) the contractor shall submit a construction projects, which intends to import the goods for the project; with the Government of (b) the Chief Executive or head of vehicles, excluding passenger goods are the projects bona for the construction of project. (c) the goods shall not be sold or otherwise disposed of without prior approval of the FBR on payment of sales tax leviable at the time of import; shall be cleared against a security in the form of a post-dated cheque for the differential amount between the statutory rate of sales tax and the

1 At S. No. 4, after words “pick-ups” expression “and dump trucks” added through Finance Act, 2016.

undertaking to pay the sales tax at conclusion of the project. power generation through gas, coal, hydel, and oil including under construction projects. vehicles, excluding passenger for the construction of project.

nuclear and renewable energy remain in force up to the 30th June, 2023.] vehicles, excluding passenger for the construction of project. Explanation.- The expression generation” means any project large and whether for supply to the national grid or to any consumption.

1 Substituted for the expression “etc” by Finance Supplementary (Second Amendment) Act, 2019

under construction projects. Explanation.- For the purpose shall mean,–

(a) machinery and equipment operated by power of any used in the generation of power; used in conjunction with equipment as specified in clause (a) above; and use in or with machinery and equipment including spares for purposes of the project. vehicles, excluding passenger for the construction of project.

education and research related items imported by technical, training institutes, research institutes, schools, colleges and universities:- holders designed for insertion semiconductor wafers. water liquids scales; household scales conveyors scales having a maximum weighing capacity not exceeding 30 kg having a maximum weighing capacity exceeding 30 kg but not exceeding 5,000kg machinery weights of all kinds; parts of 8423.2000 & 8423.3000 weights of all kinds; parts of 8423.2000 & 8423.3000

repeaters. sensitivity of 5 cg or better, with or without weights. sensitivity of 5 cg or better, with or without weights. used in refrigerators and air- conditioners pneumatic apparatus apparatus equipments. 11. Following machinery and equipment for 1. For the projects of Gem Stone & marble, granite and gem stone extraction and Jewellery Industry, CEO/COO, requirement. The authorized person System against a specific user ID section 155D of the Customs Act, 1969. 2. For the projects of Marble &

1 S. No. 10 and entries relating thereto omitted by Finance Act, 2015

obtained under section 155D of the Customs Act, 1969. 3. The goods shall not be sold or period of five years of their import the FBR and payment of customs duties and taxes leviable at the time of import. 8202.9100 and spare widia. saw blades/multiple blades of all types and dimensions. and above) air/hydro pillows, compressed drilling machines, manual and power drilling machines, steel drill rods and spring (all sizes

bridge cutters. drilling, extension thread rods for rock drills. 12. Machinery, equipment and Respective 1. The Division dealing with the other project related items Headings subject matter of Industries shall including capital goods, for certify in the prescribed manner and setting up of hotels, power format as per Annex-B that the treatment plants and other project requirement. The authorized infrastructure related projects officer of the Ministry shall furnish located in an area of 30 km all relevant information online to around the zero point in Pakistan Customs Computerized 1969. 2. The goods shall not be sold or otherwise disposed of without prior approval of the FBR and payment of customs duties and taxes leviable at the time of import. headings solar energy:- 8501.3210

(1) Off-grid/On-grid solar power system (with or without provision for USB/charging port) 50 Ah in case of portable system). wires (with or without switches).

1 New S.No(s). 14, 14A, 15, 15A and 15B and entries relating thereto substituted for S.No(s) 14 & 15 by Finance Act, 2017

v. Inverters (off-grid/ on- 8504.4090 grid/ hybrid with provision for direct connection/ input renewable energy source and with Maximum Power Point Tracking (MPPT). vi. Bulb holder 8536.6100

(2) Water purification plants 8421.2100 operating on solar energy. 14A Following systems and items for dedicated use with renewable source of energy like solar, wind, geothermal 1[as imported on or before the 30th June, 2023.] 1. (a) Solar Parabolic 8502.3900 Trough Power Plants.

(b) Parts for Solar Parabolic Power Plants. (i). Parabolic Trough 8503.0010 collectors modules. (ii). Absorbers/Receivers 8503.0090 tubes. (iii). Steam turbine of an 8406.8100 output exceeding 40MW. (iv). Steam turbine of an 8406.8200 output not exceeding 40MW. (v). Sun tracking control 8543.7090 system. (vi). Control panel with other 8537.1090 accessories. 2. (a) Solar Dish Stirling 8412.8090 Engine.

(b) Parts for Solar Dish Stirling Engine. (i). Solar concentrating 8543.7000 dish. (ii). Sterling engine. 8543.7000 (iii). Sun tracking control 8543.7090 system. (iv). Control panel with 8406.8200 accessories. (v). Stirling Engine 8501.6100 1 For the expression “etc” the expression inserted by Finance Supplementary (Second Amendment) Act, 2019

Generator 3. (a) Solar Air 8415.1090 Conditioning Plant

(b) Parts for Solar Air Conditioning Plant (i). Absorption chillers. 8418.6990 (ii). Cooling towers. 8419.8910 (iii). Pumps. 8413.3090 (iv). Air handling units. 8415.8200 (v). Fan coils units. 8415.9099 (vi). Charging & testing 9031.8000 equipment. 4. (a) Solar Desalination 8421.2100 System

(b) Parts for Solar Desalination System (i). Solar photo voltaic 8541.4000 panels. (ii). Solar water pumps. 8413.3090 (iii). Deep Cycle Solar 8507.2090 Storage batteries. (iv). Charge controllers. 9032.8990 (v). Inverters (off grid/on 8504.4090 grid/ hybrid) with provision for direct connection/input from renewable energy source and with Maximum Power Point Tracking (MPPT) 5. Solar Thermal Power 8502.3900 Plants with accessories. 6. (a) Solar Water Heaters 8419.1900 with accessories.

(b) Parts for Solar Water Heaters (i). Insulated tank 7309.0000 7310.0000 (ii). Vacuum tubes (Glass) 7020.0090 (iii). Mounting stand Respective headings (iv). Copper and Aluminum Respective tubes heading

(c) Accessories: (i). Electronic controller (ii). Assistant/ Feeding tank Respective (iii). Circulation Pump headings (iv). Electric Heater/ Immersion Rod (one

piece with one solar water heater) (v). Solenoid valve (one piece with one solar water heater) absorber plates and plastic Lead). Acetate) Sheet (Chemical). Manufacturing Equipment. (if machine). machines for silicon ingot. material. accessories for solar data collection. charging electronic devices.

charge controller. connected solution above 200 KW (complete system). comprising of: (i). Turbine with Generator/ Alternator. (ii). Nacelle with rotor with (v). Inverter for use with Wind Turbine. Battery (for use with wind turbine). equipments. Pumps. Chillers. equipments. exchangers. Equipment. equipment. IntelliZone. and concurred to by the FBR. conservation of energy:-

(i). SMD/LED/LVD lights 9405.1090 with or without 8539.3290 ballast, fittings and 8539.5010 fixtures. 8539.5020 (ii). SMD/LED/LVD lights, 9405.4090 with or without 8539.3290 ballast, PV module, 8539.5010 fitting and fixtures 8539.5020 (iii). Tubular Day lighting 9405.5010 Device. (iv). Wind turbines including 8502.3100 alternators and mast. (v). Solar torches. 8513.1040 (vi). Lanterns and related 8513.1090 instruments. (vii). LVD induction lamps. 8539.3290 (viii). LED Bulb/Tube lights. 8539.5010 8539.5020 (ix). PV module, with or 8541.4000 without, the related 8504.4090 components including 9032.8990 invertors (off-grid/on 8507.0000 grid/ hybrid) with provision for direct connection/input from renewable energy source and with Maximum Power Point Tracking (MPPT), charge controllers and solar batteries. (x). Light emitting diodes 8541.5000 (light emitting in different colors). (xi). Water pumps operating 8413.7010 on solar energy along 8413.7090 with solar pump 8504.4090 controllers (xii). Energy saver lamps of 8539.3110 varying voltages 8539.3210 (xiii). Energy Saving Tube 8539.3120 Lights. 8539.3220 (xiv). Sun Tracking Control 8543.7090 System (xv). Invertors (off-grid/on 8504.4090 grid/hybrid) with provision for direct connection/input from renewable energy

source and with Maximum Power Point Tracking (MPPT). Current controller.

01.07.2016. 15A Parts and Components for If imported by LED light manufacturing LED lights manufacturers registered under the (i). Aluminum Housing/ 9405.1090 annual quota determination by the (MCPCB) for LED Lights 1[and bulbs] (1- 300W) 1[and bulbs] 15B. CKD kits for single cylinder 8408.9000 Subject to same conditions and agriculture diesel engines limitations as are applicable for (compression-ignition internal availing concession in customs duty 3 to 36 HP. other capital goods for use in building, fittings, repairing or Engineering Works Limited. 18. The following parts for If imported by manufacturers and manufacturing of personal laptops, registered with and

(ii) Power Amplifier 8542.3300 with quota determined by IOCO

1 Words “and bulbs” wherever occurring in any form under S.No. 15A added by Finance Supplementary (Amendment) Act, 2018. 2 S.No. 16 and entries relating thereto omitted by Finance Act, 2015 3 New S.No(s). 17 to 19 and entries relating thereto added by Finance Act, 2018.

Controllers Manufacturing 8471.7090 IC the items listed under Chapter Tariff, imported for setting up of a Special Economic Zone (SEZ) by zone developers and for installation in that zone by zone enterprises, on one time basis as prescribed in the SEZ restriction as a Federal Board of Revenue may impose from time to time.

1[Annex-A Header Information NTN/FTN of Importer Regulatory Authority Name of Regulatory authority no.

(1) (2) (3) Details of Input goods (to be filled by the chief Goods imported (Collectorate of executive of the importing company) import)

1 Inserted by Finance Act, 2014

M No. ac d u o.

CERTIFICATE. It is certified that the description and quantity mentioned above are commensurate with the project requirement and that the same are not manufactured locally. It is further certified that the above items shall not be used for any other purpose. Signature of Chief Executive, or The person next in hierarchy duly Authorized by the Chief Executive Name ______________________ N.I.C. No. __________________________________

NOTE:- In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished online against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969.

Explanation.-

1. owner of the firm, in case of sole proprietorship; or 2. partner of firm having major share, in case of partnership firm; or 3. Chief Executive Officer or the Managing Director in case of limited company or multinational organization; or 4. Principal Officer in case of a foreign company.

1[Annex-B Header Information Details of Input goods (to be filled by the authorized officer Goods imported (Collectorate of

1 Inserted by the Finance Act, 2014

(3) (4) (5) (6) (7) (8) (9) (10 (11) (12) (13) (14) )

CERTIFICATE Before certifying the above-authorized officer of the Regulatory Authority shall ensure that the goods are genuine and bona fide requirement of the project and that the same are not manufactured locally.

NOTE:- In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished on line against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969.

---

The SEVENTH SCHEDULE 1[***]

2[The EIGHTH SCHEDULE [See clause (aa) of sub-section (2) of section 3]

Table-1

Customs Act, 1969 (IV of 1969) 3[10%] solid residues, whether or not ground or in the form of pellets 4. Oilseeds meant for Respective headings 5% Import thereof subject to concerned department of the Division dealing with the subject matter of oil are meant for sowing. 5. Raw cotton and ginned Respective headings 5% On import cotton 6. Plant and machinery not Respective headings 5[10%] (i) On import of such post-dated amount of sales tax

1 The seventh schedule omitted by the Finance Act, 1997 2 The eighth schedule inserted by the Finance Act, 2014 3 Substituted for the figure “5%” by Finance Act, 2015 4 S. No. 3 and entries relating thereto omitted by Finance Act, 2015 5 Substituted for the figure “5%” by Finance Act, 2015

customs authorities, furnishing proof of machinery, showing the import of such machinery; commercial for-payment deposit, equal to the of sales tax payable back, or as the case customs authorities; commercial unregistered manufacturers shall be liable to standard

instruments or import stage; machinery imported registered manufacturers to unregistered other than manufacturers shall standard rate; and furnished under this hundred and twenty days. purpose of this provision, machinery as is used in the manufacture or production of goods. 1[7. Flavoured milk 0402.9900 10% Sold in retail packing under a brand name under a brand name under a brand name under a brand name under a brand name under a brand name under a brand name

1 Serial numbers 7 to 23 and 25 to 31 and entries relating thereto in columns (2), (3), (4) and (5) inserted by Finance Act, 2015

14. Milk and cream, 0402.1000 10% Sold in retail packing concentrated and added under a brand name sugar or other sweetening matter 15. Ingredients of poultry 1[2301.1000], 2[10%] feed, cattle feed, except 2305.0000, soya bean meal of PCT 2306.2000, heading 2304.0000 and 2306.3000, oil-cake of cotton-seed 2306.4100, falling under PCT 2306.5000, heading 2306.1000 2309.9010, 2309.9020, 2309.9090, 2936.2100, 2936.2200, 2936.2300, 2936.2400, 2936.2500, 2936.2600, 2936.2700, 2936.2800, an d 2308.9000 (Guar Meal), 2303.1000 (Corn Gluton Feed/Meal), 2303.1000 (Residues of starch manufacture and similar residues), 3507.9000 (Enzymes- other), 2302.1000 (Maize Bran), 2302.2000 (Rice Bran), 2302.3000 (Wheat Bran), 2302.4000 (Other Cereals), 2302.5000 (Bran of Leguminous 1 For the figure “2301.2090” the figure “2301.1000” substituted through Finance Act, 2016. 2 For the figure “5%” the figure “10%” substituted through Finance Act, 2016.

Plants), 2306.7000 (Oil- cake and other solid residues of Maize (corn) germ), 2306.4900 (Sesame Cake), 2306.9000 (Sesame Meal/other Meal), 2842.1000 (Double or complex silicates, including aluminosilicates whether or not chemically defined), 1[2301.2090] (Fish Meal), 0505.9000 (Poultry by product Meal), and the following items only of Feed Grade: 2827.6000 (Potassium Lodide), 2833.2990 (Manganese Sulphate), 2[2833.2940] (Zinc Sulphate), 2817.4000 (Zinc Oxide), 2833.2500 (Copper Sulphate), 2833.2910 1 For the figure “2301.2010” the figure “2301.2090” substituted through Finance Act, 2016. For the figure “2833.2600” the figure “2833.2940” substituted through Finance Act, 2016.

(Ferrous Sulphate), 2915.5000 (Propionic acid, its salts and esters), 2930.4000 (DL Methionine), 2930.4000 (Methionine Hydroxy Analogue (liquid)), 2922.4100 (Lysine Monohydro Chloride /sulphate), 2923.2000 (Lecithins), 1[2923.9010] (Betafin), 2922.4290 (Arganine), 2934.9910 (Furazolidone), 2922.5000 (Threonine), 2835.2600 (Mono Calcium Phosphate), 2835.2500 (Di Calcium Phosphate), and 2835.2600 (Mono Di Calcium Phosphate) 16. Incinerators of disposal 8417.8000, 5% of waste management, 8430.2000 motorized sweepers and and snow ploughs 8479.8990 1 For the figure “2923.9000” the figure “2923.9010” substituted through Finance Act, 2016.

heading 99.18 of the said Act increased by customs duty payable 18. Reclaimed lead Respective headings 5% If supplied to recognized and lead batteries 1[and 20. Plant, machinery, Respective headings 5% The Alternative Energy certify in the prescribed per Annex-B, as given in the Sixth Schedule, that approval of the FBR and duties and taxes leviable at the time of import 21. Rapeseed, sunflower 1205.0000, 16% On import by solvent tax shall be admissible”; clothing or footwear 8701.9320]

1 For the words “equipment and specific items” the words “ and equipment” substituted through Finance Act, 2016. 2 Figures substituted through Finance Act, 2018. 3 For the figure “10” the figure “5” substituted through Finance Act, 2016. 4 For the figure “7” the figure “5” substituted through Finance Act, 2018.

1[8432.3900]

(iv) Sub soiler front blade land planer trancher leveler drill (wheat, rice barley, etc.) attachment 4[8432.4100]

(iv) Fertilizer or manure spreader or broadcaster drill 6[8432.3900]

(vii) Sugarcane planter 3[5%] application equipment:

(ii) Knapsack sprayers 8424.2010 applicator

1 Substituted for the figure “8432.3090” by Finance Act, 2017 2 Entry number (xx) added through Finance Act, 2016. 3 For the figure “7” the figure “5” substituted through Finance Act, 2018. 4 Substituted for the figure “8432.4000” by Finance Act, 2017 5 Substituted for the figure “8432.3010” by Finance Act, 2017 6 Substituted for the figure “8432.3090” by Finance Act, 2017

field sprayers sprayers 29. (i) Harvesting, threshing and storage equipment: 1[5%] groundnut thresher or sheller harvester

(vii) thresher reaper cutter harvester forage wagon harvesters miscellaneous machinery: grading equipment equipment 1701.9920

1 For the figure “7” the figure “5” substituted through Finance Act, 2018. 2 Serial number 31 omitted through Finance Act, 2016. 3 Serial number 32 to 34 added through Finance Act, 2016

34. 1. Set top boxes for 8517.6950 5% Subject to type approval available upto 30th June, 1[2018] transmitter signals of a kind used with TV (satellite dish receivers) 8528.7290 to 42]. 43. Natural gas Respective heading 3[5%] If supplied to fertilizer plants for use as feed stock in manufacturing of fertilizer 44. Phosphoric acid 2809.2010 5% If imported by fertilizer company for

1 Substituted for the figure “2017” by Finance Act, 2017 2 S.No(s) 33 & 35 to 42 omitted by Finance Act, 2018. 3 For the figure “10” the figure “5” substituted through Finance Act, 2018.

manufacturing of DAP for poultry sector : preparing feeding stuff poultry equipment sandwich panels 9406.9020 cooling system cooling pad valorem, higher &

1 S.No(s) 48 & 49 omitted by Finance Act, 2018.

. 2710.2100 distribution companies equipment.”;

for projector cinema

parts and accessories

Speakers Surround Speakers

1 S.No(s) 50 to 57 added by Finance Act, 2018. 2 S.No. 51 substituted Finance Supplementary (Amendment) Act, 2018.

System

metal profiles

battery (Li-Fe-PO4) 56. Potassium Chlorate Respective headings 17% Import and supply Defence Production. 57. Rock phosphate Respective headings 10% If imported by fertilizer manufacturers for use in fertilizers. LPG.”.]

---

Table-2

Plant, machinery, equipment and apparatus, including capital goods, specified in column (2) of the Annexure below, falling under the HS Codes specified in column (3) of

1 Figure “65” substituted by Finance Supplementary (Amendment) Act, 2018. 2 S.No. 58 added by Finance Supplementary (Amendment) Act, 2018.

that Annexure, shall be charged to sales tax at the rate of five percent 1[, except goods mentioned in serial numbers 1, 5 and 6 of the Annexure which shall be charged at the rate of ten percent] subject to the following conditions, besides the conditions specified in column

(4) of the Annexure, namely:-

(i) The imported goods as are not listed in the locally manufactured items, notified through a Customs General Order issued by the Board from time to time or, as the case may be, certified as such by the Engineering Development Board.

(ii) The Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify in the prescribed manner and format as per Annex-A that the imported items are the company’s bona fide requirement. He shall furnish all relevant information Online to Pakistan Customs Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969. In already computerized Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Project Director or any other person authorized by the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis; and

(iii) In case of partial shipments of machinery and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furnish complete details of the machinery, equipment and components required for the complete plant, duly supported by the contract, lay out plan and drawings. Explanation.-In this Table the expression, capital goods mean any plant, machinery, equipment, spares and accessories, classified in chapters 84, 85 or any other chapter of the Pakistan Customs Tariff, required for-

(a) the manufacture or production of any goods, and includes refractory bricks and materials required for setting up a furnace, catalysts, machine tools, packaging machinery and equipment, refrigeration equipment, power generating sets and equipment, instruments for testing, research and development, quality control, pollution control and the like; or

(b) use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock, dairy and poultry industry. Annexure S. No Description PCT heading Conditions

(1) (2) (3) (4) 1 Machinery and equipment for Respective Nil development of grain handling Headings and storage facilities 2[including silos]. 1 Commas and words inserted by Finance Act, 2015 2 After word “facilities” the words “including silos” inserted through Finance Act, 2016.

4 1. Machinery, equipment, Respective 1. This concession shall materials, capital goods, Headings be available to those luxury) i.e. single or double cabin Extraction Companies or for mineral exploration phase. permits, licenses, leases against a security in the between the statutory rate of customs duty and sales an undertaking to pay the tax at the statutory rates conclusion of the project. 3. The goods shall not be disposed of without prior approval of the FBR and duties and taxes leviable allowed to be transferred approval of the Board.

1 S. No.3 and entries relating thereto omitted by Finance Act, 2015

expansion of oil refining (mineral value added petroleum products), ethylene storage and handling. 2[8 1. Milk chillers. 8418.6910 and If imported by registered Dairy Association] dairy products. 3[9 Capital goods otherwise not Respective heading The concession will be Projects which are being Implementation Sector Transmission Line Agreement. Provided that

1 S. No. 7 and entries relating thereto omitted by Finance Act, 2015 2 Serial number 8 added through Finance Act, 2016. 3 Serial number 9 added through Finance Act, 2018.

refundable.”]

Annex-A Header Information NTN/FTN of Importer Regulatory authority no. Name of Regulatory authority

(1) ( 2 ) (3) Details of Input goods (to be filled by the chief executive Goods imported (Collectorate of e W

(4) (5) (6) (7) (8) (9) (10) (11 (12) (13) (14) (15) )

CERTIFICATE. It is certified that the description and quantity mentioned above are commensurate with the project requirement and that the same are not manufactured locally. It is further certified that the above items shall not be used for any other purpose. Signature of Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive Name ______________________ N.I.C. No. __________________________________

NOTE:– In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished online against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969. Explanation.-

Chief Executive means.-

1. owner of the firm, in case of sole proprietorship; or 2. partner of firm having major share, in case of partnership firm; or 3. Chief Executive Officer or the Managing Director in case of limited company or multinational organization; or 4. Principal Officer in case of a foreign company.

---

Annex-B Header Information Details of Input goods (to be filled by the authorized Goods imported (Collectorate of y t

(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)

CERTIFICATE. Before certifying the above-authorized officer of the Regulatory Authority shall ensure that the goods are genuine and bona fide requirement of the project and that the same are not manufactured locally.

NOTE:– In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished online against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969.

---

1[The NINTH SCHEDULE [See sub-section (3B) of section 3]

TABLE S. Description / Specification Sales tax on Sales tax Sales tax on by CMOs) Module (SIM) Cards 3[2. manufacturer, at the rate as category:– not exceeding US$ 100 not exceeding US$ 200 not exceeding US$ 350 not exceeding US$ 500

LIABILITY, PROCEDURE AND CONDITIONS

(i) In case of the goods specified against S.No 1of the Table, the liability to charge, collect and pay tax shall be on the Cellular Mobile Operator (CMO) at the time of supply. In case of the goods specified against S.No 2, the liability to pay sales tax at the time of import shall be on the importer, and the liability to charge, collect and pay sales tax payable on supplies shall be on the Cellular Mobile Operator at the time of registering International Mobile Equipment Identity (IMEI) number in his system.

(ii) The Cellular Mobile Operators shall, if not already registered, obtain registration under the Sales Tax Act, 1990.

1 The Ninth Schedule added by the Finance Act, 2015 2 Substituted for the expression “(payable by importer at the time of import)” by Finance Act, 2015 3 Serial number 2 substituted by Finance Supplementary (Second Amendment) Act, 2019

(iii) No IMEI shall be registered in his system by a Cellular mobile Operator without charging and collecting the sales tax as specified in the Table.

(iv) The Cellular Mobile Operator shall deposit the sales tax so collected through his monthly tax return in the manner prescribed in section 26 of the Sales Tax Act, 1990, and rules made thereunder.

(v) The Cellular Mobile Operator shall maintain proper records of all IMEI numbers registered for a period of six years, and such records shall be produced for inspection, audit or verification, as and when required, by an authorized officer of Inland Revenue.

(vi) The Pakistan Telecommunication Authority shall provide data regarding IMEI numbers registered with other Cellular Mobile Operators to prevent double taxation on the same IMEI number in case of switching by a subscriber from one operator to another, and to provide data regarding registration of IMEI numbers to the Board on monthly basis. 1[(via) The sales tax as indicated in column (3) of the Table above shall be paid by the importer, in case of imports and by the manufacturer, in case of locally manufactured cellular mobile phones.]

(vii) No adjustment of input tax shall be admissible to the Cellular Mobile Operator or any purchaser of cellular mobile phone against the sales tax charged and paid in terms of this Schedule.

(viii) The tax specified in column (4) of the Table shall be charged, collected and paid with effect from such date as may be specified by the Board and the sales tax specified in column(3) shall stand withdrawn from the date so specified. Note:- Notwithstanding anything contained in any other law for the time being in force, the levy, collection and payment of sales tax under Notification No. S.R.O. 460(I)/2013, dated the 30th May, 2013, shall be deemed to always have been lawfully and validly, levied, collected and paid.] ********* 1 Clause (via) inserted by the Finance Act, 2015

Amendment notes

Footnotes printed in the source document. Text quoted after the words was as under is the previous wording and is no longer in force.

• 3AA. Omitted …………………………………………………………………………………… 25 3AAA. Omitted ………………………………………………………………………………… 25 3B. Collection of excess sales tax etc. …………………………………………………. 26 4. Zero rating. …………………………………………………………………………………… 27 5. Change in the rate of tax. ………………………………………………………………… 28 6. Time and manner of payment. …………………………………………………………. 29 7. Determination of tax liability. …………………………………………………………. 30 7A. Levy and collection of tax on specified goods on value addition………31 8. Tax credit not allowed. …………………………………………………………………… 32
• 12. Omitted ………………………………………………………………………………………. 39
• 15. Omitted ………………………………………………………………………………………. 42
• 16. Omitted ………………………………………………………………………………………. 42
• 17. Omitted ………………………………………………………………………………………. 42
• 18. Omitted ………………………………………………………………………………………. 42
• 19. Omitted ………………………………………………………………………………………. 42
• 20. Omitted ………………………………………………………………………………………. 41 21. De-registration, blacklisting and suspension of registration. ……………… 42 21A. Active taxpayers list……………………………………………………………………42 Chapter-IV ……………………………………………………………………………………….. 43 BOOK KEEPING AND INVOICING REQUIREMENTS …………………….. 43 22. Records. ……………………………………………………………………………………… 43
• 35A. Omitted. …………………………………………………………………………………… 66
• 36. Omitted. ……………………………………………………………………………………… 66 37. Power to summon persons to give evidence and produce documents in inquiries under the Act. …………………………………………………………………. 67 37A. Power to arrest and prosecute ……………………………………………………… 67 37B. Procedure to be followed on arrest of a person. ………………………. 69to70 37C. Special Judges …………………………………………………………………………… 71 37D. Cognizance of Offences by Special Judges………………………………..72 37E. Special Judge, etc. to have exclusive Jurisdiction……………………….. 73 37F. Provisions of Code of Criminal Procedure, 1898, to apply ……………..73 37G. Transfer of cases…………………………………………………………………..73 37H. Place of Sittings……………………………………………………………………74 37I. Appeal to the High Court…………………………………………………………74 38. Authorised officers to have access to premises, stocks, accounts and records 74 38A. Power to call for information. …………………………………………………….. 75 38B. Obligation to produce documents and provide information ……………. 75 39. Omitted ………………………………………………………………………………………. 77 40. Searches under warrant ………………………………………………………………… 77 40A. Omitted. …………………………………………………………………………………… 77 40B. Posting of Inland Revenue Officer. ……………………………………………… 77 40C. Monitoring of Tracking by Electronic or other means…………………..78
• 41. Omitted. ……………………………………………………………………………………… 78
• 42. Omitted. ……………………………………………………………………………………… 78 Chapter-VIII …………………………………………………………………………………….. 78 APPEALS ………………………………………………………………………………………… 78
• 43. Omitted. ……………………………………………………………………………………… 78
• 44. Omitted. ……………………………………………………………………………………… 79
• 45. Omitted. ……………………………………………………………………………………… 79 45A. Power of the Board and Commissioner to call for records…………….78 45B. Appeals. …………………………………………………………………………………… 80 46. Appeals to Appellate Tribunal. ……………………………………………………… 81 47. Reference to the High Court. …………………………………………………… 83to84 47A. Alternative dispute resolution. …………………………………………….. 84to87 Chapter-IX ……………………………………………………………………………………….. 87 RECOVERY OF ARREARS ……………………………………………………………… 87