Balochistan Act VI of 2015 · 137 pages
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THE BALOCHISTAN SALES TAX ON SERVICES
ACT, 2015
(Baln Act VI of 2015)
CONTENTS
SECTIONS
Preamble.
CHAPTER – I
PRELIMINARY
1. Short Title, Extent and Commencement.
2. 4[Definitions.
3. Taxable Service.
4. Application of Principles of Origin and Reverse Charge in Certain
Situations.
5. Amendment in Second Schedule.
6. Economic Activity.
7. Value of a Taxable Service.
8. Open market price.
9. Provision of Services Over a Period of Time.
CHAPTER – II
SCOPE OF TAX
10. Scope of Tax and Allied Matters.
11. Person Liable to Pay Tax.
11A. 3[Liability of a Registered Person.
12. Exemptions.
13. Effect of Change in the Rate of Tax.
14. Special Procedure and Tax Withholding Provisions.
15. Delegation of Power to Collect, Administer and Enforce Tax on
Certain Services.
16. 6[Adjustments of Input Tax.
16A. 1[Certain Transactions Not Admissible.
16B. Input Tax Credit Not Allowed.
16C. Adjustment of Input Tax Paid on Certain Goods and Services.
CHAPTER – III
PAYMENT AND COLLECTION OF TAX ON TAXABLE
SERVICES
17. Collection of Excess Tax.
18. Time, Manner and Mode of Payment.
19. Joint and Several Liability of Registered Persons Where Tax
Unpaid.
20. Sales of Taxable Activity or Transfer of Ownership.
21. Estate of Deceased Person.
22. Estate in Bankruptcy.
23. Liability for Payment of Tax in Case of Private Companies or
Business Enterprises.
24. Assessment of Tax.
CHAPTER – IV
REGISTRATION
25. Registration.
26. Voluntary Registration.
27. Compulsory Registration.
28. Suspension of Registration.
29. De-registration.
29A. 4[Restoration of Registration.
CHAPTER – V
BOOK KEEPING AND AUDIT PROCEEDINGS
30. Issuance of Tax Invoices.
31. Records.
32. Retention and Production of Records and Document.
33. Audit Proceedings.
34. 1[Audit by Special Audit Panels.]
CHAPTER – VI
RETURNS
35. Returns.
36. Special Returns.
37. Final Return.
38. Return Deemed to Have Been Made.
CHAPTER – VII
APPOINTMENT OF AUTHORITIES AND THEIR POWERS
39. Appointment of Authorities.
40. Powers.
41. Distribution of Powers.
42. Special Judges.
43. Cognizance of Offence.
44. Application of the Code of Criminal Procedure, 1898.
45. Exclusive Jurisdiction of Special Judge.
46. Place of Sitting.
47. Persons who may Conduct Prosecution.
CHAPTER – VIII
OFFENCES AND PENALTIES
48. Offences and Penalties.
49. Default Surcharge.
50. Exemption from Penalty and Default Surcharge.
51. Compounding of Offences.
52. Recovery of the Tax not Levied or Short-levied.
52A. 1[Short Paid Amounts Recoverable Without Notice.
53. Power to Summon Persons to give Evidence and Produce
Documents.
54. Power to Arrest and Prosecute.
55. Procedure to be Followed on Arrest of a Person.
56. Authorized Officers to have Access to Premises, Stocks, Accounts
and Records.
57. Obligation to Produce Documents and Provide Information.
58. Searches under Warrants.
59. Posting of an Officer 4[of the Authority] to Business Premises.
60. Powers of Adjudication.
60A. 4[Monitoring or Tracking by Electronic or other Means.
61. Revision by the Commissioner.
62. Revision by the Authority.
CHAPTER – IX
APPEALS AND REFERENCES
63. Appeals.
64. Procedure in Appeal.
65. Decision in Appeal.
66. 1[Appellate Tribunal.]
67. Appeal to the Appellate Tribunal.
68. Disposal of Appeals by the Appellate Tribunal.
69. Reference to the High Court.
70. Deposit of the Tax Demand while Appeal is Pending.
71. 1[Alternative] Dispute Resolution.
71A. 1[Appointment of Ombudsman.]
CHAPTER – X
RECOVERY OF ARREARS
72. Recovery of Arrears of Tax.
CHAPTER – XI
AGENTS, REPRESENTATIVES AND E-INTERMEDIARIES
73. Agent.
74. Liability and Obligations of Agents.
75. Liability of the Registered Person for the Acts of his Agent.
76. Appearance by 1[Authorized] Representative.
77. E-intermediaries to be Appointed.
CHAPTER – XII
GENERAL ADMINISTRATION
78. Power to Make Rules.
78A. 2[Power to Restrain Certain Authorities.
79. Computerized System.
80. Service of Orders and Decisions.
81. Correction of Clerical Errors.
82. Issuance of Duplicate of the Tax Documents.
83. Power to Issue Orders, Instructions and Directions.
84. Officers of the Authority to Follow Orders.
CHAPTER – XIII
MISCELLANEOUS
85. Computation of Limitation Period.
86. Condonation of Time-limit.
87. Bar of Suits, Prosecution and other Legal Proceedings.
88. Removal of Difficulties.
89. Repeal and Saving.
90. 7[Prize Schemes to Promote Tax Culture.
91. Reward to Whistleblower.
92. Validation.
First Schedule.
Second Schedule.
__
1
THE BALOCHISTAN SALES TAX ON SERVICES
ACT, 2015
(Balochistan Act VI of 2015)
[3rd July, 2015]
An Act to provide for the levy of a tax on services provided,
rendered, initiated, received, originated, executed or consumed in
Balochistan.
Preamble. Where it is expedient to provide for the levy of a tax on
services provided, rendered, initiated, originated, executed, received
or consumed in Balochistan and to deal with ancillary matters;
It is hereby enacted as follows:―
CHAPTER – I
PRELIMINARY
Short Title, Extent 1. (1) This Act shall be called the Balochistan Sales Tax on
and Services Act[,]2 2015.
Commencement (2) It extends to the whole of Balochistan 3[****].
.
(3) This Act shall come into force on and from 1st day of
July, 2015.
(4) Notwithstanding sub-section (3), the Government
may, by notification in the official Gazette, specify services or class
or classes of services in respect of which tax shall be collected and
paid with effect from the date subsequent to and different from the
date of the commencement of this Act.
4
[Definitions. 2. In this Act, unless there is anything repugnant in the subject
or context, ―
(1) “Act” means the Balochistan Sales Tax on Services
Act, 2015 (Act No. VI of 2015);
(2) “Accountant” means ―
(a) a chartered accountant as defined in the
Chartered Accountants Ordinance,1961
1
This Act was passed by the Balochistan Assembly on 25 thJune, 2015; assented to by the Governor of Balochistan on 3 rd July, 2015; and
published in the Balochistan Gazette (Extraordinary) No. 112, dated 3rd July, 2015.
2
Inserted by the Balochistan Sales Tax on Services (Amendment) Act, 2018 (Balochistan Act II of 2019); passed by the Balochistan
Provincial Assembly on 24th December, 2018; assented to by the Governor Balochistan on 3 rd January, 2019; and published in the
Balochistan Gazette (Extraordinary) No. 8, dated 15 th January, 2019. The amendment made shall deem to have taken effect on and from
the 1st day of July, 2015 as per section 1, sub-section (2) of the amending Act II of 2019.
3
The words “except its Tribal Areas” omitted, ibid.
4
Substituted by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-section
(2) for detail.
(Ordinance No. X of 1961), and includes the
Associate and Fellow members thereof;
(b) a cost and management accountant as defined
in the Cost and Management Accountants
Act, 1966 (Act No. XIV of 1966), and
includes the Associate and Fellow members
thereof;
(c) a firm or an association of chartered
accountants or cost and management
accounts; and
(d) other accountants or association of
accountants notified in this behalf by the
Authority;
(3) “Additional Commissioner” means a person appointed
as an Additional Commissioner of the Balochistan
Revenue Authority under section 39 of the Act;
(4) “Adjudicating Authority” means and includes the
officers competent to adjudicate and decide the cases
as prescribed by section 60 of the Act;
(5) “Advertisement” means the act or process of
advertising something and includes a notice, circular,
label, wrapper, document, banner, hoarding,
billboard, or any other audio or visual representation
made or displayed by any means including print
media, electronic media, telecommunication media,
light, paint, colouration, sound, smoke or gas, or
otherwise;
(6) “Advertising Agent” means a person engaged in
providing any service connected with the making,
preparation, display, demonstration or exhibition of
advertisement in any manner and includes an
advertising agency or media agent or advertising or
media consultant or media buying house, by whatever
name called;
(7) “Agent” means a person who is authorized to act on
behalf of another person (called ‘the principal’) to
create a legal relationship with a third party, and
includes a person specified as an agent under section
73 of the Act;
(8) “Airport Service Provider” and “Airport Ground
Service Provider” mean and include any service
provider, operator and airline providing or rendering
ground or ramp services, including passenger and
cargo handling services, to other airlines or to aircraft
operators of scheduled or non-scheduled flights, and
also include the handling agents authorized by the
Civil Aviation Authority or other airport operators;
(9) “Aircraft Operator” means and includes any person
who provides the services of transportation or
carriage of passengers, goods, cargo, baggage or mail
by aircraft;
(10) “Airport Operator” means and includes the Civil
Aviation Authority and any other authority or
organization or office managing or operating a
customs airport, as notified under section 9 of the
Customs Act, 1969 (Act No. IV of 1969);
(11) “Appellate Tribunal” means the Appellate Tribunal
established under law and notified by the
Government as the Appellate Tribunal under section
66 of the Act;
(12) “Architect” means and includes an architect or a town
planner as defined in section 2 of the Pakistan
Council of Architects and Town Planners Ordinance,
1983 (Ordinance No. IX of 1983), and also includes
an association of persons or a commercial concern
engaged in any manner, whether directly or
indirectly, in the field of architecture or town
planning;
(13) “Arrears” in relation to a person, means the tax due
and payable by the person on a day under the Act,
which has not been paid by that day in the prescribed
manner;
(14) “Asset Management Service” means a service to plan,
acquire, manage and recycle assets in a systematic
manner, and includes portfolio management, forex
management, money management, investment
management or any kind of fund management and
management of collective investment scheme;
(15) “Assistant Commissioner” means a person appointed
as an Assistant Commissioner of the Balochistan
Revenue Authority under section 39 of the Act;
(16) “Associates” or “Associated Persons” refer to–
(a) two persons, where the relationship between
them 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:
Provided that 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;
(b) without prejudice to the generality of clause (a)
and subject to clause (c) of this sub-section, the
following persons shall be treated as associates,
namely:―
(i) an individual and a relative of that
individual;
(ii) members of an association of persons;
(iii) 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 sub- section, controls fifty per cent or
more of the rights to income or capital of
the association;
(iv) 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 sub-section, controls either directly or
through one or more interposed persons ―
(a) fifty per cent or more of the voting
power in the company;
(b) fifty per cent or more of the rights to
dividends; or
(c) fifty per cent or more of the rights to
capital; and
(v) two companies, where a person, either
alone or together with an associate or
associates under another application of
this sub-section, controls either directly or
through one or more interposed persons ―
(a) fifty per cent or more of the voting
power in both companies;
(b) fifty per cent or more of the rights to
dividends in both companies; or
(c) fifty per cent or more of the rights to
capital in both companies; and
(c) two persons shall not be associates under sub-
clause (i) or (ii) of clause (b) where the
Commissioner of the Authority is satisfied that
neither person may reasonably be expected to
act in accordance with the intentions of the
other.
Explanation: The expression “relative” in
relation to an individual, means ―
(i) an ancestor, a descendant of any of the
grandparents, or an adopted child of the
individual, or of a spouse of the
individual; or
(ii) a spouse of the individual or of any person
specified at (i) of this explanation;
(17) “Association of Persons” includes a firm, any artificial
juridical person and anybody of persons formed
under a foreign law, but does not include a company;
(18) “Auctioneer” means a person providing or rendering
services in relation to auction of property, movable or
immovable and tangible or intangible, in any manner.
Explanation: Auction of property includes calling
the auction or providing facility, advertising or
illustrative services, pre-auction price estimates, short
term storage services and repair and restoration
services in relation to auction of property;
(19) “Audit Officer” means a person appointed as an
Auditor Officer of the Balochistan Revenue Authority
under section 39 of the Act;
(20) “Authority” means Balochistan Revenue Authority
established under the Balochistan Revenue Authority
Act, 2015 (Act No. VII of 2015);
(21) “Authorized Service Station” means a service station
or service center, authorized by a motor vehicle
manufacturer, whether local or foreign, to carry out
any service or repair or reconditioning or restoration
or decoration of motor vehicles, classified under
Chapter 87 of the First Schedule of the Customs Act,
1969 (Act No. IV of 1969), manufactured by such
manufacturer.
Explanation: The services by authorized service
stations include ―
(a) the services provided during the warranty
period as well as after the expiry of the warranty
period;
(b) the services provided even for the vehicles and
machinery not manufactured by the
manufacturer appointing or authorizing such
service station; and
(c) the services provided against charges billed by
way of reimbursement, whether from the
manufacturer or insurance companies or leasing
companies or other such persons;
(22) “Automated Teller Machine” means an interactive
automatic machine, whether owned or outsourced by
banks and other financial institutions, designed to
dispense cash, accept deposit of cash, transfer money
between bank accounts and facilitate other financial
transactions including payments of bills;
(23) “Automated Teller Machine Operations, Maintenance,
and Management” means a service provided in
relation to automated teller machines and includes
site selection, contracting of location, acquisition,
financing, installation, certification, connection,
maintenance, transaction processing, cash
forecasting, replenishment, reconciliation and value
added services;
(24) “Banking” means the accepting, for the purpose of
lending or investment, of deposits of money from the
public, repayable on demand or otherwise, and
withdraw-able by cheque, draft, order or otherwise;
(25) “Bank Account” means the bank account of a person
for business transaction, subject to the condition that
such account is declared by him in the prescribed
application for registration submitted for obtaining a
registration number or for changing the particulars
thereof;
(26) “Banking Company” means a banking company as
defined in the Banking Companies Ordinance, 1962
(Ordinance No. LVII of 1962) and includes anybody
corporate, which transacts the business of banking in
Balochistan;
(27) “Beauty Parlour” or “Beauty Clinic” means a person
or an establishment providing beauty treatment
services including hair cutting, hair dyeing, hair
dressing, face care, face treatment, cosmetic
treatment, manicure, pedicure, make-up including
bridal make-up, and counseling services on beauty
care, face care or make-up or other such identical or
similar services;
(28) “Broad Casting Service” means the dissemination of
any form of communication like sign, signals,
writing, pictures, images and sound of all kind by
transmission of electro-magnetic waves through
space or through cable intended to be received by the
general public either directly or indirectly through the
medium of relay stations and all its grammatical
variations and cognate expressions shall be construed
accordingly;
(29) “Business Support Service” means the services
provided in relation to business or commerce and
includes evaluation of prospective buyers,
telemarketing, call centre facilities, accounting and
processing of transactions, processing of purchase
orders and fulfillment services, information and
tracking of delivery schedules, managing distribution
and logistics, customer relationship management
services, operational assistance for marketing,
formulation of customer service and pricing policies,
infrastructural support services and other transaction
processing.
Explanation: For the purposes of this clause, the
expression “infrastructural support services” includes
providing office along with utilities, lounge, reception
with personnel to handle messages, secretarial
services, telecommunication facilities, pantry and
security;
(30) “Cable TV Operator” includes a local loop holder and
means a person who owns, controls, manages or runs
any cable television system and is engaged in
reception of broadcast pre-recorded or live signals
from different channels for distribution to subscribers
through a set of closed transmission path or wireless,
and is liable to license as a cable TV operator under
the Pakistan Electronic Media Regulatory Authority
Ordinance, 2002 (Ordinance No. XIII of 2002);
(31) “Call Centre” means an establishment providing or
rendering the services of receiving or transmitting
requests by telephone, facsimile, live support
software, social media and e-mail, whether for the
product support or business support of any person or
for information inquiries from consumers or for
telemarketing, soliciting of donations and
subscriptions, debt collection, market research or
other similar services;
(32) “Car or Automobile Dealer”, means a person who is
engaged in providing or rendering the services in
relation to sale, purchase, transfer, leasing, marketing
or booking of cars and automobiles, whether
imported or locally assembled or locally
manufactured, including new, old and used cars or
automobiles;
(33) “Car or Automobile Washing or Similar Service
Station” means a service station or a service centre or
an establishment providing or rendering the services
in relation to maintenance of cars or automobiles,
including the services of inspecting, detailing,
washing, cleaning, polishing, waxing, oil coating,
lubricating, tuning, changing of oils, filters and plugs,
denting, painting, repairing and other similar services;
(34) “Cargo Handling Service” means loading, unloading,
packing or unpacking of cargo and includes cargo
handling services provided for freight in special
containers or for non-containerized freight, service
provided by a container freight terminal or any other
freight terminal, for all modes of transport and cargo
handling service incidental to freight, but does not
include handling of export cargo or passenger
baggage or mere transportation of goods;
(35) “Caterer” means a person who in ordinary course of
business and in relation to events, functions,
ceremonies, parties, get-together, occasions, etc.,
provides or supplies, either directly or indirectly,
various services including food, edible preparations,
beverages, entertainment, furniture or fixture,
crockery or cutlery, pandal or shamiana, ornamental
or decorative accessories or lighting for illumination;
(36) “Club” includes a membership club and a proprietary
club and means a person, a body of persons, an
establishment, an organization or a place, the
membership of which is restricted to a particular class
of people or which is run on the basis of mutuality or
otherwise and provides various services, facilities,
utilities or advantages for an amount of fee,
consideration, subscription or charges, including
those for initial membership, whether or not it
provides food or drinks or has any arrangement for
boarding or lodging or games;
(37) “Commission Agent” means a person who acts on
behalf of another person for causing sale or purchase
of goods or provision or receipt of services, for a
consideration, and includes any person who, while
acting on behalf of another person, ―
(a) deals with goods or services or documents of
title to such goods or services;
(b) collects payment of sale price of such goods or
services;
(c) guarantees for collection or payment for such
goods or services; or
(d) undertakes any activity relating to such sale or
purchase of such goods or provision or receipt
of such services;
(38) “Commissioner” means a person appointed as a
Commissioner of the Balochistan Revenue Authority
under section 39 of the Act;
(39) “Commissioner (Appeals)” means a person appointed
as a Commissioner (Appeals) of the Balochistan
Revenue Authority under section 39 of the Act;
(40) “Commissionerate” means the office of the
Commissioner or the Commissioner (Appeals) having
jurisdiction specified under the Act and the rules
made thereunder;
(41) “Common Taxpayer Identification Number” means
the registration number or any other number or
identification number allocated to a person for the
purposes of the Act;
(42) “Commodity Broker” means a broker as defined in
clause (b) of sub-rule (1) of rule 2 of the Commodity
Exchange and Future Contracts Rules, 2005, made
under section 33 of the Securities and Exchange
Ordinance, 1969 (Ordinance No. XVII of 1969);
(43) “Company” means ―
(a) a company as defined in the Companies Act,
2017 (Act No. XIX of 2017);
(b) a banking company and foreign banking
company as defined in the Banking Companies
Ordinance, 1962 (Ordinance No. LV1I of
1962), and includes anybody corporate which
transacts the business of banking in Pakistan;
(c) a non-banking finance company (NBFC) and
the notified entities as specified in section 282A
of the Companies Ordinance, 1984 (Ordinance
No. XLVII of 1984), read with the Non-
Banking Finance Company (Establishment and
Regulation) Rules, 2003;
(d) a body corporate formed by or under any law in
force in Pakistan;
(e) amodaraba company as defined in the
Modaraba Companies and Modaraba
(Floatation and Control) Ordinance, 1980
(Ordinance No. XXXI of 1980);
(f) a financial institution as defined in the Financial
Institutions (Recovery of Finances) Ordinance,
2001 (Ordinance No. XLV1 of 2001), including
a microfinance institution licensed under the
Microfinance Institutions Ordinance, 2001
(Ordinance No. LV of 2001) and an Islamic
financial institution;
(g) a body incorporated by or under the law of a
country outside Pakistan relating to
incorporation of companies;
(h) 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
(i) a foreign association, whether incorporated or
not, which the Authority has, by general or
special order, declared to be a company for the
purposes of the Act;
(44) “Computerized System” means any comprehensive
information technology system used by the Authority
or any other office as may be notified by the
Authority, for carrying out the purposes of the Act;
(45) “Convention Service “means a formal meeting or
assembly which is not open to the general public, and
does not include a meeting or assembly, the principal
purpose of which is to provide any type of
amusement, entertainment or recreation;
(46) “Cosmetic and Plastic Surgery” includes the services
provided or rendered by any person, in relation to
aesthetic or cosmetic surgery or plastic surgery like
abdominoplasty (tummy tuck), blepharoplasty (eyelid
surgery), mammoplasty, buttock augmentation and
lift, rhinoplasty (reshaping of nose), otoplasty (ear
surgery),rhytidectomy (face lift), liposuction
(removal of fat from the body), brow lift, cheek
augmentation, facial implants, lip augmentation,
forehead lift, cosmetic dental surgery, orthodontics,
aesthetic dentistry, laser skin surfacing, hair grafting,
hair transplant and such other similar surgery;
(47) “Courier Services” includes the services provided or
rendered by any person engaged in the transportation,
carriage or delivery of time-sensitive documents,
goods or articles, whether or not utilizing the services
of a person, directly or indirectly, to collect, carry or
deliver such documents, goods or articles;
(48) “Credit Rating Agency” includes a person engaged in
the business of credit rating of any debt obligation or
of any project or programme requiring finance,
whether in the form of debt or otherwise, and also
includes a person engaged in the business of credit
rating or evaluation of credit worthiness or credit risk
of any financial obligation, instrument or security and
further includes a credit rating agency as specified in
section 63 of the Securities Act, 2015 (Act No. III of
2015);
(49) “Customs Agent” means a person licensed under
section 207 of the Customs Act, 1969 (Act No. IV of
1969), and the rules made thereunder;
(50) “Debt Collection Services and Other Debt Recovery
Services” means the services provided by a person to
a banking company or a financial institution
including non-banking financial company or any
other body corporate or a firm or a person, in relation
to recovery of any sums due to such banking
company or a financial institution including non-
banking financial company or any other body
corporate or a firm or a person, in any manner;
(51) “Default Surcharge” means the default surcharge
levied under section 49 of the Act;
(52) “Defaulter” means a person and includes an
individual, every member of such association, every
director of such company and every partner of such
firm and further includes guarantors or successors
thereof, who fail to pay the arrears;
(53) “Deputy Commissioner” means a person appointed as
a Deputy Commissioner of the Balochistan Revenue
Authority under section 39 of the Act;
(54) “Document” includes, but is not limited to, any
electronic data, computer programmes, computer
tapes, computer disks, micro-films or any other
medium or mode for the storage of such data;
(55) “Dredging or De-silting” includes removal of material
including silt, sediments, rocks, sand, refuse, debris,
plant or animal matter in any excavating, cleaning,
deepening, widening or lengthening, either
permanently or temporarily, of any river, lake, canal,
pond, reservoir, port, harbour, channel, backwater or
estuary;
(56) “Due Date” in relation to the furnishing of a return or
a statement or for payment of tax under the Act,
means the 15th day of the month following the end of
the tax period to which it relates, or such other date as
the Authority may, by notification in the official
Gazette, specify;
(57) “Economic Activity” shall have the meaning given in
section 6 of the Act;
(58) “Electronic Record” includes the content of
communications, transactions and procedures under
the Act, including attachments, annexes, enclosures,
accounts, returns, statements, certificates,
applications, forms, receipts, acknowledgments,
notices, orders, judgments, approvals, notifications,
circulars, rulings, documents and any other
information associated with such communications,
transactions and procedures, created, sent, forwarded,
replied to, transmitted, distributed, broadcasted,
stored, held, copied, downloaded, displayed, viewed,
read, or printed, by one or several electronic
resources and any other information in electronic
form;
(59) “Electronic Resource” includes telecommunication
systems, transmission devices, electronic video or
audio equipment, encoding or decoding equipment,
input, output or connecting devices, data processing
or storage systems, computer systems, servers,
networks and related computer programs,
applications and software including databases, data
warehouse and web portals as may be prescribed by
the Authority from time to time, for the purpose of
creating electronic record;
(60) “E-intermediary” means a person appointed as
electronic-intermediary under section 77 of the Act;
(61) “Erection, Commissioning and Installation services”
means the services provided or rendered in relation to
―
(a) erection, commissioning or installation of plant,
machinery, equipment or structures, whether
pre-fabricated or otherwise; or
(b) installation ―
(i) of electrical and electronic devices,
including wirings or fittings thereof;
(ii) of plumbing, drain laying or other
installations for transport of fluids;
(iii) of heating, ventilation or air- conditioning
including related pipe work, wood work,
duct work and sheet metal work;
(iv) of thermal insulation, sound insulation,
fire proofing or water proofing;
(v) of lift and escalator, travellators or fire
escape staircases; or
(vi) requiring such other similar services;
(62) “Event Management Services” means a service
provided or rendered in relation to planning,
promotion, organizing or presentation of any arts,
business, sports, marital functions, social functions or
any other function or event, and includes any
consultation or any ancillary service such as catering,
decoration, photography, videography, sound
recording, lighting & illumination, DJ, valet parking,
etc., provided in this regard;
(63) “Exchange” means the stock exchange, securities
exchange, futures exchange or commodity exchange;
(64) “Exempt Service” means a service which is exempt
from tax under section 12 of the Act;
(65) “Exhibition Service” means a service provided or
rendered in relation to an exhibition held ―
(a) to market; or
(b) to promote; or
(c) to advertise; or
(d) to showcase,
any product, goods or services intended for the
growth in the business of the manufacturer,
producer, importer, supplier, distributor or
provider of such product, goods or services;
(66) “FBR” means the Federal Board of Revenue
established under the Federal Board of Revenue Act,
2007 (Act No. IV 2007);
(67) “Fashion Designer” means a person providing or
rendering the services of fashion designing including
the economic activities relating to conceptualizing,
outlining and creating designs and preparing designs
and patterns for costumes, apparels, garments,
clothing, accessories, jewelry, foot wears or any other
services incidental or ancillary (like marketing,
packing, delivery, display and other similar services)
to such fashion designing;
(68) “Filer” means a taxpayer who files a return in the
prescribed form on a monthly, quarterly, six monthly
or annual basis electronically or through any
magnetic media to a designated bank or any other
office specified by the Authority;
(69) “Financial Institution” includes: ―
(a) a company or an institution whether established
under any special enactment and operating
within or outside Pakistan which transact the
business of banking or any associated or
ancillary business through its branches;
(b) a modaraba, leasing company, investment bank,
venture capital company, finance company,
housing finance company, a non-banking
finance company; and
(c) any other institution or company authorized by
law to undertake any similar business as the
Government may, by notification, specify for
the purpose;
(70) “Financial Year” means a year commencing on the
first day of July and ending on the thirtieth day of
June in the following year;
(71) “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;
(72) “Foreign Exchange Dealer” includes an exchange
company or a foreign exchange company or a money
changer authorized or licensed by the State Bank of
Pakistan;
(73) “Forward Contract” means a contract for the delivery
of goods and which is not a ready delivery contract;
(74) “Franchise” means an authority given by a franchiser,
including an associate of the franchiser, under which
the franchisee is contractually or otherwise granted
any right to produce, manufacture, distribute, sell or
trade or otherwise deal in or do any other business
activity in respect of goods or to provide services or
to undertake any process identified with the
franchiser, whether or not against a consideration or
fee, including technical fee, management fee, or
royalty or such other fee or charges, irrespective of
the fact whether or not a trademark, service mark,
trade name, logo, brand name or any such
representation or symbol, as the case may be, is
involved;
(75) “Freight Forwarding Agent” means a person who
provides or renders or makes arrangement for his
principals or client, the services, for fee or charges or
commission or remuneration, for some or all of the
services being provided by the shipping agents,
clearing agents, stevedores, ship chandlers, port
operators, terminal operators, surveyors, persons
providing ship management services, warehousing
services or container provision services or cover or
guarantee in respect of imports or exports of goods,
independently or in partnership or in arrangement
with any such service provider or renderer;
(76) “Fumigation Services” means the services provided or
rendered by a person in relation to pest control and
insect control includes the services of disinfecting
and sterilizing of premises, buildings, factories and
complexes, including commercial complexes,
shopping complexes, office complexes, apartment or
residential complexes, multiplexes, exhibition
centers, residential units, commercial units, offices
and commercial goods, but does not include the
public health fumigation services provided or
rendered by the Federal Government, Provincial
Government, Local Government or Cantonment
Board and the services in relation to agriculture,
horticulture, animal husbandry and dairy farming;
(77) “Futures Broker” means a person as defined in clause
(xxiv) of section 2 of the Securities Act, 2015 (Act
No. III of 2015) and includes―
(a) makes or offers to make with any person, or
induces or attempts to induce any person to
enter into or to offer to enter into any agreement
for or with a view to purchase or sale of a
futures contract;
(b) solicits or accepts any order for, or otherwise
dealing in, or effects transactions in a futures
contract for its customer or on its own account;
(c) gives investment advice on whether, which, the
time at which or the terms and conditions of
which, future contracts are to be entered into;
and
(d) issues analysis or reports, for the purposes of
facilitating the recipients to make decisions on
whether, which, the time at which, or the terms
and conditions on which, future contracts are to
be entered into;
(78) “Goods” includes every kind of movable property
other than actionable claims, money, stocks, shares
and securities and does not include a service or
services defined under the Act;
(79) “Government” means the Government of Balochistan;
(80) “Healthcare Center, Gyms or Physical Fitness Center,
etc.” includes a health club, gymnasium, reducing or
slimming salon or clinic, or an establishment
providing the facilities, utilities or advantages of
sauna or steam bath, Turkish bath, solarium, spas,
yoga, meditation, massage (excluding therapeutic
massage under medical prescription or advice) or
such other services;
(81) “Hotel” includes the motels and guesthouses and
means a person, establishment, organization or place,
by whatever name called, where rooms or suites are
let out on rent, whether or not it has any arrangement
for catering or function halls as a part of the hotel or
provides any other services, facilities or utilities, but
does not include a home or hostel which is
exclusively used for the aged or invalid persons or
students and is run by or under the control of such a
charitable or educational institution as are exempt
from the application of the Income Tax Ordinance,
2001 (Ordinance No. XLIX of 2001);
(82) “Human Resource Development Consultant” means a
professionally qualified person or any other firm in
human resource development who, either directly or
indirectly, renders any advice, consultancy or
technical assistance in any manner to any person in
one or more disciplines of human resource
development;
(83) “Ijarah” means an arrangement under which a bank
leases equipment, building or other facility to a client
against an agreed rental;
(84) “Immovable Property” means a property that cannot
be moved, firmly attached to the land or fastened to
anything attached to the land, and in case of building
located in complex or an industrial estate, all
common areas and facilities relating thereto within
such complex or estate;
(85) “Indenter” means a person who is a representative for
a non-resident person or a non-resident company or a
foreign product or service and who gets a
consideration in the shape of commission, fee,
remuneration or royalty on a transaction, irrespective
of whether the transaction has taken place out of his
effort, consent or otherwise;
(86) “Input Tax” in relation to a registered person, means
―
(a) tax levied under the Act on the services
received by the person;
(b) tax levied under the Sales Tax Act, 1990, on the
goods imported by the person;
(c) tax levied under the Sales Tax Act, 1990, on the
goods or services received by the person; and
(d) provincial sales tax or Islamabad Capital
Territory sales tax levied on the services
received by the person:
Provided that the Authority may, by
notification in the official Gazette, specify that
any or all of the aforesaid tax shall not be
treated as input tax for the purposes of the Act
subject to such conditions and limitations as the
Authority may specify in the notification;
(87) “Inspector” means a person appointed as an Inspector
of the Balochistan Revenue Authority under section
39 of the Act;
(88) “Insurance” has the same meaning as defined in clause
(xxvii) of section 2 of the Insurance Ordinance, 2000
(Ordinance No. XXXIX of 2000);
(89) “Insurer” means a person as defined in clause (xxxi) of
section 2 of the Insurance Ordinance, 2000
(Ordinance No. XXXIX of 2000);
(90) “Intangible” means any patent, invention, design or
model, secret formula or process, copyright, trade
mark, scientific or technical knowledge, computer
software, motion picture film, export quotas,
franchise, licence, intellectual property, or other like
property or right, contractual rights and any
expenditure that provides an advantage or benefit for
a period of more than one year (other than
expenditure incurred to acquire a depreciable asset or
unimproved land);
(91) “Intellectual Property Right” means and includes any
right of intangible property, anything produced by the
mind, trade mark, patent, design including industrial
design, layout design (topographies) of integrated
circuits, copyright or any other similar intangible
property as defined in clause (g) of section 2 of the
Intellectual Property Organization of Pakistan Act,
2012 (Act No. XXII of 2012) and covered by the
Intellectual Property Laws specified in clause (h) of
section 2 thereof or under any other law for the time
being in force;
(92) “Intellectual Property Service” means any service
provided or rendered to a person by any person by
transferring temporarily or permitting the use or
enjoyment of an intellectual property right;
(93) “Inter-Bank Rate” means the Karachi Inter-Bank
Offered Rate (KIBOR) prevalent on the first day of
each quarter of the financial year;
(94) “Interior Decorator” means a person providing or
rendering, directly or indirectly, any advice,
consultancy, technical assistance or, in any other
manner, the services related to planning, design or
beautification, embellishment, ornation, decoration or
furnishing any interior or exterior space, whether
man-made or otherwise, and includes a landscape
designer;
(95) “Internet Café” means a commercial establishment
providing facility to access an internet;
(96) “Labour and Manpower Supply Services” includes the
services provided or rendered by a person to another
person, for a consideration, for use of the services of
a person or an individual, employed, hired or supplied
by him;
(97) “Laundries and Dry Cleaners” means a person
providing or rendering, to any person, the services of
washing, pressing, stain removing, darning or dry
cleaning of any kind of textile or fur, or leather
materials like apparels, clothes, garments, floor
coverings, curtains, draperies, linens, bed-wears, and
their accessories;
(98) “Legal Practitioners and Consultants” means a legal
practitioner as defined in section 2 of the Legal
Practitioners and Bar Councils Act, 1973 (Act No.
XXXV of 1973), and includes a person engaged in
providing of services in relation to advice,
consultancy or assistance in any branch of law or
providing representational services before any court,
tribunal or other such judicial or quasi-judicial
authority;
(99) “Maintenance or Cleaning Services” means the
services provided or rendered in relation to repair,
maintenance and cleaning, including specialized
cleaning services such as disinfecting, exterminating
or satirizing, of ―
(a) office equipment, office buildings, commercial
or industrial building and premises thereof;
(b) commercial complexes including multiplexes,
shopping complexes, office complexes,
exhibition centers, apartment or residential
complexes; and
(c) factories and the plants or machinery of
equipment of such factories and, elevators,
escalators, tanks or reservoirs of such factories
or of office or commercial or industrial
buildings or commercial complexes, but does
not include such services in relation to
agriculture, horticulture, animal husbandry, and
dairy farming;
(100) “Management Consultant” means a person engaged,
either directly or indirectly, in providing of services
in connection with the management of any business,
organization or institution in any manner and includes
a person who renders advice, consultancy or technical
assistance relating to conceptualizing, devising,
development, modification, rectification, or up-
gradation of any working system of such business,
organization or institution;
(101) “Market Research Agency” means a person engaged,
directly or indirectly, in providing of services relating
to the study or survey, or both, of any situation in the
market for any purpose other than personal, academic
or educational requirements;
(102) “Marriage Hall and Lawn” by whatever name called,
includes a hall or lawn or a banquet hall or a function
hall or an exhibition hall or lawn, or any building,
place, premises or marquee where parties, receptions,
events or functions, more particularly relating to
matrimonial ceremonies, are held, whether or not it
has its own arrangement of event management or
provision of food, beverages, crockeries, cutleries,
furniture, fixtures, etc.;
(103) “Misconduct” means a conduct prejudicial to good
order, unbecoming of a gentlemen and includes any
act on his part to bring or attempt to bring outside or
any sort of influence, directly or indirectly, to bear on
the officer of the Authority, in respect of any matter
relating to discharge of his duties under the Act, or
creating hindrance in discharge of such duties or
impersonation or submission of fake documents;
(104) “Modaraba" Modaraba and modaraba company have
the same meaning as in the Modaraba Companies and
Modaraba (Flotation and Control) Ordinance, 1980
(XXXI of 1980);
(105) “Motor Vehicle” means any mechanically propelled or
automotive vehicle adapted for use upon roads
whether the power of propulsion is transmitted
thereto from an external or internal source, and
includesa tractor and a trailer, a combined harvester, a
rig, a fork lifter, a road roller, construction and earth
moving machinery such as a wheel loader, a crane, an
excavator, a grader, a dozer and a pipe layer, a road
making and aroad/sewerage cleaning plant, but does
not include a vehicle operated upon fixed rails;
(106) “Movable Property” means a property that can be
moved from one place to another and can be taken
into custody for removal without physically knocking
it down and includes currency, coins, shares,
document and instruments;
(107) “Musharika” means an Islamic-styled joint enterprise
or partnership with profit and loss sharing
implications allowing each party involved in a
business to share in the profits and risks, where
instead of charging interest as a traditional creditor,
the financier achieves a return in the form of a portion
of the actual profits earned, either according to a
predetermined ratio or otherwise and where the
financier also shares in losses, if any;
(108) “Non-Banking Finance Company” means an NBFC as
defined in the Non-Banking Finance Companies
(Establishment and Regulation) Rules, 2003;
(109) “Non-Banking Financial Institution” includes a
company licensed by the Securities and Exchange
Commission of Pakistan to carry out any one or more
of the following forms of business ―
(a) investment finance service;
(b) leasing;
(c) housing finance service;
(d) venture capital investment;
(e) discounting service;
(f) investment advisory services;
(g) asset management service; and
(h) any other form of business which the
Government, from time to time, by notification
in the official Gazette, specify;
(110) “Notification in the Official Gazette” means a
notification issued under the Act shall be effective
from the day specified therein, notwithstanding the
fact that the issue of the official Gazette in which
such notification appears is published at any time
after that day;
(111) “Officer of the Authority” means an officer of the
Balochistan Revenue Authority appointed under
section 39 of the Act;
(112) “Open Market Price” shall have the same meaning
given to it in section 8 of the Act;
(113) “Output Tax” in relation to a registered person, means
the tax levied under the Act on the services provided
or rendered by the person;
(114) “Person” means ―
(a) an individual;
(b) a company, an agency or an association of
persons incorporated, formed, organized or
established in Pakistan or elsewhere;
(c) the Federal Government;
(d) a Provincial Government;
(e) a Local Authority or Local Government in
Pakistan; or
(f) a foreign Government, a political sub-division
of a foreign Government, or a public
international organization.
Explanation: The use of the word “he” in the
Act shall be taken to refer to any or all of the
persons mentioned in sub-clauses (a) to (f)
above;
(115) “Place of Business” means that a person ―
(a) owns, rents, shares or in any other manner
occupies a space in Balochistan from where it
carries on an economic activity whether wholly
or partially; or
(b) carries on an economic activity through any
other person such as an agent, associate,
franchisee, branch, office, or otherwise in
Balochistan or through virtual presence or a
website or a web portal or through any other
form of e-Commerce, by whatever name called
or treated, but does not include a liaison office;
(116) “Port Operator” includes the Gwadar Port Authority or
any other person or organization managing the
operations of any customs port as declared under
section 9 of the Customs Act, 1969 (Act No. IV of
1969);
(117) “PRAL” means the Pakistan Revenue Automation
(Private) Limited;
(118) “Prescribed” means prescribed by rules made under
the Act;
(119) “Principal Officer” used with reference to a company
or association of persons includes―
(a) a director, a manager, secretary, agent,
accountant or any similar officer; and
(b) any person connected with the management or
administration of the company or association of
persons upon whom the Authority or any officer
authorized by authority, has served a notice of
treating him as principal officer thereof;
(120) “Production House” means a person or an
establishment producing a programme or providing or
rendering various services, facilities, utilities or
advantages in relation to production of programme;
(121) “Programme” means any audio or visual matter, live
or recorded, or re-recorded or subjected to any post-
production processes like dubbing, colouring, sub-
titling or captioning intended to be disseminated by
transmission of electro-magnetic waves through
space or through cables to be received by general
public either directly or indirectly through the
medium of cables, telecommunication or relay
stations;
(122) “Programme Producer” means a person who produces
a programme on behalf of, or for use by, another
person;
(123) “Property Dealer” by whatever name called, means a
person who is engaged in providing or rendering the
services, directly or indirectly and in any manner, in
relation to sale, purchase, leasing, renting,
supervision, maintenance, marketing, acquisition or
management of real estate, and includes a realtor, a
real estate agent, a real estate broker, a real estate
consultant;
(124) “Provision of Service” or “Providing of Service”
includes the rendering, supply, initiation, origination,
reception, consumption, termination or execution of
service, whether in whole or part, including e-
services where the context so requires;
(125) “Public Bonded Warehouse” means a warehouse
licensed under section 12 of the Customs Act, 1969
(Act No. IV of 1969);
(126) “Public Relation Services” includes the strategic
counseling based on industry, media and perception
research, corporate image management, media
relations, media training, press release, press
conference, financial public relations, brand support,
brand launch, retail support and promotion, events
and communications and crisis communications;
(127) “Ready Mix Concrete” means a concrete mixture
containing cement, water and aggregates comprising
sand, gravel or crushed stones, etc., mixed, according
to a set recipe, in a batching plant or in a transit mixer
or both, for delivery, in a ready to use condition, to a
work site by means of truck mounted in-transit
mixers;
(128) “Real Estate” means the land and includes ―
(a) all attachments above and below the land;
(b) all things that form a natural part of the land;
(c) all things that are developed and installed,
including buildings and site improvements; and
(d) all permanent building attachments such as
plumbing, heating and cooling systems,
electrical wiring and built-in items such as
elevators and allied equipment, and all rights
and interest therein, whether the interest is
freehold or leasehold, and whether the purpose
or use thereof is residential, commercial or
industrial;
(129) “Reconditioning Service” means a service to restore to
good condition including the substantial restructuring
so that the life of the related goods is substantially
restored or rather increased;
(130) “Recruiting Agent” by whatever name called, includes
recruiting consultants or consultancy and means a
person engaged in providing or rendering any service,
directly or indirectly, to any person in any manner,
for the recruitment of manpower, temporarily or
otherwise.
Explanation: For the purpose of this clause,
“recruitment” includes inviting of applications for
recruitment, receipt of applications from candidates,
pre-interview or pre-recruitment screening of
applications and applicants, shortlisting of applicants,
interview of candidates, verification of credentials
and antecedents of the candidates, verification of
authenticity of the documents submitted by the
candidates;
(131) “Registered Office” means the office or other place of
business specified by the registered person in the
application made by him for registration under the
Act or through any subsequent application to the
Authority;
(132) “Registrar to an Issue” means a person providing or
rendering the services in relation to issue of
securities, including collection of application forms
from investors, keeping a record of applications and
money received from investors or paid to seller of
securities, assisting in determining the basis of
allotment of securities, finalizing the list of persons
entitled to allotment of securities and processing and
dispatching of allotment letters, refund orders or
certificates and other related documents;
(133) “Registration Number” means the number allocated to
a registered person for the purpose of the Act;
(134) “Registered Person” means a person who is registered
or is liable to be registered under the Act or any other
person or class of persons notified by the Authority in
the official Gazette:
Provided that a person liable to be registered but not
registered under the Act, shall not be entitled to any
benefit available to a registered person under any of
the provisions of the Act or the rules made
thereunder;
(135) “Reinsurance” means a contract of insurance under
which the event, specified in the contract,
consignment upon the happening of which, payment
is promised to be made to the policy holder
thereunder, is payment by the policy holder of a claim
or claims made against the policy holder under
another contract or contracts of insurance issued by
that policy holder, and includes the retrocession as
defined in clause (lv) of section 2 of the Insurance
Ordinance, 2000 (Ordinance No. XXXIX of 2000);
(136) “Rent-a-Car and Automobile Rental Service” means
the services provided or rendered by a person
engaged, whether directly or indirectly, in the
economic activity of renting cars, cabs, vans or any
other passenger motor vehicle;
(137) “Renting of Immovable Property” means and includes
the renting, letting, sub-letting, leasing, sub-leasing,
licensing or similar other arrangements of immovable
property for use in the course or furtherance of
business or commerce, but does not include―
(a) renting of immovable property by a religious
body to another religious body;
(b) renting of vacant land or premises solely used
for agriculture, aquaculture, farming, forestry,
animal husbandry or mining purposes;
(c) renting of land or premises solely used for
outdoor games and sports;
(d) renting of buildings solely used for residential
purposes or solely used as hostels and boarding
homes of a recognized educational institution;
and
(e) renting of immovable property by hotels,
motels, guest houses, clubs and marriage halls
and lawns which are otherwise liable to tax
under tariff heading 98.01 and the sub-headings
thereof.
Explanation-I: Where renting of
immovable property is effected under a single
composite contract or agreement involving part
of property for use in commerce or business and
part of it for residential accommodation
purpose, the entire property under the contract
or agreement shall he treated, for the purpose of
levy of tax under the Act, as property for use in
commerce or business and, accordingly, the
total value of the contract or agreement shall be
treated as taxable value;
Explanation-II: For the purpose of this clause
―
(a) the term “for uses in the course or
furtherance of business or commerce”
includes the use of immovable property as
factories, offices including government
offices or public offices, warehouses,
laboratories, educational institutions,
shops, showrooms, retail outlets, multiple-
use buildings, etc.;
(b) the term “renting of immovable property”
includes allowing or permitting the use of
land or space in an immovable property,
irrespective of the transfer of possession
or control of the said property;
(c) the term “immovable property" includes
―
(i) building and part of a building and
the land or space appurtenant
thereto;
(ii) land or space incidental to the use of
such building or part of a building;
(iii) common or shared areas and
facilities relating to the property
rented;
(iv) vacant land or space given on lease
or license for construction or
temporary structure to be used at a
later stage for furtherance of
business or commerce; or
(v) plant, machinery, equipment,
furniture, fixture or fitting installed
in or provided in or attached to the
immovable property; and
(d) the term “rent” means any payment or
consideration, by whatever name called,
received or receivable under any lease,
sub-lease, tenancy or any other contract or
agreement or arrangement for use,
occupation or right to use or occupy any
immovable property, and includes any
forfeited deposit paid under such lease,
sub-lease, tenancy or other contract or
agreement or arrangement;
(138) “Repair or Maintenance’’ repair means to restore
something damaged, worn or faulty etc. in good or
sound condition, whereas maintenance means an act
of keeping (a building, machine etc.) in working
condition by checking or repairing it regularly;
(139) “Resident” means ―
(a) an individual who, in a financial year, has ―
(i) a place of business, whether whole or part
thereof, in Balochistan in any mode, style
or manner; or
(ii) his permanent address, as listed in the
individual’s national identity card, in
Balochistan; or
(iii) a permanent representative to act on his
behalf or to provide service on his behalf
in Balochistan;
(b) an association of persons or a company which,
in a financial year, has ―
(i) its registered office is in Balochistan; or
(ii) its place of business, whether whole or
part thereof, in Balochistan in any mode,
style or manner; or
(iii) a permanent representative to act on its
behalf or to provide service on its behalf
in Balochistan; or
(iv) the control or management of the
association of persons or the company,
whether whole or part thereof, situated in
Balochistan at any time during the
financial year;
(140) “Restaurant” means a restaurant of any kind or
character whether or not located in; operating as part
of; or in conjunction with hotel, and includes an
establishment, organization, place, cafe, coffee
houses or ice cream parlours where food, beverages
or other eatables and drinkables are sold or served to
the customers, including the customers availing of the
take-away service or home delivery service or room
service or catering service, as also other services,
facilities, utilities or advantages, etc.;
(141) “Return” means a return required to be furnished
under Chapter-VI of the Act;
(142) “Royalty” means any amount paid or payable,
however described or computed, whether periodical
or a Lump-sum, as consideration for ―
(a) the use of, or right to use any patent, invention,
design or model, secret formula or process,
trademark or other like property or right;
(b) the use of, or right to use any copyright of a
literary, artistic or scientific work, including
films or video tapes for use in connection with
television or tapes in connection with radio
broadcasting, but shall not include consideration
for the sale, distribution or exhibition of
cinematograph films;
(c) the receipt of, or right to receive, any visual
images or sounds, or both, transmitted by
satellite, cable, optic fiber or similar technology
in connection with television, radio or internet
broadcasting;
(d) the supply of any technical, industrial,
commercial or scientific knowledge, experience
or skill;
(e) the use of or right to use any industrial,
commercial or scientific equipment;
(f) the supply of any assistance that is ancillary and
subsidiary to, and is furnished as a means of
enabling the application or enjoyment of, any
such property or right as mentioned in sub-
clauses (a) through (e); and
(g) the disposal of any property or right referred to
in sub-clauses (a) through (e);
(143) “Rule” means the rules made under the Act;
(144) “Schedule” means the Schedules appended to the Act;
(145) “Securities” include ―
(a) shares and stock of a company (shares);
(b) any instrument creating or acknowledging
indebtedness which is issued or proposed to be
issued by a company including, in particular,
debentures, stock, loan stock, bonds, notes,
commercial paper, sukuk or any other debt
securities of a company, whether constituting a
charge on the assets of the company or not (debt
securities);
(c) loan stock, bonds, sukuk and other instruments
creating or acknowledging indebtedness by or
on behalf of the federal or provincial
governments, central bank or public authority
(government and public debt securities);
(d) modaraba certificates, participation term
certificates and term finance certificates;
(e) any right (whether conferred by warrant or
otherwise) to subscribe for shares or debt
securities (warrants);
(f) any option to acquire or dispose of any other
security (options);
(g) units in a collective investment scheme,
including units in or securities of a trust fund
(whether open-ended or closed end);
(h) the rights under any depository receipt in
respect of shares, debt securities and warrants
(custodian receipts);
(i) futures or forward contracts;
(j) certificates of deposit; or
(k) any other instrument notified by the Securities
and Exchange Commission of Pakistan to be
securities for the purposes of the Securities Act,
2015 (Act No. III of 2015);
(146) “Security Agency” means a person engaged in the
business of providing of services relating to security
of any person or property, whether moveable or
immovable, including the services of provision of
security personnel, guard or vehicle;
(147) “Service” or “Services” means anything which is not
goods and shall include but not limited to the services
listed in the First Schedule to the Act.
Explanation-I: A service shall remain and continue to be
treated as service regardless whether or not the
providing thereof involves any use, supply,
disposition or consumption of any goods either as an
essential or as an incidental aspect of such providing
of service;
Explanation-II: Unless otherwise specified by the
Authority, the service or services involved in the
supply of goods shall remain and continue to be
treated as service or services;
(148) “Service Provider” means a person who is engaged in
the provision or providing of service or services in
the course or furtherance of any economic activity;
(149) “Shares Transfer Agent” includes a person known as
share depository agent and also includes persons
providing or rendering transfer or redemption or
depository services including the services provided
through manual or electronic book-entry system used
to record and maintain record of holders of securities
and also of the securities and derivates including
investor account services, trustee or custodial
services, share registrar services and similar, allied or
connected services;
(150) “Shipping Agent” means a person licensed as a
shipping agent under the Customs Act, 1969 (Act No.
IV of 1969), or the rules made thereunder, who
provides or renders any service in relation to entrance
or clearance of a conveyance at a customs port and a
customs station, as defined in clauses (j) and (k) of
section 2 of the Customs Act, 1969, and files import
or export manifest and issues line or carrier bill of
lading, for or on behalf of an airline or shipping line
or any other conveyance, and includes non-vessel
operating common carriers, slot carriers, charterers,
international freight forwarders and consolidators,
rendering services in relation to import and export of
cargo, independently or as subsidiary of an airline,
shipping line, slot carrier, charterer, and non-vessel
operating common carrier;
(151) “Ship Chandler” means a person licensed as a ship
chandler under the Customs Act, 1969 (Act No. IV of
1969) or the rules made thereunder;
(152) “Ship Management Services” includes ―
(a) supervision or negotiation for the maintenance,
survey and repair of ship;
(b) engagement or providing of crew;
(c) receiving the hire and freight charges on behalf
of the owner;
(d) negotiating contracts for bunker fuel and
lubricating oils;
(e) arranging or negotiating arrangements for
loading and unloading;
(f) payment, on behalf of the owners, of the
expenses incurred in providing services or in
relation to the management of the ship;
(g) entry of the ship on protection or indemnity
association;
(h) providing or negotiating for victualing or
storing of ship;
(i) dealing with insurance, salvage or other claims
in relation to ship;
(j) arranging of insurance in relation to ship; and
(k) any other ship management service;
(153) “Short-Paid” means where a registered person pays an
amount of tax less than the tax due as indicated in the
person’s return filed under section 35 of the Act, the
amount so involved and also includes the amount of
tax due but not paid owing to miscalculation or
incorrect or inadmissible input tax credit or
adjustment or incorrect assessment of the tax due for
a tax period;
(154) “Similar Service” means any other service which is the
same as, or closely resembles with the other service
in character, quality, quantity, functionality,
materials, or reputation;
(155) “Sound Recording Service” means recording of sound
on any media or device including magnetic storage
device, and includes service relating to recording of
sound in any manner such as sound cataloguing,
storing of sound and sound maxing or re-mixing or
any audio post-production activity;
(156) “Special Audit” means an audit conducted under
section 34 of the Act;
(157) “Special Judge” means a Special Judge appointed
under section 42 of the Act;
(158) “Sponsorship” includes naming an event after the
sponsor, displaying the sponsor’s logo, trade name,
brand name or product name, giving the sponsor
exclusive or priority booking rights, sponsoring
prizes or trophies for competition or game or sports;
but does not include financial or other support in the
form of donations and gifts, given by a donor, subject
to the condition that the service provider is under no
obligation to provide anything in return to such
donor;
(159) “Statement” means a statement prescribed under the
rules or notifications made under the Act;
(160) “Steamer Agent” means a person who undertakes,
either directly or indirectly: ―
(a) to perform any service in connection with the
ship’s husbandry or dispatch including the
rendering of administrative work related
thereto; or
(b) to book, advertise or canvass for cargo for or on
behalf of a shipping line; or
(c) to provide container feeder services for or on
behalf of a shipping line;
(161) “Stevedore” includes a person engaged in handling
and loading or unloading of cargo including
containers, pallets and bulk cargo, from ships,
vessels, steamers and country crafts in any manner
and also includes a person who hires long shore, dock
or harbor workers to load or unload ships, vessels,
steamers and country crafts. A person providing or
rendering any services related to or ancillary to the
handling of or otherwise dealing with such or other
cargo at a port or in any area or terminal at the port in
any manner or style shall be included in the
terminology stevedore;
(162) “Stock Broker” by whatever name called, means any
person engaged in the business of effecting
transactions in securities for the account of others as
defined in clause (c) of sub-section (1) of section 2 of
the Securities and Exchange Ordinance, 1969 and
includes a person carrying on any of the activities of
securities broker, securities advisor and securities
manager as defined in section 2 of the Securities Act,
2015 (Act No. III of 2015);
(163) “Surveyor” means a person engaged in the services of
insurance survey, market survey, statistical survey,
opinion poll survey and survey relating to risk
assessment, loss or damage assessment or claim
settlement but does not include the services
conducted by the Federal or Provincial or Local
Governments for its own purposes and by the
recognized educational institutions for the purposes
of education and academic research in such
institutions;
(164) “Survey and Exploration of Mineral” means
geological, geophysical or other prospecting, surface
or sub-surface surveying or map making service, in
relation to location or exploration of deposits of
mineral, oil or gas or any of the materials;
(165) “System” includes the equipment for electronic
monitoring of production or for secure counting and
recording of production, stock and clearances,
affixation of the tax stamps, banderols, stickers,
barcodes, labels, etc. the related software and
hardware and human resources required for electronic
monitoring and tracking of taxable goods or services;
(166) “Takaful” includes a scheme based on mutual
assistance in compliance with the provisions of
Islamic Shariah, and which provides for mutual
financial aid and assistance to the participants in case
of occurrence of certain contingencies and whereby
the participants mutually agree to contribute to the
common fund for that purpose;
(167) “Tax” means ―
(a) the sales tax, additional tax or default surcharge
levied under the Act;
(b) a penalty, fine or fee imposed or charged under
the Act; and
(c) any other sum payable or recoverable under the
provisions of the Act or the rules made
thereunder;
(168) ‘‘Taxpayer” means any person who, in the course of
an economic activity, provides taxable services for
consideration and includes any person who is liable
or is required to pay or is paying tax or any sum
under the Act or the rules made thereunder;
(169) “Tax Consultant” by whatever name called, includes a
person engaged in providing of services of advice,
consultancy or assistance in the matters of any
federal, provincial or local government laws in
relation to any tax, rate, cess or providing
representational services before any court, tribunal or
other such judicial or quasi-judicial authority or the
authority administering such tax laws;
(170) “Tax Fraction” means the amount worked out in
accordance with the following formula ―
a
100 + a
(‘a’ is the rate of tax applicable to the services in
terms of section10 of the Act);
(171) “Tax Fraud” means knowingly, dishonestly or
fraudulently and without any lawful excuse ―
(a) doing of any act or causing to do any act in
contravention of the duties and obligations
under the Act or the rules or notifications issued
thereunder; or
(b) omitting to take any action or causing the
omission of any action, including providing of
taxable services without being registered under
the Act; or
(c) falsifying or causing falsification of tax invoices
or tax documents or records; or
(d) issuing invoice or bill of taxable services
without the provision of that taxable service; or
(e) failing to pay an amount of tax collected under
section 17 of the Act, and failing to pay the
amount of tax withheld under the provision of
sub-section (2) of section 14 of the Act or the
rules made thereunder; or
(f) under-stating or under-paying the tax liability or
over-stating the entitlement of tax credit or
adjustment or claiming or obtaining in-
admissible tax credit, refund or adjustment; or
(g) not filing the prescribed tax return or the
prescribed statement for four consecutive
months or more;
(172) “Tax Period” means a period of one month or such
other period as the Authority may, by notification in
the official Gazette, specify;
(173) “Taxable Service” shall have the same meaning given
to it under section 3 of the Act;
(174) “Technical, Scientific and Engineering Consultancy”
means any advice, consultancy, assistance or
supervision, in any manner, either directly or
indirectly, to any person by a technocrat, scientist or
an engineer, in one or more disciplines of technology
or science or engineering;
(175) “Technical, Scientific and Engineering Consultants”
means a person providing or rendering the technical,
scientific and engineering service, advice,
consultancy, assistance or supervision, in any
manner, either directly or indirectly, to any person, in
one or more disciplines of technology, science and
engineering and includes a person known as a
consulting engineer or professional engineer for the
purpose of the Pakistan Engineering Council Act,
1976 (Act No. V of 1976);
(176) “Technical Inspection and Certification Services,
Including Quality Control Certification Services and
ISO Certifications” means examination or inspection,
including pre-shipment inspection, of goods or
services or processes or materials or information
technology software or any immovable property to
certify that such goods or services or processes or
materials or immovable property qualifies or
maintains the specified standard, including
functionality or utility or quality or safety or any
other characteristic or parameter, and also includes
the services provided or rendered for the purposes of
the quality control evaluation or certification and
further includes the process and assistance in ISO
certifications and such other certifications;
(177) “Technical Testing and Analysis” means a service
provided or rendered in relation to physical,
chemical, biological or any other scientific testing or
analysis of goods or material or information
technology software or any immovable property, and
includes listing and analysis undertaken for clinical
testing of drugs, pharmaceuticals and formulations,
but does not include any testing or analysis service
provided in relation to human beings or animals;
(178) “Telecommunication Service” shall have the meaning
given in clause (v) of section 2 of the Pakistan
Telecommunication (Re-organization) Act, 1996 (Act
No. XVII of 1996), and includes the
telecommunication system as defined in clause (u)
thereof and further includes the wireless
communication as defined in clause (1) of section 2
of the Wireless Telegraphy Act, 1933 (Act No. XVII
of 1933) and also includes transfer, assignment or
sharing of the right to use capacity for transmission,
emission or reception of signals and provision of
access to global or local information network;
(179) “Terminal Operator” means a person engaged in
providing or rendering the services of container
terminal including on-dock or off-dock terminal, or
any other person doing similar activities and also
includes the cargo or baggage shed operators licensed
or appointed by the customs authorities at any
customs port or customs airport or customs station;
(180) “Tour Operator” means a person engaged in providing
or rendering the services of planning, scheduling,
organizing or arranging tours or package tours (which
may include arrangements for accommodation,
sightseeing, tourism or other similar services in
Pakistan or abroad) by any mode of transport, and
includes a person engaged in the business or
economic activity of operating tours.
Explanation: For the purpose of this clause, the
expression “tour” does not include a journey
organized or arranged for use by an educational
institution, other thana commercial, training or
coaching center, for imparting skill or knowledge or
lessons on any subject or field;
(181) “Transportation or Carriage of Goods” means the
transportation or carriage of goods from one place to
another by a person or goods transport agency by
road or through pipeline or conduit, including the
services of cargo handling like loading, unloading,
packing, un-packing, stacking and storage of goods;
(182) “Travel Agent” means a person engaged in providing
or rendering any service connected with booking of
passage for travel including package for Hajj and
Umrah;
(183) “Underwriter” means a person as defined in clause
(lxvi) of section 2 of the Securities Act, 2015 (Act
No. Ill of 2015), and includes a sub-underwriter;
(184) “Value of a Taxable Service” shall have the same
meaning given to it under section 7 of the Act;
(185) “Video-Tape Production” means the process of any
recording of any programme, event or function on a
magnetic tape or on any other media or device and
includes services relating thereto such as editing,
cutting coloring, dubbing, title printing, imparting
special effect, processing, adding, modifying or
deleting, transferring from one media or device to
another, or undertaking any video post-production
activity, in any manner; and
(186) “Whistleblower” means a whistleblower as defined in
section 72D of the Sales Tax Act, 1990 (Act No. VII
of 1990).
Explanation: The words and expressions used but
not defined in any provision of the Act and the rules
made thereunder, shall have the same meaning as
assigned to them under this section.]
Taxable Service. 3. (1) Subject to such exclusion as mentioned in Second
Schedule, a taxable service is a service listed in Second Schedule,
which is provided by a person from his office or place of business in
Balochistan in the course of an economic activity, including the
commencement or termination of the activity.
Explanation. This sub-section deals with services provided
by a person regardless whether such services are provided to a
resident person or a non-resident person.
(2) If a service listed in Second Schedule is provided to a
resident person by a non-resident person in the course of an
economic activity, including the commencement or termination of
the activity, it shall be treated as a taxable service.
Explanation. This sub-section deals with services provided
by a non-resident person to a resident person whether or not the end
consumers, if any, of such services are identifiable for purposes of
this Act or the rules.
(3) For purposes of sub-section (2), where a person has a
registered office or 1[place] of business in Balochistan and another
outside Balochistan, the registered office or place of business in
Balochistan and that outside Balochistan shall be treated as separate
legal persons.
(4) The Authority may, with prior approval of the
Government, by notification in the official Gazette, prescribe rules
for determining the conditions under which a particular service or
class of service shall be considered to have been provided by a
person from his registered office or place of business in Balochistan.
(5) For purposes of this Act and the rules, providing of
service shall, where the context requires, include rendering, supply,
initiation, origination, execution, reception, consumption or
termination of service whether in whole or in part.
1
[(6) The services mentioned in the First Schedule are not
exhaustive and all the services mentioned in the Second Schedule,
rules and circulars shall be taxable services.]
Application of 4. (1) Where a person is providing taxable services in
Principles of Province other than Balochistan but the recipient of such services is
Origin and resident of Balochistan or is otherwise availing such services in
Reverse Charge Balochistan and has charged tax accordingly, the person providing
in Certain such services shall pay the amount of tax so charged to the
Situations. Government.
(2) Where the recipient of a taxable service is person
registered under the Act, he shall deduct the whole amount of tax in
respect of the service received and pay the same to the Government.
(3) Where a person is providing taxable services in more
than one provinces or territory in Pakistan including Balochistan,
such person shall be liable to pay tax to the Government to the
extent the tax is charged from a person resident in Balochistan or
from a person, who is otherwise availing such services in
Balochistan,
(4) Where rendering of a taxable service originates from
Balochistan but terminates outside Pakistan, such person shall be
required to pay tax on such service to the Government.
(5) Where a taxable service originates from outside
Pakistan but is received or terminates in Balochistan, the recipient of
such service shall be liable to pay the tax to the Government.
(6) The persons who are required to pay the tax to the
1
Substituted for the word “plan” by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
1
New sub-section (6) added by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section
1, sub-section (2) for detail.
Government in terms of sub-sections (1), (2), (3), (4), and (5) shall
be liable to registration for purposes of this Act and the rules.
(7) All questions or disputes relating to the application of
the principle of origin given in this section shall be resolved in terms
of the already recorded understanding between the Federal
Government and the Provincial Governments on the implementation
of reformed General Sales Tax provided that pendency of any such
question or dispute shall not absolve the concerned person from his
obligation to deposit the tax.
(8) The provisions of this section shall apply
notwithstanding any other provision of this Act or the rules and the
Government may specify special procedure to regulate the
provisions of this section.
1
Amendment in 5. (1) [The Authority, with the approval of the
Second Government] may, by notification in the official Gazette, make an
Schedule. amendment in Second Schedule by modifying, adding or deleting
any entry or entries with reference to the classification, if any,
description of any service or class of service and the rate or rates of
tax chargeable on any service or class of services not exceeding the
minimum rate prescribed in Second Schedule.
(2) A notification issued under sub-section (1) shall be
effective from such date as may be specified in the notification by
such date shall not be prior to the date on which the notification is
published in the official Gazette.
(3) The Government shall at the time of presenting the
Annual Budget Statement for the next financial year, lay before the
Provincial Assembly of Balochistan all the notifications relating to
the amendments in the Second Schedule during the current financial
year.
Economic Activity. 6. (1) An economic activity means any activity carried on
whether continuously, regularly or otherwise by a person that
involves or is intended to involve the provision of services to
another person and includes:―
(a) an activity carried on in the form of a business,
including a profession, calling, trade or
undertaking of any kind, whether or not the
activity is undertaken for any consideration or
profit;
1
Substituted for the words “The Government” by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-
note 2 under section 1, sub-section (2) for detail.
1
[(b) an activity of supply or provision of movable
or immovable property by way of lease, rent,
license or other similar arrangements; and]
(c) a one-time transaction or concern in the nature
of a business or trade.
(2) Anything done or undertaken during the
commencement or termination of an economic activity shall be
construed as part of the economic activity.
(3) An economic activity does not include:―
(a) the activities of an employee providing
services in that capacity to an 2[employer]; or
(b) a private recreational pursuit or hobby of an
individual.
Value of a Taxable 7. (1) The value of a taxable service is the 3[gross amount
Service. of] consideration (by whatever name called such as charges or price)
in money including all the Federal and the Provincial duties, taxes or
charges, if any, which the person providing a service receives from
the recipient of the service but does not include the amount of the
tax.
(2) In case the consideration for a service is in kind or is
partly in kind and partly in money, the value of the service shall
mean the open market price of the service as determined under
section 8 excluding the amount 4[of] the tax.
(3) In case the person who provides the service and the
recipient of the service are 5[**] associated persons and the service
is supplied for no consideration or for a consideration which is lower
than the price at which the person provides the service to other
persons who are not associated persons, the value of the service
shall mean the price at which the service is provided to such other
persons but does not include the tax.
(4) In case a person provides a service for no
consideration or for a consideration, which is lower than the price at
which such a service is provided by such person, the value of the
service shall mean the open market price for such a service.
(5) In case of trade discounts, the value of the service
1
Substituted, by the Balochistan Act II of 2019, with effect from the 1st day of July, 2015. See also foot-note 2 under section 1, sub-section
(2) for detail.
2
Substituted for the word “employee”, ibid.
3
Words inserted, ibid.
4
Inserted for the word “if”, ibid.
5
The word “lower” omitted, ibid.
shall mean the discounted price, excluding the amount of the tax,
provided the invoice shows that the discounted price and the related
tax and the discount allowed is in conformity with customary
business practice.
(6) In case there is reason to believe that the value of a
service has not been correctly declared in the invoice or for any
special nature of transaction it is difficult to ascertain the value of a
service, the value of the service shall be the open market price.
(7) Notwithstanding anything in sub-sections (1) to (6),
where the Authority deems it necessary, it may, by notification in
the official Gazette, fix the value of any service or class of
1
[services] or similar types of services but if the value at which the
service is provided is higher than the value fixed by the Authority,
the value of the service shall, unless otherwise directed by the
Authority, be the value at which the service is provided.
Explanation. For the purpose of this section, the
value of the utilities or facilities, if any, ancillary to providing of
taxable services shall be included in the value of such services.
(8) The Authority may, by notification in the official
Gazette issue valuation rule for any service or class of services for
the purposes of assessment or determination and payment of tax
under this Act and prescribe threshold, parameters, standards,
methods, formula, criteria or bases for the determination of value of
any taxable service or class of taxable services and the assessment of
the tax on any service or class of services.
Open market price. 8. (1) The open market price of a service is:―
(a) the price, the service would fetch in an open
market transaction freely entered into between
persons who are not associated persons; or
(b) if it is not possible to determine an amount
under 2[clause (a)], the price, a similar service
would fetch in an open market transaction
freely made between persons who are not
associated persons, adjusted to take account of
the differences between the similar service
and actual service;
(c) determined on the basis of the market
1
The word “services” inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
2
Substituted for the words, bracket and figure “paragraph (1)”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015.
See also foot-note 2 under section 1, sub-section (2) for detail.
conditions prevailing at the time and place at
which the service is provided.
(2) If the open market price of a service cannot be
determined under sub-section (1), it may be determined by using any
method or formula specified by the Authority for calculating an
objective approximation of the price, the service would fetch in an
open market transaction freely made between persons who are not
associates.
Provision of 9. (1) Where a service is provided over a period of time and
Services Over a payment for the same is made on a periodic basis, the service shall
Period of Time. be treated as comprising two or more separate and distinct services
each corresponding to the part of the service to which each separate
part of the consideration relates.
ILLUSTRATIONS
(a) Where services are provided for a two years
period and payment is made on a semi-annual
basis, the provision of services for each six
months period constitutes a separate service
(b) Where an insurance company provides as
insurance policy over a five years period and
receives a premium on an annual basis, each
premium relates to a separate service.
1
[(bb) where a bank provides a customer with a
credit card and charges a quarterly fee for
providing the credit card, the provision of the
credit card for each quarter is a separate
service.]
(c) Note: The above illustrations are merely
explanatory and shall not be construed as
conclusive in any manner whatsoever.
(2) This section does not apply to services for which
payment is made on installments basis.
CHAPTER – II
SCOPE OF TAX
Scope of Tax and 10. (1) Subject to the provisions of this Act and the rules,
Allied Matters. there shall be charged, levied collected and paid the tax on the value
of a taxable service at the rate or rates specified in the Second
1
New clause inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1,
sub-section (2) for detail.
Schedule.
(2) The 1[Authority, with the approval of Government
may,] subject to such conditions and restrictions as the Government
may impose, by notification in the official Gazette, declare that in
respect of any taxable service provided by a registered person or a
class of registered persons, the tax shall be charged, levied and
collected at such higher, lower, fixed or specific rate or rates as may
be specified in the said notification.
(3) Notwithstanding other provisions of this Act, the
Authority may, with the prior approval of the Government and by
notification in the official Gazette and subject to the conditions,
restrictions, limitations or otherwise, fix the limit or threshold of
annual turnover of any service or class of services provided by any
person or class of persons below which such person or class of
person shall be exempt from payment of tax under the Act.
2
[*****]
Person Liable to Pay 11. (1) Where a service is taxable by virtue of sub-section
Tax. (1) of section 3, the liability to pay the tax shall be on the registered
person providing the service.
(2) Where a service is taxable by virtue of sub-section
(2) of section 3, the liability to pay the tax shall be on the person
receiving the service.
(3) The Authority may, by notification in the official
Gazette, specify the service or Services in respect of which the
liability to pay tax shall be on any person, other than the person
providing the taxable service, or the person receiving the taxable
service.
(4) Nothing contained in this section shall prevent the
collection of tax from different person if that person is made
separately or jointly or severally liable for the tax under section 19.
3
[Liability of a 11A. Subject to the provisions of sub-section (1) of section 11,
Registered Person. where a registered person receiving the taxable service fails to make
payment of the tax to a service provider within one hundred and
eighty days from the date of the tax invoice and such service
provider has also not made the payment thereof within the
prescribed due date, the person providing and the person receiving
taxable service shall, jointly and severally, be liable for payment of
1
Substituted for the words “Government may, on the recommendation of the Authority and”, ibid.
2
Sub-section (4) being analogous to the provision of section 16 (1) of the Act, omitted by the Balochistan Act II of 2019, with effect from
the 1st day of July, 2015. See also foot-note 2 under section 1, sub-section (2) for detail.
3
New section 11A inserted, ibid.
such tax.
Explanation I: The tax shall include the total amount
of the tax and also the tax as was liable to be deducted or withheld
by the service recipient as notified under section 14 of the Act;
Explanation II: The registered person shall include a
person covered by the “withholding agent” as notified under section
14 of the Act.]
Exemptions. 12. (1) Notwithstanding the provisions of sections 3 and 10,
the Authority may, with the approval of the Government and subject
to such conditions, limitations or restrictions as it may impose, by
notification in the official Gazette, exempt:―
(a) taxable service or services from the whole or
any part of the tax;
(b) taxable service or services provided by a
person or class of persons from the whole or
any part of the tax;
(c) recipient or recipients of service or services,
including international organizations and
institutions, from the payment of the whole or
any part of the tax; and
(d) a class of persons, any area or areas of
Balochistan from the whole or any part of the
tax.
(2) The exemption under sub-section (1) may be allowed
from any previous date specified in the notification issued under
sub-section (1).
Effect of Change in 13. If there is a change in the rate of tax, the taxable service shall
the Rate of Tax. be charged to tax at such rate as is in force at the time the service is
provided.
Special Procedure 14. (1) Notwithstanding anything contained in this Act, the
and Tax Authority may, by notification in the official Gazette, prescribe a
Withholding special procedure for the payment of tax, registration, book keeping,
Provisions. invoicing or billing requirements, returns and other related matters
in respect of any service or class of services, as may be specified.
(2) Notwithstanding other provisions of this Act, the
Authority may require any person or 1[class of persons] whether
registered or not for the purpose of this Act to withhold full or part
1
Substituted for the words class of person, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2
under section 1, sub-section (2) for detail.
of the tax charged from such person or class of persons on the
1
[provision] of any taxable service or class of taxable services and to
deposit the tax so withheld, with the Government within such time
and in such manner as it may, by notification in the official Gazette,
specify.
2
[(3) Where a person or class of persons is required to
withhold full or part of the tax on the provision of any taxable
service or class of taxable service and either fails to deduct or
withhold the tax or having deducted or withheld the tax, fails to
deposit the tax in the Government treasury, such person or class of
persons shall be personally liable to pay the amount of tax to the
Government in the prescribed manner.]
Delegation of Power 15. (1) The Government may, in accordance with article 147
to Collect, of the Constitution of the Islamic Republic of Pakistan 3, authorize
Administer and the Federal Board of Revenue or any other federal agency or person
Enforce Tax on to administer, collect and enforce the levy of tax on such taxable
Certain services as it may notify and in such mode and manner and for such
Services. period as may be prescribed and subject to such limitations,
restrictions and conditions as it may deem appropriate.
(2) The Government may, by notification in the official
Gazette, authorize any provincial agency, department, organization
or person to administer, collect and enforce the levy of tax on such
taxable service as it may notify in such mode and manner and for
such period as it may prescribe and subject to such restrictions and
conditions as it may impose.
(3) At the end of the period prescribed under sub-section
(1), the tax on taxable services notified under sub-section (1) 4[****]
shall be administered, collected and enforced by the Authority 5[in]
the same mode and manner as all other taxable services.
6
[Adjustments of 16. (1) A person required to pay tax under this Act shall be
Input Tax. entitled to deduct from the payable amount, the amount of tax paid
or payable by him on the receipt of taxable services exclusively used
in connection with the taxable services he provides, subject to the
condition that he holds a true and valid tax invoice not older than six
1
Substituted for the word “precision”, ibid.
2
New sub-section (3) added, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
3
Constitution of the Islamic Republic of Pakistan (1973); enacted on 10th April, 1973 and authenticated by the Assembly on 12 th April,
1973; published on the same day in the official Gazette of Pakistan; and came into force with effect from 14th August, 1973.
4
Comma and the words “, the tax on taxable services notified under sub-section (1)” being in duplicate, omitted by the Balochistan Act II
of 2019, with effect from the 1st day of July, 2015. See also foot-note 2 under section 1, sub-section (2) for detail.
5
Inserted, ibid.
6
Section 16 with marginal heading, substituted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-
note 2 under section 1, sub-section (2) for detail.
tax periods, showing the amount of tax charged under the Act on the
services so received, but the Authority may disallow or subject to
additional conditions may restrict such deduction in cases or with
respect to taxable services or goods specified in section 16A or
section 16B or the rules.
(2) Subject to provisions of section 16A or section 16B
or to such conditions and restrictions as may be prescribed, the
Authority may allow a registered person to claim adjustment,
deduction, or refund in respect of the tax paid or payable under any
other law for any taxable service or goods or class of taxable service
or goods used in connection with the provision of a taxable service
by such person, on his furnishing a tax invoice or declaration of
import of goods in his name which bears his National Tax Number.
Provided that the refund arising as a result of a claim
of adjustments or deductions, if any, shall be made on yearly basis
in the month following the end of the financial year.
(3) For the purpose of sub-section (2), the Authority may
adopt the principles or concepts laid down in such other law in
respect of adjustments, deductions or refunds including zero-rating
principle.
(4) Notwithstanding anything contained in this Act or the
rules made thereunder, the Authority, with the approval of the
Government, may, by notification in the official Gazette and 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
notification.
(5) For purposes of sub-section (1) or sub-section (2), the
amount of tax to be adjusted or deducted shall not include any
amount of additional tax, further tax, extra tax, default surcharge,
fine, penalty or fee imposed or charged under this Act or any other
law.]
1
[Certain 16A. (1) Notwithstanding anything contained in this Act or
Transactions Not any other law for the time being in force, payment of the tax amount
Admissible. for a transaction exceeding value of fifty thousand rupees, 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 service provider from the business bank account of the service
1
Ne sections 16A, 16B and 16C inserted with marginal heading, by the Balochistan Act II of 2019, with effect from the 1 st day of July,
2015. See also foot-note 2 under section 1, sub-section (2) for detail.
recipient.
(2) Online transfer of payment from the business account
of service recipient to the business account of service provider 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
service provider and the service recipient.
(3) The service recipient shall not be entitled to claim
input tax credit, adjustment or deduction, or refund, repayment 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 transferred within
one hundred and eighty days of issuance of the tax invoice.
(4) The amount transferred in terms of this section shall
be deposited in the business bank account of the service provider;
otherwise, the service provider shall not be entitled to claim input
tax credit, adjustment or deduction, or refund, repayment or zero-
rating of tax under this Act.
Explanation: For purposes of this section, the term
“business bank account” means a bank account utilized by the
registered person for business transactions, declared to the Authority
in the prescribed manner.
Input Tax Credit Not 16B. (1) Notwithstanding anything contained in this Act, a
Allowed. registered person shall not be entitled to claim, reclaim, adjust or
deduct input tax in relation to ―
(a) the goods or services used or to be used for
any purpose other than for the taxable services
provided or rendered or to be provided or
rendered by him;
(b) the goods in respect of which sales tax has not
been deposited in the Federal Government
treasury by the respective suppliers of goods;
(c) the services in respect of which the Provincial
sales tax has not been deposited in the
treasury of the respective Provincial
Government, and the services in respect of
which the Islamabad Capital Territory sales
tax has not been deposited in the treasury of
the Federal Government;
(d) further tax, extra tax or value addition tax
levied under the Sales Tax Act, 19901, and the
rules or notifications issued thereunder;
(e) fake, false, forged, flying or fraudulent
invoices or the invoices issued by persons
black-listed or suspended by Authority or
FBR or any other Provincial Sales Tax
Authority/Board;
(f) capital goods and fixed assets not exclusively
used in providing or rendering of taxable
services;
(g) goods and services acquired for personal or
non-business consumption, excluding the
following ones directly used and consumed in
the economic activity of a registered person in
provision of the services paying sales tax at a
rate not less than fifteen per cent ad valorem,
such as ―
(i) vehicles classified under Chapter 87 of
the First Schedule to the Customs Act,
1969 (Act No. IV of 1969) and parts
(including batteries and tyres and
tubes) of such vehicles;
(ii) calendars, diaries, gifts, souvenirs and
giveaways;
(iii) garments, uniforms, fabrics, footwear,
hand wear, head wear for the
employees;
(iv) food, beverages and consumptions on
entertainments, meetings or seminars
or for the consumption of the
registered person or his directors,
shareholders, partners, employees or
guests;
(v) electricity, gas and telecommunication
services supplied at the residence of
the employees or in the residential
colonies of the employees;
1
An amendment i.e. substitution of Chapter I to XVI of the Sales Tax Act, 1951 (Act III of 1951), by Finance Act, 1990 (Federal Act VII of
1990), S.13; published in the Gazette of Pakistan, dated 30 th June, 1990, where in at pages 80 to 104 it was setup in the third schedule with
a title “Sales Tax (Amendment) Act, 1990; and later the words with brackets “(Amendment)” was omitted by the Finance Act, 1991
(Federal Act XII of 1991), S.9.
(vi) building materials including cement,
bricks, mild steel products, paints,
varnishes, distemper, glass products;
(vii) office equipment and machines
(excluding electronic fiscal cash
registers), furniture, fixtures or
furnishings;
(viii) electrical and gas appliances, pipes
and fittings;
(ix) wires, cables, sanitary fittings,
ordinary electric fittings, electric fans
and electric bulbs and tubes; and
(x) crockery, cutlery, utensils, kitchen
appliances and equipment;
(h) utility bills not in the name of the registered
person unless evidence of consumption of
such utilities is provided to the satisfaction of
the officer of the Authority not below the rank
of Assistant Commissioner;
(i) goods or services procured or received by a
registered person during a period exceeding
six months prior to date of commencement of
the provision of taxable services by him;
(j) goods or services used or consumed in a
service liable to sales tax at ad valorem rate
lesser than fifteen per cent or at specific rate
or fixed rate or at such other rates not based
on value;
(k) goods or services as are liable to sales tax,
whether a federal sales tax or a provincial
sales tax, at specific rate or at fixed rate or at
such other rates not based on value or at a rate
lesser than fifteen per cent ad valorem and are
used or consumed as inputs in the provision of
a taxable service under the Act:
Provided that in case of
telecommunication services paying sales tax
at a rate not less than nineteen and a half per
cent ad valorem, the amount of sales tax paid
on goods and services at ad valorem rates not
exceeding seventeen per cent, can be claimed
by the person providing the taxable tele-
communication services.
(l) the amount of sales tax paid on the
telecommunication services in excess of
nineteen and a half per cent ad valorem and
the amount of sales tax paid on other taxable
goods or services in excess of fifteen per cent
ad valorem;
(m) such goods or services as are notified by the
Authority to be in-admissible for input tax
claim or reclaim or credit or adjustment or
deduction;
(n) goods and services already in use on which
the tax is not paid, or, where paid, the input
adjustment has been taken before the
commencement of the Act or where the input
related goods and services were purchased or
acquired before such commencement;
(o) carry forward of the input tax adjustment
relating to the period prior to the
commencement of the Act;
(p) goods and services in respect of which input
tax adjustment is barred or disallowed under
the respective federal and provincial sales tax
laws; and
(q) goods and services which, at the time of filing
of return by the buyer or service recipient,
have not been declared by the supplier or
service provider in his return.
(2) In case where a registered person deals with taxable
and non-taxable or exempt services, he shall be entitled to claim or
reclaim, for input tax credit or adjustment or deduction, only such
proportion of the input tax as is attributable to taxable services in
such manner as may be prescribed by the Authority.
(3) No person other than a person registered under
sections 25, 26 and 27 of the Act shall claim or adjust or deduct any
input tax in respect of sales tax paid on any goods or services
received or procured by him for use or consumption in the provision
of taxable services.
Adjustment of Input 16C. Notwithstanding anything contained in this Act and without
Tax Paid on prejudice to provisions of section 16A, the input tax paid on the
Certain Goods acquisition of such of the capital goods, machinery and fixed assets
and Services. as are classified under section XVI, Chapters 84 and 85 of the First
Schedule to the Customs Act, 1969 (Act No. IV of 1969), shall be
adjustable against the output tax in twelve equal monthly
installments.]
CHAPTER – III
PAYMENT AND COLLECTION OF TAX ON TAXABLE
SERVICES
Collection of Excess 17. (1) Any person who has collected or collects the tax or
Tax. charge, whether under misapprehension of any provision of this Act
or otherwise, which was not payable as tax or charge or which was
in excess of the tax or charge actually payable and the incidence of
which had been passed on to the person to whom the service was
provided, shall pay the amount of tax or charge so collected to the
Government.
(2) Any amount payable to the Government under sub-
section (1) shall be deemed to be an arrear payable under the Act
and shall be recovered accordingly.
(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 person to whom the service is provided shall be on the person
collecting the tax or charge.
Time, Manner and 18. (1) The tax in respect of a taxable service provided 1[or
Mode of rendered] during a tax period shall be paid by a person at the time of
Payment. filing the return in respect of that period under chapter VI.
(2) For purposes of sub-section (1), a taxable service
shall be considered to have been provided in the tax period during
which:―
(a) it was provided to the recipient;
(b) an invoice for the value of the taxable service
was issued or was due to be issued or sent or
due to be sent to the recipient; or
(c) consideration for the same was received;
whichever is earlier.
(3) Notwithstanding anything contained in sub-section
(1) the Authority may, by a notification in the official Gazette, direct
1
Words inserted by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
that the tax in respect of any taxable service or such class of taxable
services shall be charged, collected and paid in any other way,
mode, manner or time as may be specified in the notification.
(4) The tax due on taxable service shall be paid by any of
the following modes:―
(a) through deposit in a bank designated by the
Authority; or
(b) through such other mode and manner as may
be specified by the Authority.
Joint and Several 19. (1) Where a registered person receiving a taxable service
Liability of from another registered person is in the knowledge of or has
Registered reasonable grounds to suspect that some or all of the tax payable in
Persons Where respect of that taxable service 1[or any previous or subsequent
Tax Unpaid. taxable service] provided would go unpaid as against the
requirements of this Act, such person as well as the person
providing the taxable service shall be jointly and severally liable for
payment of such unpaid amount of the tax.
(2) The Authority may, by notification in the official
Gazette, exempt any person, service or transaction or class of
persons, services or transactions from the provision of sub-section
(1).
Sales of Taxable 20. (1) Where the ownership of any business providing
Activity or taxable services is sold, transferred or otherwise disposed of as an
Transfer of ongoing concern or activity, the fact of such sale, transfer or other
Ownership. disposition shall be intimated to the Commissioner within one
month of the occurrence of such fact by the former owner.
(2) The tax chargeable 2[or assessed or determined in
relation to] the taxable services provided in the business referred to
in sub-section (1) shall be accounted for and paid by the person to
whom sale or other disposition of such business is made or
ownership thereof is transferred and every such person shall be
liable to registration under this Act.
3
[(3) The tax payable by person referred to in sub-section
(2), if remains unpaid, the amount of the unpaid tax shall be the first
charge on the assets of the business and the persons buying and
selling the business shall be jointly and severally liable for payment
of the tax.]
1
Words inserted, ibid.
2
Inserted for the word “on” by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section
1, sub-section (2) for detail.
3
New sub-section (3) added, ibid.
Estate of Deceased 21. The tax liability of a deceased registered person under this
Person. Act shall be the first charge on his estate in the hands of his
successors.
Estate in 22. (1) Where a registered person is declared bankrupt, the
Bankruptcy. tax liability under this Act shall pass on to the estate in bankruptcy if
it continues to operate the business.
(2) Where the tax liability is incurred by an estate in
bankruptcy, the tax shall be deemed to be a current expenditure in
the operations of the estate in bankruptcy and shall be paid before
the claims of all other creditors are settled.
Liability for 23. Where any private company or business enterprise is wound
Payment of Tax up and any tax chargeable on or payable by the company or business
in Case of enterprise, whether before, or in the course, or after its liquidation,
Private in respect of any tax period cannot be recovered from the company
Companies or or business enterprise, every person who was an owner of, or partner
Business in, or director of the company or business enterprise during the
Enterprises. relevant period shall, jointly and severally with such persons be
liable for payment of such tax.
Assessment of Tax. 24. (1) Where on the basis of any information acquired
during an audit, inquiry, inspection or otherwise, an officer of the
Authority 1[not below the rank of Assistant Commissioner] is of the
opinion that a registered person has not paid the tax due on taxable
services provided by him or has made short payment, the officer
shall make an assessment of the tax actually payable by that person
and shall impose a penalty and charge default surcharge in
accordance with section 48 and 49.
(2) No order under sub-section (1) shall be made unless a
notice to show cause is given to the person in default within 2[eight]
year from the conclusion of the tax period to which the assessment
relates specifying the ground on which it is intended to proceed
against him and the said officer shall take into consideration the
representation made by such person and provide him with an
opportunity of being heard if the person so desires.
(3) An order under sub-section (1) shall be made within
one hundred and 3[eighty] days of issuance of the show cause notice
or within such extended period as the officer may, for reasons to be
1
Words inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
2
Substituted for the word “five”, ibid.
3
Substituted for the word “twenty”, ibid.
recorded in writhing, fix provided that such extended period shall
ordinarily not exceed sixty days.
(4) In computing the period specified in sub-section (3)
any period during which the proceedings are adjourned on account
of a stay order or proceedings under section 69 or the time taken
through adjournments by the person shall be excluded.
(5) An order passed by an officer under sub-section (1)
may be further amended as may be necessary when on the basis of
any additional information acquired during an audit, inquiry,
inspection or otherwise the officer is satisfied that:―
(a) any tax has been under-assessed or assessed
1
[at too low a rate]; or
(b) any taxable service provided by the person
has escaped assessment.
(6) The provisions of sub-sections (2), (3) and (4) shall
be applicable to an order passed under sub-section (5).
2
[(7) Notwithstanding anything contained in this Act,
Authority may prescribe threshold, parameters, standards and basis
for assessment of taxable value of services and the assessment of
tax, and the Authority shall have the powers to regulate the system
of assessment including the powers for transfer of cases and
extension of time limit in exceptional circumstances.]
CHAPTER – IV
REGISTRATION
Registration. 25. 3
[(1) A person shall be registered under this Act who: ―
(a) is resident;
(b) provides any taxable service from his office or
place of business in Balochistan; or
(c) is otherwise required to be registered under any
of the provisions of the Act or the rules; or
(d) fulfills any other criteria or requirement which
the Authority may prescribe under sub-section
(2).]
(2) The registration under this section will be regulated
in such manner and subject to such conditions and restrictions as the
1
Substituted for the words “at a low rate”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2
under section 1, sub-section (2) for detail.
2
New sub-section (7) added, ibid.
3
Sub-section (1) substituted, ibid.
Authority may, by notification in the official Gazette, prescribe.
(3) A person who receives a service, which is a taxable
service by virtue of sub-section (2) of section 3, and is not a
registered person shall be deemed to be a registered person for the
purposes of the tax period in which:―
(a) such person receives the service;
(b) an invoice for the value of the service is issued
or sent to or received by the person; or
(c) consideration for the service is paid by the
person:―
whichever is earlier and all the provisions of
this Act and the rules shall be applicable to
such person for that particular tax period and
any matters relating to, arising out of, or
concerning that tax period as if that person had
provided the service.
(4) The Authority may publish on its website a list or
persons registered under this Act.
(5) It shall be reasonable for a person to believe that
another person is registered under this Act if that other person is on
the list placed on the website of the Authority.
1
[Explanation: Unless otherwise specified, no person shall be
absolved of any tax liability for want of registration under this Act
or the rules.]
Voluntary 26. (1) A person who carries on an economic activity but is
Registration. not required to be registered may apply for voluntary registration at
any time.
(2) If a person who is not required to be registered
applies for voluntary registration, the Authority may register the
person if the Authority is satisfied that:―
(a) the person is providing, or shall provide a
service that is taxable service if the person
was registered;
(b) the person has a place of business at which he
carries on an economic activity;
(c) there are reasonable grounds to believe that
the person shall keep proper records and file
1
Added by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-section (2)
for detail.
regular returns as prescribed under this Act
and the rules; and
(d) if the person has commenced carrying on an
economic activity, the person has: ―
i. kept proper records in relation to his
economic activity; and
ii. complied with his obligations under
other applicable taxation laws
Compulsory 27. (1) If the Authority is satisfied that a person who is
Registration. required to be registered and has not applied for registration, the
Authority shall register the person and shall, not later than fifteen
before the day on which the registration takes effect, notify the
person of the registration, the day on which it takes effect, and the
registration number issued to the person.
(2) No person shall be registered compulsorily without
being given an advance notice and an opportunity of being heard in
such manner as the Authority may specify.
(3) The Authority may, by notification in the official
Gazette, authorize any officer to perform any of the functions under
this section relating to compulsory registration of a person for any of
the taxable services.
Suspension of 28. (1) Subject to sub-section (3), the Authority 1[or any
Registration. officer of the Authority authorized in this behalf] may temporarily
inactivate the registration of a person if it is satisfied that the
person:―
(a) is not entitled to be registered; or
(b) has failed to comply with obligations under
this Act or the rules.
(2) The Authority 2[or any officer of the Authority
authorized in this behalf] shall give notice to a registered person
stating the reasons for temporary inactivation of the person’s
registration and the remedial actions required to be taken by the
person in such time as may be specified in the notice.
(3) In case the Authority 3[or any officer of the Authority
authorized in this behalf] is not satisfied with the response of the
person or the remedial action taken by him or does not receive any
1
Words inserted by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
2
Words inserted, ibid.
3
Words inserted, ibid.
response in the specified time, the Authority 1[or any officer of the
Authority authorized in this behalf] may suspend that person’s
registration.
(4) The suspension of registration shall be effected by
removing the name of the person from the list of registered persons
published on the Authority’s website.
(5) At any time within a period of sixty days of
suspension, the Authority 2[or any officer of the Authority
authorized in this behalf] may withdraw the suspension if it is
satisfied with the remedial actions taken by the person.
(6) Where, after sixty days, the suspension has not been
withdrawn, the Authority 3[or any officer of the Authority
authorized in this behalf] may:
(a) institute proceedings against the person in
respect of the alleged non-compliance under
this Act;
(b) reinstate the person’s registration; or
(c) if neither of the actions in clauses (a) and (b)
is done, cancel the person’s registration.
(7) No registration shall be cancelled unless the
4
Authority [or any officer of the Authority authorized in this behalf]
either through enquiry, investigation or audit is satisfied that
circumstances exist necessitating such cancellation and under no
circumstances, the cancellation of registration shall absolve the
person of his other obligations and liabilities under the Act or the
rules.
De-registration. 29. (1) The Authority 5[or any officer of the Authority
authorized in this behalf] may de-register a registered person or such
class of registered persons not required to be registered under this
Act.
(2) Where any person registered under this Act believes
that he does not satisfy the requirements for registration specified in
section 25, he may make an application to the Authority 6[or any
officer of the Authority authorized in this behalf] to be de-registered.
1
Words inserted, ibid.
2
Words inserted, ibid.
3
Words inserted, ibid.
4
Words inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
5
Words inserted, ibid.
6
Words inserted, ibid.
(3) If upon receiving such an application, the Authority
1
[or any officer of the Authority authorized in this behalf] is satisfied
that the person is not required to be registered under this Act and has
fulfilled the obligations under the Act, it shall de-register such
person.
(4) Where the Authority 2[or any officer of the Authority
authorized in this behalf] receives an application under sub-section
(2), it shall dispose off the application within a period of three
months from the date of the receipt of the application, or within such
extended period, not exceeding sixty days, as the Authority 3[or any
officer of the Authority authorized in this behalf] may, for reasons to
be recorded in writing, fix.
4
[Restoration of 29A. The Authority may, subject to conditions as may be
Registration. prescribed reactivate, revive, reinstate or restore any registration
which has been deactivated, suspended or cancelled for any reason
or under any circumstances.]
CHAPTER – V
BOOK KEEPING AND AUDIT PROCEEDINGS
Issuance of Tax 30. (1) A registered person providing a taxable service shall
Invoices. issue a numbered and dated tax invoice containing the following
particulars:―
(a) name, address and registration number of the
service provider;
(b) name, address and registration number, if any,
of the service recipient;
(c) description of service or services;
(d) amount of the tax; and
(e) value inclusive of the tax.
5
[(f) value exclusive of the tax;]
(2) The Authority may, by notification in the official
Gazette, specify such modified invoices for different services or
persons and prescribe the manner and procedure for regulating the
issuance and authentication of tax invoices.
1
Words inserted, ibid.
2
Words inserted, ibid.
3
Words inserted, ibid.
4
New section 29A inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section
1, sub-section (2) for detail.
5
New clause (f) inserted, ibid.
(3) A registered person providing a taxable service may,
subject to such condition and restrictions as the Authority may, by
notification in the official Gazette, specify, issue invoices to another
registered person or other recipient of taxable service electronically
and transmit images or statements of such invoices to the Authority
as well as to the Commissioner, as may be specified.
Records. 31. (1) A registered person providing taxable service 1[or a
person required to pay tax under this Act or the rules] shall maintain
and keep at his business premises or registered office in English or
Urdu the following records of taxable service (including exempt
service) provided by him or by his agent acting on this behalf in
such form and manner as would permit ready ascertainment of his
tax liability during a tax period:-
(a) records of taxable service provided
indicating:―
(i) the description and type of service;
(ii) the value of the service;
(iii) the particulars of the person to whom
the service was provided; and
(iv) any other information as may be
specified by the Authority;
(b) records of exempt service; and
(c) such other records as may be specified by the
Authority.
(2) The Authority may, by notification in the official
Gazette, require a registered person or class of registered persons to
declare and use as many number of business bank accounts as may
by specified by the Authority in such notification to make or receive
payments on account of providing 2[or receiving service for the]
purpose of this Act and the rules and to make payment of due tax
from such accounts.
(3) The Authority may, by notification in the official
Gazette, specify that any person or 3[class of persons] registered
under this Act shall use such electronic fiscal cash registers in such
manner as are approved by the Authority.
(4) The Authority may, by notification in the official
1
Words inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
2
Substituted for the words “service for”, ibid.
3
Substituted for the words “class of person”, ibid.
Gazette, prescribe the procedure or software for electronic invoicing
or billing, maintenance of records, filing of tax returns and for any
other matter or approve any software for electronic invoicing or
billing, maintenance of records and filing of returns by a registered
person or class of such persons under this Act.
(5) The registered persons, whose accounts are subject to
audit under the 1[Companies Act, 2017 (Act No. XIX of 2017)],
shall be required to submit a copy of the annual audited accounts,
along with a certificate by the auditors certifying the payment of the
tax due and any deficiency in the tax paid by the registered person.
Retention and 32. (1) A person, who is required to maintain any record or
Production of document under this act, shall retain the record and documents for a
Records and period of 2[ten] years after the end of the tax period to which such
Document. record or documents relate or till the final decision in any
proceedings including proceedings for assessment, appeal, revision,
reference or petition, whichever is later.
(2) A person who is required to maintain any record or
documents under this Act or any other law shall, as and when
required by an officer not below the rank of the Assistant
Commissioner, produce records or documents which are in his
possession or control or in the possession or control of his agent, and
where such records or documents have been stored as electronic
data, he shall allow to such officer full and free access to, and use of,
such data of any machine.
Audit Proceedings. 33. (1) An officer authorized by the Authority or the
Commissioner may, on the basis of the return or returns submitted
by a registered person or the records maintained 3[or obtained] under
this Act and the rules, conduct an audit of such person.
(2) In case the Authority or the Commissioner has any
information showing that 4[any] registered person 5[is] involved in
tax fraud or evasion of tax, it or as the case may be, he may
authorize an officer not below the rank of Assistant Commissioner,
to conduct an inquiry or investigation, which may or may not be in
addition to any audit carried out for the same period.
(3) Where the officer is to conduct an audit under sub-
section (1), he shall issue a notice of audit to the person informing
1
Substituted for the words, figures and brackets “Companies Ordinance, 1984 (XLVI of 1984)”, by the Balochistan Act II of 2019, with
effect from the 1st day of July, 2015. See also foot-note 2 under section 1, sub-section (2) for detail.
2
Substituted for the words “five”, ibid.
3
Words inserted, ibid.
4
Substituted for the word “my”, ibid.
5
Substituted for the word “in”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
him of the audit proceedings and direct him to produce any records
or documents, which such officer may require for conducting the
audit.
(4) The officer shall conduct audit and issue an audit
observation or observations pointing out the contraventions of this
Act or the rules and the amount of the tax evaded or short paid, and
the registered person may, within a period of twenty one days of the
receipt of the audit observation, submit his reply in writing.
(5) If no reply is received within the specified time or the
reply furnished by the registered person is found unsatisfactory, the
officer shall issue an audit report specifying the amount of the tax or
charge that has not been levied or has been short levied or any other
violation of any provision of the Act or the rules.
(6) After completion of the audit under this section or
any other provision of this Act or the rules, an officer having
pecuniary jurisdiction in terms of section 60 shall, if required, pass
an order determining the correct amount of payable tax, charging
default surcharge and imposing a penalty.
(7) Notwithstanding the penalties prescribed in section
48:―
(a) if a registered person wishes to deposit the
amount of the tax short paid or evaded along
with default surcharge voluntarily, whenever
it comes to his notice, he may, before receipt
of notice of audit, file a revised return and
may deposit the amount of tax short paid or
evaded along with default surcharge, in which
case no penalty shall be recovered from him;
(b) if a registered person wishes to deposit the
amount of the tax short paid or evaded along
with default surcharge during the audit, or at
any time before issuance of show cause notice
in lieu of the audit report, he may file a
revised return and may deposit the short paid
or evaded amount of the tax, default surcharge
under section 49 and twenty percent of the
penalty payable under section 48 in which
case the show cause notice in lieu of the audit
report shall not be issued in the matter; 1[and]
1
Words inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
(c) if a registered person wishes to deposit the
amount of tax short paid or evaded along with
default surcharge after issuance of show cause
notice, he may file a revised return and may
deposit the short paid or evaded amount of the
tax, default surcharge under section 49, and
fifty percent of the penalty payable under
section 48 and, there after, the show cause
notice shall abate.
1 2
[Audit by Special 34. [(1) The Authority may, by notification in the official
Audit Panels.] Gazette, appoint as many special audit panels as may be necessary,
comprising of two or more members from the following, to conduct
audit or special audit or forensic investigation of the records of a
registered person, including audit of refund claims or input tax credit
claims: ―
(a) an officer of the Authority;
(b) a Chartered Accountant or a firm of Chartered
Accountants as defined under Chartered
Accountants Ordinance, 1961 (X of 1961)3;
(c) a Cost and Management Accountants or a
firm of Cost and Management Accountants as
defined under the Cost and Management
Accountants Act, 1966 (XIV of 1966)4;
(d) any other person appointed by the Authority
having expertise of conducting special audit
or forensic investigation or both of the records
of any registered person; and
(e) the scope of audit or special audit or forensic
investigation shall be determined by the
Authority or the Commissioner authorized by
the Authority on case to case basis. In
addition, the Authority may, where it
considers appropriate, also get such audit or
special audit or forensic investigation
conducted jointly with FBR or other
Provincial Tax Authorities/Board.]
1
Substituted for the words “Special Audit by Chartered Accountants or Cost Accountants”, ibid.
2
Substituted for sub-section (1), ibid.
3
An Ordinance made by President of Pakistan on 3 rd March, 1961; and published in the Gazette of Pakistan (Extraordinary) dated 10 th
March, 1961; saved and given permanent effect by Article 225 of the Constitution of the Islamic Republic of Pakistan, 1962.
4
An Act passed by the National Assembly and assented to by the President of Pakistan on 14 th July, 1966; and published in the Gazette of
Pakistan (Extraordinary) dated 19th July, 1966.
CHAPTER – VI
RETURNS
Returns. 35. (1) Every registered person shall furnish, not later than
the due date, a true, correct and properly filled-up return in the
prescribed form to a designated bank or any other office specified by
the Authority, indicating the tax due and paid during a tax period
and such other information or particulars as may be prescribed by
the Authority.
1
[(1A) A statement, in the prescribed manner, filed by a
person who is only obliged to deduced or withhold tax, shall be
treated as a return of that person, provided that such a statement
shall not be a substitution for the return required to be filed by a
person providing taxable services.]
(2) Notwithstanding anything in sub-section (1), the
Authority may, by notification in the official Gazette, require any
registered person or class of registered persons to submit returns on
a quarterly, six monthly or annual basis in lieu of monthly return.
(3) Notwithstanding anything in sub-section (1), the
Authority may, by notification in the official Gazette, require any
registered person to submit such returns, as may, be prescribed, on
any period basis in addition to other returns required to be filed by
such person.
(4) A return filed electronically on the website or any
magnetic media or any other computer readable media as may be
specified by the Authority shall be deemed to be a return for the
purpose of sub-section (1), (2) or (3) and the Authority may, by
notification in the official 2[Gazette], prescribe the criteria for
eligibility of the data of such returns and e-intermediaries who shall
digitize the data of such returns and transmit the same electronically
under their digital signatures.
(5) If there is a change in the rate of the tax during a tax
period, a separate return in respect of each portion of tax period
showing the application of different rates of tax shall be furnished.
3
(6) [Subject to rules, a registered person may], after
prior permission from Commissioner, file a revised return within
one hundred and twenty days of filing a return under sub-section (1),
(2) or (3), to correct any omission or wrong declaration made therein
1
New sub-section (1A) inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
2
Substituted for the word “gazette” by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
3
Substituted for the words “A registered person”, ibid.
and to deposit any amount of the tax not paid or short paid.
Special Returns. 36. In addition to the return or returns specified under section 35,
the 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 prescribed 1[form] and such person shall furnish the
return not later than the date specified in this regard.
Final Return. 37. If a person applies for de-registration in terms of section 29,
he shall before such de-registration, furnish a final return to the
Authority or the Commissioner in the specified form in such manner
and at such time as may be directed 2[***] by the Authority or the
Commissioner.
Return Deemed to 38. A return purporting to be made on behalf of a person by his
Have Been duly appointed representative or agent shall, for all purposes of this
Made. Act or the rules, be deemed to have been made by such person or
under his authority unless proved to the contrary.
CHAPTER – VII
APPOINTMENT OF AUTHORITIES AND THEIR POWERS
Appointment of 39. (1) For the purposes of this Act and the rules, the
Authorities. Authority may, in the prescribed manner and by notification in
official Gazette, appoint in relation to any area or cases specified in
the notification, any person to be a:―
(a) Commissioner;
(b) Commissioner (Appeals);
(c) Additional Commissioner 3[***];
(d) Deputy Commissioner;
(e) Assistant Commissioner;
(f) Audit Officer 4[***];
(g) Inspector 5[***] or
(h) An officer of the Authority with any other
designation.
(2) The Commissioner (Appeals) and the Commissioner
shall be subordinate to the Authority.
1
Substituted for the word “from”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
2
Words “by directed”, omitted, ibid.
3
Words “of the Authority”, omitted, ibid.
4
Words “of the Authority”, omitted, ibid.
5
Words “of the Authority”, omitted, ibid.
(3) The Additional Commissioners, Deputy
Commissioners and the Assistant Commissioners shall be
subordinate to the Commissioner and unless otherwise directed by
the Authority or the Commissioner, both the Deputy Commissioner
and the Assistant Commissioner shall also be subordinate to the
Additional Commissioner.
(4) The Audit Officers and Inspectors and the officers of
other such equal or lower designations, if any, shall be subordinate
to the Deputy Commissioner or to the Assistant Commissioner.
(5) The Authority may designate any Deputy
Commissioner supervisory incharge of any Assistant Commissioner
either by name or by designation in any of its subordinate offices or
formations.
(6) The Authority may distribute the work and related
functions amongst the above designations in a manner it deems
appropriate and make changes in such work distribution as and
when deemed proper.
(7) The Authority may, by notification in the official
Gazette, prescribe uniform including shoulder strips and badges for
different classes of the officers or officials of the Authority.
(8) All jurisdictional and competency issues arising
under this Act or the rules shall be decided by the Authority in such
manner as it thinks fit.
Powers. 40. (1) An officer appointed under section 39 shall exercise
such powers and discharge such duties as are conferred on him
under this Act and the rules and he shall also be empowered and
competent to exercise all powers and discharge all duties or
functions conferred upon any officer subordinate to him.
(2) The Authority may, by general or special order,
impose such limitations, restrictions or conditions on the exercise of
such powers and discharge of such duties or functions as it deems
fit.
Distribution of 41. (1) The Authority may, by notification in the official
Powers. Gazette, and subject to such limitations or conditions, empower by
name or by designation:–
(a) An Additional Commissioner to exercise or
perform any of the powers or functions of a
Commissioner;
(b) A Deputy Commissioner to exercise or
perform any of the powers or functions of an
Additional Commissioner;
(c) An Assistant Commissioner to exercise or
perform any of the powers or functions of a
Deputy Commissioner; and
(d) Any other officer to exercise or perform any
of the powers or functions of an Assistant
Commissioner.
(2) The Authority may confer power and functions of
any officer as additional duties to any officer of the same rank or a
step senior or junior in rank.
(3) An officer to whom any powers or functions are
conferred under this section shall not assign such powers or
functions to any other officer except with the prior permission of the
Authority.
Special Judges. 42. (1) The Government may, by notification in the official
Gazette, appoint any person who is serving or has served as District
and Session Judge for a period of at least five years as Special Judge
in consultation with the Chief Justice of Balochistan High Court
and, where it appoints more than one Special Judge, it shall specify
in the notification the headquarters of each Special Judge and the
territorial limits within which he shall exercise jurisdiction under
this Act and the rules.
(2) If a Special Judge is, for any reasons, unable to
perform his duties under this Act or the rules, District and Sessions
Judge of the District shall perform the duties of the Special Judge
for the District.
Cognizance of 43. (1) The Special Judge may, within the limits of his
Offence. jurisdiction, take cognizance of any offence punishable by him
upon:―
(a) a report in writing made by an officer, not
below the rank of Assistant Commissioner
with the approval of the Commissioner or by
an officer especially authorized in this behalf
by the Authority;
(b) receiving a complaint or information of facts
constituting such offence made or
communicated by any person; or
(c) his knowledge acquired during any
proceeding before him.
(2) If the Special Judge receives a report under clause (a)
of sub-section (1), the Special Judge shall proceed with the trial of
the accused.
(3) If the Special Judge receives a complaint or
information under clause (b) of sub-section (1), on the basis of his
own knowledge, the Special Judge shall, before issuing a summon
or warrant for appearance of the person, hold a preliminary inquiry
for purposes of ascertaining the truth or falsehood of the complaint,
information or knowledge or direct any Magistrate or any officer to
hold such inquiry and submit a report, and such Magistrate or
officer, shall conduct such inquiry and make a report accordingly.
(4) If, after conducting such an inquiry or after
considering the report of such Magistrate or officer, the Special
Judge may dismiss the complaint if there are no grounds to proceed
further, or may decide to proceed against the person in accordance
with Law.
(5) A Special Judge or a Magistrate or an officer holding
an inquiry under sub-section (3) may hold such inquiry, as nearly as
possible, in accordance with the provisions of section 202 of the
Code of Criminal Procedure, 1898 (V of 1898).
Application of the 44. (1) The provisions of the Code of Criminal Procedure,
Code of 1898 (V of 1898), so far as they are not inconsistent with the
Criminal provisions of this Act, shall apply to all proceedings of the Court of
Procedure, a Special Judge and such court shall be deemed to be a Court of
1898. Session for the purposes of the said Code and the provisions of
Chapter XXII-A of the Code, so far as applicable and with necessary
modifications, shall apply to the trial of cases by the Special Judge
under the Act.
(2) For purposes of sub-section (1), the Code of Criminal
Procedure, 1898 (V of 1898) shall have effect as if an offence
punishable under this Act was one of the offences referred to in sub-
section (1) of section 337 of the Code.
Exclusive 45. No court other than the Special Judge having jurisdiction,
Jurisdiction of shall try an offence punishable by the Special Judge under this Act.
Special Judge.
Place of Sitting. 46. A Special Judge shall ordinarily hold sittings at his
headquarters provided that keeping in view the general convenience
of the parties or the witnesses, he may hold sittings at any other
place.
Persons who may 47. (1) An officer not below the rank of an Assistant
Conduct Commissioner shall be competent to conduct prosecution before a
Prosecution. Special Judge for and on behalf of the Government.
(2) A prosecution conducted under this act before the
Special Judge may only be withdrawn by the Authority on the
direction or after concurrence of the Government.
CHAPTER – VIII
OFFENCES AND 1[PENALTIES]
Offences and 48. (1) If a person commits any offence described in column
Penalties. 2 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 3.
(2) The sections referred to in column 4 of the said Table
shall be deemed to be meant for illustrative purposes only and the
corresponding offence described in column 2 may fall and be
prosecuted under other sections of this Act as well.
1
Substituted for “PENALITIES” (a spelling mistake), by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also
foot-note 2 under section 1, sub-section (2) for detail.
Table
S. Offences Penalties Section
No.
1 Any person who is Such person shall be liable to [25 and
required to apply for pay a penalty of ten thousand 27]
registration under this Act rupees or five percent of the
fails to make an amount of the tax he would have
application for been liable to pay had he been
registration before registered, whichever is higher.
providing any taxable In the case of non-compliance of
services compulsory registration, the
minimum penalty shall be ten
thousand rupees;
If such person who is required to
get himself registered under this
Act, fails to get registered within
ninety days of providing taxable
services, he shall be further
liable, upon conviction by a
Special Judge, to imprisonment
for a term which may extend to
one year or with fine which may
extend to the amount of the tax
he would have been liable to pay
had he been registered, or with
both.
2 Where any person fails to Such person shall be liable to 35
furnish a return within the pay a penalty of five thousand
due date rupees provided if a return is not
filed within fifteen days of the
due date, a penalty of hundred
rupees for each day of default
shall be levied.
3 Where any person fails to (a) Such person shall be liable to 3, 4, 10
deposit the amount of the pay a penalty of ten thousand 11, 17, 18
tax due or any part thereof rupees or five percent of the tax and 68
in the time or manner laid payable for that period,
down under this Act or whichever is higher
the rules. (b) If the amount of the tax due
is not paid even after the expiry
of a period of sixty days of
issuance of the notice for such
payment by an officer, not
below the rank of Assistant
Commissioner, the person shall
be further 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
the amount of the unpaid tax, or
with both.
(c) No penalty shall be levied if
any miscalculation is made for
the first time during a year.
4 Any person who fails to Such person shall pay a penalty 30, 31
maintain record required of ten thousand rupees of five and 32
under the Act or the rules. percent of the total tax payable
for the tax period for which he
has failed to maintain the
required record, whichever is
higher.
[5 Where a person, without Such person shall pay a penalty 30, 32, 53
any reasonable cause, of twenty five thousand rupees and 57 ]
fails to produce the for the first default and fifty
despite receipt of a notice subsequent default.
from the Authority or any
officer of the Authority
directing him to produce
such record or
information.
6 Any person who Such person shall be liable to General
Default Surcharge. 49. knowingly
(1) Notwithstanding or pay the aprovisions
penalty of twenty 24, if a
of section
fraudulently: thousand rupees or one hundred
registered person does not pay the tax due or any part thereof,
(a) submits a false or percent of the tax payable for the
whether willfully
forged document or otherwise,
to any taxonperiod timetoorwhich in the themanner
offence specified
officer of the Authority; relates, whichever
under this Act, rules or notifications or procedures issued there is higher.
or Such person shall be further
under, (b)
he shall, in addition
destroys, alters, toliable,
the tax upon dueconviction
and any by penalty
a under
sectionmutilates
48, pay or default surcharge
falsifies at theJudge,
the Special rate mentioned
to imprisonment below: ―
records; or for a term which may extend to
(c) (a) a thefalse
makes personfiveliable
years toorpay withany fineamount
which of tax or
statement, false may extend to
charge shall pay default surchargean amount equalat the rate
declaration, false to the tax payable for the tax
representation, of false
inter-bank
period to ratewhich plus thethree percent per
offence
personification, orannum gives ofrelates,
the amount of the tax due; and
or with both.
any false information.
7 Where any (b) person in case,
who the Suchdefault
person isshall
on account
be liable of to tax
31,fraud,
32
denies or obstructs the paywho
the person a penalty of twenty tax
has committed fivefraud
and shall
56
access of an authorized thousand rupees or one hundred
officer to the business pay default percentsurcharge
of the tax payableat thefor rate
the of two
premises, registered percent
office taxperperiod
month, of the
to which amount of tax
the offence
or to any otherevaded, place relates, whichever is higher.
till such time the entire liability
where records are kept, or Such persons shall, further be
otherwise refuses including
access liable,the amount of default
upon conviction by surcharge
a is
to accounts of records. paid. Special Judge, to imprisonment
for a term which may extend to
(2) For the purposefive of years,
calculation
or with of default
a fine whichsurcharge,
the period of default shall be reckoned from the equal
may extend to an amount sixteenth day
to the tax payable for the tax
following the due date of the tax period
period to to which
which thetheoffence
default relates,
relates, or with both.
to the day preceding the date on which the tax due is actually paid.
8 Where any person Such person shall be liable to 2 (43)
Explanation:
commits, cause to ―commit
For purposes
pay a of this section,
penalty of up to thefive
tax due does
or attempts to commit
not include the amount of penalty. tax hundred thousand rupees, but
fraud, or abets or not less than twenty five
connives in the thousand rupees, or one hundred
Exemption from The 1[Authority]
50. commission of tax fraud may,percent
by aof thenotification
tax payable for in the
the official
2
Penalty and [Gazette],
equalexempt
to twenty any registered
five tax person
period toorwhichany taxable
the offenceservice from
Default thousand rupees or more.
3 relates, whichever
payment of the whole [or] any part of the penalty and default is higher.
Such person shall, further be
Surcharge. surcharge subject to such conditions liable, upon andconviction
limitations by asa may be
specified. Special Judge, to imprisonment
for a term which may extend to
Compounding of 51. Notwithstanding anything five contained
years, or with in anyfine other
which provision
may extend to an amount equal
Offences. of this Act, where any person has committed
to the tax payable anyfor offence
the taxwarranting
prosecution under the Act, the Authority may, either before or after
period to which the offence
relates, or with both.
the institution of any proceedings for the prosecution of such
9 Where any person Such person shall be liable to 70
offence, compound
violates any the embargooffencepay and terminate
a penalty the proceedings
of twenty five if
placed on providing of thousand rupees
such person pays the amount of the tax due along with such default or ten percent
service in connection with of the amount of the tax sought
surcharge and ofpenalty
recovery the tax as is determined
to be recovered,by thewhichever
Authorityis under the
provisions of this Act and the rules. higher.
Such person shall, further be
liable, upon conviction by a
Special Judge, to imprisonment
1 for a term which may extend to
Substituted for the word “Government”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2
under section 1, sub-section (2) for detail. one year, or with fine which
2
Substituted for the word, “gazette”, ibid. may extend to amount equal to
3
Substituted for the word “of”, ibid. the amount of the tax sought to
be recovered, or with both.
10 Where any person Such person shall be liable to [General
obstructs any officer of pay a penalty of twenty five and
the Authority in the thousand rupees or one hundred section
performance of his percent of the tax payable for the 59 and
official duties under this tax period to which the offence section
Such person shall be further
liable, upon conviction by a
Special Judge, to imprisonment
for a term which may extend to
one year or with fine not
exceeding fifty thousand rupees
or with both[:]
Recovery of the Tax 52. (1) Where by reason [Provided that where
of inadvertence, error,
1 any recipient of a service does
not Levied or [miscalculation] or for any other reason,
not pay any tax
the amount or due
of tax charge
to has not
Short-levied. been levied or has been short be levied,
paid the to a person
service liable to pay such
provider,
such recipient
amount of the tax or charge shall be served with a notice, within shall also be
2
liable to action for obstruction
[five] years of the relevant taxunder period this requiring
provision.] him to show cause
for payment of the amount specified in the shall
11 Where any person who Such person notice. be liable to General
fails to fulfill any of the pay a penalty of five thousand
(2)
conditions, Where
limitationsby orreasonrupeesof some
or three collusion,
percent of the tax abetment,
restrictions prescribed in a payable
deliberate attempt, mis-statement, fraud, forgery, false for the tax period to or fake
notification issued under which the offence relates,
document: any ― of the provisions of whichever is higher.
the Act or the rules.
12 Where any (a) person anywho tax orSuchchargeperson hasshall
not been paidtoor General
be liable is, short
paid or the
contravenes any provision payperson
a penalty liable
of tento pay such tax shall
thousand
of this Act or the rules for rupees of three
be served with a notice within five percent of the tax years of
which no penalty has payable for the tax period to
relevant which
specifically been provided tax period, the offencerequiringrelates,
him to show
in this section. cause forwhichever
non-payment is higher. of such tax; and
13 Where any person repeats Such person shall be liable to General
an offence (b)for whichany amounta pay of twicethethe taxamount
is refunded which is not
of penalty
penalty is provideddue, under provided under the Act
the person obtaining such refund shall be for the
this Act. said offence.
14 Where any person:– served with Suchapersonnoticeshall withinpay afive yearsGeneral
penalty of the
(a) knowingly receipt and of of twenty five thousand
such refund to show cause of rupees
without lawful or one hundred percent of the
authority
recovery of such refund.
gains amount equal to the loss caused
(3) access Theto or attempts
officer to the
shall, aftertax considering
revenue. the objections of
to gain access to the Such person shall further be
the person served with a noticeliable,
computerized underupon sub-sections
conviction(1) byorthe
(2) or if the
objections system;
are notorreceived within Specialthe Judge, to imprisonment
stipulated period, determine
(b) unauthorizedly uses for a term which may extend to
the amountorof the tax or charge
discloses
payable by him and such person
or one year, or with fine which
shall pay the amount so determined.
publishes or may extend to an amount equal
otherwise to the loss caused to the tax
(4) disseminates
Any order underrevenue, sub-sectionor with(3) shall be made within
both.
one hundred information 3
and [eighty]obtaineddays of issuance of the notice to show
from the
cause or within such extended
computerized
period as the officer may, for reasons
to be recorded system;inorwriting, fix provided that such extended period
shall not (c) ordinarily
falsifies any exceedrecord
sixty days.
or information stored
(5) in the In computerized
computing the period specified in sub-section (4),
system; or
any period during which the
(d) knowingly or
proceedings are adjourned on account
of a stay order or proceedings
dishonestly damages under section 69 or the time taken
or impairs the
through adjournments by the petitioner 4[****] shall be excluded.
computerized
5
[(6) system;
Whereor any person, required to withhold tax under
(e) knowingly or
provision ofdishonestly
this Act damages
or the rules made thereunder, fails to withhold
the tax or fails or toimpairs
deposit the any deducted or withheld amount of the tax
duplicate tape or disc
1
Substituted for the word “misconstruction”, by the Balochistan
or other Act on with effect from the 1 st day of July, 2015. See also foot-note
II of 2019,
medium
2 under section 1, sub-section (2) for detail.
2
which any
Substituted for the word “three”, ibid.
3
information obtained
Substituted for the word “twenty”, ibid.
4
from the
The words “not exceeding thirty day” omitted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-
note 2 under section 1, sub-section (2) for detail.
computerized system
5
New sub-sections (6), (7) and (8) added, ibid.
is kept or stored; or
(f) unauthorizedly uses
unique user
identifier of any
other registered user
to authenticate a
transmission of
computerized
system; or
(g) fails to comply with or
contravenes any of
in the prescribed manner, an officer of the Authority shall determine
the amount in default and order its recovery in the prescribed
manner.
(7) For the purpose of this section, the expression
“relevant date” means the time of payment of tax or charge as
provided under section 18 of the Act.
(8) Notwithstanding anything contained in this Act, the
Authority shall have the powers to regulate the system of
determination of liability under this section including the powers for
transfer of cases and extension of time limit in exceptional
circumstances.]
1
[Short Paid Amounts 52A. Notwithstanding any of the provisions of this Act, where a
Recoverable registered person pays the amount of tax less than the tax due as
Without Notice. indicated in his return, the short-paid amount of tax along with
default surcharge shall be recovered from such person by attaching
his bank accounts, without giving him a show cause notice and
without prejudice to any other action prescribed under section 72 of
this Act or the rules made under this Act:
Provided that no penalty under section 48 of this Act shall be
imposed unless a show cause notice is given to such person.]
Power to Summon 53. (1) An officer may summon any person whose
Persons to give attendance he considers necessary either to tender evidence or to
Evidence and produce documents or any other thing in any audit, inquiry,
Produce investigation or proceedings which such officer is making for any of
Documents. the purposes of this Act and the rules.
(2) Any person summoned under sub-section (1) shall be
bound to attend either in person or by an authorized agent, as the
officer may direct.
(3) Notwithstanding anything in sub-section (1) and (2),
a person who is exempt from personal appearance in the Court under
sections 132 and 133 of the Code of Civil Procedure 1908 (V of
1908), shall not be required to appear in person.
(4) Any proceedings under this Act or the rules before an
officer shall be deemed to be judicial proceedings within the
meanings of sections 193 and 288 of the Pakistan Penal Code 1860
(XLV of 1860).
1
New section 52A inserted with marginal heading, ibid.
Power to Arrest and 54. (1) An officer authorized by the Authority 2[not below
Prosecute. the rank of Assistant Commissioner] by notification in the official
Gazette in this behalf, who on the basis of material evidence has
reasonable cause to believe that any person has committed a tax
fraud or any offence warranting prosecution under this Act, 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 (V of 1898).
(3) Where the person suspected of tax fraud or any
offence warranting prosecution under this Act is a Company, every
Director or officer of that Company whom the officer reasons to
believe is personally responsible for actions of the Company
contributing to the tax fraud or any offence warranting prosecution
under this Act shall be liable to arrest provided that such arrest shall
not absolve the Company from the liabilities of payment of the tax,
default surcharge and any penalty imposed or due under this Act.
Procedure to be 55. (1) When an officer arrests a person under section 54, he
Followed on shall immediately intimate the fact of arrest of that person to the
Arrest of a Special Judge who may direct such officer to produce that person at
Person. such time and place and on such date as the Special Judge considers
expedient.
(2) Notwithstanding anything contained in 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 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 of the Magistrate.
(3) When any person is produced under sub-section (2)
before the Special Judge, the Special Judge 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 bound, with or without sureties, or refuse to admit him
to bail and direct his detention at such place as he deems fit.
(4) Nothing contained herein 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 considers that
2
Words inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
the affording of such opportunity shall defeat the purpose of this
Act.
(5) When such person is produced under sub-section (2)
before a Magistrate, such Magistrate may, after authorizing 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 or produced.
(6) Nothing in sub-section (2), (3) and (4) shall preclude
the Special Judge or the Magistrate from remanding any such person
to the custody of the officer holding an inquiry or investigation
against that person if such officer makes a request in writing to that
effect, and the Special Judge or the 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 but the total period of such custody shall not exceed fourteen
days.
(7) When any person is arrested under this Act, the
arresting officer shall record the fact of arrest and other relevant
particulars in the register specified in sub-section (11) 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, and he may after producing such person before the Special
Judge or the Magistrate, make a request for his further detention in
his custody.
(8) While holding an inquiry under sub-section (7), the
officer shall exercise the same powers as are conferred upon or
exercisable by an officer in charge of a police station under the Code
of Criminal Procedure 1898 (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.
(9) If the officer, after holding an inquiry, 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.
(10) 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.
(11) The officer holding an inquiry under this section shall
maintain a register to be called register of arrests and detentions in
the form prescribed by the Government 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 entries shall be produced before the
Special Judge, whenever it is directed by the Special Judge.
(12) After completing the inquiry, the officer shall, as
early as possible, submit to the Special Judge, a complaint in the
same form and manner in which the officer in charge of a police
station submits a report before a Court.
(13) Any Magistrate of the first class may record any
statement or confession during inquiry or investigations under this
Act in accordance with the provisions of section 164 of the Code of
Criminal Procedure, 1898 (V of 1898).
Authorized Officers 56. (1) Any officer authorized in this behalf by the Authority
to have Access by notification in the official Gazette, shall have free and full access
to Premises, to the business premises, registered office or any other place where
Stocks, any business records or documents required under this Act and the
Accounts and rules are kept or maintained by any registered person or a person
Records. liable for registration or whose business activities are covered under
this Act and the rules 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 records,
data, documents, correspondence, accounts 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 document, including those which are required under any other
law maintained in any form or mode and may take into his custody
such records, statements, diskettes or documents, in original or
copies, in such form as the officer may deem fit against a signed
receipt.
(2) The registered person, his agent or any other person
specified in sub-section (1), shall answer any question or furnish
such information or explanation as may be asked by the authorized
officer.
(3) All other Government departments, local bodies,
autonomous bodies, corporations or other institutions shall supply
requisite information and render necessary assistance to the
authorized officer in the course 1[of] inquiry or investigation under
this section.
Obligation to 57. (1) Notwithstanding anything contained in this Act or
Produce any other law, any person required to maintain any record under this
Documents and Act and rules, shall, on demand by an officer, not below the rank of
Provide an Assistant Commissioner, by notice in writing, as and when
Information. specified in the notice:―
(a) produce for examination, such documents or
records which the officer considers necessary
or relevant to the audit, inquiry or
investigation under this Act;
(b) allow the officer to take extracts from or make
copies of such documents or records; and
(c) appear before the officer and answer any
question put to him concerning the documents
and records relating to the audit, inquiry or
investigation referred to in clause (a).
2
[(2) An officer of the Authority conducting an audit,
inquiry or investigation or otherwise for the purpose of this Act or
the rules, may require in writing any person to furnish any
information as is held by that person.]
(3) The Authority may require, in writing, any person,
department, company or organization, to provide any information or
data held by that person, department, company or organization,
which in the opinion of the Authority 3[or an offices authorized by
the Authority], is required for purposes of formulation of policy or
administering or implementing this Act 4[and] the rules.
(4) Every person, department, company or organization
shall furnish the information[, data and documents]5 requisitioned by
1
Substituted for the word “if”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
2
Substituted for sub-section (2), ibid.
3
Words inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
4
Substituted for the word “ad”, ibid.
the Authority or 1[an officer of the Authority] under 2[this section],
within the time specified in the notice issued by the Authority 3[or
an officer of the Authority].
Searches under 58. (1) Where any officer has reason to believe that any
Warrants. 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 or from the
Commissioner, enter that place and cause a search to be made at any
time.
(2) All searches made under sub-section (1) shall be
carried out in accordance with the relevant provisions of the Code of
Criminal Procedure, 1898 (V of 1898).
Posting of an Officer 59. (1) Subject to such conditions and restrictions as it
4
[of the deems fit to impose, the Authority may post an officer to the
Authority] to premises of a registered person to monitor the provision of services
Business by such registered person.
Premises. (2) Notwithstanding anything contained in sub-section
(1), if a Commissioner, on the basis of material evidence, has
reasonable cause to believe that a registered person is involved in
evasion of the tax or tax fraud, he may, by recording the grounds in
writing, post an officer of the Authority to the premises of such
registered person to monitor provision of services by such person.
(3) A person to whose premises, an officer of the
Authority is posted under this section, shall provide on his own cost,
all facilities required to meet the departmental requirements of such
posting as determined by the Authority or the Commissioner.
Powers of 60. (1) In respect of cases involving determination of tax
Adjudication. liability, assessment of the tax, charging of default surcharge,
imposition of penalty and recovery of amount erroneously refunded
or any other contravention or violation including tax fraud under this
Act or the rules, the jurisdiction and powers of adjudication of the
officers shall be as follows:―
(a) Additional Commissioner: Cases without any
restriction as to the amount of the tax involved
or amount erroneously refunded;
(b) Deputy Commissioner: Cases where the
5
Comma and words inserted, ibid.
1
Substituted for the words “the officer”, ibid.
2
Substituted for the words, figure with brackets “sub-section (2) and (3), ibid.
3
Words inserted, ibid.
4
Words inserted, ibid.
amount of the tax involved or the amount
erroneously refunded 1[****] does not exceed
two and a half million rupee;
(c) Assistant Commissioner: Cases where the
amount of the tax involved or the amount
erroneously refunded 2[does] not exceed one
million rupees; and
(d) Other officers of the Authority: Such cases,
other than those mentioned above, as may be
prescribed.
(2) The Commissioner may adjudicate any case falling in
the jurisdiction and powers of any officer subordinate to him and
appeal against the order passed by 3[the] Commissioner in such
cases shall lie to the Appellate Tribunal.
(3) The Authority may regulate the system of
adjudication including transfer of cases and extension of time limit.
Explanation.― For purposes of this section, the tax means
the principal amount of the tax other than default surcharge and in
cases where only default surcharge is involved, the amount of
default surcharge.
4
[Monitoring or 60A. (1) Subject to such conditions, restrictions and
Tracking by procedure, as it may deem fit to impose or specify, the Authority
Electronic or may, by notification in the official Gazette, specify any registered
other Means. person or class of registered persons or any of the services or class
of services in respect of which monitoring or tracking of provision
of service or services may be implemented through electronic or
other means as may be prescribed.
(2) The Authority may, in the prescribed manner, devise
and implement an electronic system for monitoring and capturing
the transactions recorded or the invoices issued by a registered
person or a class of registered persons or a service or services or
class of services, and transferring the information, obtained by such
monitoring or capturing of transactions or invoices, to the computer
systems of the Authority on real time basis or otherwise.
(4) From such date as may be prescribed by the
Authority, the persons providing or rendering taxable services shall
1
The words with comma “exceeds on million rupees, but” omitted, by the Balochistan Act II of 2019, with effect from the 1 st day of July,
2015. See also foot-note 2 under section 1, sub-section (2) for detail.
2
Substituted for the word “dose”, ibid.
3
Substituted for the word “he”, ibid.
4
New section 60A inserted with marginal heading, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also
foot-note 2 under section 1, sub-section (2) for detail.
compulsory use such electronic means or systems, including fiscal
cash registers, as may be specified or prescribed by the Authority,
for issuance of tax invoice.]
Revision by the 61. (1) The Commissioner may, of his own motion or on an
Commissioner. application made in writing by a registered person for revision, call
for and examine the record of any proceedings under this Act 1[or
the rules make thereunder] in which an order has been passed by an
officer subordinate to him.
(2) If after examining the record under sub-section (1),
the Commissioner is not satisfied with the legality or propriety of
any order passed by an officer, the Commissioner may make such
revision to the order as he may deem fit.
(3) No order imposing or enhancing any penalty or fine
requiring payment of a greater amount of the tax than the originally
levied amount shall be passed unless the person affected by such
order has been given an opportunity of showing cause and of being
heard.
(4) The Commissioner shall not revise any order under
sub-section (2) if:―
(a) an appeal under section 63 is pending or the
matter has been referred for resolution under
section 71;
(b) where an appeal against the order lies under
section 63, the time within which such appeal
can be made has not expired or the person has
not waived in writing his right of appeal;
(c) in the case of an application made by a
person, the application has not been made
within ninety days of the date on which such
order was served on the person, unless the
Commissioner is satisfied that the person was
prevented by sufficient cause from making the
application within the time allowed; and
(d) in the case where the Commissioner has on
his own motion called for and examined an
order passed by a subordinate officer, more
than five years have lapsed from the date of
the original order.
1
Words inserted, ibid.
(5) No application for revision of an assessment shall be
made under sub-section (1) unless the amount of the tax due under
the assessment, as is not in dispute, has been paid by the taxpayer.
Revision by the 62. (1) The Authority may, of its own motion, call for and
Authority. examine the record of any departmental proceedings under this
1
[Act] or the rules for the purpose of satisfying itself as to the
legality or propriety of any decision or order passed therein by an
officer.
(2) If after examining the record under sub-section (1),
the Authority is not satisfied with the legality or propriety of any
decision or order passed by an officer, it may pass such order as it
may deem fit.
(3) No order imposing or enhancing any penalty or fine
requiring payment of a greater amount of the tax than the originally
levied amount shall be passed unless the person affected by such
order has been given an opportunity of showing cause and of being
heard.
(4) No proceeding under this section shall be initiated in
a case where an appeal under section 67 is pending or the matter has
been referred for resolution under section 71.
(5) No order shall be made under this section after the
expiry of five years from the date of the original decision or order of
the subordinate officer referred to in sub-section (1).
CHAPTER – IX
APPEALS AND REFERENCES
Appeals. 63. (1) Any person, other than the Authority or any of its
employees, aggrieved by any decision or order passed under section
2
[23, 24, 27, 28, 29, 48, 49, 52, 60, 74 and 81] by an officer of the
Authority other than Commissioner may, within thirty days of the
date of receipt of such decision or order, prefer an appeal to the
Commissioner (Appeals).
(2) An appeal under sub section (1) shall:―
(a) be in the prescribed form;
1
Substituted for the word “act”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
2
Substituted for the figure “60”, ibid.
(b) be verified in the prescribed manner;
(c) state precisely the grounds upon which the
appeal is made;
1
[(cc) in case the appellant desires to be heard
through an agent or authorized representative
in terms of section 73 or section 76, be
accompanied with a Letter of Authorization,
as prescribed;]
(d) be accompanied by the fee specified in sub-
section (3); and
(e) be lodged with the Commissioner (Appeals)
within the time set out in sub-section (4).
(3) The prescribed fee shall be:―
(a) where the appellant is a company, one
thousand rupees; or
(b) where the appellant is not a company, two
hundred rupees.
(4) An appeal shall be preferred to the Commissioner
(Appeals) within thirty days of the receipt of the decision or order
passed under section 60.
(5) The Commissioner (Appeals) may, upon application
in writing by the appellant, admit an appeal after the expiration of
the period specified in sub-section (4) if the Commissioner
(Appeals) is satisfied that the appellant was prevented by sufficient
cause from lodging the appeal within that period.
Procedure in Appeal. 64. (1) The Commissioner (Appeals) shall give notice of the
day fixed for the hearing of the appeal to the appellant and to the
officer of the Authority against whose order the appeal has been
made.
(2) The Commissioner (Appeals) may adjourn the
hearing of the appeal from time to time.
(3) The Commissioner (Appeals) may, before the hearing
of an appeal, allow the appellant to file any new ground of appeal
not specified in the grounds of appeal already filed by the appellant
where the Commissioner (Appeals) is satisfied that the omission
from the appellant in the form of appeal was not willful or
unreasonable.
1
New clause (cc) inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1,
sub-section (2) for detail.
(4) The Commissioner (Appeals) may stay the recovery
of any tax due by virtue of the decision or order being appealed
against and any such order made by the Commissioner (Appeals)
shall remain operative for not more than fifteen days during which
period a notice shall be issued to the respondent and after hearing
the parties, the order staying recovery may be confirmed, varied or
vacated as the Commissioner (Appeals) deems fit but stay order so
confirmed, varied or vacated as the Commissioner (appeals) deems
fit but the stay order so confirmed or varied shall remain operative
for not more than sixty days, including any period for which the
recovery may have been stayed prior to the confirmation or variation
of the stay order.
(5) The Commissioner (Appeals) may, before disposing
of an appeal, call for such particulars, documents, records or
information as the Commissioner (Appeals) may require
1
[respecting] the matters arising in the appeal or cause further
inquiry to be made by the officer of the Authority.
Decision in Appeal. 65. (1) In disposing of an appeal lodged under section 63,
the Commissioner (Appeals) may pass such order as he deems fit,
confirming varying, altering, 2[setting] aside or annulling the
decision or order appealed against.
(2) In deciding an appeal, the Commissioner (Appeals)
may make such further inquiry as may be necessary provided that he
shall not remand the case for de novo consideration.
(3) The Commissioner (Appeals) shall not increase the
amount of any tax payable by the appellant unless the appellant has
been given an opportunity of showing cause against such increase.
(4) The Commissioner 3[(Appeals)] shall communicate
his order to the appellant and the Authority.
(5) An order passed by the Commissioner (Appeals)
under sub-section (1) shall be passed not later than one hundred and
twenty days from the date of filing of appeal or within such
extended period, not exceeding sixty days, as the Commissioner
(Appeals) may, for reasons to be recorded in 4[writing], fix.
(6) In computing the aforesaid time period, any period
during which the proceedings are adjourned on account of a stay
1
Substituted for the word “resecting”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2
under section 1, sub-section (2) for detail.
2
Substituted for the word “sting”, ibid.
3
Substituted for the bracket and words “(Appeals)”, ibid.
4
Substituted for the word “writhing”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2
under section 1, sub-section (2) for detail.
order or proceedings under section 71 or the time taken through
adjournments by the appellant shall be excluded.
(7) Where the Commissioner (Appeals) has not made an
order under sub-section (1) before the expiration of one hundred and
eighty days from the end of the month in which the appeal was
lodged, the Commissioner (Appeals) shall transfer his appeal to the
Appellate Tribunal and the Tribunal shall decide the appeal under
this Act as if it has been filed against the order of the Commissioner
(Appeals).
(8) While transferring the undecided appeal to the
Appellate Tribunal, the Commissioner (Appeals) shall attach his
comprehensive report explaining the circumstances and reasons due
to which the appeal could not be decided within time.
(9) For purposes of sub-section (5), any period during
which the hearing of an appeal is adjourned on the request of the
appellant shall be excluded in the computation of the period
mentioned in the sub-section.
1
[Appellate Tribunal.] 66. (1) There shall be an Appellate Tribunal established by
the Government to exercise the functions conferred on such Tribunal
by this Act or the rules made thereunder.
(2) The Appellate Tribunal shall consist of a Chairperson
and such other judicial and technical members as are appointed by
the Government having regard to the needs of the Tribunal.
(3) A person may be appointed as a Judicial Member of
the Appellate Tribunal for a period of three years from amongst the
persons who ―
(a) is or has been a Judge of the Balochistan High
Court, or is or has been Judge of a District and
Session Court with at least two years of
service as a District and Session Judge; or
(b) is not more than sixty-five years of age on the
date of appointment; or
(c) a Judicial member, if being in service, shall be
appointed in consultation with the Balochistan
High Court.
(4) A person may be appointed as a Technical Member
of the Appellate Tribunal for a period of three years from amongst
the persons who ―
1
Substituted for section 66 with marginal heading, ibid.
(a) is retired officer in BS-21 of the Federal
Board of Revenue; or
(b) is or has been a Commissioner of the
Balochistan Revenue Authority or Federal
Board of Revenue having at least two years of
experience as Commissioner (Appeals); or
(c) is not more than sixty-five years of age on the
date of appointment;
(5) The technical members of the Appellate Tribunal
shall be eligible for re-appointment for a similar term, provided that
there shall be no further re-appointment of such person on expiry of
second term.
(6) The Government shall appoint a member of the
Appellate Tribunal as Chairperson of the Appellate Tribunal and,
except in special circumstances, the person appointed should be a
judicial member.
(7) The powers and functions of the Appellate Tribunal
shall be exercised and discharged by Benches constituted from
members of the Tribunal by the Chairperson of the Appellate
Tribunal.
(8) Subject to sub-section (7), a Bench shall consist of
not less than two members of the Appellate Tribunal and shall be
constituted in such a manner as to contain equal number of judicial
and technical members, or so that the number of members of one
class does not exceed the number of members of the other class by
more than one.
(9) The government may, by notification in the official
Gazette, direct that all or any of the powers of the Appellate
Tribunal shall be exercised by: ―
(a) any one member; or
(b) more members than one, jointly or severally.
(10) Notwithstanding anything contained in sub-sections
(7) and (8), the Chairperson may constitute as many Benches
consisting of a single member as he may deem necessary to hear
such cases or class of cases as the Government may by order in
writing, specify.
(11) The Chairperson or any other member of the
Appellate Tribunal authorized in this behalf by the Chairperson,
may sitting singly, dispose of any case where the amount of tax or
penalty involved does not exceed five million rupees.
(12) Subject to sub-section (10), if the members of a
Bench differ in opinion on any point, the point shall be decided
according to the opinion of the majority.
(13) If the members of a Bench are equally divided on a
point, they shall state the point on which they differ and the case
shall be referred by the Chairperson for hearing on that point to one
or more other members of the Appellate Tribunal, and the point
shall be decided according to the opinion of the majority of the
members of the Tribunal who have heard the case including those
who first heart it.
(14) If there are an equal number of members on the
Appellate Tribunal, the Government may appoint an additional
member for the purpose of deciding the case on which there is a
difference of opinion.
(15) Subject to this Act, the Appellate Tribunal shall have
the power to regulate its own procedure, and the procedure of
benches of the Tribunal in all matters arising out of the discharge of
its functions including the places at which the benches shall hold
their sittings.
(16) The Government may from time to time increase or
decrease the number of members of the Appellate Tribunal by way
of notification in the official Gazette.]
Appeal to the 67. (1) Where the taxpayer or an officer not below the rank
Appellate of Additional Commissioner objects to any order passed by the
Tribunal. Commissioner (Appeals), including an order under sub section (4)
of section 64, the taxpayer or the officer may appeal to the Appellate
Tribunal against such order.
(2) An appeal under sub-section (1) shall be:―
(a) in the prescribed form;
(b) verified in the prescribed manner;
(c) accompanied, except in case of an appeal
preferred by an officer by the fee specified in
sub-section (3); and
(d) preferred to the Appellate Tribunal within
sixty days of the date of receipt of the order of
the Commissioner (Appeals) by the taxpayer
or the officer.
(3) The fee for an appeal shall be two thousand rupees.
(4) The Appellate Tribunal may, upon application in
writing, admit an appeal after the expiration of the period specified
in clause (d) of sub-section (2) if it is satisfied that the person
appealing was prevented by sufficient cause from filing the appeal
within that period.
Disposal of Appeals 68. (1) The Appellate Tribunal may, before disposing 1[of]
by the Appellate an appeal, call for such particulars, documents, records or
Tribunal. information as it may require in respect of the matters arising from
the appeal or cause further inquiry to be made by the officer of the
Authority.
(2) The appellate Tribunal shall afford an opportunity of
being heard to the parties to the appeal and, in case of default by any
of the parties on the date of hearing, the Tribunal may, if it deems
fit, dismiss the appeal in default, or may proceed ex-parte to decide
the appeal on the basis of the available record but the Appellate
Tribunal shall decide the appeal within six months from the date of
filing of the appeal.
(3) The Appellate Tribunal may stay the recovery of any
tax due by virtue of the decision or order being appealed against and
any such 2[order] made by the Appellate Tribunal shall remain
operative for not more than thirty days during which period a notice
shall be issued to the respondent and after hearing the parties, the
order staying recovery may be confirmed, varied or vacated as the
Appellate Tribunal deems fit but the stay order so confirmed or
varied shall remain operative for not more than ninety days
including any period for which the recovery may have been stayed
prior to the confirmation or variation of the stay order.
(4) In deciding the appeal, the Appellate Tribunal may,
without prejudice to the powers specified in sub-section (2), make
an order to: ―
(a) affirm, modify or annul the order being
appealed against; or
(b) remand the case to the officer or the
1
Substituted for the word “if”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
2
Substituted for the word “odder”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
Commissioner (Appeals) for making such
inquiry or taking such action as the Tribunal
may direct.
(5) The Appellate Tribunal shall not increase the amount
of any tax payable, penalty or default surcharge unless the taxpayer
has been given a reasonable opportunity of showing cause against
such increase.
(6) The Appellate Tribunal shall communicate its order
to the taxpayer and the Commissioner.
(7) Save as provided in any other law, the decision of the
Appellate Tribunal on an appeal shall be final.
Reference to the 69. (1) A reference to the High Court shall lie only if a
High Court. question of law is involved in a case.
(2) Any person or the Authority may, within sixty days
from the date of communication of the final order of the Appellate
Tribunal, prefer a reference in the prescribed form along with a
statement of the facts of the case and question of law involved in the
case.
(3) The High Court may dismiss a reference in limine if
it is satisfied that the reference does not contain any question of law
for determination.
(4) The reference under this section shall be heard by a
bench of at least two Judges of the High Court and provision of
section 98 of the Code of Civil Procedure 1908 (V of 1908) shall, as
far as possible, apply to such reference.
(5) The High Court shall send a copy of the judgment
under the seal of the Court to the Appellate Tribunal.
(6) Notwithstanding that a reference has been preferred
in the High Court, the tax shall be paid in accordance with the order
of the Appellate Tribunal.
(7) If the tax liability is reduced by the High Court and
the Authority decides to seek leave to appeal to the Supreme Court,
the Authority may, within thirty days of the receipt of the judgment
of the Court, apply to the High Court to postpone the refund until
the decision by the Supreme Court.
(8) Section 5 of the Limitation Act 1908 (IX of 1908)
shall apply to a reference under Sub-section (1).
(9) A court fee of rupees one thousand shall be affixed
on a reference under this section except when it is filed by the
Authority.
Deposit of the Tax 70. Where in any appeal, the decision or order appealed against
Demand while relates to any tax demanded under this Act, the person who has filed
Appeal is the appeal shall, pending the appeal, deposit the admitted amount of
Pending. the tax based on the return filed under section 35 or as may be
determined by the Commissioner (Appeals) or the Appellate
Tribunal where such return has not been filed.
1
[Alternative] 71. (1) Notwithstanding any other provisions of this Act or
Dispute the rules, any registered person aggrieved in connection with any
Resolution. dispute pertaining to:―
(a) the liability of the tax against the registered
person;
(b) the extent of waiver of default surcharge and
penalty;
2
[(c) relaxation of any procedural or technical
irregularities and condition of any prescribed
time limitation; and
(d) any other specific relief required to resolve
the dispute, may apply to the Authority for the
appointment of a committee for the resolution
of any dispute mentioned in detail in the
application.]
(2) Notwithstanding anything contained in sub-section
(1), the Authority shall not accept an application under sub-section
(1) where criminal proceedings have been initiated or where the
Authority is of the opinion that the interpretation of a question of
law having a larger impact on revenue or on a number of similar
cases is involved.
(3) The Authority may, after examination of the
application of a registered person, appoint a committee of not less
than three persons within thirty days of receipt of such application,
consisting of an officer of the Authority not below the rank of an
Additional Commissioner and nominees from the notified panel
consisting of Chartered or Cost Accountants, Advocates,
representatives of trade bodies or associations, retired officers of the
rank of not less than BS-20, retired Judges, or any other reputable
taxpayers, for the resolution of the dispute.
1
Substituted for the word “Alternate”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2
under section 1, sub-section (2) for detail.
2
Substituted for the clauses (c), (d) and (e), ibid.
(4) The committee constituted under sub section (3) shall
examine the issue and may, if it deems fit, conduct an inquiry, seek
expert opinions, direct any officer of the Authority or any other
person to conduct an audit and shall make recommendations to the
Authority within ninety days of its constitution in respect of the
dispute.
(5) If the committee fails to make recommendations
within the said period, the Authority may dissolve the committee
and constitute a new committee which shall decide the matter within
a further period of ninety days and even if after expiry of that period
the dispute is not resolved, the matter shall be taken up before the
appropriate forum provided under this Act for decision.
(6) The Authority may, on the recommendation of the
committee, pass such order, as it may deem appropriate within forty-
five days of the receipt of the recommendations of the committee.
(7) The registered person may make payment of the tax
as determined by the Authority in its order under sub section (6),
and such order of the Authority shall be submitted before the forum,
Appellate Tribunal or the Court where the matter is pending
adjudication for consideration of orders as deemed appropriate.
1 1
[Appointment of [71A. Government may appoint an Ombudsman or may assign
Ombudsman.] duties and functions of Ombudsman to any officer retired or serving
not below the rank of BS-21 officer to act as an Ombudsman with
regard to the redressal of grievances of the tax payers or the
registered persons for maladministration involving in attention,
neglect, inordinate delays and ineptitude on the part of an officer of
the Authority in the discharge of his function and duties, and may
advise the Authority to adopt corrective measures for
implementation of such advice. Government may frame rules in
consultation with the Authority for implementation of the provisions
of this section.]
CHAPTER – X
RECOVERY OF ARREARS
1
New section 71A inserted with marginal heading, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also
foot-note 2 under section 1, sub-section (2) for detail.
Recovery of Arrears 72. (1) Subject to sub-section (2), where any amount of the
of Tax. tax is due from any person, the officer of the Authority may:―
(a) deduct the amount from any money owing to
the 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 the Authority;
(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 is recoverable to pay to such officer the
amount specified in the notice;
1
[(bb) require by a notice in writing payment of
money owed to a taxpayer by any person on
account of legally enforceable relations
created between the taxpayer and the other
person including but not limited to purchase
contracts, contracts with credit or financial
institutions or with banking companies, lease
contracts, loan agreement, building loan
contracts, life insurance contracts,
employment or work contracts.]
2
[(c) require by a notice in writing any bank to
attach the person’s bank accounts and to remit
the amount, sought to be recovered, to the
Authority;
(d) place embargo on economic activity of the
person or seal the business premises of the
person till such time as the amount of tax is
paid or recovered in full;]
(e) attach and sell any movable or immovable
property of the person from whom the tax is
due; and
(f) recover such amount by attachment and sale
of any movable or immovable property of the
guarantor, person, company, bank or financial
institution where a guarantor or any other
person, company, bank or financial institution
1
New clause (bb) inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section
1, sub-section (2) for detail.
2
Substituted for clauses (c) and (d), ibid.
fails to make payment under such guarantee,
bond or instrument[:]1
2
[Provided that no action shall be taken against the
person during the pendency of appeal, if any, filed under section 63
of the Act, if he deposits at least twenty-five percent the amount of
the tax demanded from him.]
(2) If any arrears of tax, default surcharge, penalty or any
other amount which is payable by any person cannot be recovered in
any manner whatsoever, the Authority or the Commissioner if so
authorized by the Authority, may for reasons to be recorded in
writing write off the arrears or amount in the manner in the
prescribed manner.
3
[(3) For the purpose of recovery of tax, penalty or any
other demand raised under this Act or the rules, the Authority or any
officer of the Authority authorized in this behalf, shall have the
same powers of a Civil Court under the Code of Civil procedure,
1908 (V of 1908) for recovery of an amount due under a decree.
(4) Provisions of Land Revenue Act, 1967 would mutatis
mutandis apply for the recovery of the arrears of the taxable amount
to any person under this Act or rules made thereunder.
(5) The Deputy Commissioner and the Assistant
Commissioner of the Authority shall have and exercise the powers
of the Collector and Assistant Collector respectively as defined in
Land Revenue Act, 19674 for the purposes of recovery of arrears of
Sales Tax.]
CHAPTER – XI
AGENTS, REPRESENTATIVES AND
E-INTERMEDIARIES
Agent. 73. (1) For purposes of this Act and subject to sub-section
(2) and (3), the expression ‘agent’ 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,
financial gains or benefits, funds, money or
property on behalf, or for the benefit of[*]5 the
1
Substituted for the full-stop, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
2
Proviso added, ibid.
3
New sub-sections (3), (4) and (5) inserted, ibid.
4
That is West Pakistan Act of 1967 (Act XVII of 1967) as adopted by the Balochistan Laws (Adaptation Order, 1975, published in
Balochistan Gazette No. 17, dated 9th May, 1975.
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 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 the local authority;
(e) where the person is an Association of persons,
a Director or a Manager or Secretary 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
(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 he receipt and payment of
moneys or funds in Pakistan on behalf of the
organization, government, or political
subdivision of the government; or
(h) when any person is expressly or impliedly
authorized by a registered person to be his
agent for all or any of the purposes of this
Act.
5
Comma omitted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
(2) Where Court of Wards, Administrator General,
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 agent of the person for purposes of this Act.
(3) Notwithstanding anything in this section, any
registered person may expressly or impliedly authorize another
person to be his agent for all or any of the purposes this Act.
Liability and 74. (1) Every agent of a person shall be responsible for
Obligations of performing any duties or obligations imposed by or under this Act
Agents. and the rules on the person, including the payment of the tax.
(2) Subject to sub-section (5) of this section, the tax that
by virtue of sub-section (1), is payable by an agent of a registered
person shall be recoverable from the agent only to the extent of any
assets of the registered person that are in the possession or under the
control of the agent.
(3) Every agent of a registered person who pays any tax
owing to 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
agent’s possession or under the agent’s control.
(4) Any agent, or any person who apprehends that he
may assessed as an agent, may retain out of any money payable by
him to the person on whose behalf he is liable to pay the 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 an agent or a person as
to the amount to be so retained, such agent or person may obtain
from the 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 conclusive authority for retaining
that amount.
(5) Every agent shall be personally liable for the
payment of any tax due by the agent if, while the amount remains
unpaid, the agent:―
(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 registered person that 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 agent of the person has failed to perform.
Liability of the 75. A registered person shall be responsible for any and all acts
Registered Person for done by his agent.
the Acts of his Agent.
Appearance by 76. A registered person required to appear before the Appellate
1
[Authorized] Tribunal or an officer in connection with any proceedings under this
Representative. Act may, in writing authorize any person having such qualification
as may be prescribed by the Authority, to represent him or appear on
his behalf.
E-intermediaries to 77. (1) Subject to such conditions, limitations and
be Appointed. restrictions as the authority may impose, the Authority may, by a
notification in the official Gazette, appoint a person as e-
intermediary to electronically file returns and other electronic
document under this Act and the rules on behalf of a registered
person.
(2) A registered person may authorize an e-intermediary
to electronically file returns or any other documents on his behalf 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 a
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, such thing shall be deemed to have been done
with the knowledge and consent of the 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
willfully submits false or incorrect information or document or
declaration with an intent to avoid payment of the tax due or any
1
Substituted for the word “Theorized”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2
under section 1, sub-section (2) for detail.
part thereof, such e- intermediary shall be jointly and severally
responsible for recovery of the amount of tax short paid as a result
of such incorrect or false information or document or declaration,
without prejudice to any other action that may be taken against him
or the registered person under the relevant provisions of the law.
(6) The Authority 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 and
restrictions as specified in such rules.
CHAPTER – XII
GENERAL ADMINISTRATION
Power to Make 78. (1) The authority may, with the approval of the
1
Rules. [Government] and by notification in the official Gazette, make the
rules for carrying out the purposes of any of the provisions of this
Act.
(2) All rules made under sub-section (1) during a
financial year shall be laid before the Provincial Assembly of
Balochistan at the time of presentation of the Annual Budget for the
next financial year.
(3) The rules made under this Act shall be collected,
arranged and published along with general orders and departmental
instructions, directions, notifications and rulings, if any, at
appropriate intervals and sold to the public at a reasonable price.
2
[Power to Restrain 78A. The Authority may, with the approval of the Government
Certain Authorities. and by notification in the official Gazette, require that any authority
competent to issue or renew a license or to grant permission to any
person to engage in an economic activity which is a taxable service,
shall not issue or renew such license or grant permission unless the
licensee or the grantee furnishes the evidence that he is a duly
registered person under section 25, section 26 or section 27 of the
Act.]
Computerized 79. (1) The Authority may prescribe the use of a
System. computerized system for carrying out the purposes of this Act and
the rules including the receipt of applications for registration, returns
and such other declarations or information required to be provided
under this Act and the rules from such date and for such registered
1
Substituted for the word “government”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2
under section 1, sub-section (2) for detail.
2
New section 78A inserted with marginal heading, ibid.
persons or class of persons as the Authority may, by notification in
the official Gazette, specify.
(2) The Authority may 1[make the rules to] regulate the
conduct and transaction of business in relation to the submission of
returns or other information to the Authority by the persons required
to transmit or receive any information through the computerized
system, including matters such as the grant of authorization,
suspension and cancellation of authorization and for security of the
information transmitted or received through the computerized
system.
(3) 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.
(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
or be provided any access to such information.
Service of Orders 80. (1) Subject to this Act, any notice, order or requisition
and Decisions. required to be served on an individual 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
the agent of the individual;
(b) send by registered post or courier service to
the individual’s usual or last known address in
Pakistan; or
(c) served on the individual in the manner
prescribed for service of a summon under the
Code of Civil Procedure, 1908 (V of 1908).
(2) Subject to this Act, any notice order or requisition
required to be served on any person, other than an individual to
whom sub-section (1) applies, for the purposes of this Act, shall be
treated as properly served on the person if:―
(a) personally served on the agent of the person;
(b) sent by registered post or courier service to
the person’s registered office address for
service of notices under this Act in Pakistan or
1
Words inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
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; or
(c) served in the manner prescribed for service of
a summons under the Code of Civil
Procedure, 1908 (V of 1908).
(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 a 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 agent at the
time 1[of] discontinuance.
(5) The validity of any notice issued under this Act or the
validity of any service of a notice shall not be called into question
after notice has been complied with in any manner.
(6) Any registered person may indicate, in the manner
prescribed by the Authority, that he 2[wishes] to electronically
receive all or specific communications, including notifications,
orders, assessments and requisitions from the Authority, the
Appellate Tribunal or any officer of the Authority.
(7) The Authority may, by notification in the official
Gazette, direct that all or specific communications, including
3
[notifications, notices, showcase notices, orders, assessments and
requisitions from the Authority] the Appellate Tribunal or any
officer to a specific registered person or class of registered persons
shall be made electronically.
(8) For purposes of sub-section (6) and (7), a registered
person shall be considered to have received the electronic
communication within seventy two hours of the sending of the
electronic communication by the Authority, Appellate Tribunal or
the officer of the Authority.
(9) For purposes of sub-section (6), (7) and (8), an
1
Word inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
2
Substituted for the word “whishes”, ibid.
3
Substituted for the words “notification order assessments and requisitions from the authority”, ibid.
electronic communication includes a communication sent by email.
Correction of 81. (1) Any clerical or arithmetical error in any assessment,
Clerical Errors. adjudication order or decision may, at any time be corrected by the
officer of the Authority who made the assessment or adjudication or
passed such order or decision or by his successor in office, through
an order made under this section.
(2) Before any correction is made under sub-section (1),
notice shall be given to the registered person likely to be affected by
such correction.
Issuance of 82. An officer of the Authority not below the rank of the
Duplicate of the Assistant Commissioner may, 1[on written request of a registered
Tax Documents. person and] on payment of one hundred rupees, issue an attested
copy of any document filed by a registered person with the
Authority.
Power to Issue 83. The Authority may issue such orders, instructions and
Orders, directions, not inconsistent with this Act and the rules, to all officers
Instructions and of the authority, as it may deem necessary to implement, administer
Directions. or enforce the provisions of this Act and the rules.
Officers of the 84. (1) All officers of the Authority and other persons
Authority to employed in the administration of this Act and the rules shall
Follow Orders. observe and follow the orders, instructions and directions of the
Authority.
(2) No such orders, instructions or directions shall be
given so as to interfere with the powers or discretion of officers of
the Authority in the exercise of their judicial or quasi-judicial
functions.
CHAPTER – XIII
MISCELLANEOUS
Computation of 85. In computing the period of limitation prescribed for any
Limitation appeal or application under this Act, the day on which the order
Period. complained against 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.
Condonation of 86. (1) Where any time or period has been specified under
Time-limit. any of the provisions of the Act or the rules within which any act or
thing, including submission of an application, filing of a return or
payment of tax, is to be done, the Authority may permit such
1
Words inserted, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under section 1, sub-
section (2) for detail.
application to be made or such act or thing to be done within such
time or period as it may consider appropriate.
1
[Explanation: For the purpose of this section, the
expression “act or thing to be done” includes any action or thing to
be done by a registered person or by the authorities specified in
section 39 of the Act.]
(2) The Authority may, by notification in the official
Gazette, and subject to such limitations or conditions as may be
specified therein, empower any Commissioner or the officer of the
Authority to exercise the power under this section in any case or
class of cases.
Bar of Suits, 87. (1) No suit 2[or other legal proceedings] shall be brought
Prosecution and in any Civil Court to set aside or modify 3[any notice issued,] any
other Legal order passed, any assessment made, any tax levied, any penalty or
Proceedings. default surcharge imposed or 4[any collection of tax made or any
action taken for collection or recovery of any tax or arrears of tax]
under this Act.
(2) No suit, prosecution or other legal proceedings shall
lie against the Government or against any public servant in respect
of any 5[action taken or notice issued or any decision made or any]
order passed in good faith under this Act.
(3) Notwithstanding anything in any other law, no
investigation or inquiry shall be undertaken or initiated by any
6
[governmental] agency against any officer or official for anything
done in his official capacity under this Act, 7[rules, instructions or
directions made or issued thereunder without prior] permission of
the Authority.
Removal of 88. (1) The Government may pass such order, for removing
Difficulties. any difficulty or for bringing the provisions of this Act into effective
operation direct that provisions of this Act shall, during such period
as may be specified in the order, have effect subject to such
adaptations whether by way of modification or addition or omission
as it may deem to be necessary or expedient.
(2) The power under this section shall not be exercised
1
Explanation added to sub-section (1), by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2
under section 1, sub-section (2) for detail.
2
Words inserted, ibid.
3
Words inserted, ibid.
4
Substituted for the words “any tax made”, ibid.
5
Words inserted, ibid.
6
Substituted for the word “government”, ibid.
7
Substituted for the words “except with the”, ibid.
after the expiry of 1[eight] years from the commencement of this
Act.
Repeal and Saving. 89. (1) The Balochistan Sales Tax Ordinance, 2000 (I of
2
2000) is hereby repealed.
(2) Any proceeding under the repealed ordinance
pending on the date notified under sub-section (3) of section 1
before any authority, 3[Appellate Tribunal, or] any court by way of
adjudication, assessment, appeal, reference, revision or prosecution
shall be continued and disposed off as if this Act has not come into
force.
(3) Where the Government or the Authority takes any
action, makes any decision or orders, issues any instructions,
directions, clarifications or notifications in pursuance of or in
exercising of powers conferred under 4[any] provision of any law in
respect of any matter relating to the tax and allied issues covered
under this Act or the rules, such actions, decisions, orders,
instructions, directions, clarifications and notification shall be
deemed to have been validly issued to serve the purposes of this Act
and the rules.
5
[(4) The assessment, referred to in sub-section (2), shall
be made by the officer of the Authority competent under this Act to
make an assessment in respect of a financial year beginning after the
date notified under sub-section(3) of section 1 of the repealed
Ordinance, in accordance with the procedure specified in this Act.
(5) The recovery of any sum found due as a result of the
assessment under sub-section (2) shall be recovered under the
provisions of this Act.
(6) Any sales tax payable but not paid under the
Balochistan Sales Tax Ordinance, 2000 (II of 2000)6 may be
recovered under this Act, but without prejudice to any action already
taken for the recovery of the amount under the said Ordinance.]
7
[Prize Schemes to 90. The Authority may, with the approval of the Government,
1
Substituted for the word “2ho”, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
2
The Balochistan Ordinance I of 2000 was made by the Governor Balochistan on 20 th June, 2000; published in the Balochistan Gazette
(Extraordinary) No. 19, dated 29th June, 2000; and declared continue in force by Article 270AA of the Constitution of Pakistan 1973, now
repealed by this Act.
3
Substituted for the word forum, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
4
Substituted for the word “nay”, ibid.
5
Sub-section (4), (5) and (6) substituted for wrongly number sub-section (5), ibid.
6
For Balochistan Ordinance I of 2000, See the Balochistan Gazette (Extraordinary) No. 19, dated 29th June, 2000.
7
New sections 90, 91 and 92 added, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2 under
section 1, sub-section (2) for detail.
Promote Tax prescribe prize schemes to encourage the general public to make
Culture. purchases only from registered persons issuing tax invoices.
Reward to 91. (1) The Authority may, with the approval of the
Whistleblower. Government, sanction reward to a whistleblower.
(2) The Authority may, by notification, prescribe the
procedure in this behalf and also specify the apportionment of
reward sanctioned under this section for a whistleblower.
(3) The claim for reward by the whistleblower shall be
rejected if ―
(a) the information provided is of no value;
(b) the Authority already had the information;
(c) the information was available in public
records; or
(d) no collection of tax is made from the
information provided by a whistleblower.
(4) Where, after providing an opportunity of being heard,
it is found that a whistleblower has provided false, misleading or
frivolous information; he shall be liable to a penalty of one hundred
thousand rupees.
(5) In this section, ‘whistleblower’ means a person who
reports concealment or evasion of tax or tax fraud leading to
detection or collection of the tax.
Validation. 92. Notwithstanding anything contained in this Act or any law
for the time being in force, or any judgment, decree or order of any
court, the notifications issued by the Authority and the notices
issued or orders passed by the officers of Authority for registration
of taxpayer or for levy, collection, withholding, payment or recovery
of tax shall be deemed to have been validly issued or passed under
this Act.]
______
(See Schedule on next page)
1
[FIRST SCHEDULE
(Classification of Services)
(See sub-section (147) of section 2)
Tariff Description
Heading
(1) (2)
98.01 Services provided or rendered by hotels, motels, boatels, resorts,
guesthouses, farmhouses, restaurants, clubs, caterers, marriage halls,
lawns, mandap, pandal, shamiana, messes and hostels.
9801.1000 Services provided or rendered by hotels, motels, boatels, resorts,
guesthouses and farmhouses.
9801.2000 Services provided or rendered by restaurants including cafe, coffee
houses, food huts, ice-cream shops and eateries.
9801.3000 Services provided or rendered by caterers, suppliers of food and drinks.
9801.4000 Services provided or rendered by clubs.
9801.5000 Services provided or rendered by marriage halls, lawns, mandap, pandal
and shamiana including floral and decoration, etc.
9801.6000 Services provided or rendered by messes and hostels.
9801.9990 Ancillary services provided or rendered relating thereto “Tariff Heading
98.01”.
98.02 Advertisements.
9802.1000 Advertisement on T.V.
9802.2000 Advertisement on radio.
9802.3000 Advertisement on closed circuit T.V.
9802.4000 Advertisement in newspapers and periodicals including magazines,
pamphlets, banners, etc.
9802.5000 Advertisement on cable T.V. network.
9802.6000 Advertisement on poles, walls, buildings and vehicles, etc.
9802.7000 Advertisement on billboards, signboards, digital boards, hoardings, etc.
9802.8000 Sale of space for advertisement services.
9802.9000 Advertisement on websites or internet or cell phones.
9802.9990 Other similar services.
1
Substituted for the existing First Schedule, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-note 2
under section 1, sub-section (2) for detail.
98.03 Transportation or travelling of passengers.
803.1000 Travelling of passengers by road, rail, aircraft and ship whether in, from or
to Balochistan.
9803.2000 Travelling of passengers by road, rail, aircraft and ship embarking for
international journey from Balochistan.
9803.3000 Chartered flight services originating from any airfield in Balochistan.
9803.4000 Flyover of aircraft across the territorial jurisdiction of Balochistan without
being to land or to land for non-traffic purpose like emergency as per the
Civil Aviation agreement with the countries.
9803.9990 Other similar service.
98.04 Transportation or carriage of goods.
9804.1000 Domestic transportation or carriage of goods by road, rail, aircraft, ship or
through pipeline or conduit whether in, from or to Balochistan.
9804.2000 International transportation or carriage of goods by road, rail, aircraft and
ship originating from Balochistan.
9804.9990 Other similar services.
98.05 Services provided or rendered by persons authorized to transact
business on behalf of others.
9805.1000 Shipping agents.
9805.2000 Stevedores.
9805.2100 Ship management services,
9805.3000 Freight forwarding agents.
9805.4000 Customs Agents.
9805.5000 Travel agents.
9805.5100 Tour operators,
9805.5200 Hajj operators.
9805.6000 Recruiting agents.
9805.7000 Advertising agents.
9805.8000 Ship chandlers.
9805.9000 Share transfer agents.
9805.9100 Sponsorship services,
9805.9200 Business support services,
9805.9300 Insurance agents,
9805.9400 Real estate agents,
9805.9990 Other similar services.
98.06 Services provided or rendered in the matters of sale and purchase or
hire of movable or immovable goods or property.
9806.1000 Sale and purchase or hire of immovable property.
9806.2000 Property dealers.
9806.3000 Renting of immovable property.
9806.4000 Car or automobile dealers.
9806.5000 Dealers of second hand goods other than car or automobile.
9806.6000 Supply of movable property by way of lease, license or similar
arrangements.
9806.9990 Other similar services.
9807.0000 Services provided or rendered by builders or developers for
(a) Development of purchased or leased land for conversion into
residential or commercial plots,
(b) Construction of residential or commercial units.
9808.0000 Courier services including express cargo and logistic services.
9809.0000 Services provided or rendered by persons engaged in contractual
execution of work or furnishing supplies.
9810.0000 Services provided or rendered for personal care by beauty parlors,
beauty clinics, slimming clinics, salons, manicure and pedicure
centers.
9811.0000 Services provided or rendered by laundries and dry cleaners.
98.12 Telecommunication services
9812.1000 Telephone services.
9812.1100 Fixed line voice telephone services,
9812.1200 Wireless telephone,
9812.1210 Cellular telephone,
9812.1220 Wireless Local Loop telephone,
9812.1300 Video telephone,
9812.1400 Payphone cards,
9812.1500 Prepaid calling cards,
9812.1600 Voice mail service,
9812.1700 Messaging service,
9812.1710 Short Message service (SMS),
9812.1720 Multimedia message service (MMS),
9812.1910 Shifting of telephone connection,
9812.1920 Installation of telephone extension,
9812.1930 Provision of telephone extension,
9812.1940 Changing of telephone connection,
9812.1950 Conversion of NWD connection to Non-NWD or vice versa,
9812.1960 Cost of telephone set,
9812.1970 Restoration of telephone connection,
9812.1990 Other similar services.
9812.2000 Bandwidth services.
9812.2100 Copper line based,
9812.2200 Fiber-optic based,
9812.2300 Co-axial cable based,
9812.2400 Microwave based,
9812.2500 Satellite based,
9812.2600 Voice over IP services,
9812.2900 Other similar services.
9812.3000 Telegraph.
9812.4000 Telex.
9812.5000 Tele-fax.
9812.5010 Store and forward fax services,
9812.5090 Other similar services,
9812.6000 Internet services.
9812.6010 Internet services including email services,
9812.6020 Dial-up internet services,
9812.6030 Broadband services for DSL connection,
9812.6040 Copper line based,
9812.6050 Fiber-optic based,
9812.6060 Co-axial cable based,
9812.6070 Wireless based,
9812.6080 Satellite based,
9812.6090 Internet/email/Data/SMS/MMS services on WLL networks,
9812.6100 Internet/email/Data/SMS/MMS services on cellular mobile networks,
9812.6190 Other similar services.
9812.6200 Data Communication Network services (DCNS),
9812.6210 Copper Line based,
9812.6220 Co-axial cable based,
9812.6230 Fiber-optic based,
9812.6240 Wireless/Radio based,
9812.6250 Satellite based,
9812.6290 Other similar services.
9812.6300 Value added data services,
9812.6310 Virtual private Network services (VPN),
9812.6320 Digital Signature service,
9812.6390 Other similar services.
9812.9000 Audio text services.
9812.9100 Tele-text services,
9812.9200 Trunk radio services,
9812.9300 Paging services,
9812.9400 Voice paging services,
9812.9410 Radio paging services,
9812.9500 Vehicle and other tracking services,
9812.9600 Burglar and security alarm services,
9812.9990 Other similar services.
98.13 Services provided or rendered by financial institutions including
insurance companies, cooperative financing societies, leasing
companies, modarabas, musharikas, ijarahs, foreign exchange
companies, banking and non-banking financial companies and other
persons dealing in any such services.
9813.1000 Services provided or rendered in respect of insurance to a policy holder by
an insurer, including a reinsurer:
9813.1100 Goods insurance,
9813.1200 Fire insurance,
9813.1300 Theft insurance,
9813.1400 Marine insurance,
9813.1500 Life insurance,
9813.1600 Health insurance,
9813.1700 Crop insurance.
9813.2000 Cooperative financing societies.
9813.3000 Services provided or rendered in respect of leasing:
9813.3100 Financial leasing,
9813.3200 Hire purchase leasing,
9813.3300 Operating leasing including commodity and equipment leasing, etc.
9813.3900 Services provided or rendered in respect of modaraba, musharikas and
ijarahs financing.
9813.4000 Services provided or rendered by banking companies in relation to:
9813.4100 Guarantee,
9813.4200 Brokerage,
9813.4300 Letter of credit including advance, sight or usance L/C for import and
export,
9813.4400 Issuance of pay order and demand draft,
9813.4500 Bill of exchange,
9813.4600 Transfer of money or remittance including telegraphic transfer, mail
transfer and electronic transfer both domestic and foreign,
9813.4700 Bank guarantee,
9813.4800 Bill collection (clean or documentary) and bill discounting commission,
9813.4900 Safe deposit lockers,
9813.4910 Safe vaults,
9813.4920 Advances and loans,
9813.4930 Other service charges as per SOBC including CIB reports, credit reports,
standing instructions, training charges, security movement charges, annual
subscription, POS local/ international, call centers, sale /purchase of
securities (Bonds/ Shares / Debentures/ NIT etc.), investment banking,
dispatch/ communication, capital market, vostro account charges, forward
contracts, etc.
9813.5000 Issuance, processing and operation of credit and debit cards.
9813.6000 Commission and brokerage of foreign exchange dealings.
9813.7000 Automated Teller Machine operations, maintenance and management.
9813.8000 Service provided as banker to an issue.
9813.9000 Foreign exchange companies.
9813.9100 Services provided or rendered by non-banking finance companies or
institutions,
9813.9990 Other similar services.
98.14 Services provided or rendered by architects, town planners,
contractors, property developers or promoters, landscape designers
and interior decorators.
9814.1000 Architects or town planners.
9814.2000 Contractor of building (including water supply, gas supply and sanitary
works), roads and bridges, electrical and mechanical works (including air
conditioning), horticultural works, multi-discipline works (including turn-
key projects) and similar other works.
9814.3000 Property developers or promoters.
9814.4000 Landscape designers.
9814.5000 Interior decorators.
9814.9990 Other similar services.
98.15 Services provided or rendered by professionals and consultants, etc.
9815.1000 Medical practitioners and consultants.
9815.2000 Legal practitioners and consultants.
9815.3000 Accountants and auditors.
9815.4000 Management consultants.
9815.5000 Technical, scientific and engineering consultants.
9815.6000 Software or IT based system developers and consultants.
9815.7000 Tax practitioners and consultants.
9815.8000 Corporate law practitioners and consultants.
9815.9000 Human resource and personal development consultants.
9815.9100 Healthcare consultants,
9815.9990 Other similar services.
9816.0000 Services provided or rendered in respect of manufacturing or
processing for others on toll basis or job basis.
9817.0000 Services provided or rendered by laboratories and medical diagnostic
centers including X-Rays, CT Scan, M.R. Imaging, Ultrasound, etc.
9817.1000 Medical diagnosing of patients including X-Rays, CT Scan, M.R. Imaging,
Ultrasound, etc.
9817.2000 Pathological laboratories.
9817.3000 Radiological laboratories.
9817.4000 Scientific laboratories.
9817.5000 Chemical laboratories.
9817.6000 Mechanical laboratories.
9817.7000 Electrical or electronic laboratories.
9817.8000 Geological laboratories.
9817.9990 Other such laboratories.
98.18 Services provided or rendered by specialized agencies.
9818.1000 Security agency.
9818.2000 Credit rating agency.
9818.3000 Market research agency.
9818.4000 Opinion poll agency.
9818.9990 Other such agencies.
98.19 Services provided or rendered by specified persons or businesses.
9819.1000 Stockbrokers, futures brokers and commodity brokers.
9819.1100 Underwriters,
9819.1200 Indenters,
9819.1300 Commission agents,
9819.1400 Packers and movers.
9819.2000 Foreign exchange companies, forex dealers or money changers.
9819.3000 Rent-a-car or automobile rental service.
9819.4000 Prize bond dealers.
9819.5000 Surveyors.
9819.6000 Designers including fashion designers.
9819.7000 Outdoor photographers and videographers.
9819.8000 Public relation services.
9819.8100 Cable TV operators,
9819.8200 TV and radio production services,
9819.8300 Video tape production services,
9819.8400 Sound record services,
9819.8500 Technical testing and analysis services,
9819.8600 Services provided or rendered by a registrar to an issue, depository and
transfer of shares.
9819.9000 Auctioneers.
9819.9100 Copy right services,
9819.9200 Art painters.
9819.9300 Services provided or rendered by port operators and port terminal
operators,
9819.9400 Services provided or rendered by airport operators and airport terminal
operators,
9819.9500 Services provided or rendered by airport service providers and airport
ground service providers,
9819.9990 Other similar services.
98.20 Services provided or rendered by specialized workshops or
undertakings.
9820.1000 Auto-workshops including motor mechanic shops, air conditioning fitting
and cleaning services.
9820.2000 Workshops for industrial machinery construction and earth moving
machinery or other special purpose machinery, etc.
9820.3000 Workshops for electric or electronic equipments or appliances including
computer hardware.
9820.4000 Car or automobile washing or similar service stations.
9820.9990 Other such workshops.
98.21 Services provided or rendered in specified fields.
9821.1000 Healthcare center, gyms or physical fitness centers, etc.
9821.2000 Indoor sports and games centers.
9821.3000 Baby care centers.
9821.4000 Body massages and sauna centers.
9821.9990 Other similar services.
98.22 Services provided or rendered for specified purposes.
9822.1000 Fumigation services.
9822.2000 Maintenance or cleaning services.
9822.3000 Janitorial services.
9822.4000 Dredging or de-silting services.
9822.9990 Other similar services.
9823.0000 Franchise services, including royalty, technical or other licensing
services.
9824.0000 Construction services.
9825.0000 Management services, including fund and asset management services.
9826.0000 Technical services.
9827.0000 Exhibition or convention services.
9828.0000 Public bonded warehouse services.
9829.0000 Program producers and production houses.
9830.0000 Human resource and personal development services.
9831.0000 Race Clubs.
9832.0000 Labour and manpower supply services.
9833.0000 Film and drama studios including mobile stage shows or cinemas.
9834.0000 Brokerage (other than stocks) and indenting services.
9835.0000 Call centers.
9836.0000 Internet café.
9837.0000 Ready mix concrete services.
9838.0000 Intellectual property services.
9839.0000 Erection, commissioning and installation services.
9840.0000 Electric power transmission or distribution services.
9841.0000 Evaluation services including competency and eligibility testing
services.
9842.0000 Cosmetic, plastic surgery and transplant services.
9843.0000 Actuarial services.
9844.0000 Car parking services.
9845.0000 Supply chain management or distribution (including delivery)
services.
9846.0000 Notary public and stamp vending services.
9847.0000 CMT stitching services.
9848.0000 Repair and maintenance services.
9849.0000 Forward contract services.
9850.0000 Packaging and handling services.
9851.0000 Toll tax and octroi services.
9852.0000 Broad casting services.
9853.0000 Ride hailing services.
9854.0000 Tuition and coaching centers.
9855.0000 Vocational centers.
9856.0000 Training services.
9857.0000 Entertainment services.
9858.0000 Amusement parks including theme and water parks.
9859.0000 Depot for storage including cold storage services.
9860.0000 Valuation in respect of tangible or noncurrent assets.
9861.0000 Event management services including services by event
photographers, event videographers and the persons providing
services related to such event management.
9862.0000 Technical inspection and certification services, including quality
control certification services and ISO certifications.
9863.0000 Visa processing services, including advisory or consultancy services
for migration or visa application filling services.
9864.0000 Debt collection services and other debt recovery services provided or
rendered by debt collection agencies or recovery agencies or other
persons.
9865.0000 Data processing and provision of information, service of engineers,
handling and storage of goods.
9866.0000 Services provided or rendered in respect of survey and exploration of
minerals, oil and gas including drilling, refining and related services.
9867.0000 Services provided or rendered in respect of snorkeling, scuba, rafting,
surfing and water diving, etc.
9868.0000 Information and technology based services including software
development, software customization, software maintenance, system
support, system assembly, system integration, system designing and
architecture, system analysis, system development, system operation,
system maintenance, system up-gradation and modification, data
warehousing or management, data entry operations, data migration
or transfer, system security or protection, web designing, web
development, web hosting, network designing, services relating to
enterprise resource or management planning (including marketing of
products), development and sale of smart phone applications or
games, graphics designing, medical transcription, remote monitoring,
telemedicine, insurance claim processing, online retrieval and
database access or retrieval service.]
1
[SECOND SCHEDULE
(Taxable Services)
[See section 3]
PART A
Tariff Description Rate of
tax
Heading
(1) (2) (3)
98.12 Telecommunication services
9812.1000 Telephone services. 19.5%
9812.1100 Fixed line voice telephone services, 19.5%
9812.1200 Wireless telephone, 19.5%
9812.1210 Cellular telephone, 19.5%
9812.1220 Wireless Local Loop telephone, 19.5%
9812.1300 Video telephone, 19.5%
9812.1400 Payphone cards, 19.5%
9812.1500 Prepaid calling cards, 19.5%
9812.1600 Voice mail service, 19.5%
9812.1700 Messaging service, 19.5%
9812.1710 Short Message service (SMS), 19.5%
9812.1720 Multimedia message service (MMS), 19.5%
9812.1910 Shifting of telephone connection, 19.5%
9812.1920 Installation of telephone extension, 19.5%
9812.1930 Provision of telephone extension, 19.5%
9812.1940 Changing of telephone connection, 19.5%
9812.1950 Conversion of NWD connection to Non-NWD or vice versa, 19.5%
9812.1960 Cost of telephone set, 19.5%
9812.1970 Restoration of telephone connection, 19.5%
9812.2000 Bandwidth services. 19.5%
9812.2100 Copper line based, 19.5%
9812.2200 Fiber-optic based, 19.5%
9812.2300 Co-axial cable based, 19.5%
1
Substituted for the existing Second Schedule, by the Balochistan Act II of 2019, with effect from the 1 st day of July, 2015. See also foot-
note 2 under section 1, sub-section (2) for detail.
9812.2400 Microwave based, 19.5%
9812.2500 Satellite based, 19.5%
9812.2600 Voice over IP services, 19.5%
9812.3000 Telegraph. 19.5%
9812.4000 Telex. 19.5%
9812.5000 Tele-fax. 19.5%
9812.5010 Store and forward fax services, 19.5%
9812.6000 Internet services. 19.5%
9812.6010 Internet services including email services, 19.5%
9812.6020 Dial-up internet services, 19.5%
9812.6030 Broadband services for DSL connection, 19.5%
9812.6040 Copper line based, 19.5%
9812.6050 Fiber-optic based, 19.5%
9812.6060 Co-axial cable based, 19.5%
9812.6070 Wireless based, 19.5%
9812.6080 Satellite based, 19.5%
9812.6090 Internet/email/Data/SMS/MMS services on WLL networks, 19.5%
9812.6100 Internet/email/Data/SMS/MMS services on cellular mobile 19.5%
networks,
9812.6200 Data Communication Network services (DCNS), 19.5%
9812.6210 Copper Line based, 19.5%
9812.6220 Co-axial cable based, 19.5%
9812.6230 Fiber-optic based, 19.5%
9812.6240 Wireless/Radio based, 19.5%
9812.6250 Satellite based, 19.5%
9812.6300 Value added data services, 19.5%
9812.6310 Virtual private Network services (VPN), 19.5%
9812.6320 Digital Signature service, 19.5%
9812.9000 Audio text services. 19.5%
9812.9100 Tele-text services, 19.5%
9812.9200 Trunk radio services, 19.5%
9812.9300 Paging services, 19.5%
9812.9400 Voice paging services, 19.5%
9812.9410 Radio paging services, 19.5%
9812.9500 Vehicle and other tracking services, 19.5%
9812.9600 Burglar and security alarm services, 19.5%
PART B
Tariff Description Rate of
tax
Heading
(1) (2) (3)
98.01 Services provided or rendered by hotels, motels, boatels,
resorts, guesthouses, farmhouses, restaurants, caterers,
clubs, marriage halls, lawns, mandap, pandal, shamiana,
messes and hostels.
9801.1000 Services provided or rendered by hotels, motels, boatels, resorts,
15%
guesthouses and farmhouses.
9801.2000 Services provided or rendered by restaurants including café, 15%
coffee houses, food huts, ice-cream shops and eateries.
9801.3000 Services provided or rendered by caterers, suppliers of food and 15%
drinks.
9801.4000 Services provided or rendered by clubs. 15%
9801.5000 Services provided or rendered by marriage halls, lawns, 15%
mandap, pandal and shamiana including floral and decoration,
etc.
9801.6000 Services provided or rendered by messes and hostels. 15%
9801.7000 Ancillary services provided or rendered relating thereto “Tariff 15%
Heading 98.01”.
98.02 Advertisements.
9802.1000 Advertisement on T.V. 15%
9802.2000 Advertisement on radio. 15%
9802.3000 Advertisement on closed circuit T.V. 15%
9802.4000 Advertisement in newspapers and periodicals including 15%
magazines, pamphlets, banners, etc.
9802.5000 Advertisement on cable T.V. network. 15%
9802.6000 Advertisement on poles, walls, buildings and vehicles, etc. 15%
9802.7000 Advertisement on billboards, signboards, digital boards, 15%
hoardings, etc.
9802.8000 Sale of space for advertisement services. 15%
9802.9000 Advertisement on websites or internet or cell phones. 15%
98.03 Transportation or travelling of passengers.
9803.1000 Travelling of passengers by road, whether in, from or to 15%
Balochistan.
9803.2000 Travelling of passengers by road embarking for international 15%
journey from Balochistan.
9803.3000 Chartered flight services originating from any airfield in 15%
Balochistan.
9803.4000 Flyover of aircraft across the territorial jurisdiction of 15%
Balochistan without being to land or to land for non-traffic
purpose like emergency as per the Civil Aviation agreement
with the countries.
98.04 Transportation or carriage of goods.
9804.1000 Intercity transportation or carriage of goods by road or through 15%
pipeline or conduit.
9804.2000 International transportation or carriage of goods by road 15%
originating from Balochistan.
98.05 Services provided or rendered by persons authorized to
transact business on behalf of others.
9805.1000 Shipping agents. 15%
9805.2000 Stevedores. 15%
9805.2100 Ship management services, 15%
9805.3000 Freight forwarding agents. 15%
9805.4000 Customs Agents. 15%
9805.5000 Travel agents. 15%
9805.5100 Tour operators, 15%
9805.5200 Hajj operators, 15%
9805.6000 Recruiting agents. 15%
9805.7000 Advertising agents. 15%
9805.8000 Ship chandlers. 15%
9805.9000 Share transfer agents, 15%
9805.9100 Sponsorship services, 15%
9805.9200 Business support services, 15%
9805.9300 Insurance agents, 15%
9805.9400 Real estate agents. 15%
98.06 Services provided or rendered in the matters of sale and
purchase or hire of movable or immovable goods or
property.
9806.1000 Sale and purchase or hire of immovable property. 15%
9806.2000 Property dealers. 15%
9806.3000 Renting of immovable property. 15%
9806.4000 Car or automobile dealers. 15%
9806.5000 Dealers of second hand goods other than car or automobile. 15%
9806.6000 Supply of movable property by way of lease, license or similar 15%
arrangements.
9807.0000 Services provided or rendered by builders or developers for 15%
(a) Development of purchased or leased land for conversion
into residential or commercial plots,
(b) Construction of residential or commercial units.
9808.0000 Courier services including express cargo and logistic 15%
services.
9809.0000 Services provided or rendered by persons engaged in 15%
contractual execution of work or furnishing supplies.
9810.0000 Services provided or rendered for personal care by beauty 15%
parlors, beauty clinics, slimming clinics, salons, manicure
and pedicure centers.
9811.0000 Services provided or rendered by laundries and dry 15%
cleaners.
98.13 Services provided or rendered by financial institutions
including insurance companies, cooperative financing
societies, leasing companies, modarabas, musharikas,
ijarahs, foreign exchange companies, banking and non-
banking financial companies and other persons dealing in
any such services.
9813.1000 Services provided or rendered in respect of insurance to a policy 15%
holder by an insurer, including a reinsurer:
9813.1100 Goods insurance, 15%
9813.1200 Fire insurance, 15%
9813.1300 Theft insurance, 15%
9813.1400 Marine insurance, 15%
9813.1500 Life insurance, 15%
9813.1600 Health insurance, 15%
9813.1700 Crop insurance. 15%
9813.2000 Cooperative financing societies. 15%
9813.3000 Services provided or rendered in respect of leasing: 15%
9813.3100 Financial leasing, 15%
9813.3200 Hire purchase leasing, 15%
9813.3300 Operating leasing including commodity and equipment leasing, 15%
etc.
9813.3900 Services provided or rendered in respect of modaraba, 15%
musharika and ijarahs financing.
9813.4000 Services provided or rendered by banking companies in relation 15%
to:
9813.4100 Guarantee, 15%
9813.4200 Brokerage, 15%
9813.4300 Letter of credit including advance, sight or usance L/C for 15%
import and export,
9813.4400 Issuance of pay order and demand draft, 15%
9813.4500 Bill of exchange, 15%
9813.4600 Transfer of money or remittance including telegraphic transfer, 15%
mail transfer and electronic transfer both domestic and foreign,
9813.4700 Bank guarantee, 15%
9813.4800 Bill collection (clean or documentary) and bill discounting 15%
commission,
9813.4900 Safe deposit lockers, 15%
9813.4910 Safe vaults, 15%
9813.4920 Advances and loans, 15%
9813.4930 Other service charges as per SOBC including CIB reports, 15%
credit reports, standing instructions, training charges, security
movement charges, annual subscription, POS local/
international, call centers, sale /purchase of securities (Bonds/
Shares / Debentures/ NIT etc.), investment banking, dispatch/
communication, capital market, vostro account charges, forward
contracts, etc.
9813.5000 Issuance, processing and operation of credit and debit cards. 15%
9813.6000 Commission and brokerage of foreign exchange dealings. 15%
9813.7000 Automated Teller Machine operations, maintenance and 15%
management.
9813.8000 Service provided as banker to an issue. 15%
9813.9000 Foreign exchange companies. 15%
9813.9100 Services provided or rendered bynon-banking finance 15%
companies or institutions.
98.14 Services provided or rendered by architects, town planners,
contractors, property developers or promoters, landscape
designers and interior decorators.
9814.1000 Architects or town planners. 15%
9814.2000 Contractor of building (including water supply, gas supply and 15%
sanitary works), roads and bridges, electrical and mechanical
works (including air conditioning), horticultural works, multi-
discipline works (including turn-key projects) and similar other
works.
9814.3000 Property developers or promoters. 15%
9814.4000 Landscape designers. 15%
9814.5000 Interior decorators. 15%
98.15 Services provided or rendered by professionals and
consultants, etc.
9815.1000 Medical practitioners and consultants. 15%
9815.2000 Legal practitioners and consultants. 15%
9815.3000 Accountants and auditors. 15%
9815.4000 Management consultants. 15%
9815.5000 Technical, scientific and engineering consultants. 15%
9815.6000 Software or IT based system developers and consultants. 15%
9815.7000 Tax practitioners and consultants. 15%
9815.8000 Corporate law practitioners and consultants. 15%
9815.9000 Human resource and personal development consultants. 15%
9815.9100 Healthcare consultants. 15%
9816.0000 Services provided or rendered in respect of manufacturing 15%
or processing for others on toll basis or job basis.
9817.0000 Services provided or rendered by laboratories and medical
diagnostic centers including X-Rays, CT Scan, M.R.
Imaging, Ultrasound, etc.
9817.1000 Medical diagnosing of patients including X-Rays, CT Scan, 15%
M.R. Imaging, Ultrasound, etc.
9817.2000 Pathological laboratories. 15%
9817.3000 Radiological laboratories. 15%
9817.4000 Scientific laboratories. 15%
9817.5000 Chemical laboratories. 15%
9817.6000 Mechanical laboratories. 15%
9817.7000 Electrical or electronic laboratories. 15%
9817.8000 Geological laboratories. 15%
98.18 Services provided or rendered by specialized agencies.
9818.1000 Security agency. 15%
9818.2000 Credit rating agency. 15%
9818.3000 Market research agency. 15%
9818.4000 Opinion poll agency. 15%
98.19 Services provided or rendered by specified persons or
businesses.
9819.1000 Stockbrokers, futures brokers and commodity brokers. 15%
9819.1100 Underwriters, 15%
9819.1200 Indenters, 15%
9819.1300 Commission agents, 15%
9819.1400 Packers and movers. 15%
9819.2000 Foreign exchange companies, forex dealers or money changers. 15%
9819.3000 Rent-a-car or automobile rental service. 15%
9819.4000 Prize bond dealers. 15%
9819.5000 Surveyors. 15%
9819.6000 Designers including fashion designers. 15%
9819.7000 Outdoor photographers and videographers. 15%
9819.8000 Public relation services. 15%
9819.8100 Cable TV operators, 15%
9819.8200 TV and radio production services, 15%
9819.8300 Video tape production services, 15%
9819.8400 Sound record services, 15%
9819.8500 Technical testing and analysis services, 15%
9819.8600 Services provided or rendered by a registrar to an issue, 15%
depository and transfer of shares.
9819.9000 Auctioneers. 15%
9819.9100 Copy right services, 15%
9819.9200 Art painters. 15%
9819.9300 Services provided or rendered by port operators and port 15%
terminal operators.
9819.9400 Services provided or rendered by airport operators and airport 15%
terminal operators.
9819.9500 Services provided or rendered by airport service providers and 15%
airport ground service providers.
98.20 Services provided or rendered by specialized workshops or
undertakings.
9820.1000 Auto-workshops including motor mechanic shops, air 15%
conditioning fitting and cleaning services.
9820.2000 Workshops for industrial machinery construction and earth 15%
moving machinery or other special purpose machinery etc.
9820.3000 Workshops for electric or electronic equipments or appliances 15%
including computer hardware.
9820.4000 Car or automobile washing or similar service stations. 15%
98.21 Services provided or rendered in specified fields.
9821.1000 Healthcare center, gyms or physical fitness centers etc. 15%
9821.2000 Indoor sports and games centers. 15%
9821.3000 Baby care centers. 15%
9821.4000 Body massages and sauna centers. 15%
98.22 Services provided or rendered for specified purposes.
9822.1000 Fumigation services. 15%
9822.2000 Maintenance or cleaning services. 15%
9822.3000 Janitorial services. 15%
9822.4000 Dredging or de-silting services. 15%
9823.0000 Franchise services, including royalty, technical or other 15%
licensing services.
9824.0000 Construction services. 15%
9825.0000 Management services, including fund and asset management 15%
services.
9826.0000 Technical services. 15%
9827.0000 Exhibition or convention services. 15%
9828.0000 Public bonded warehouse services. 15%
9829.0000 Program producers and production houses. 15%
9830.0000 Human resource and personal development services. 15%
9831.0000 Race clubs:
(a) Services of entry /admissions Rs.200 per entry ticket or
entry pass of a person visiting the race events.
(b) Other services. 15%
9832.0000 Labour and manpower supply services. 15%
9833.0000 Film and drama studios including mobile stage shows or 15%
cinemas.
9834.0000 Brokerage (other than stocks) and indenting services. 15%
9835.0000 Call centers. 15%
9836.0000 Internet café. 15%
9837.0000 Ready mix concrete services. 15%
9838.0000 Intellectual property services. 15%
9839.0000 Erection, commissioning and installation services. 15%
9840.0000 Electric power transmission or distribution services. 15%
9841.0000 Evaluation services including competency and eligibility 15%
testing services.
9842.0000 Cosmetic, plastic surgery and transplant services. 15%
9843.0000 Actuarial services. 15%
9844.0000 Car parking services. 15%
9845.0000 Supply chain management or distribution (including 15%
delivery) services.
9846.0000 Notary public and stamp vending services. 15%
9847.0000 CMT stitching services. 15%
9848.0000 Repair and maintenance services. 15%
9849.0000 Forward contract services. 15%
9850.0000 Packaging and handling services. 15%
9851.0000 Toll tax and octroi services. 15%
9852.0000 Broad casting services. 15%
9853.0000 Ride hailing services. 15%
9854.0000 Tuition and coaching centers. 15%
9855.0000 Vocational centers. 15%
9856.0000 Training services. 15%
9857.0000 Entertainment services. 15%
9858.0000 Amusement parks including theme and water parks. 15%
9859.0000 Depot for storage including cold storage services. 15%
9860.0000 Valuation in respect of tangible or noncurrent assets. 15%
9861.0000 Event management services including services by event 15%
photographers, event videographers and the persons
providing services related to such event management.
9862.0000 Technical inspection and certification services, including 15%
quality control certification services and ISO certifications.
9863.0000 Visa processing services, including advisory or consultancy 15%
services for migration or visa application filling services.
9864.0000 Debt collection services and other debt recovery services 15%
provided or rendered by debt collection agencies or
recovery agencies or other persons.
9865.0000 Data processing and provision of information, service of 15%
engineers, handling and storage of goods.
9866.0000 Services provided or rendered in respect of survey and 15%
exploration of minerals, oil and gas including drilling,
refining and related services.
9867.0000 Services provided or rendered in respect of snorkeling, 15%
scuba, rafting, surfing and water diving, etc.
9868.0000 Information and technology based services including 15%
software development, software customization, software
maintenance, system support, system assembly, system
integration, system designing and architecture, system
analysis, system development, system operation, system
maintenance, system up-gradation and modification, data
warehousing or management, data entry operations, data
migration or transfer, system security or protection, web
designing, web development, web hosting, network
designing, services relating to enterprise resource or
management planning (including marketing of products),
development and sale of smart phone applications or games,
graphics designing, medical transcription, remote
monitoring, telemedicine, insurance claim processing, online
retrieval and database access or retrieval service.]
______
Source: Pakistan Code, Ministry of Law and Justice (pakistancode.gov.pk). Text on this page is reproduced verbatim from the official PDF and is provided for reference only. For the authoritative version, always consult the source document or a current reported edition.
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