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Islamabad Capital Territory (Tax on Services) Ordinance, 2001, as published 15 January 2022

This is the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 as it stood on 15 January 2022. It runs to 15 pages and contains 5 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amendment made up to its cover date into the text, so it shows the law as it stood on 15 January 2022 rather than as originally enacted.

The date above was taken from the file name rather than a consolidation statement on the cover, so treat it as approximate.

The shape of this version

The operative text holds roughly 2,329 words across 5 sections.

What changed since the previous version

Against the version published 30 June 2021, this one has 1 new section.

New in this version

section 11, IT services and IT-enabled services. Respective Five Percent Explanation

The source file


File name	`ICT (Tax on Services) Ordinance, 2001 - amended upto 15.01.2022.pdf`
Pages	15
Size	0.64 MB
Text extraction	markitdown
Extraction confidence	high
Position in this collection	6 of 9

SHA-256 of the source PDF:

8cdee98106585733af5c2dc739cb03d8cf4831d89397d89169e7bc430e453fcb

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 5 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

2[(1) Subject to the provisions of this Ordinance, there shall be charged, levied and paid a tax known as sales tax at rates specified in column (4) of Table-1 of the Schedule to this Ordinance of the value of the taxable services rendered or provided in the Islamabad Capital Territory: Provided that the services specified in Table-2 of the Schedule shall be charged to tax at such rates and subject to such conditions and limitations as specified therein;] 3[(1A) Notwithstanding the provision of sub-section (1), the export of services shall be charged at the rate of zero per cent.]

(2) The tax shall be charged and levied on the services specified in4[column (2) of] 5[Table-1 or Table-2 of the Schedule to this Ordinance, as the case may be,] 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. 6[(2A) The following provisions of the Sales Tax Act, 1990, shall apply, mutatis 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; 2 Sub-section (1) substituted by Finance (Supplementary) Act, 2022. 3 New sub-section (1A) inserted by the Finance Act, 2021. 4The words brackets and figure “column (2) of” inserted by the Finance Act, 2015 5 Expression substituted by Finance (Supplementary) Act, 2022. 6 New sub-sections (2A) added through Finance Act, 2016.

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.”. 7[(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;

(d) enforcement and adjudication;

(e) penalties and prosecution; and

(f) all other allied and ancillary matters. ———————— 7 Sub-section (2B) inserted by Finance Act, 2016

THE SCHEDULE 8[Table-1] [See section 3(2)]

PCT Heading, if applicable 1 Services provided or rendered by hotels, 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 Children’s Fund(UNICEF) 3 Services provided by persons authorized to 9805.2000 Sixteen percent

8Existing Schedule re-named as Table-1 by the Finance (Supplementary) Act, 2022.

(c) ship chandlers. 4 Courier services and cargo services by road 9808.0000 Sixteen percent 5 Construction services, excluding: 9824.0000 Sixteen percent 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. Cantonment Boards.

(iv) construction of industrial zones, consular from income tax. tenders against foreign grants-in-aid.

(vi) Residential construction projects where the apartments 6 Services provided by property developers and 9807.0000 Rs.100 per promoters (including allied services) excluding and square yard for the actual purchase value or documented cost respective sub- land heading 98.14 Rs.50 per square 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 9805.3000, Sixteen percent or agents, and packers and movers. 9819.1400 Rs. 400 per bill of 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 9815.9000 Sixteen percent 9818.3000 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, 9819.6000 Sixteen percent whether relating to textile, leather, jewellery or display, etc. 21 Services provided by architects, town planners 9814.9000 and interior decorators. 22 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 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 9811.0000 Sixteen percent cleaners. 29 Services provided by cable TV operators 9819.9000 Sixteen percent

30 Technical analysis and testing services 9819.9400 Sixteen percent 31 Services provided by TV or radio program – Sixteen percent producers or production houses. 32 Transportation through pipeline and conduit – Sixteen percent services. 33 Fund and asset (including investment) – Sixteen percent management services. 34 Services provided by inland port operators – Sixteen percent warehouses, excluding the amounts received by way of fee under any law or by-law. 35 Technical inspection and certification services – Sixteen percent

services 36 Erection, commissioning and installation – Sixteen percent services. 9[38 Valuation services; competency and eligibility – Sixteen percent services provided or rendered under a bilateral Government of Pakistan], 40 Services provided in respect of mining of – Sixteen percent minerals, oil & gas including related and allied activities 41 Services provided by property dealers and – Sixteen percent realtors. 10[Seventeen per cent]

11. IT services and IT-enabled services. Respective Five Percent Explanation

For the purpose of this entry - headings

(a) “IT services” include software development, software maintenance, system integration, web design, web development, web hosting and network design; and

(b) “IT enabled services” include inbound or outbound call centres, medical transcription, remote monitoring, graphics design, accounting services, HR services, telemedicine centers, data entry operations, locally produced television programs and insurance claims processing. 12. Services provided by property developers and 9807.0000 Zero per cent promoters (including allied services) relating to and respective subject to the low cost housing schemes sponsored or approved sub-headings of condition that no by Naya Pakistan Housing and Development heading 98.14 input tax Authority or under Government’s Ehsaas adjustment or programme. refund shall be admissible.

43. Services provided by car/ automobile dealers

Sixteen percent

11[44. Advertisement on hoarding boards, pole signs 9802.9000 Sixteen percent and signboards, and websites or internet 45. Services provided by landscape designers 9814.4000 Sixteen percent 47. Services provided or rendered by legal 9815.2000 Sixteen percent practitioners and consultants 48. Services provided by accountants and auditors 9815.3000 Sixteen percent 49. Service provided or rendered by Stockbrokers, 9819.1000, Sixteen percent

9 Serial number substituted through Finance Act, 2016. 10 Substituted for the words “eighteen and a half” by Finance Act, 2019. 11 Serial numbers 43 to 58 added through Finance Act, 2019.

9819.9090 50. Services provided by race clubs: - - Sixteen percent Entry/ admission and other services 51. Services provided or rendered by corporate 9815.9000 Sixteen percent law consultants 52. Visa processing services, including advisory - - Sixteen percent or consultancy services for migration or visa application filing services 53. Debt collection services and other debt - - Sixteen percent recovery services 54. Supply chain management or distribution - - Sixteen percent (including delivery) services 55. Services provided or rendered by persons - - Sixteen percent engaged in inter-city transportation or carriage conduit 58. Training or coaching services other than - - Sixteen percent education services 59. Cleaning services including janitorial services, 9822.2000, Sixteen percent].

12[Table-2] PCT Heading, if applicable

(1) 1. Construction services, excluding 9814.2000 Zero per cent

(i) Construction projects (industrial and 9824.0000 condition that no

12 Table-2 inserted by Finance (Supplementary) Act, 2022.

2 Services provided for personal care by beauty 9810.0000, Five per cent parlours, clinics and slimming clinics, body 9821.4000 subject to the massage centres, pedicure centres, including and condition that no cosmetic and plastic surgery by such parlours / 9821.5000 input tax

(i) annual turnover does not exceed Rs.3.6 refund shall be

(ii) the facility of air-conditioning is not installed or available in the premises. 3. Services provided by freight forwarding agents, 9805.3000 Five percent or Rs. is higher subject to the condition that no input tax adjustment or refund shall be admissible. 4. Services provided by tour operators and travel 9803.9000, Five per cent agents including all their allied services or 9805.5000 subject to the facilities (other than Hajj and Umrah). and condition that no adjustment or refund shall be admissible.

Services provided by specialized workshops or 98.20 Five per cent undertakings (auto-workshops; workshops for subject to the industrial machinery, construction and earth- condition that no moving machinery or other special purpose input tax machinery etc; workshops for electric or electronic adjustment or equipment or appliances etc. Including computer refund shall be hard ware; car washing or similar service stations admissible. and other workshops). 6. Services provided by health clubs, gyms, physical 9821.1000, Five per cent fitness centres, indoor sports and games centres 9821.2000 and subject to the and body or sauna massage centres. 9821.4000 condition that no input tax adjustment or refund shall be admissible. 7. Services provided by laundries and dry cleaners. 9811.0000 Five per cent subject to the condition that no input tax adjustment or refund shall be admissible. 8. Services provided by property dealers and realtors. Respective Zero per cent headings subject to the condition that no input tax adjustment or refund shall be admissible. 9. Services provided by car / automobile dealers. Respective Five per cent headings subject to the condition that no input tax

adjustment or refund shall be admissible. 10. Services provided or rendered by marriage halls Respective Five per cent and lawns, by whatever name called, including headings subject to the “pandal” and “shamiana” services and caterers. condition that no input tax adjustment or refund shall be admissible.