Islamabad Capital Territory (Tax on Services) Ordinance, 2001, as published 30 June 2023

This is the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 as it stood on 30 June 2023. It runs to 17 pages and contains 6 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every amendment made up to its cover date into the text, so it shows the law as it stood on 30 June 2023 rather than as originally enacted.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 2,195 words across 6 sections.

What changed since the previous version

Against the version published 30 June 2022, this one has 3 new sections and 1 that no longer appear.

New in this version

• section 56, Ready mix concrete services
• section 57, Public relations services
• section 60, Electric Power Transmission Services

No longer present

These appeared in the previous version and not in this one. That usually means omission by a later law, though it can also mean a heading was formatted in a way the extraction did not recognise.

• section 43, Services provided by car/ automobile dealers

The source file

File name	ICT (Tax on Services) Ordinance, 2001 - amended upto 30-06-2023.pdf
Pages	17
Size	0.32 MB
Text extraction	markitdown
Extraction confidence	high
Position in this collection	8 of 9

SHA-256 of the source PDF:

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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

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.

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The full text of this version

All 6 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.

(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; 2Sub-section (1) substituted by Finance (Supplementary) Act, 2022. 3New sub-section (1A) inserted by the Finance Act, 2021. 4The words brackets and figure “column (2) of” inserted by the Finance Act, 2015 5Expression substituted by Finance (Supplementary) Act, 2022. 6New sub-sections (2A) added through Finance Act, 2016.

7[b) serial number 2, and serial number 8A 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.”. 8[(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. ———————— 7Expression added through Finance Act, 2023. 8Sub-section (2B) inserted by Finance Act, 2016.

9[Table-1] [See section 3(2)]

PCT Heading, if applicable 14[1. (i) Services provided or rendered by hotels, 98.01 (i) 13[Fifteen

(ii) (a) Five percent where payment against services is received house, coffee shops, deras, food huts, through debit or credit cards, mobile wallets or QR scanning outlets etc. subject to the condition that

no input tax adjustment or refund shall be admissible; and

(b) Fifteen percent where payment received in cash.”. 2. Advertisement on television and radio, 9802.1000 and (a) sponsored by an agency of the Federal or Provincial Government for health education;

9Existing Schedule re-named as Table-1 through the Finance (Supplementary) Act, 2022. 12Serial number substituted through Finance Act, 2022. 13Substituted for the words “sixteen percent” and “seventeen percent” through Finance Act, 2022. 14Serial number 1 and entries relating thereto in columns (2), (3) and (4) are Substituted through Finance Act, 2023.

campaign; Government under grant-in-aid agreement; and

(d) conveying public service messages, if telecast on television by the World Wide Fund for Nature Fund(UNICEF). 3. Services provided by persons authorized to 9805.2000 13[Fifteen percent (c) ship chandlers. 4. Courier services and cargo services by road 9808.0000 13[Fifteen percent 5. Construction services, excluding: 9824.0000 13[Fifteen 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 buildings and other organizations exempt from income tax. 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.100 per square promoters (including allied services) excluding and yard for land the actual purchase value or documented cost of respective sub- development, and construction 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.

parlours/clinics, but excluding: million; or installed or available in the premises.

9819.9300 10. Services provided by freight forwarding agents, 9805.3000,

15[11. IT services and IT-enabled services. Respective Fifteen percent

design, web development, web hosting and network design; and limited to inbound or outbound call centres, graphics design, accounting services, human computing services, data storage services, insurance claims processing. 10 12. Services provided by technical, scientific and 9815.5000 13. Services provided by other consultants including 9815.9000 and credit rating services. 14. Services provided by tour operators and travel 9805.5100 9805.6000 and manpower supplies.

15Serial number 11 and entries relating thereto in columns (2), (3) and (4) are Substituted through Finance Act, 2023.

18. Share transfer or depository agents including 9805.9000 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. 9819.6000 20. Services provided by fashion designers, whether marketing, packing, delivery and display, etc. 21. Services provided by architects, town planners 9814.1000 Including computer hard ware; car washing or similar service stations and other workshops). (including building and equipment maintenance cleaning services, janitorial services, dredging or de-silting services and other similar services etc. Services provided by underwriter, indenters, 9819.1100, 13[Fifteen percent 25. 9819.1200, commission agents including brokers (other than 9819.1300 stock) and auctioneers. and

9819.9100 services relating to pathological or diagnostic tests for patients. 27. Services provided by health clubs, gyms, 9821.1000 9821.4000 28. Services provided by laundries and dry cleaners. 9811.0000

producers or production houses. services. management services. 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. services. services.

services provided or rendered under a bilateral Government of Pakistan], minerals, oil & gas including related and allied activities. realtors. 44. Advertisement on hoarding boards, pole signs 9802.9000 13[Fifteen percent and signboards, and websites or internet. 47. Services provided or rendered by legal 9815.2000 13[Fifteen percent practitioners and consultants. 9819.9500 and 9819.9090 50. Services provided by race clubs: - - 13[Fifteen percent Entry/ admission and other services. 51. Services provided or rendered by corporate law 9815.9000 13[Fifteen percent consultants. 52. Visa processing services, including advisory or - - 13[Fifteen percent application filing services.

13Serial number substituted through Finance Act, 2016. 14Serial numbers 43 to 58 added through Finance Act, 2019.

53. Debt collection services and other debt recovery - - 13[Fifteen percent services. 54. Supply chain management or distribution - - 13[Fifteen percent (including delivery) services. 55. Services provided or rendered by persons - - 13[Fifteen percent engaged in inter-city transportation or carriage of goods by road or through pipeline or conduit.

56. Ready mix concrete services

• 13[Fifteen percent

57. Public relations services

• 13[Fifteen percent 58. Training or coaching services other than - - 13[Fifteen percent education services. 59. Cleaning services including janitorial services, 9822.2000, 13[Fifteen percent collection of waste and processing of domestic 9822.3000 and waste. 9822.9000

60. Electric Power Transmission Services

• Fifteen percent ______________________________ 16Serial number 60 added through Finance Act, 2023.

16[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

(ii) The cases where sales tax is otherwise paid admissible 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 centers, pedicure centers, 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 installed or available in the premises. 3. Services provided by freight forwarding agents, and 9805.3000 Five percent or

16Table-2 inserted by Finance (Supplementary) Act, 2022.

9819.1400 lading, whichever 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 facilities 9805.5000 subject to the (other than Hajj and Umrah). and condition that no 9805.5100 input tax adjustment or refund shall be admissible. 5. 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 centers, indoor sports and games centers 9821.2000 and subject to the and body or sauna massage centers. 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. 17[11. Services provided by software or IT-based system 9815.6000 Five percent development consultants. subject to the conditions that no input tax adjustment or refund shall be admissible. 12. Services provided by property developers and 9807.0000 Zero per cent promoters (including allied services) relating to low subject to the

cost housing schemes sponsored or approved by and respective condition that no Naya Pakistan Housing and Development sub-headings of input tax Authority or under Government’s Ehsaas heading 98.14 adjustment or programme. refund shall be admissible. 17Serial number 11 substituted through Finance Act, 2022.