Islamabad Capital Territory (Tax on Services) Ordinance, 2001, as published 30 June 2020

This is the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 as it stood on 30 June 2020. It runs to 12 pages and contains 4 sections, with 0 amendment footnotes.

What this document is

Published by the Federal Board of Revenue as part of the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 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every amendment made up to its cover date into the text, so it shows the law as it stood on 30 June 2020 rather than as originally enacted.

The shape of this version

The operative text holds roughly 1,898 words across 4 sections.

What changed since the previous version

The section list is unchanged from the version published 1 July 2019. That does not mean nothing happened: the footnote count moved from 0 to 0, which points to existing sections being reworded rather than new ones created.

The source file

File name	ICT (Tax on Services) Ordinance, 2001 - amended upto 30.06.2020.pdf
Pages	12
Size	0.68 MB
Text extraction	markitdown
Extraction confidence	high
Position in this collection	4 of 9

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

A note on these figures

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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.

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The full text of this version

All 4 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 Ordinance may be called the Islamabad Capital Territory (Tax on Services) Ordinance, 2001. 1Issued by the Ministry of Law and Justice, under the signature of Mr. Justice Faqir Muhammad Khokhar, Secretary, vide Ex. Ord. Gaz.of Pak., 2001, Pt. I, P.923.

(2) It extends to whole of Islamabad Capital Territory.

(3) It shall come into force at once.

2. Interpretation

-In this Ordinance, unless there is anything repugnant in the subject or context, the words and expression used but not defined shall have the same meaning as in the Sales Tax Act, 1990.

3. Scope of tax

-(1) Subject to the provisions of this Ordinance, there shall be charged, levied and paid a tax know as sales tax at 2[rates specified in column (4) of the Schedule to this Ordinance] of the value of the taxable services rendered or provided in the Islamabad Capital Territory.

(2) The tax shall be charged and levied on the services specified in3[column (2) of] the Schedule to this Ordinance in the same manner and at the same time, as if it were a sales tax leviable under sections 3, 3A or 3AA, as the case may be, of the Sales Tax Act,1990. 4[(2A) The following provisions of the Sales Tax Act, 1990, shall apply, mutandis mutandis, to the services rendered or provided under this Ordinance, namely:-

(a) clause (b) of sub-section (2) and sub-sections (6) and (7) of section 3; b) serial number 2, in column (1), and the entries relating thereto of the Fifth Schedule read with section 4; c) sub-sections (2), (3), (6) and (7) of section 13; and

(d) serial number 48, in column (1), and entries relating thereto of Table 1 of Sixth Schedule read with section 13.”. 2Substituted for the words “the rate of sixteen percent” by the Finance Act, 2015 3The words brackets and figure “column (2) of” inserted by the Finance Act, 2015 4 New sub-sections (2A) added through Finance Act, 2016.

5[(2B) The tax levied under sub-section (1) shall not be applicable to regulatory and licensing services rendered or provided by an organization established by or under a Federal statute].

(3) All the provisions of the Sales tax Act, 1990, and rules made and notifications, orders and instructions issued there under shall, mutatis mutandis, apply to the collection and payment of tax under this Ordinance in so far as they relate to -

(a) manner, time and mode of payment;

(b) registration and de-registration;

(c) keeping of records and audit;

(d) enforcement and adjudication;

(e) penalties and prosecution; and

(f) all other allied and ancillary matters. ———————— 6[THE SCHEDULE [See section 3(2)] 5 Sub-section (2B) inserted by Finance Act, 2016 6Substituted by the Finance Act, 2015. Earlier, the Schedule at the time of substitution was as under: “THE SCHEDULE [See section 3(2)] 1. Services provided or rendered by hotels, clubs and caterers:- (a) Services provided or rendered by hotels;

(b) Omitted.

(c) Services provided or rendered by clubs, and

(d) Services provided or rendered by caterers. 2. Advertisements on T.V. and Radio excluding advertisement:- (i) if sponsored by a Government Agency for health education;

(ii) if sponsored by Population Welfare Division relating to educational promotion campaign; and

(iii) public service messages if telecast on television by World Wildlife Funds for Nature or UNICEF. 3. Services provided or rendered by persons authorized to transact business on behalf of others:- (a) customs agents.

(b) ship chandlers.

(c) stevedores.

PCT Heading, if applicable 1 Services provided or rendered by hotels, motels, 9801.1000 Sixteen percent

2 Advertisement on television and radio, 9802.1000 and Sixteen percent

(a) sponsored by an agency of the Federal or Provincial Government for health education; campaign; Government under grant-in-aid agreement; and telecast on television by the World Wide Fund for Nature (WWF) or United Nations Children’s Fund(UNICEF) 3 Services provided by persons authorized to 9805.2000 Sixteen percent

(c) ship chandlers. 4 Courier services and cargo services by road 9808 Sixteen percent provided by courier companies; .0000 9804.9000 5 Construction services, excluding: 9824.0000 Sixteen percent

(i) construction projects (industrial and and commercial) of the value (excluding actual and 9814.2000 documented cost of land) not exceeding Rs. 50 million per annum.

(ii) the cases where sales tax is otherwise paid as property developers or promoters.

(iii) Government civil works including Cantonment Boards.

(iv) construction of industrial zones, consular buildings and other organizations exempt from income tax.

(v) construction work under international tenders against foreign grants-in-aid.

(vi) Residential construction projects where the covered area does not exceed 10,000 square feet for houses and 20,000 square feet for apartments 6 Services provided by property developers and 9807.0000 Rs.100per square promoters (including allied services) excluding and yard for land the actual purchase value or documented cost of respective sub- development, and land. headings of Rs.50per square heading98.14 feet for building construction 7 Services provided by persons engaged in 9809.0000 Sixteen percent contractual execution of work, excluding:

(i) annual total value of the contractual works or supplies does not exceed Rs.50 million;

(ii) the contract involving printing or supplies of books. 8 Services provided for personal care by beauty 9810.0000 Sixteen percent parlours, clinics and slimming clinics, body 9821.4000 and parlours/clinics, but excluding: million; or installed or available in the premises. 9 Management consultancy services 9815.4000, Sixteen percent 9819.9300

10 Services provided by freight forwarding agents, 9805.3000, Sixteen percent or lading, whichever is higher

11 Services provided by software or IT-based 9815.6000 Sixteen percent system development consultants. 12 Services provided by technical, scientific and 9815.5000 Sixteen percent 9818.3000 including but not limited to human resource and 9818.2000 research services and credit rating services. 14 Services provided by tour operators and travel 9805.5100 Sixteen percent agents including all their allied services or 9805.5000 15 Manpower recruitment agents including labour 9805.6000 Sixteen percent and manpower supplies.

16 Services provided by security agencies. 9818.1000 Sixteen percent 17 Services provided by advertising agents 9805.7000 Sixteen percent 18 Share transfer or depository agents including 9805.9000 Sixteen percent services provided through manual or electronic book-entry system used to record and maintain securities and to register the transfer of shares, securities and derivatives. 20 Services provided by fashion designers, whether 9819.6000 Sixteen percent relating to textile, leather, jewellery or other marketing, packing, delivery and display, etc. 21 Services provided by architects, town planners 9814.1000 Sixteen percent Services provided in respect of rent a car. 9819.3000 Sixteen percent 23 Services provided by specialized workshops or 98.20 Sixteen percent Including computer hard ware; car washing or similar service stations and other workshops). 24 Services provided for purposes including 98.22 Sixteen percent (including building and equipment maintenance cleaning services, janitorial services, dredging or de-silting services and other similar services etc.

25 Services provided by underwriter, indenters, 9819.1100, Sixteen percent and 9819.9100 26 Services provided by laboratories other than 98.17 Sixteen percent services relating to pathological or diagnostic tests for patients. 27 Services provided by health clubs, gyms, 9821.1000 Sixteen percent 28 Services provided by laundries and dry cleaners. 9811.0000 Sixteen percent 29 Services provided by cable TV operators. 9819.9000 Sixteen percent Technical analysis and testing services 9819.9400 Sixteen percent Services provided by TV or radio program Sixteen percent producers or production houses. 31 Transportation through pipeline and conduit – Sixteen percent services. 32 Fund and asset (including investment) – Sixteen percent management services. 33 Services provided by inland port operators – Sixteen percent services provided at ports and services provided respect of public bonded warehouses, excluding the amounts received by way of fee under any law or by-law. 34 Technical inspection and certification services – Sixteen percent services

35 Erection, commissioning and installation – Sixteen percent services. 7[37 Valuation services; competency and eligibility – Sixteen percent services provided or rendered under a bilateral Government of Pakistan], Sixteen percent minerals, oil & gas including related and allied activities 40 Services provided by property dealers and – Sixteen percent 8[Seventeen per cent]

42. Services provided by car/ automobile dealers

• Sixteen percent

9[43. Advertisement on hoarding boards, pole signs 9802.9000 Sixteen percent and signboards, and websites or internet 44. Services provided by landscape designers 9814.4000 Sixteen percent 46. Services provided or rendered by legal 9815.2000 Sixteen percent practitioners and consultants 47. Services provided by accountants and auditors 9815.3000 Sixteen percent 48. Service provided or rendered by Stockbrokers, 9819.1000, Sixteen percent 9819.9090

7 Serial number substituted through Finance Act, 2016. 8 Substituted for the words “eighteen and a half” by Finance Act, 2019. 9 Serial numbers 43 to 58 added through Finance Act, 2019.

49. Services provided by race clubs: - - Sixteen percent Entry/ admission and other services 50. Services provided or rendered by corporate law 9815.9000 Sixteen percent consultants 51. Visa processing services, including advisory or - - Sixteen percent consultancy services for migration or visa application filing services 52. Debt collection services and other debt recovery - - Sixteen percent services 53. Supply chain management or distribution - - Sixteen percent (including delivery) services 54. Services provided or rendered by persons - - Sixteen percent engaged in inter-city transportation or carriage of goods by road or through pipeline or conduit 55. Ready mix concrete services - - Sixteen percent 56. Public relations services - - Sixteen percent 57. Training or coaching services other than - - Sixteen percent education services 58. Cleaning services including janitorial services, 9822.2000, Sixteen percent]. collection of waste and processing of domestic 9822.3000 and waste 9822.9000 ****************