Sales Tax & federal Excise Budget 2013-14

1. BUDGETRY AMENDMENTS-2013-2014
SALES TAX
1. Introduction of CREST (Computerized Risk-Based Evaluation
of Sales Tax).
[Section 2 Clause 5AC]
In section 2 after clause 5AB new clause 5AC introduced:
”CREST”, The Federal Board of Revenue (FBR)'s indigenously developed
Sales Tax IT system i.e. Computerized Risk-Based Evaluation of Sales Tax
(Crest) will process all Sales Tax refund claims on the basis of data
captured in sales tax returns and no separate CD would be required from
registered person for processing of claim. The Crest has given new
dimension to the whole scheme of processing of claims by checking and
verification of supply chain to avert tax frauds with facilitation to the
genuine registered units.
2. Amendments in the Definition of Provincial Sales Tax
[Section 2 Clause 22A]
Definition of Provincial Sales Tax seek to be amended before that it was
defined separately. New definition is as under:
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.
3. Introduction of Supply Chain
[Section 2 Clause33A]
In section 2 after clause 33 new clause 33A introduced:
Series of transaction from Ist Stage of Import/Purchase to the final stage
of supply end.

2. 4. Time of Supply elaborated
[Section 2 Clause 44a]
In section 2 clause 44 after the word “recipient of the Supply” the words
“or the time when any payment us received by supplier in respect of that
supply whichever is earlier”.
Time of supply now can be fulfilled in both ways i.e. either by delivery of
goods or payment is received by the supplier in respect of that supply.
Before it was only met by supply of goods or supply made available to
recipient.
5. Rate of Tax Increased from 16% to 17%
[Section 3a]
Rate of Sales Tax Increased from 16% to 17%. This is only applicable
where the word 16% occurring.
(Effective from 13, June, 2013)
6. 2% Further Tax will be charged where taxable supplies
are
made to a Unregistered Person
[Section 3(1A)]
In Section 3 after subsection (1) following subsection namely (1A) added
”Where taxable supplies are made to unregistered person further tax of
2% will be charged in addition to 17%.
(Effective from 13, June, 2013)
7. SALES TAX ON THE BASIS OF CAPACITY OR ON A FIXED
BASIS
[Section 3(1B)]
A new sub section (1B) is proposed to be inserted in section 3 empowering
the Federal Government to impose sales tax on the basis of production
capacity of manufacturers or on a fixed basis instead of the sales tax
payable on the generalized basis i.e. ‘value of supply’ under section 3(1).
(Effective from 13, June, 2013)
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3. 8. Substitution of Word “tax at such extra rate or amount”
[Section 3 (5c)]
In Section 3 after subsection (5) following word will be substituted “Tax at
such rate or amount before that it was “such extra amount of tax”
(Effective from 1st
July, 2013)
9. Registered Person shall not be allowed or reclaim or deduct
input tax paid If Discrepancy is indicated by CREST
[Section 8 Subsection 1 clause (caa)]
In Section 8 after subsection (1), Sub-clause (ca) a new sub-clause (caa)
inserted which clarifies that if a registered person shall not be allowed or
reclaim input tax if discrepancy found by CREST Or Input Tax which is
not verifiable in supply-chain i.e. (your purchase/sale didn’t match).
10. Omission of Word & Figure
[Section 21 Subsection 3]
In Section 21 after subsection (3), the words and figure “unless the
registered buyer has fulfilled his responsibilities under section 73” shall be
omitted
11. Investigation and Appropriate legal action if 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
[Section 21 Subsection 3]
In Section 21 after subsection (3), new subsection (4) shall be added:
“If Board, the Commissioner or any other Officer authorized by the board
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, 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.”
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4. 12. Omission of word “and”
[Section 22 (1e)]
In Section 22, subsection (1), after clause (e) the word “and shall be
omitted
13. Responsibility of Registered Person to keep a record relating
to gate passes, inward or outward and transport receipts
[Section 22 (1ea)]
In Section 22, subsection (1), after clause (e) new clause (ea) added which
states that it is the responsibility of registered person to keep a record of
gate passes, inward or outward and transport receipts.
14. Addition of Explanation for removal of doubts in terms of
Power of Board, commissioner or officer of inland revenue as
compared with Section 72B
[Section 25 Subsection 5]
In Section 25, subsection (5), explanation is added which clarifies the
doubt in terms of Power of board, commissioner or officer of inland
revenue in comparison with section 72B i.e. nothing contained in section
72B restricts the power of 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.
15. Now Board & Chief Commissioner can post Officer Inland
Revenue to the premises of registered person or class of such
persons to monitor production, sale of taxable goods and stock
positions before that only board can appoint Officer Inland
Revenue
[Section 40B]
In Section 40B, along with the word “Board” a new word shall be added
“or Chief Commissioner”. Now both Board & Chief Commissioner can
post Officer in land revenue to the premises of registered person or class
of such persons to monitor production, sale of taxable goods and stock
positions
16. Monitoring or Tracking by electronic or other means
[Section 40C]
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5. After Section 40B, new Section 40C shall be inserted which states that
1. As the Board specify by notification in official gazette specify any
registered persons any class of person 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 the date as prescribed by board the said manufacturer or any
other person cannot sold or remove taxable goods without affixing tax
stamp, banderole, stickers, labels, etc. in any such form, style and
manner as may be prescribed by the Board in this behalf
17. if undue hardship faced by the tax payer a Stay for a period
not exceeding 30 days may be granted on recovery of tax by
Commissioner(Appeals)
[Section 45B subsection 1]
After Section 45B, subsection 1 following new subsection shall be inserted:
In a particular case if Commissioner (Appeals) of the opinion that a
registered tax payer is facing undue hardship after being heard to
Commissioner or Officer inland revenue may grant stay of 30 days for
recovery of that tax.
18. Rectification of mistake
[Section 57 subsection 1]
For Section 57B, following shall be substituted:
1. If there is a mistake specified by tax payer or on his own motion the
Order passed by Commissioner, the Commissioner (Appeals) or the
Appellate Tribunal may rectify any mistake apparently by passing
another Order.
2. The Order passed under Subsection 1 has no effect in increasing an
assessment or reducing a refund or otherwise applying adversely to
the tax payer shall be made unless the taxpayer has been given a
reasonable opportunity of being heard.
3. Where there is clear indication of a mistake and same is notified to the
Commissioner or Commissioner (Appeals), as the case may be, and no
order has been made under sub-section (1), before the expiration of the
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6. 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 sought to be rectified.
19. Reward to Inland revenue Officers and Officials
[Section 72C]
After Section 72B, following new section shall be inserted:
1. Cash reward shall be sanctioned to the officers and officials of
Inland Revenue in the cases involving concealment or evasion of
sales tax and other taxes.
2. Board by notice specify the apportionment of reward sanctioned
under this section for individual performance or to collective
welfare of the officers and officials of Inland Revenue.
20. Bank Account Updated by STR-I Form
[Section 73]
In Section 73, in the explanation after the word “is registered” the words,
letters and figure “through Form STR 1 or change of particulars in
registration database” shall be inserted:
A registered person now updates his bank account through STR-1 Form
or change of particulars in registration.
21. Following new Serials Numbers and entries relating thereto
shall be added 3rd
Schedule:
[Effective June 13, 2013]
With regard to goods specified in the Third Schedule, sales tax at retail
price is collected from the manufacturer. The scope of Third Schedule is
extended to following goods:
Sr. No Description
Heading Nos of the First
Schedule to the Customs
Act 1969(IV of 1969)
22
Finished or made-up articles of textile and
leather, including garments, footwear, and bed
ware, sold in retail packing
Respective headings.
23 Household electrical goods, including air Respective headings.
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7. conditioners, refrigerators, deep freezers
televisions, recorders and players, electric
bulbs, tube-lights, fans, electric irons, washing
machines and telephone sets
24
Household gas appliances, including cooking
range, ovens, geysers and gas heaters
Respective headings.
Respective headings.
25
Foam or spring mattresses, and other foam
products for household use
Respective headings.
26
Auto parts and accessories sold in retail
packing
Respective headings.
27
Lubricating oils, brake fluid, transmission fluid,
and other vehicular fluids and maintenance
products in retail packing
Respective headings.
28 Tyres and tubes Respective headings.
29 Storage batteries Respective headings.
30 Arms and ammunition Respective headings.
31
Paints, distempers, enamels, pigments, colors,
varnishes, gums, resins, dyes, glazes, thinners,
blacks, cellulose lacquers and polishes sold in
retail packing
Respective headings.
32 Fertilizers Respective headings.
33 Cement sold in retail packing Respective headings.
34 Tiles sold in retail packing Respective headings.
35
Biscuits, confectionary, chocolates, toffees and
candies
Respective headings.
36 Other goods and products sold in retail packing Respective headings.
22. Withdrawal of Exemptions;
[Effective June 13, 2013]
Withdrawal of exemptions from sixth Schedule;
Following entries are proposed to be omitted from the Sixth Schedule to the Act:
- Milk preparations obtained by replacing one or more of the constituents of
milk by another substance, whether or not packed for retail sale. PCT
heading 1901.1000, 1901.9020 and 1901.9090– omitted from 6th
Schedule
- Supplies against International Tender- omitted from 6th
Schedule.
23. Withdrawal of Zero rating Facility;
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8. [Effective June 13, 2013]
i) Withdrawal of Zero rating facility by Rescinding various sales tax
and federal excise notifications
S.No. Withdrawal SRO No. After Amendments
01 S.R.O. 646(I)/2005 dated 30th
June,2005
Zero rating on supply of hydrogen, nitrogen
and
helium falling under PCT headings
2804.1000,
2804.3000 and 2804.2990 by M/s BOC
Pakistan
Limited to M/s Pakistan PTA Limited.
02 S.R.O. 172(I)/2006 dated 24th
February,
2006
Exemption from sales tax available to
members of
Pakistan Film Producers Association (PFPA)
on
import of specified goods used in production
of film making.
03 S.R.O. 863(I)/2007 dated 24th
August,
2007
Consequent to exemption allowed and
withdrawal of zero rating earlier available
under SRO 549(I)/2008, the facility available
under this
notification for sales-tax free procurement of
raw
materials, sub-components, components,
subassemblies and assemblies (imported or
local) by manufacturers of following goods
has also been taken away
S.No. Description of
goods
PCTHeadings
01 Colors in sets 3213.1000
02 Writing, drawing
and
3215.9010 and
3215.9090
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9. marking inks
03 Erasers 4016.9210 and
4016.9290
04 Exercise books 4820.2000
05 Pencils sharpener 8214.1000
06 Geometry box 9017.2000
07 Pens, ball pens,
markers and
porous
tipped pens
96.08
8. Pencils including
color pencils
96.09
9. Milk including
flavoured milk
04.01 and
0402.9900
10. Yogurt 0403.1000
11 Cheese 0406.1010
12 Butter 0405.1000
13 Cream 04.01 and
04.02
14 Desi Ghee 0405.9000
15 Whey 04.04
16 Milk and cream,
concentrated and
added sugar or
other
sweetening matter
0402.1000
17 Preparations for
infant use put up
for
retail sale
1901.1000
18 Fat filled milk 1901.9090
04 S.R.O. 160(I)/2010 dated 10th
March,
2010
Amnesty from payment of default surcharge
and
penalties available on payment of principal
amounts by June 30, 2010 to registered person
(other than cement, sugar, beverages and
cigarette sectors) located in Hangu, Bannu,
Tank,
Kohat, Chitral, Charsadda, Peshawar, Dera
Ismael
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10. Khan, Batagram, Lakki Marwat, Sawabi and
Mardan. No concession is currently available
under this notification, being time specific.
05 S.R.O. 161(I)/2010 dated 10th
March,
2010
Withdrawal of exemption on whole of the
amount of additional duties and penalties
payable by a registered person located in
Agencies of Bajaur, Mohmand, Khyber,
Orakzai, Kurrum, North Waziristan and
South Waziristan
06 S.R.O. 162(I)/2010 dated 10th
March,
2010
Withdrawl of exemption of central excise
duty in areas Bajaur Agency, Mohmand
Agency, Khyber
Agency, Orakzai Agency, Kurrum Agency,
North
Waziristan Agency and South Waziristan
Agency
07 S.R.O. 163(I)/2010 dated 10th
March,
2010
Withdrawal of exemption of federal excise
duty leviable on goods produced or services
rendered in the areas Districts of Hangu,
Bannu, Tank, Kohat and Chitral, Districts of
Charsadda, Peshawar, Dera Ismael Khan,
Batagram, Lakki Marwat, Sawabi and
Mardan.
08 S.R.O. 164(I)/2010 dated 10th
March,
2010
Withdrawal of exemption of sales tax
leviable on supply of electricity by Peshawar
Electric Supply Company or any other duly
registered Electric Supply Company to
manufacturing units (having industrial
connections) whether registered or not,
located in districts of Hangu, Bannu, Tank,
Kohat, Chitral, Charsadda, Peshawar, Dera
Ismael Khan, Batagram, Lakki Marwat,
Sawabi and Mardan.
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11. 09 S.R.O. 117(I)/2011 dated 10th
February,
2011
Withdrawal of fifty per cent of the rate
leviable under sub-section (1) of section 3 of
the Sales Tax Act, 1990 under Prime
Minister’s Fiscal Relief to Rehabilitate the
Economic Life in Khyber Pakhtunkhwa,
FATA and PATA, namely, Bajaur Agency,
Mohamand Agency, Khyber Agency, Orakzai
Agency, Kurram Agency, North Waziristan
Agency, South Waziristan Agency, Malakand
Agency, District Swat, District Buner, District
Shangla, District Upper Dir and District
Lower Dir
10 S.R.O. 180(I)/2011 dated 05th
March,
2011
Withdrawl of 50% reduction in sales tax was
available on supply of goods by the
registered persons (other than cement, sugar,
beverages andcigarette sectors) located in
districts of Hangu, Bannu, Tank, Kohat,
Chitral, Charsadda, Peshawar, Dera Ismael
Khan, Batagram, Lakki Marwat, Sawabi,
Nowshera and Mardan.
11 S.R.O. 200(I)/2010 dated 14th
March,
2011
Withdrawal of fifty percent of the rate
leviable under sub-section (1) of section 3 of
the Sales Tax Act, 1990 districts of KPK
12 S.R.O. 201(I)/2010 dated 14th
March,
2011
Withdrawal of fifty percent of the rate
leviable under sub-section (1) of section 3 of
the Sales Tax Act, 1990 districts of KPK
S.R.O. 500(I)/2013, dated the 12th
June, 2013
ii) Withdrawl of Zero Percent Rate of Sales Tax And Substituted
With Exemption on following Goods.
[Effective June 13, 2013]
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12. ‘Zero rating’ [available under SRO 549(I)/2008 dated June 11, 2008] has been
withdrawn and ‘exemption’ from whole of sales tax has been extended with the
exception of Cotton Seed Oil. This effectively means that input tax, if any, for
such products will not be available. Earlier, input tax borne by the manufacturer
was refundable.
Zero rating on ‘Cotton Seed Oil’, supplied to registered manufacturer of
vegetable ghee and cooking oil, has been withdrawn. However, it has not been
granted exemption from sales tax. Therefore, it is now chargeable to sales tax at
the rate of 17 per cent. List of exempted goods (previously zero rated):
S.No
.
Description of Goods Amendments
01 Cotton Seeds (PCT Heading 107.2000) Omitted
02 Oil Cake and other Solid Residues, Whether or not ground or
in the form of pellets (PCT Heading 2306.1000)
Omitted
03 (i). Uncooked poultry meat (PCT
Heading 02.07);
(ii). Milk (PCT Heading 04.01);
(iii). Flavored Milk (PCT Headings (0402.9900 and 22.02);
(iv). Cream (PCT Heading 04.01 and 04.02);
(v). Milk and cream, concentrated or containing added sugar
or other sweetening matter (PCT Headings
0402.1000, 0402.2100, 0402.2900, 0402.9100 and 0402.9900)
(vi). Yogurt (PCT Heading 0403.1000);
(vii). Whey (PCT Heading 04.04); and
(viii). Butter (PCT Heading 0405.1000);
Omitted
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13. (ix). Desi ghee (PCT Heading 0405.9000);
(x). Cheese (PCT Heading 0406.1010);
(xi). Processed cheese not grated or powdered (PCT Heading
0406.3000)
(xii). Frozen, prepared or preserved sausages and similar
products of poultry meat or meat offal (PCT Heading
1601.0000);
(xiii). Meat and similar products of prepared frozen or
preserved meat or meat offal of all types including
poultry meat and fish (PCT Headings 1602.3200, 1602.3900,
1602.5000, 1604.1100, 1604.1200, 1604.1300, 1604.1400,
1604.1500, 1604.1600, 1604.1900, 1604.2010, 1604.2020,
1604.2090, 1604.3000);
(Xiv)Fat filled milk (PCT Heading1901.9090);
(xvi). Soyabean meal (PCT Heading 2304.0000);
(xviii). Colours in sets (Poster colours) (PCT Heading
3213.1000)
(xix). Writing, drawing and marking inks (PCT Headings
3215.9010 and 3215.9090);
(xx). Erasers (PCT Headings 4016.9210 and 4016.9290)
13

14. (xxi). Exercise books (PCT Heading 4820.2000);
(xxii). Remeltable scrap (PCT Heading 72.04);
(xxiii). Pencil sharpeners (PCT Heading 8214.1000)
(xxiv). Sewing machines of the household type (PCT Headings
8452.1010 and 8452.1090);
(xxv). Dedicated CNG buses and all other buses meant for
transportation of forty or more passengers whether in CBU or
CKD condition (PCT Heading 87.02);
(xxvi). Trucks and dumpers with g.v.w. exceeding 5tonnes
(PCT Heading (87.04);
(xxvii). Bicycles (PCT Heading 87.12);
(xxviii). Trailers and semi-trailers for the transport of goods
having specifications duly approved by the Engineering
Development Board (PCT Heading 87.16);
(xxix). Road tractors for semi-trailers, prime movers and road
tractors for trailers whether in CBU condition or in kit form
(PCT Headings 8701.2010, 8701.2020, 8701.2030,
8701.2090,8710.9030, 8701.9040, 8701.9050 and 8701.9060);
(xxx). Purpose built taxis, whether in CBU or CKD condition
(PCT Headings 8703.3226 and 8703.3227) which are built on
girder chassis and having following features, namely:-
(xxxi). Attack resistance central division along with payment
14

15. tray;
(xxxii). Wheelchair compartment with folding ramp; and
(xxxiii). Taximeter and two-way radio system;
(xxxiv). Vessels for breaking up (PCT Heading 89.08);
(xxxv). Other drawing, marking out or mathematical
calculating instruments (geometry box) (PCT Heading
9017.2000)
(xxxvi). Pens and ball pens (PCT Heading 96.08) and
(xxxvii). Pencils including colour pencils (PCT Heading 96.09);
04 Compost (non-chemical fertilizer) Omitted
05 Energy saver lamps (PCT heading 8539.3910). Omitted
06 Construction materials to Gawadar Export Processing Zone’s
investors and to Export Processing Zone Gawadar for development
of Zone’s infrastructure
Omitted
07 Wheelchair PCT 8713.1000, 8713.9000 Omitted
08 Cotton Seed Oil Omitted
S.R.O. 501(I)/2013, dated the 12th
June, 2013
S.R.O. 502(I)/2013, dated the 12th
June, 2013
24. FINISHED CONSUMER GOODS OF FIVE EXPORT-
ORIENTED SECTORS
Amendment in SRO 1125(I)/2011 dated December 31,
2011
[Effective 12, June, 2013]
- Through the subject notification now finished goods in case of leather,
textile, Carpets, sports goods, surgical goods are now charged at 17%.,
with effect from June 12, 2013, the concession has been restricted to goods
other than ‘finished’ articles. Consequently, the local sale of these ‘finished
articles’ such as ‘garments’ now attracts sales tax at the rate of 17 per cent.
- Against Serial number 56, in column (2), after the word “preparations” the
word “excluding master batches shall be added;
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16. - “Shoe Adhesive” PCT 3506.9110 now omitted from SRO.
S.R.O. 504(I)/2013, dated the 12th
June, 2013
25. Amendments in the Sales Tax Special Procedure
(Withholding Rules 2007
WITHHOLDING ON SUPPLIES FROM UNREGISTERED
PERSON - EXTENDED
[Rule 2(3)]
[Effective June 12, 2013]
At present, only following persons are required to withhold sales tax on
purchase of taxable goods from unregistered persons:
- Federal and provincial governments
- Autonomous bodies
- Public sector organizations
Now all companies who are withholding agents under these Rules and
persons registered as exporters are also required to withhold sales tax on
purchase of taxable goods from unregistered persons
S.R.O. 505(I)/2013, dated the 12th
June, 2013
26. Amendments in the Sales Tax Rules 2006
PLACE OF JURISDICTION
[Rule 5(1)]
[Effective July 1, 2013]
Presently, the jurisdiction over the case of a corporate person lies with the
Regional Tax Office (RTO) or Large Taxpayers Unit (LTU), in whose
jurisdiction the registered office is located whereas in the case of a non-
corporate person, it is determined with reference to the place where the
business is actually carried on and in case of both business premises and
manufacturing unit in different areas, the jurisdiction is determined with
reference to the place of manufacturing unit.
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17. The amendment sets out a revised and uniform basis for determination of
place of jurisdiction as follows:
- Following change in clauses (a), (b), (c) in rule 5 i.e (Application for
registration), in sub rule (1):
Determination of Jurisdiction having a single manufacturing unit
or business
a) Jurisdiction is determined where the manufacturing unit or
business premises is actually located in both corporate & non-
corporate person.
Determination of Jurisdiction having a multiple manufacturing
unit or business
b) Board may decide the place of registration of such person
- Chapter VIIA (ZERO-RATING OF SUPPLIES AGAINST
INTERNATIONAL TENDER FOR AFGHAN REFUGEES) and the rules
thereunder shall be omitted.
(W.e.f 1st
day of July, 2013)
S.R.O. 506(I)/2013, dated the 12th
June, 2013
27. Levy of Extra 5% on supplies of electric power and
natural Gas having Industrial or Commercial Connections
who are unregistered or are not on Active Tax Payer List.
Industrial or Commercial connections who are unregistered or not on
active taxpayer list maintained by Federal Board of Revenue will be extra
5% of total bill excluding the amount of federal taxes if there bill exceeds
rupees fifteen thousand in any month.
S.R.O. 509(I)/2013, dated the 12th
June, 2013
28. Amendments in the Sales Tax Special Procedure Rules
2007
[Effective from June 13, 2013]
After Chapter IV, new Chapter VIA shall be inserted:
“Special Procedure for collection and payment of extra tax on
supplies of electric power and natural gas consumes by
unregistered and inactive persons”
18B. Mode & Manner of Collection
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18. 1) Industrial or Commercial connections who are unregistered or not
on active taxpayer list maintained by Federal Board of Revenue
will be extra 5% of total bill excluding the amount of federal taxes if
there bill exceeds rupees fifteen thousand in any month.
2) The amount of extra tax will be shown separately in the bill or
invoice.
18C. Conditions & Limitations
1) Extra Tax shall not be adjustable by the supplier or consumer in
their returns and shall be paid in full by the supplier in to the
treasury.
2) The Supplier of Electric or Natural Gas verify the name address
and other particulars appearing on the registration certificate and
also verify same from Active Tax Payer List if a person claims that
he has a sales tax registration number.
3) Multiple places of business shall ensure that all such places of
business are properly declared and entered on his registration
certificate and Taxpayer List.
4) The Supplier of Electric or Natural Gas after above said verification
shall incorporate the Sales Tax registration number in billing
system so that it is printed in future bills. Thereafter, the supplier
shall stop charging and collecting the extra tax from such person.
5) If registered person is deregistered or inactive from ATL List
supplier shall again start charging and collecting extra tax.
S.R.O. 510(I)/2013, dated the 12th
June, 2013
FEDERAL EXCISE
1. FURTHER DUTY
[Section 3]
The Bill proposes to levy a ‘Further Duty’ at the rate of two per cent of the
value in addition to the normal rate, when excisable goods and services
are supplied to a person who has not obtained a registration number.
Federal Government will be empowered to issue a notification in the
official gazette to specify the excisable goods and services where upon
such further duty will be charged, levied and collected.
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19. 2. RECORDS
[Section 17]
Every person registered for FED Act is required to maintain and retain
records of excisable goods purchased, manufactured and cleared by him
or by his agent for the specified period. Such records will now include,
inward and outward gate passes and transport receipts.
3. APPEALS TO COMMISSIONER (APPEALS)
[Section 33]
The Bill proposes to expressly empower the Commissioner (Appeals) to
stay the recovery of tax for a period not exceeding 30 days in aggregate,
where in a particular case, he is of the opinion that the recovery of tax
levied shall cause undue hardship to the taxpayer.
It is important to note that under section 37(1), the Commissioner
(Appeals), in any particular case, is already empowered to dispense with
the deposit of duty demanded or penalty imposed, subject to such
conditions as he may deem fit to impose so as to safeguard the interest of
revenue. The order for such dispensation, however, ceases to have effect
on the expiration of a period of 6 months from the date of the dispensation
order or decision of appeal, whichever is earlier
4. POWERS OF FBR OR COMMISSIONER TO PASS CERTAIN
ORDERS
[Section 35]
An Explanation has been inserted to clarify that the powers of FBR,
Commissioner or Officer of Inland Revenue vested under sections 35, 45
and 46 are independent of the powers of the FBR under section 42B. It has
further being clarified that nothing contained in section 42B restricts the
powers of FBR, Commissioner or officer of Inland Revenue under the
aforesaid sections or to conduct audit.
5. REWARD TO INLAND REVENUE OFFICERS AND OFFICIALS
[Section 42C]
It is proposed to reward officers and officials of Inland Revenue for their
meritorious conduct in cases involving concealment or evasion of excise
duty and other taxes. Moreover, the informer providing credible
information leading to such detection would also be rewarded after
realization of part or whole of the taxes involved in such cases. It is
proposed that FBR may by notification prescribe the procedure to specify
the apportionment of reward for individual performance or to collective
welfare of the officers and officials of Inland Revenue.
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20. 6. MONITORING OR TRACKING BY ELECTRONIC OR OTHER
MEANS
[Section 45A]
It is proposed that FBR may by notification prescribe the procedure to
specify any registered person or class of registered persons or any goods
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. Moreover,
excisable goods shall not be removed or sold by the manufacturer or any
other person without affixing tax stamp, banderole, stickers, labels, etc. in
any such form, style and manner as may be prescribed by FBR.
7. FIRST SCHEDULE
REVISION IN DUTY
(TABLE I – EXCISABLE GOODS)
AERATED BEVERAGES
The rate of duty is proposed to be enhanced from 6% to 9% of retail price
for following goods with effect from July 1, 2013:
S.No.
Description of Goods Heading Number
4. Aerated waters 2201.1020
5.
Aerated waters, containing added
sugar or other
sweetening matter of flavoured
2202.1010
6.
Aerated waters if manufactured
wholly from juices
or pulp of vegetables, food grains or
fruits and
which do not contain any other
ingredient,
indigenous or imported, other than
sugar, colouring
materials, preservatives or additives
in quantities
prescribed under the West Pakistan
Pure Food
Rules, 1965
Respective
Headings
LOCALLY PRODUCED CIGARETTES
Description and duty on the locally produced cigarettes (PCT heading
24.02) has been revised as under, with effect from June 13, 2013
20

21. S.No.
Description of Goods Revised Rate of
Duty
9.
Locally produced cigarettes if their on-pack
printed retail price exceeds rupees two
thousand two hundred and eighty six per
thousand cigarettes
Rupees two thousand
three hundred and
twenty five per thousand
cigarettes
10.
Locally produced cigarettes if their on-pack
printed retail price does not exceed rupees
two thousand two hundred and eighty six
per thousand cigarettes
Rupees eight hundred
and eighty per
thousand cigarettes
8. Repayment-Cum-Drawback of Sales Tax and Federal Excise Duty
to the Registered Person on the export of vegetable Ghee, Cooking
Oil & Margarine
The Clause (iv) of serial No. 3 in column 3 shall be omitted:
Clause iv is as under:
“100% of federal excise duty, including the duty paid under the
Notification No. S.R.O.24(I)/2006, dated the 7th
January, 2006, paid at
import stage on the same quantity of edible oil as exported to
Afghanistan, by the units located in the violence affected areas specified in
Sales Tax General Order 01/2010, dated the 20th
January, 2010:
S.R.O. 503(I)/2013, dated the 12th
June, 2013
9. Levy Fixed Amount of Federal Excise Duty one ruppee on
Locally produced oil purchased by manufacturer of
vegetable ghee and cooking oil
Levy of fixed amount of federal excise duty at the rate of one rupee per
kilogram of locally produced oil purchased by a manufacturer of
vegetable ghee and cooking oil, instead of the federal excise duty payable
@16%. Which shall be paid by the producer or manufacturer of vegetable
ghee and cooking oil along with his monthly return for the tax period in
which locally produced oil is purchased
If the Stocks of locally produced oil purchased before 12th
June, 2013 and
lying in the premises of vegetable ghee and cooking oil producer or
manufacturer on the said date shall be paid along with return filed for
June, 2013 in accordance with the above specified rate
S.R.O. 508(I)/2013, dated the 12th
June, 2013
21

22. 10. Levy Fixed Amount of Federal Excise Duty Forty Paisa
Per Kilogram on Oilseeds, at the import stage
Levy fixed amount of federal excise duty of forty paisa per kilogram on
oilseeds, at the import stage instead of federal excise duty payable at
production or manufacturing stage of vegetable ghee or cooking oil.
11. MOTOR VEHICLES
It is proposed to charge duty on motor vehicles as under, with
effect from June 13, 2013:
S.No. Description of Goods PCT Heading Rate of Duty
55
Motor cars, SUVs and other
motor vehicles of cylinder
capacity of 1800 cc or
above, principally designed
for the transport of persons
(other than those of
headings 87.02), including
station wagons and racing
cars of cylinder capacity of
1800 cc or above
87.03
Ten per cent
ad.val
12. THIRD SCHEDULE
TABLE I – GOODS
The duty in respect of the following goods is proposed to be
withdrawn, effective June 13, 2013:
22

23. Note: If you have any query please don’t hesitate to contact us at the
following Nos. or e-mail at this address.
Ph. # 021-32722828-9, Fax # 021-32726449
E-mail: stspakistan@gmail.com
Yours truly,
The Sales Tax Services
S.No. Description of Goods PCT Heading
5
Hydraulic cement imported or purchased
locally by petroleum or energy sector
companies or projects subject to the same
conditions and procedures as are applicable
for the purposes of exemption of
custom duty,
2523.9000
7
Lubricating oil if supplied to Pakistan Navy for
consumption in its
vessels
Respective
heading
8
Transformer oil if used in the manufacture of
transformers supplied
against international tenders to a project
financed out of funds
provided by the international loan or aid giving
agencies
Respective
heading
23