The Balochistan Sales Tax on Services Act, 2015

th [Last amended vide the vide Balochistan Finance Act 2026, dated 29 June, 2026]

***

THE

BALOCHISTAN PROVINCIAL ASSEMBLY SECRETARIAT.

NOTIFICATION

Dated Quetta, the 3rd July, 2015

No.PAB/Legis: V (16)/2015. The Balochistan Sales Tax on Services Bill, 2015 (Bill No.16 of 2015), having been passed by the Provincial Assembly of Balochistan on 25th June, 2015 and assented to by the Governor, Balochistan on 3rd July, 2015 is hereby published as an Act of the Balochistan Provincial Assembly.

(ACT No. VI of 2015). to provide for the levy of a tax on services provided, rendered, initiated, received, originated, executed or consumed in Balochistan.

¹[WHEREAS in accordance with the constitution of the Islamic Republic of Pakistan, 1973 the imposition, administration, collection and enforcement of taxes on service is the prerogative of the Provinces.

AND WHEREAS it is expedient to provide for the levy of a tax on services provided rendered, initiated, originated executed, received or consumed in the Province of Balochistan and to deal with all matters incidental and ancillary thereto or connected therewith.]¹ It is hereby enacted as follows: -

CHAPTER I
PRELIMINARY

1. Short Title, Extent and Commencement.
(1) This Act shall be called the Balochistan Sales Tax on Services Act ²[,]² 2015.

(2) It extends to the whole ³[of the Province]³ of Balochistan ⁴[***]⁴.

(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.

⁵[2. Definitions.
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);

⁶[(1A) "Active taxpayer" means a registered person who does not fall in any of the following categories:-

(a) whose registration is suspended in terms of section 28; and

(b) who has failed to e-file his returns consecutively for four tax period]^{6 7}[***]^{7 8}[***]⁸

(4) “Adjudicating Authority” means and includes the officers competent to adjudicate and decide the cases as prescribed by section 60 of the Act; ⁹[***]⁹ 10[***]

(37) “Rules” means the rules made under the Balochistan Revenue Authority Act;

(38) “Schedule” means a Schedule appended to the Balochistan Revenue Authority Act;

(39) “Service” or “services” means anything, which is not goods or providing of which is not a supply of goods and shall include but not limited to the services listed in first Schedule;

Explanation. -- A service shall remain and continue to be treated as service regardless whether or not rendering thereof involves any use, supply or consumption of any goods either as an essential or as an incidental aspect of such rendering;

(40) “Short-paid” means where a registered person pays an amount of tax less than the tax due owing to miscalculation or incorrect assessment of the tax amount due for a tax period;

(41) “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;

(42) “Special Judge”: means a Special Judge appointed under section 42;

(43) “Tax” means and includes: -

(a) The tax, additional tax, or default surcharge levied under the Act;

(b) A fine penalty or fee imposed or charged under the Act; and

(c) Any other sum payable or recoverable under the Act or rules;

(44) “Tax fraud” means knowingly, dishonestly or fraudulently and without any lawful excuse: -

(a) doing of any act or causing to do any act; 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 other tax documents or records; or

(d) acting in contravention of the duties or obligations imposed under the Act or rules or instructions issued thereunder – with the intention of understating or suppressing the tax liability or underpaying the tax liability;

(45) “Tax period” means a period of one month or such other period as the Authority may, by notification in the official Gazette, specify;

(46) “Taxable service” shall have the meaning as given to it in section 3; and

(47) “Value of a taxable service” shall have the meaning as given to it in section 7 ¹¹[***]^{11 12}[***]^{12 13}[***]^{13 14}[***]¹⁴

(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; ¹⁵[***]¹⁵

(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; ¹⁶[***]¹⁶

(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; ¹⁷[***]¹⁷

(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); ¹⁸[***]¹⁸

¹⁹[***]^{19 20}[***]^{20 21}[***]²¹

(25) “²²[Business]²² 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; ²³[***]^{23 24}[***]^{24 25}[***]²⁵ 26[***]

“(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;” ²⁷[***]^{27 28}[***]^{28 29}[***]^{29 30}[***]^{30 31}[***]^{31 32}[***]^{32 33}[***]³³

³⁴[***]^{34 35}[36A. "CPC" means the Central Product Classification, as adopted and periodically revised by the United Nations Statistics Division (UNSD), and includes any updated version officially adopted for the purposes of this Act.]^{35 36}[***]³⁶

(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; ³⁷[***]³⁷

(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) a modaraba company as defined in the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 (Ordinance No. XXXI of 1980); including food, edible preparations, beverages, entertainment, furniture or fixture, crockery or cutlery, pandal or shamiana, ornamental or decorative accessories or lighting for illumination;”

(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; ³⁸[***]^{38 39}[***]^{39 40}[***]^{40 41}[***]^{41 42}[***]^{42 43}[***]⁴³

(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; ⁴⁴[***]⁴⁴

(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; ⁴⁵[***]⁴⁵

(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;

⁴⁶[(57A) "e-file" means the process of electronic filing of any document on computerized system of the Authority;]⁴⁶

(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; ⁴⁷[***]⁴⁷

⁴⁸[***]^{48 49}[***]⁴⁹

(64) “Exempt Service” means a service which is exempt from tax under section 12 of the Act; ⁵⁰[***]⁵⁰

(66) “FBR” means the Federal Board of Revenue established under the Federal Board of Revenue Act, 2007 (Act No. IV 2007); ⁵¹[***]⁵¹

(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;

(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;”

(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; ⁵²[***]^{52 53}[***]^{53 54}[***]^{54 55}[***]^{55 56}[***]^{56 57}[***]^{57 58}[***]⁵⁸

(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; ⁵⁹[***]^{59 60}[***]^{60 61}[***]^{61 62}[***]^{62 63}[***]^{63 64}[***]^{64 65}[***]⁶⁵

(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; ⁶⁶[***]^{66 67}[***]^{67 68}[***]⁶⁸

(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); ⁶⁹[***]^{69 70}[***]⁷⁰

(93) “Inter-Bank Rate” means the Karachi Inter-Bank Offered Rate (KIBOR) prevalent on the first day of each quarter of the financial year; ⁷¹[***]^{71 72}[***]⁷²

⁷³[***]^{73 74}[***]^{74 75}[***]^{75 76}[***]^{76 77}[***]^{77 78}[***]^{78 79}[***]⁷⁹

(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;

“(95) “Internet Café” means a commercial establishment providing facility to access an internet;” ⁸⁰[***]^{80 81}[***]^{81 82}[***]^{82 83}[***]⁸³

(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; ⁸⁴[***]⁸⁴

(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; ⁸⁵[***]⁸⁵

(115) “Place of Business ⁸⁶[in Balochistan]⁸⁶” means that a person- ⁸⁷[in relation to a person, means that the person-]⁸⁷. Further, after the word “shares” in the same clause, a new phrase [factory premises notwithstanding the location of registered office of such factory or company]

(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; ⁸⁸[***]⁸⁸

(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; 89[***]

⁹⁰[***]^{90 91}[***]^{91 92}[***]⁹²

(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; ⁹³[***]^{93 94}[***]^{94 95}[***]^{95 96}[***]^{96 97}[***]⁹⁷

⁹⁸[***]^{98 99}[***]⁹⁹

(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; ¹⁰⁰[***]¹⁰⁰

(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 ¹⁰¹[and includes a services provider and a withholding agent,]¹⁰¹ 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; ¹⁰²[***]^{102 103}[***]^{103 104}[***]¹⁰⁴ interest is freehold or leasehold, and whether the purpose or use thereof is residential, commercial or industrial;” ¹⁰⁵[***]^{105 106}[***]¹⁰⁶

(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

(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;”

(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; ¹⁰⁷[***]¹⁰⁷

(141) “Return” means a return required to be furnished under Chapter-VI of the Act; ¹⁰⁸[***]¹⁰⁸

(143) “Rule” means the rules made under the Act;

(144) “Schedule” means the Schedules appended to the Act; ¹⁰⁹[***]¹⁰⁹

¹¹⁰[***]¹¹⁰

¹¹¹[(147) 'service' means any activity, facility, utility or advantage, including the granting, assignment, cession or surrender of any right.

Explanation -I;A service shall remain and continue to be treated as a service regardless of 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.]¹¹¹

(148) “Service Provider” means a person who is engaged in the ¹¹²[providing or rendering]¹¹² of service or services in the course or furtherance of any economic activity; ¹¹³[***]^{113 114}[***]^{114 115}[***]^{115 116}[***]¹¹⁶

(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);”

(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; ¹¹⁷[***]^{117 118}[***]^{118 119}[***]^{119 120}[***]¹²⁰

(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;

(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;” ¹²¹[***]¹²¹

(159) “Statement” means a statement prescribed under the rules or notifications made under the Act; ¹²²[***]^{122 123}[***]^{123 124}[***]^{124 125}[***]^{125 126}[***]^{126 127}[***]¹²⁷

(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; ¹²⁸[***]¹²⁸

(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; ¹²⁹[***]¹²⁹

(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 ¹³⁰[tax periods]¹³⁰ 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; ¹³¹[***]^{131 132}[***]^{132 133}[***]^{133 134}[***]^{134 135}[***]^{135 136}[***]^{136 137}[***]¹³⁷

¹³⁸[***]^{138 139}[***]^{139 140}[***]^{140 141}[***]^{141 142}[***]¹⁴²

(184) “Value of a Taxable Service” shall have the same meaning given to it under section 7 of the Act; ¹⁴³[***]^{143 144}[***]¹⁴⁴

145[(186) "Whistleblower" means a person as defined in Section 91, sub-section (5) of this Act.]

“(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 than a commercial, training or coaching center, for imparting skill or knowledge or lessons on any subject or field;”

¹⁴⁶[(187) "Withholding Agent" means any person, who, as a recipient of taxable service or otherwise, withholds, collects or deducts and pays or deposits tax directly to the Government in the manner as may be prescribed and also includes a person as specified in sub-rule

(2) of rule 1 of the Balochistan Sales Tax Special Procedure (Withholding) Rules, 2018;]¹⁴⁶

3. Taxable Service.
¹⁴⁷[(1) Every service is a taxable service, 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 persons, regardless of whether those services are provided to resident persons or non-resident persons.]¹⁴⁷

¹⁴⁸[(2) A service, ¹⁴⁹[excluding the ones referred to in explanation to sub-section (1),]¹⁴⁹ that is not provided by a registered person shall be treated as a taxable service if the service is provided to a resident person by a non-resident person in the course of economic activity";

Explanation.--This sub-section deals with services provided by nonresident persons to resident persons whether or not the said resident person is an end consumer of such service]¹⁴⁸

(3) For purposes of sub-section (2), where a person has a registered office or ¹⁵⁰[place]¹⁵⁰ 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, ¹⁵¹[***]¹⁵¹ by notification in the official Gazette, prescribe rules for determining the conditions under which a particular service or class of services 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. ¹⁵²[***]¹⁵²

4. Application of Principles of Origin and Reverse Charge in Certain Situations.
(1) Where a person is ¹⁵³[rendering or]¹⁵³ providing taxable services in Province other than Balochistan but the recipient of such services is resident of Balochistan or is otherwise availing such services in Balochistan and has charged tax accordingly, the person providing such services shall pay the amount of tax so charged to the Government.

(2) Where the recipient of a taxable service is person registered under the Act, ¹⁵⁴[as a withholding agent,]¹⁵⁴ 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 ¹⁵⁵[rendering or]¹⁵⁵ 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:

¹⁵⁶[Provided that in case of incoming international calls, the telecommunication companies in Pakistan shall pay tax on reverse charge basis to the extent of their share of charges received from abroad, either through local representative or otherwise, for the transmission and delivery of such calls in the Province and in all situations, the telecommunication companies including their local representatives etc., shall be deemed and treated as recipient of such calls.]¹⁵⁶

(6) The persons who are required to pay the tax to the 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 ¹⁵⁷[Authority]¹⁵⁷ may specify special procedure to regulate the provisions of this section.

¹⁵⁸[(9) The Government may, by notification in the official Gazette, specify any additional categories of provision of taxable services, the tax whereon shall be paid on reverse charge basis by the recipient of such services and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the provision of such services.]¹⁵⁸

¹⁵⁹[5. Power to amend Schedules.
The Government may, on the recommendation of the Authority and by notification in the official Gazette, make any addition, deletion, or amendment in any Schedule to this Act. Such modification may include but is not limited to:-

(a) inclusion or exclusion of any service;

(b) modification of the classification or description of any service; or

(c) alteration in the rate of tax applicable to any service.]¹⁵⁹

6. Economic Activity.
¹⁶⁰[(1) For the purposes of this Act, "economic activity" means any activity carried on by a person, whether or not for pecuniary profit, and whether or not carried on regularly, systematically, or occasionally, that involves the provision, supply, initiation, execution, receipt, or consumption of a service for consideration.

(2) Economic activity includes, but is not limited to:-

(a) any trade, commerce, manufacture, profession, vocation, business, or similar activity, whether of a corporate, personal, governmental, non-governmental, or not-for-profit nature;

(b) the provision of services by any club, association, society, trust, organization, or non-profit entity to its members or other persons, with or without separate consideration;

(c) the provision, facilitation or delivery of services through digital, electronic or virtual means, including online platforms, software applications, or remote access tools, whether or not the service provider has a physical presence in Balochistan;

(a) inter-provincial, cross-border or foreign provision of services where the service is received, consumed, availed, or where the benefit arises in Balochistan;

(b) any barter arrangement, in-kind exchange, or indirect benefit-whether tangible or intangible-accruing to the service provider.

(3) A person shall be deemed to conduct economic activity in Balochistan if:-

(a) the service is provided from, initiated in, or executed within the territorial jurisdiction of Balochistan;

(b) the service is received, consumed, or availed by any person in Balochistan, or where the benefit of the service is otherwise enjoyed in the Province;

(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 any Schedule to this Act during the current financial year.” and (3) was as under “(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;

(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 employer; or

(b) a private recreational pursuit or hobby of an individual.”

(c) the service provider, whether resident or non-resident, maintains a registered office, place of business, agent, representative, franchise, branch, server, or digital infrastructure in Balochistan;

(d) the consideration for the service is paid by or on behalf of a person in Balochistan, or processed through a business account or billing address located in Balochistan.

(4) The term "economic activity" shall not include:-

(a) the services of an individual provided in the capacity of an employee to an employer with whom they have a direct relationship under a written contract of employment.

Provided that this exclusion shall not apply to:

(i) services provided by third-party manpower suppliers, HR firms, or outsourcing contractors;

(ii) services performed inside a business, factory, or industrial premises of a service recipient, where the individual is deployed by a person or company engaged in the business of manpower or contractual labour supply.

Provided further that; This exclusion shall only apply where all the following conditions are satisfied: - The individual is under the direct supervision and control of the employer; - The remuneration is paid as salary or wages on a periodic basis; - The employment relationship is not of a consultant, freelancer, or contractual service provider; - The burden of establishing a true contract of employment for claiming this exemption shall lie on the person or entity claiming such exclusion.

Explanation: For the purposes of this section, "consideration" includes monetary payment, deferred payment, compensation in kind, subscription, membership fee, license fee, usage charge, or any direct or indirect benefit received by the provider]¹⁶⁰

7. Value of a Taxable Service.
(1) The value of a taxable service is the ¹⁶¹[gross amount of]¹⁶¹ 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 ¹⁶²[rendering or]¹⁶² providing a service receives from the recipient of the service but does not include the amount of the tax ¹⁶³[under this Act]¹⁶³.

(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 ¹⁶⁴[of]¹⁶⁴ the tax ¹⁶⁵[under this Act]¹⁶⁵.

(3) In case the person who provides the service and the recipient of the service are 166[***] 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 ¹⁶⁶[under this Act]¹⁶⁶.

(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 [:]

¹⁶⁷[Provided further that the terms "consideration" and "consideration in money" shall mean the gross amount charged by the service provider for the taxable services provided by him and shall include -

(i) any amount that is payable for the services provided;

(ii) any amount of reimbursable expenditure or cost incurred by the service provider and charged, in the course of provision of a service, except in such circumstances and subject to such conditions as may be prescribed;]¹⁶⁷

(5) In case of trade discounts, the value of the service shall mean the discounted price, excluding the amount of the tax, ¹⁶⁸[under this Act]¹⁶⁸ 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 ¹⁶⁹[determined under section 8 of this Act]¹⁶⁹.

(7) Notwithstanding anything ¹⁷⁰[contained]¹⁷⁰ 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 ¹⁷¹[services]¹⁷¹ 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.

8. Open market price.
(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 ¹⁷²[clause (a)]¹⁷², 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; dated January 15, 2019 effective from July 01, 2015

(c) determined on the basis of the market 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.

9. Provision of Services Over a Period of Time.
(1) Where a service is provided over a period of time and payment for the same is made on a periodic basis, the service shall 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

: ¹⁷⁴[The following examples illustrate the application of sub-section (1). These examples are not comprehensive and are meant for illustrative purposes only:]¹⁷⁴

(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. ¹⁷⁵[(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.]¹⁷⁵

(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 ¹⁷⁶[except where otherwise prescribed]¹⁷⁶.

CHAPTER II
SCOPE OF TAX

¹⁷⁷[10. Scope of Tax and Allied Matters.
(1) Subject to the provisions of this Act and the rules, there shall be charged, levied, collected and paid the tax on the value of a taxable service at the rate of fifteen percent of the value of the taxable service.

(2) Notwithstanding anything contained in sub-section (1) and subject to the provisions of Section 12 the services specified in the First Schedule shall be exempt from tax.

(3) Notwithstanding anything contained in sub-section (1) there shall be charged, levied, collected and paid the tax on the value of a taxable service at such higher rate of the value of taxable service as specified in the Second Schedule.

(4) Notwithstanding anything contained in sub-section (1) there shall be charged, levied, collected and paid the tax on the value of a taxable service at such lower rate of the value of taxable service without input tax adjustment as specified in the Third Schedule.

¹⁷⁸[(4A) No person shall be exempted from any tax liability imposed under this Act on the ground that such person has not been registered under this Act or the Rules made thereunder.]¹⁷⁸

(5) The Government may on the recommendation of the Authority and 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.

(6) Notwithstanding other provisions of this Act, the Authority may, with the prior approval of the Government und by notification in the official Gazelle 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 persons shall be exempt from payment of tax under the Act.]¹⁷⁷

¹⁷⁹[10A. Transitional Provision.
All services not specified in the First Schedule shall be deemed to be taxable services under this Act effective from the 1st day of July, 2025. Any exemption previously granted through notification shall remain valid until amended, rescinded, or superseded by the Authority.]¹⁷⁹

11. Person Liable to Pay Tax.
(1) Where a service is taxable by virtue of sub-section (1) of section 3, the liability to pay the tax shall be on the ¹⁸⁰[***]¹⁸⁰ 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.

¹⁸¹[(5) No person shall be absolved of any tax liability under the Act for want of registration under this Act or the rules.]¹⁸¹

¹⁸²[11A. Liability of a Registered Person.
Subject to the provisions of sub-section (1) of section 11, 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 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 ¹⁸³[***]¹⁸³ under section 14 of the Act;

Explanation II: The registered person shall include a person covered by the “withholding agent” ¹⁸⁴[***]¹⁸⁴ under section 14 of the Act.]¹⁸²

¹⁸⁵[12. Exemptions.
(1) Notwithstanding the provisions of sections 3 and 10, providing or rendering of services specified in the First Schedule shall, subject to such conditions as may be specified by the Government, be exempt from the tax under this Act.

(2) Notwithstanding the provisions of sub-section (1), 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 taxable 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.

(3) The exemption under sub-section (2) may be allowed from any previous date specified in the notification issued under sub-section (2)]¹⁸⁵

13. Effect of Change in the Rate of Tax.
If there is a change in the rate of tax, the taxable service shall be charged to tax at such rate as is in force at the time the service is provided.

14. Special Procedure and Tax Withholding Provisions.
¹⁸⁶[(1) Notwithstanding anything contained in this Act, the Authority may, by notification in the official Gazette, prescribe special procedure for the payment of tax, valuation of taxable services, registration, record keeping, invoicing or billing requirements, returns, statements and other related matters in respect of any service or class of services and subject to such limitations and conditions as may be specified in the notification.]¹⁸⁶

(2) Notwithstanding other provisions of this Act, the Authority may require any person or ¹⁸⁷[class of persons]¹⁸⁷ whether registered or not for the purpose of this Act to withhold full or part of the tax charged from such person or class of persons on the ¹⁹⁴[provision]¹⁹⁴ 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.

¹⁸⁸[(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 services 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 ¹⁸⁹[the amount of tax, the amount of default surcharge and the amount of penalty]¹⁸⁹ thereon to the Government in the prescribed manner.]¹⁸⁸

¹⁹⁰[14A. Special procedure for collection of tax, etc.
(1) Notwithstanding anything contained in this Act; the Authority may require any other person or class of persons, not necessarily being a service provider or a service recipient in a particular transaction to collect full or part of the tax charged from another person or class of persons on the provision of any taxable service or class of taxable services and to deposit the tax so collected, in the Government treasury within such time and in such manner as the Authority may, by notification in the official Gazette, specify.

(2) For the purposes of subsection (1), the special procedure prescribed for collection and payment of tax may also provide for registration, book keeping; invoicing or billing requirements, returns, statements and other related matters in respect of any service or class of services, as may be specified,

(3) Where a person or class of persons is required to collect full or part of the tax on the provision of any taxable service or class of taxable services and either fails to collect the tax or having collected 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, the amount of default surcharge and the amount of penalty to the Government in the prescribed manner.]¹⁹⁰

15. Delegation of Power to Collect, Administer and Enforce Tax on Certain Services.
(1) The Government may, in accordance with article 147 of the Constitution of the Islamic Republic of Pakistan, authorize the Federal Board of Revenue or any other federal agency or person to administer, collect and enforce the levy of tax on such taxable services as it may notify and in such mode and manner and for such 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), ¹⁹¹[***]¹⁹¹ the tax on taxable services notified under sub-section (1) shall be administered, collected and enforced by the Authority ¹⁹²[in]¹⁹² the same mode and manner as all other taxable services.

16. ¹⁹³[Adjustments of Input Tax.
(1) A person required to pay tax under this Act shall be entitled to deduct from the payable amount, the amount of tax paid or payable by him on the receipt of of 2019) dated January 15, 2019 effective from July 01, 2015. 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 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 ¹⁹⁵[***]¹⁹⁵ 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.]¹⁹³

¹⁹⁶[16A. Certain Transactions Not Admissible.
(1) Notwithstanding anything contained in this Act or any other law for the time being in force, ¹⁹⁷[payment of amounts of one or more transactions made to the same person in one tax period where the aggregate of such amounts exceeds fifty thousand rupees including the amount of sales tax but excluding any payments made on account of utilities]¹⁹⁷ 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 recipient.

(2) Online transfer of payment from the ¹⁹⁸[business bank account of service recipient to the business bank account of service provider]¹⁹⁸ 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. the tax paid under any other law on any account in respect of any taxable service or goods or class of taxable services or goods provided by them. (2) For purposes of sub section (1), 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.

(3) For the purpose of removal of any doubt it is clarified that no adjustment or deduction of any tax payable under any other law shall be claimed by any person except in the manner and to the extent specified in the notification issued under sub section (1).”

(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.]¹⁹⁶

¹⁹⁹[16B. Input Tax Credit Not Allowed.
(1) Notwithstanding anything contained in this Act, a 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; ²⁰⁰[(bb) the services received, acquired or procured from a person who is liable to be registered under this Act but is not actually registered or who does not hold ²⁰¹[registration number]²⁰¹;

(bbb) the goods, or services received, acquired or procured from a person who is not an active tax payer under this Act or under the Sales Tax Act, 1990 or under any provincial law relating to sales tax;]²⁰⁰

(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, 1990, 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 ²⁰²[(plant, machinery, equipment and others)]²⁰² and fixed assets not exclusively used in providing or rendering of taxable services;

(g) ²⁰³[the following goods or services, excluding the ones directly used and consumed by a registered person in provision of the services paying sales tax at a rate not less shall fifteen per cent ad valorem.]²⁰³

(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;

(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; ²⁰⁴[***]²⁰⁴

(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 [:]

²⁰⁵[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 eighteen per cent, can be claimed by the person providing the taxable telecommunication services.]²⁰⁵

(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;

²⁰⁶[(p) sales tax paid to the Federal Government or any other Provincial Government in relation to supply of goods or provision of services, if the sales tax law of the Federation or the Province concerned bars or does not allow, whether explicitly or otherwise, adjustment of tax levied and paid under this Act;]²⁰⁶

(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.]¹⁹⁹

²⁰⁷[16C. Adjustment of Input Tax Paid on Certain Goods and Services.
Notwithstanding anything contained in this Act and without prejudice to provisions of section 16A, the input tax paid on the acquisition of such of the capital goods, machinery and fixed assets 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.]²⁰⁷

²⁰⁸[16CC. Extent of adjustment of input tax.
(1) Notwithstanding anything contained in this Act, a registered person shall not be allowed to adjust input tax in a tax period in excess of ninety percent of the output tax for that tax period.]²⁰⁸

²⁰⁹[16D. Standard or general tax rate application choice.
(1) where any service or class of services are chargeable to reduced rate of tax either under the ²¹⁰[Third Schedule]²¹⁰ or under any notification issued under this Act, any registered person or class of registered persons, providing such services, may, after taking permission from the Authority, opt to pay sales tax at standard or general rate and take input tax adjustment as admissible under this Act and the rules and every such permission shall be effective from the date mentioned therein and subject to such conditions, restrictions and limitations as may be specified by the Authority in this behalf:

Provided that a registered person, in case of a company, may opt to operate under standard rate system on intimation to the Authority at least one month in advance and shall not be entitled to revert back to the reduced rate without prior permission from the Authority as required under sub-section (2).

(2) Once registered person has started paying sales tax at standard or general rate as aforesaid, he shall not, on his own, switch over back to availing the reduced rate of tax on any of his such services unless he takes prior permission from the Authority and while examining and deciding on the request of switching back to reduced rate of tax, the Authority may conduct or cause to conduct such enquiry or audit as it may deem necessary to ascertain the genuineness of the request.

(3) No amount of unadjusted amount of input tax, accrued during the period when standard or general rate was applied, shall be subsequently adjustable in respect of services subjected to reduced rate of tax,

Provided that recommendation of applying standard or general rate of tax, at any later stage by any registered person, shall likewise, be subject to prior permission from the Authority.

(4) The Authority may, on its own or otherwise, withdraw the permission, granted under this section, in respect of any case or class of cases, after issuing show cause notice and affording opportunity of hearing in the case or cases";

16E. Refund.
(1) Notwithstanding anything contained in this Act, the Authority or any officer authorized in this behalf by the Authority, may allow a registered person refund of the tax claimed to have been paid inadvertence, error or misconstruction.

(2) No such refund of tax not claimed within the relevant tax period shall be allowed, unless the claim is made within one year of the date of payment.

Provided that no refund shall be admissible under this section, if incidence of tax has been passed directly or indirectly to the consumer.

(3) The manner and mode of payment of refund of an amount paid or over paid through inadvertence, error or misconstruction, may be prescribed by the Government]²⁰⁹

CHAPTER III
PAYMENT AND COLLECTION OF TAX ON TAXABLE SERVICES

17. Collection of Excess Tax.
(1) Any person who has collected or ²¹¹[, deducted or withheld]²¹¹ the tax or 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.

²¹²[(1A) Notwithstanding anything contained in any law or any judgement, decree, or order of a court, no refund of any tax or amount paid under this Act shall be granted to any person unless such person discharge onus that the incidence of the tax has not been passed on to any other person including the recipient of the services.]²¹²

(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.

18. Time, Manner and Mode of Payment.
(1) The tax in respect of a taxable service provided ²¹³[or rendered]²¹³ during a tax period shall be paid by a person ²¹⁴[by due date prescribed under sub section (56) of section 2 and]²¹⁴ at the time of 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 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.

19. Joint and Several Liability of ²¹⁵[***]²¹⁵ Persons Where Tax Unpaid.
(1) Where a ²¹⁶[person]²¹⁶ receiving a taxable service from another ²¹⁷[another person]²¹⁷ is in the knowledge of or has reasonable grounds to suspect that some or all of the tax payable in respect of that taxable service ²¹⁸[or any previous or subsequent taxable service]²¹⁸ 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).

²¹⁹[(3) Notwithstanding anything contained in this section, it shall be the responsibility of a person to take all possible measures to ensure that the person, from whom he has received taxable services, deposits the due tax, relating to such transaction or transactions, in the manner as provided under this Act and the rules made under the Act.]²¹⁹

20. Sales of Taxable Activity or Transfer of Ownership.
(1) Where the ownership of any business providing taxable services is sold, transferred or otherwise disposed of as an ongoing concern or activity, the fact of such sale, transfer or other disposition shall be intimated to the Commissioner within one month of the occurrence of such fact by the former owner.

²²⁰[(1A) In case of sale or transfer of a business, providing taxable services as an ongoing concern, by a registered person to a non-registered person, such registered person shall be required to account for and pay the tax on the services provided by him.]²²⁰

(2) The tax chargeable ²²¹[or assessed or determined in relation to]²²¹ 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.

²²²[(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.]²²²

21. Estate of Deceased Person.
The tax liability of a deceased registered person under this Act shall be the first charge on his estate in the hands of his successors.

22. Estate in Bankruptcy.
(1) Where a registered person is declared bankrupt, the 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.

23. Liability for Payment of Tax in Case of Private Companies or Business Enterprises.
²²³[Notwithstanding anything contained in the Companies Act, 2017 (Act XIX OF 2017) or the repealed Companies Ordinance, 1984 (XLVII of 1984)]²²³ Where any private company or business enterprise is wound up and any tax chargeable on or payable by the company or business enterprise, whether before, or in the course, or after its liquidation, in respect of any tax period cannot be recovered from the company or business enterprise, every person who was an owner of, or partner in, or director of the company or business enterprise during the relevant period shall, jointly and severally with such persons be liable for payment of such tax.

24. Assessment of Tax.
(1) Where on the basis of any information acquired during an audit, inquiry, inspection or otherwise, an officer of the Authority ²²⁴[not below the rank of Assistant Commissioner]²²⁴ 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 sections 48 and 49.

²²⁵[(1A) Notwithstanding anything contained in this Act and subject to such conditions and guidelines as may be prescribed by the Authority in this regard, where a registered person fails to file the return for a tax period by the due date or where the registered person fails to furnish any information, explanation, documents, record or any other details as may be required in a notice issued under this section or sections 33, 34 or 57, an officer of the Authority, not below the rank of an Assistant Commissioner, shall, based on any available information or material, make an assessment order, to the best of his judgment, determining the minimum tax liability of such registered person for the tax period specified in the notice. The minimum tax liability shall be in addition to the penalty and default surcharge in accordance with sections 48 and 49.]²²⁵

²²⁶[Explanation: Determination of minimum tax liability for a tax period shall not be the final tax liability and the registered person shall be liable to discharge his actual liability, as it may accrue or may be determined as a result of audit or special audit or forensic audit under this Act.]²²⁶

(2) No order under sub-section (1) ²²⁷[or (1A)]²²⁷ shall be made unless a notice to show cause is given to the person in default within ²²⁸[eight]²²⁸ years from the conclusion of the tax period to which the assessment relates specifying the ²²⁹[grounds]²²⁹ 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) ²³⁰[or (1A)]²³⁰ shall be made within one hundred and ²³¹[eighty]²³¹ days of issuance of the show cause notice or within such extended period as the officer may, for reasons to be recorded in writing, 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) ²³²[or (1A)]²³² 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 233[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).

²³³[(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.]²³³

²³⁴[24A. Place of provision of Services.
Notwithstanding the provisions contained in this Act, the Authority may, in relation to any or all of the taxable services or group of taxable services as may be specified, by notification in the official Gazette, make rules or special rules prescribing the place of provision of the services or the group of services specified in such rules.]²³⁴

CHAPTER IV
REGISTRATION

25. Registration.
²³⁵[(1) A person shall register under this Act, who: -

(a) is resident;

(b) provides any taxable service ²³⁶[***]²³⁶ in Balochistan; ²³⁷[(bb) is a withholding agent under this Act;]²³⁷

(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).]²³⁵

(2) The registration under this section will be regulated in such manner and subject to such conditions and restrictions as the 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.

II of 2019) dated January 15, 2019 effective from July 01, 2015.

²³⁹[(3A) Any person, who is not registered or required to be registered for the purposes of this Act, whether as a service-provider or otherwise but is required to withhold and pay or otherwise pay tax in terms of any provisions of this Act or rules, shall be deemed as a registered person for all legal purposes under this Act, including non-filing or non-submission of any information or document and such person shall, regardless of the place of residence, business or other activity, comply with such registration, enrolment or other obligations or formalities as may be specified by the Authority.]^{239 240}[(3AA) The Authority may, through notification in the official Gazette, require any person or class of persons engaged in providing only exempt service or services to necessarily obtain registration under this Act and file return in such form and manner as my specified in the notification.]²⁴⁰

(4) The Authority ²⁴¹[shall]²⁴¹ publish on its website a list ²⁴²[of]²⁴² 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.

²⁴³[Explanation: Unless otherwise specified, no person shall be absolved of any tax liability for want of registration under this Act or the rules.]²⁴³

²⁴⁴[(5A) It shall not be reasonable for a person to believe that another person is registered under this Act if that other person is not on the list placed on the website of the Authority]²⁴⁴

26. Voluntary Registration.
(1) A person who carries on an economic activity but is 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 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.

²⁴⁵[26A. Automatic registration.
The tax payers already registered with the Federal Board of Revenue for the purposes of Sales Tax / Federal Excise Duty and providing taxable services in Balochistan, shall be automatically registered for Balochistan Sales Tax on Services and the registered persons shall only be intimated through email or SMS, and by courier or post assigning them B as prefix to their NTN issued by the Federal Board of Revenue i.e. B+NTN]²⁴⁵

27. Compulsory Registration.
²⁴⁶[(1) If the Authority or any officer of the Authority authorized in this behalf is satisfied that a person or a withholding agent who is required to be registered and has not applied for registration, the Authority or the officer shall after such enquiry as may be deemed fit, register the person through an order to be issued in writing and shall, not later than fifteen days 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.]²⁴⁶

(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.

28. Suspension of Registration.
(1) Subject to sub-section (3), the Authority ²⁴⁷[or any officer of the Authority authorized in this behalf]²⁴⁷ may temporarily inactivate ²⁴⁸[or suspend]²⁴⁸ 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 ²⁴⁹[or any officer of the Authority authorized in this behalf]²⁴⁹ 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 ²⁵⁰[or any officer of the Authority authorized in this behalf]²⁵⁰ is not satisfied with the response of the person or the remedial action taken by him or does not receive any response in the specified time, the Authority ²⁵¹[or any officer of the Authority authorized in this behalf]²⁵¹ may suspend that person’s registration.

(4) The suspension of registration shall be affected 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 ²⁵²[or any officer of the Authority authorized in this behalf]²⁵² 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 ²⁵³[or any officer of the Authority authorized in this behalf]²⁵³ 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 Authority 254[or any officer of the Authority authorized in this behalf] either through enquiry, investigation or audit is satisfied that effect, notify the person of the registration, the day on which it takes effect, and the registration number issued to the person.” 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.

29. De-registration.
(1) The Authority ²⁵⁵[or any officer of the Authority authorized in this behalf]²⁵⁵ 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 ²⁵⁶[or any officer of the Authority authorized in this behalf]²⁵⁶ to be de-registered.

(3) If upon receiving such an application, the Authority ²⁵⁷[or any officer of the Authority authorized in this behalf]²⁵⁷ 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 ²⁵⁸[or any officer of the Authority authorized in this behalf]²⁵⁸ receives an application under sub-section (2), it shall dispose of 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 may, for reasons to be recorded in writing, fix.

²⁵⁹[29A. Restoration of Registration.
The Authority may, subject to conditions as may be prescribed, reactivate, revive, reinstate or restore any registration which has been de-activated, suspended or cancelled for any reason or under any circumstances.]²⁵⁹

²⁶⁰[29B. Active taxpayers list.
The Authority shall have the power to prepare and maintain active taxpayers list in such manner as it may deem appropriate and also to make rules to provide for restrictions and limitations to be Imposed on any person who ceases to be an active taxpayer or any person who receives or procures any taxable service from a person who has ceased to be an active taxpayer]²⁶⁰

CHAPTER V
BOOK KEEPING AND AUDIT PROCEEDINGS

30. Issuance of Tax Invoices.
(1) A registered person providing a taxable service shall 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;

(e) value inclusive of the tax;

²⁶¹[(f) value exclusive of the tax [and]]²⁶¹

262[(g) applicable rate of the tax.]

²⁶³[(2) The Authority may, by notification in the official Gazette, specify it modified format of invoices for different services or persons and prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.]²⁶³

²⁶⁴[(3) A registered person, providing a taxable service, may, subject to such conditions and restrictions as the Authority may, by notification in the official Gazelle, specify, issue invoices electronically to another registered person or other recipient of taxable service and transmit images or statements of such invoices to the Authority and to the Commissioner, in the manner as may be specified.]²⁶⁴

31. Records.
(1) A registered person providing taxable service ²⁶⁵[or a person required to pay tax under this Act or the rules]²⁶⁵ 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: -

²⁶⁶ [(a) record of services provided, including exempt services, indicating the description, quantity and value of service, name, registration number and address of the person to whom services were rendered and the amount of tax charged;

(b) record of goods and services received, including exempt goods and services, indicating description, quantity and value of goods and services, name, address and registration number of the service provider or supplier of goods and the amount of the tax charged;

(c) record of goods imported indicating the description, quantity and value of goods and the amount of tax paid on imports;]

²⁶⁷[(d) Books of Prime Entry or subsidiary books including Cash Books;

(e) double entry accounts including General Ledger;

(f) Annual Audited Financial Statements prepared either on the basis of International Financial Reporting Standards (IFRSs) or International Public Sector Accounting Standards (IPSAS), as the case may be;

(g) bank statements, banking instruments and the related reconciliation statements;

(h) inventory records, utility bills, salary and labor bills, rent deeds and agreements;

(i) record required to be maintained and the declarations filed under any other law for the time being in force; and

(j) records of tax invoices and debit credit notes issued by the person;

(k) records of tax invoices and debit credit notes received by the person; (1) records of customs documents (goods declaration under section 30 of the Customs Act, 1969 and its ancillary documents);

(m) Minutes of various meetings including minutes of Board, Annual General Meeting (AGM), Extra Ordinary General Meeting; and

(n) such other records as may be specified by the Authority.]²⁶⁷

(2) ²⁷¹[Notwithstanding anything contained in any other law for the time being in force, the]²⁷¹ 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 ²⁷²[be]²⁷² specified by the Authority in such notification to make or receive payments on account of providing ²⁷³[or receiving services for the]²⁷³ 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 ²⁷⁴[class of persons]²⁷⁴ 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 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.

²⁶⁸[(5) The registered persons, whose accounts are subject to audit under the Companies Act, 2017 (Act No. XIX of 2017) or under any other law for the time being in force, shall submit a printed 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, to the concerned officer of the Authority, within 60 days from the date of audit report of the auditors.]²⁶⁸

32. Retention and Production of Record and Documents.
(1) A person, who is required to maintain any record or document under this act, shall retain the record and documents for a period of ²⁶⁹[ten]²⁶⁹ years after the end of the tax period to which such records or documents relate or till the final decision in any proceedings including proceedings for assessment, appeal, revision, reference or petition, whichever is later.

²⁷⁰[Provided that in case of any records or documents related to refund claim a person shall retain such records or documents for a period of ten years from the end of the financial year in which the refund is issued. of 2019) dated January 15, 2019 effective from July 01, 2015.

No. II of 2019) dated January 15, 2019 effective from July 01, 2015.

Provided further that the time limit of ten years will be applicable to records and documents related to tax period July, 2023 and onwards.]²⁷⁰

(2) A person who is required to maintain any records 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 ²⁷⁵[and use of any machine on which such data is kept]²⁷⁵.

33. Audit Proceedings.
(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 ²⁷⁶[or documents which are in his possession or control or in the possession or control of his agent; and where such record or documents have been kept on electronic data]²⁷⁶ maintained ²⁷⁷[or obtained]²⁷⁷ 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 ²⁷⁸[any]²⁷⁸ registered person ²⁷⁹[is]²⁷⁹ 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, ²⁸⁰[under section 53]²⁸⁰ 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 him of the audit proceedings and direct him to produce any records or documents, which such officer may require for conducting the audit.

²⁸¹[(3A)]²⁸¹ The officer authorized under sub-section (1) may conduct audit proceedings electronically through video links or any other facility as may be notified by the Authority.]^{5 282}[(3AA) The officer of the Authority may, with the permission of the Commissioner, conduct the audit in the place of business or the office of the registered person directing him to produce the records and documents in such premises as indicated in the notice.]²⁸²

(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 ²⁸³[in accordance with the provisions of section 24 or section 52, as the case may be, assessing or]²⁸³ 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; ²⁸⁶[and]²⁸⁶

(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, thereafter, the show cause notice shall abate.

34. ²⁸⁷[Audit by Special Audit Panels]²⁸⁷.
²⁸⁴[(1) The Authority may, by notification in the official 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 the Chartered Accountants Ordinance, 1961 (X of 1961);

(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);

(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 ²⁸⁵[1A]²⁸⁵ 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.]²⁸⁴

(2) Notwithstanding that the records of a registered person have been audited by an officer appointed under section 39, the Authority or a Commissioner may direct an auditor appointed under sub-section (1) to audit the records of any registered person for the same period.

(3) An auditor appointed under sub-section (1), shall have such powers of an officer as may be conferred by the Authority to such auditor under any of the provisions of this Act or the rules.

January 15, 2019 effective from July 01, 2015.

Tax on Services (Amendment) Act, 2019 (Act No. II of 2019) dated January 15, 2019 effective from July 01, 2015.

(4) For purposes of this section or section 33, the audit of records includes audit of the tax affairs of the registered person under this Act and the rules.

²⁸⁸[(5) Each special audit panel shall be headed by a Chairman who shall be an officer of the Authority not below the rank of a Deputy Commissioner.

(6) If a member of the special audit panel, other than the Chairman, is absent from conducting an audit, special audit or forensic audit, the proceedings of such audit under this section shall continue and audit conducted by the special audit panel shall neither be invalid nor shall be called in question merely on the ground of such absence.

(7) The Authority may prescribe regulations and procedures in respect of the constitution, procedure and working of the special audit panel.]²⁸⁸

CHAPTER VI
RETURNS

35. Returns.
²⁸⁹[(1) Every registered person shall ²⁹⁰[e-file or]²⁹⁰ furnish to the Authority, not later than the due date, a true, correct and properly filled-up return in the form notified by the Authority, indicating the tax due and paid during a tax period and such other information or particulars as may be notified by the Authority.]²⁸⁹

²⁹¹[(1A) A statement, in the prescribed manner, filed by a person who is only obliged to deduct or withhold tax, shall be treated as a return of that person,

Provided that such a statement shall not be a substitute for the return required to be filed by a person providing taxable services.]²⁹¹

(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 ²⁹²[Gazette]²⁹², 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.

(6) ²⁹³[Subject to rules, a registered person may]²⁹³, 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 and to deposit any amount of the tax not paid or short paid.

²⁹⁴[(7) Where any person or class of persons are engaged in providing any service or services, which are either exempt under this Act, under a notification issued thereunder or are otherwise not taxable for the purposes of this Act, the Authority may require any such person or class of persons to regularly file monthly or periodic declarations or returns, containing such correct and verifiable information, as may be required to be provided in such declaration or return and every such person or class of persons shall be under a legal obligation to file such declaration or return and any violation, relating thereto, shall be treated as non-filing of the return due under this Act, except that no tax liability per se other than liability for penalty, may be imposed, shall accrue in respect thereof.]²⁹⁴

36. Special Returns.
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 ²⁹⁵[form]²⁹⁵ and such person shall furnish the return not later than the date specified in this regard.

37. Final Return.
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 ²⁹⁶[***]²⁹⁶ by the Authority or the Commissioner.

38. Return Deemed to Have Been Made.
A return purporting to be made on behalf of a person by his duly appointed representative or agent shall, for all purposes of this 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

39. Appointment of Authorities.
²⁹⁷[(1)For the purposes of this Act, the Authority may, appoint in relation to any area, any case or class of cases, any person to be; -

(a) a Director of the Balochistan Revenue Authority;

(b) a Commissioner of the Balochistan Revenue Authority;

(c) a Commissioner (Appeals) of the Balochistan Revenue Authority;

(d) a Deputy Commissioner of the Balochistan Revenue Authority;

(e) an Assistant Commissioner of the Balochistan Revenue Authority;

(f) a Senior Auditor and an Auditor of the Balochistan Revenue Authority;

(g) a Balochistan Sales Tax Officer of the Balochistan Revenue Authority;]²⁹⁷

298[(i) An Inspector of the Balochistan Revenue Authority;

(j) Any officer of the Balochistan Revenue Authority with any other designation.]

(2) The Commissioner (Appeals) and the Commissioner shall be subordinate to the Authority ²⁹⁹[and any other officer of the Authority so designated by the Authority.]²⁹⁹

³⁰⁰[(3) The Deputy Commissioners and the Assistant Commissioners shall be subordinate to the Commissioner.]³⁰⁰

(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.

40. Powers.
(1) An officer appointed under section 39 shall exercise such powers ³⁰¹[, pecuniary and territorial jurisdiction,]³⁰¹ 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.

41. ³⁰²[Delegation]³⁰² of Powers.
(1) The Authority may, by notification in the official Gazette, and subject to such limitations or conditions, empower by name or by designation:

(a) ³⁰³[A Deputy Commissioner]³⁰³ to exercise or perform any of the powers or functions of a Commissioner ³⁰⁴[or a Commissioner (Appeals);]^{304 305}[***]³⁰⁵

(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.

³⁰⁶[(4) The officer, designated or empowered as Commissioner (Appeals), shall not sit in appeal against his own orders in original. The Authority shall make alternate arrangements in such cases.]³⁰⁶

42. Special Judges.
(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.

43. Cognizance of Offence.
(1) The Special Judge may, within the limits of his 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, ³⁰⁷[or acquires knowledge under clause (c) of sub-section (1)]³⁰⁷ 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).

44. Application of the Code of Criminal Procedure, 1898.
(1) The provisions of the Code of Criminal Procedure, 1898 (V of 1898), so far as they are not inconsistent with the provisions of this Act, shall apply to all proceedings of the Court of a Special Judge and such court shall be deemed to be a Court of 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 [:] [

Provided that nothing in this section shall restrict any officer of the Authority from undertaking and completing the adjudicatory process or proceedings for the purpose of determination and assessment of tax, including default surcharge and penalties in any case sub-juice for trial or any other proceedings before the Special Judge.]

45. Exclusive Jurisdiction of Special Judge.
³¹¹[Notwithstanding anything contained in this Act, the rules made thereunder or in any other law for the time being in force no;]³¹¹ court other than the Special Judge having jurisdiction, shall try an offence punishable by the Special Judge under this Act.

46. Place of Sitting.
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.

47. Persons who may Conduct Prosecution.
(1) ³¹²[Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (No. V of 1898) an]³¹² officer not below the rank of an Assistant Commissioner shall be competent to conduct prosecution before a 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.

³⁰⁸[47A. Appeal to the High Court.
(1) Any person, including the Government, the Authority or any officer of the Authority, aggrieved by any order passed or decision made by a Special Judge under this Act or under the Code of Criminal Procedure, 1898 (No. V of 1898), may, subject to the provisions of Chapters XXXI and XXXII of the said Code, within sixty days from the date of the order of the decision, prefer an appeal to the High Court.

(2) Except as otherwise provided in sub-section (1), the provisions of the Limitation Act, 1908 (Act No. V of 1908), shall apply to an appeal preferred under sub-section (1) of this section.]³⁰⁸

CHAPTER VIII
OFFENCES AND ³⁰⁹[PENALTIES]³⁰⁹

48. Offences and Penalties.
(1) If a person commits any offence described in column 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. Table

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2023.

2019) dated January 15, 2019 effective from July 01, 2015.

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recovery of the tax” vide Balochistan Finance Act, 2024 (Act No. I of 2024) dated 29th June, 2024.

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2019) dated January 15, 2019 effective from July 01, 2015. system; or the loss caused to sales tax

(b) unauthorizedly uses or discloses or revenue, whichever is higher.]³³⁹ publishes or otherwise disseminates Such person shall further be information obtained from the liable, upon conviction by the computerized system; or Special Judge, to imprisonment

(c) falsifies any record or information for a term which may extend to stored in the computerized system; or one year, or with fine which may

(d) knowingly or dishonestly damages extend to an amount equal to the or impairs the computerized system; or loss caused to the tax revenue, or

(e) knowingly or dishonestly damages with both. or impairs any duplicate tape or disc or other medium on which any information obtained from the computerized system is kept or stored; or

(f) unauthorizedly uses unique user identifier of any other registered user to authenticate a transmission of information to the computerized system; or

(g) fails to comply with or contravenes any of the conditions prescribed for security of unique user identifier.

³⁴⁴[(3) The penalties specified under sub-section (1) shall be applied in a consistent manner and no penalty shall be payable unless an order in writing is passed by an officer of the Authority not below the rank of an Assistant Commissioner, the Commissioner (Appeals) or the Appellate Tribunal after providing an opportunity of being heard to the person concerned.

Provided that where the taxpayer admits his default, he may voluntarily pay the amount of penalty due under this section.

(4) Where an officer of the Authority not below the rank of an Assistant Commissioner, a Commissioner (Appeals) or the Appellate Tribunal makes an order under sub-section (3), the officer of the Authority not below the rank of an Assistant Commissioner, the Commissioner (Appeals) or the Appellate Tribunal, as the case may be, shall immediately serve a copy of the order on the concerned person and the Commissioner and thereupon all the provisions of this Act relating to the recovery of tax shall apply accordingly.

(5) Where in consequence of any order under this Act, the amount of tax in respect of which any penalty payable under subsection (1) is reduced, the amount of penalty shall be reduced accordingly.]³⁴⁴

49. Default Surcharge.
(1) Notwithstanding the provisions of section 24, if a registered person does not pay the tax due or any part thereof, whether willfully or otherwise, on time or in the manner specified under this Act, rules or notifications or procedures issued thereunder, he shall, in addition to the tax due and any penalty under section 48, pay default surcharge at the rate mentioned below: -

(a) the person liable to pay any amount of tax or charge shall pay default surcharge at the rate of ³⁴⁵[twelve]³⁴⁵ percent per annum of the amount of the tax due; and

(b) in case, the default is on account of tax fraud, the person who has committed tax fraud shall pay default surcharge at the rate of two percent per month, of the amount of tax evaded, till such time the entire liability including the amount of default surcharge is paid.

(2) For the purpose of calculation of default surcharge, the period of default shall be reckoned from the ³⁴⁶[***]³⁴⁶ day following the due date of the tax period to which the default relates, to the day preceding the date on which the tax due is actually paid.

Explanation: For purposes of this section, the tax due does not include the amount of penalty.

³⁴⁷[(3) An officer of the Authority not below the rank of an Assistant Commissioner shall make an assessment of any default surcharge under this section through an order in writing after providing an opportunity of being heard to the person concerned.

(4) Where an officer of the Authority not below the rank of an Assistant Commissioner makes an order under sub-section (3), the officer of the Authority not below the rank of an Assistant Commissioner, shall immediately serve a copy of the order on the person concerned and thereupon all the provisions of this Act relating to the recovery of tax shall apply accordingly.

(5) Where a person is liable for default surcharge, an officer of the Authority not below the rank of an Assistant Commissioner may, at his discretion, make assessment of default surcharge for the period of default or part thereof, notwithstanding that the tax due has not actually been paid.]³⁴⁷

³⁴⁸[50. Exemption from Penalty and Default Surcharge.
(1) The Authority may, through a notification in the official Gazette, exempt any registered person or any taxable service from payment of the whole or any part of the penalty and default surcharge, subject to such conditions and limitations as may be specified in such notification.]³⁴⁸

51. Compounding of Offences.
Notwithstanding anything contained in any other provision of this Act, where any person has committed any offence warranting prosecution under the Act, the Authority may, either before or after the institution of any proceedings for the prosecution of such offence, compound the offence and terminate the proceedings if such person pays the amount of the tax due along with such default surcharge and penalty as is determined by the Authority under the provisions of this Act and the rules.

52. Recovery of the Tax Not Levied or Short-levied.
(1) Where by reason of inadvertence, error, ³⁴⁹[misconstruction]³⁴⁹ or for any other reason, any tax or charge has not been levied or has been short levied, the person liable to pay such amount of the tax or charge shall be served with a notice, within ³⁵⁰[ ³⁵¹[ ³⁵²[Eight]³⁵² years from the end of the financial year to which the relevant tax period relates,]³⁵¹ requiring him to show cause for payment of the amount specified in the notice.

(2) Where by reason of some collusion, abetment, deliberate attempt, mis-statement, fraud, forgery, false or fake document: -

(a) any tax or charge has not been paid or is short paid ³⁵³[, assessed or collected,]³⁵³ the person liable to pay such tax shall be served with a notice within ³⁵⁴[five years from the end of the financial year to which the relevant tax period relates,]³⁵⁴ requiring him to show cause for non-payment of such tax; and

(b) any amount of the tax is refunded which is not due, the person obtaining such refund shall be served with a notice within ³⁶⁰[five years from the end of the financial year in which the refund was received,]³⁶⁰ to show cause of recovery of such refund.

³⁵⁵[Provided that the time limit of five years will be applicable to returns related to tax period from July, 2023 and onwards. For returns for all other tax periods, whenever filed, time limit of eight years will be applicable.]³⁵⁵

(3) The officer shall, after considering the objections of the person served with a notice under sub-sections (1) or (2) or if the objections are not received within the stipulated period, determine the amount of the tax or charge payable by him and such person shall pay the amount so determined.

(4) Any order under sub-section (3) shall be made within one hundred and ³⁵⁶[eighty]³⁵⁶ days of issuance of the notice to show cause or within such extended period as the officer may, for reasons to be recorded in writing, fix

Provided that such extended period shall not ordinarily exceed sixty days.

(5) In computing the period specified in sub-section (4), 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 petitioner ³⁵⁷[***]³⁵⁷ shall be excluded.

³⁵⁸[(6) Where any person, required to withhold tax under provision of this Act or the rules made thereunder, fails to withhold the tax or fails to deposit the deducted or withheld amount of the tax 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.]³⁵⁸

³⁵⁹[52A. Un-paid and Short Paid Amounts Recoverable Without Notice.
Notwithstanding anything contained in this Act, where it is indicated from the return, submitted by the registered person or, as the case may be, evident from the records and materials, including but not limited to the Computer Systems, taken into custody by the authorized officer of the Authority from the business premises of the registered person that the tax has been charged or collected from customer or service recipient but it is not paid or short paid by the registered person, the un-paid or short-paid amount of tax along-with default surcharge may be recovered from such person by attaching his bank accounts without giving him a show cause notice and without prejudice to any other action specified under section 72 of this Act, rules or regulations:

2023]³⁵⁹, dated 4th July, 2023. a.

Provided that attachment of bank accounts of the registered person, for the purpose of recovery of tax under this sub-section, shall only be exercised with prior approval of the Commissioner or the Authority, as the case may be. b. Provided further that no penalty under section 48 of this Act shall be imposed unless a show cause notice is given to such person.]³⁵⁰

53. Power to Summon Persons to give Evidence and Produce Documents.
(1) An officer ³⁶¹[of the Authority]³⁶¹ may summon any person whose attendance he considers necessary either to tender evidence or to produce documents or any other thing in any audit, inquiry, investigation or proceedings which such officer ³⁶²[of the Authority]³⁶² is making for any of 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 ³⁶³[of the Authority]³⁶³ 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 ³⁶⁴[of the Authority]³⁶⁴ shall be deemed to be judicial proceedings within the meanings of sections 193 and 288 of the Pakistan Penal Code 1860 (XLV of 1860).

54. Power to Arrest and Prosecute.
(1) An officer authorized by the Authority ³⁶⁵[not below the rank of Assistant Commissioner]³⁶⁵ 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 ³⁶⁶[authorized by the Authority has]³⁶⁶ 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.

55. Procedure to be followed on Arrest of a Person.
(1) When an officer arrests a person under section 54, he shall immediately intimate the fact of arrest of that person to the Special Judge who may direct such officer to produce that person at such time and place and on such date as the Special Judge considers expedient ³⁶⁷[and the officer shall act accordingly.]³⁶⁷.

(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 ³⁶⁸[, as the case may be,]³⁶⁸ 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 ³⁷⁸[bond]³⁷⁸ 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 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 ³⁶⁹[of the Authority]³⁶⁹ holding an inquiry or investigation against that person if such officer ³⁷⁰[of the Authority]³⁷⁰ 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 ³⁷¹[of the Authority]³⁷¹ 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 ³⁷²[of the Authority]³⁷² shall exercise the same powers as are conferred upon or exercisable by an officer ³⁷³[of the Authority]³⁷³ in charge of a police station under the Code of Criminal Procedure 1898 (V of 1898), but such officer ³⁷⁴[of the Authority]³⁷⁴ shall exercise such powers subject to the foregoing provisions of this section while holding an inquiry under this Act.

(9) If the officer ³⁷⁵[of the Authority]³⁷⁵ 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 ³⁷⁶[of the Authority]³⁷⁶ holding an inquiry under this section shall maintain a register to be called register of arrests and detentions in the form prescribed by the ³⁷⁷[Authority]³⁷⁷ 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 ³⁷⁹[of the Authority]³⁷⁹ shall, as early as possible, submit to the Special Judge, a complaint in the same form and manner in which the officer ³⁸⁰[of the Authority]³⁸⁰ 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).

56. Authorized Officers to have Access to Premises, Stocks, Accounts and Records.
(1) Any officer ³⁸¹[of the Authority, not below the rank of an Assistant Commissioner,]³⁸¹ authorized in this behalf by the Authority by notification in the official Gazette, shall have free and full access to the business premises, registered office or any other place where any business records or documents required under this Act and the rules are kept or maintained by any registered person or a person 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 ³⁸²[of]³⁸² inquiry or investigation under this section.

³⁸³[(4) The records and material etc., taken into custody, shall be documented into an inventory statement, to be signed jointly by the officer of the Authority and the person concerned or his agent or representative:

Provided that refusal to sign the inventory statement by such person or his agent or representative shall not affect the legality or validity of the inventory statement and its contents.]³⁸³

57. Obligation to Produce Documents and Provide Information.
(1) Notwithstanding anything contained in this Act or any other law, ³⁸⁴[for the time being in force]³⁸⁴ any person required to maintain any record under this Act and rules, shall, on demand by an officer, ³⁸⁵[of the Authority]³⁸⁵ not below the rank of an Assistant Commissioner, by notice in writing, as and when 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).

³⁹⁶[(2) An officer of the Authority conducting an audit, enquiry, investigation or otherwise for the purposes of this Act or the rules, may require in writing any person ³⁸⁶[including a banking company]³⁸⁶ to furnish any information as is held by that person.]³⁹⁶

(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 ³⁸⁷[or an officer authorized by the Authority]³⁸⁷, is required for purposes of formulation of policy or administering or implementing this Act ³⁸⁸[and]³⁸⁸ the rules.

(4) Every person, department, company or organization shall furnish the information ³⁸⁹[, data and documents]³⁸⁹ requisitioned by the Authority or ³⁹⁰[an officer of the Authority]³⁹⁰ under ³⁹¹[this section]³⁹¹, within the time specified in the notice issued by the Authority ³⁹²[or an officer of the Authority]³⁹².

³⁹³[57A. Power to call for Information.
(1) The Commissioner may, by notice in writing, require any person, including a banking company, to furnish such information or such statement in connection with any investigation or inquiry in cases of tax fraud, as may be specified in such notice."

(2) The Commissioner may require any regulatory authority to provide information concerning the licenses and authorizations issued by it.]³⁹³

58. Searches under Warrants.
(1) Where any officer ³⁹⁴[of the Authority]³⁹⁴ has reason to believe that any 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).

59. Posting of an Officer ³⁹⁵[of the Authority]³⁹⁵ to Business Premises.
(1) Subject to such conditions and restrictions as it deems fit to impose, the Authority may post an officer to the premises of a registered person to monitor the provision of services by such registered person.

(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

2019) dated January 15, 2019 effective from July 01, 2015. Substituted sub-section (2) reads as follows: “(2) An officer conducting an audit, inquiry or an investigation under the Act and the rules, may require in writing any person, department, company or organization to furnish such information as is held by that person, department, company or organization, which, in the opinion of the officer, is relevant to such audit, inquiry or investigation.” 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 ³⁹⁷[may be]³⁹⁷ determined by the Authority or the Commissioner.

³⁹⁸[59A. Power to Seal the Business Premises.
When an officer of the Authority not below the rank of Commissioner has reason to believe that the Act or the rules made thereunder are not obeyed and observed at a business premises, he may by an order in writing, seal that premises for a period which may extend to one month upon giving a notice in writing to this effect.]³⁹⁸

60. Powers of Adjudication.
(1) In respect of cases involving determination of tax 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) ³⁹⁹[Deputy Commissioner]³⁹⁹: Cases without any restriction as to the amount of the tax involved or amount erroneously refunded;

(b) ⁴⁰⁰[Assistant Commissioner]⁴⁰⁰: Cases where the amount of the tax involved or the amount erroneously refunded ⁴⁰¹[***]⁴⁰¹ does not exceed ⁴⁰²[five million]⁴⁰² rupees; ⁴⁰³[***]⁴⁰³

(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 ⁴⁰⁴[the]⁴⁰⁴ 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.

⁴⁰⁵[60A. Monitoring or Tracking by Electronic or Other Means.
(1) Subject to such conditions, restrictions and procedure, as it may deem fit to impose or specify, the Authority may, by notification in the official Gazette, specify any registered 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.

(3) From such date as may be prescribed by the Authority, the persons providing or rendering taxable services shall compulsorily use such electronic means or systems, including fiscal cash registers, as may be specified or prescribed by the Authority, for issuance of tax invoice ⁴⁰⁶[under the e-invoicing system]⁴⁰⁶]⁴⁰⁵

61. Revision by the Commissioner.
(1) The Commissioner may, of his own motion or on an application made in writing by a registered person for revision, call for and examine the record of any proceedings under this Act ⁴⁰⁷[or the rules made thereunder]⁴⁰⁷ 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, ⁴⁰⁸[of the Authority]⁴⁰⁸ 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.

(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.

62. Revision by the Authority.
(1) The Authority may, of its own motion, call for and examine the record of any departmental proceedings under this ⁴⁰⁹[Act]⁴⁰⁹ 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 ⁴¹⁰[of the Authority other than the Commissioner (Appeals)]⁴¹⁰.

(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

63. Appeals.
(1) Any person, other than the Authority or any of its employees, aggrieved by any decision or order passed under sections ⁴¹⁸[23, 24, ⁴¹¹[25, 26A,]⁴¹¹ 27, 28, 29, 48, 49, 52, 60, 74 and 81]⁴¹⁸ 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;

(b) be verified in the prescribed manner;

(c) state precisely the grounds upon which the appeal is made;

⁴¹²[(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;]⁴¹²

(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, ⁴¹³[ ⁴¹⁴[ten]⁴¹⁴]⁴¹³ thousand rupees; or

(b) where the appellant is not a company, ⁴¹⁵[ ⁴¹⁶[3]⁴¹⁶ thousand]⁴¹⁵ rupees.

⁴¹⁷[(4) An appeal under sub-section (1) may be filed to the Commissioner (Appeals), manually or electronically as may be specified by the Authority, within thirty days from the date on which the decision or order is served upon the appellant.]⁴¹⁷

(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.

2019) dated January 15, 2019 effective from July 01, 2015.

64. Procedure in Appeal.
(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.

(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 ⁴²²[respecting]⁴²² the matters arising in the appeal or cause further inquiry to be made by the officer of the Authority.

65. Decision in Appeal.
(1) In disposing of an appeal lodged under section 63, the Commissioner (Appeals) may pass such order as he deems fit, confirming varying, altering, ⁴²³[setting]⁴²³ 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 [:]

⁴¹⁹[Provided that a case may be remanded for de novo consideration, in special circumstances, for reasons and purposes to be recorded by the Commissioner (Appeals) in writing.]⁴¹⁹

(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 ⁴²⁰[(Appeals)]⁴²⁰ 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 ⁴²¹[writing]⁴²¹, fix.

(6) In computing the aforesaid time period, any period during which the proceedings are adjourned on account of a stay 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 of 2019) dated January 15, 2019 effective from July 01, 2015.

2019) dated January 15, 2019 effective from July 01, 2015. was lodged, the Commissioner (Appeals) shall transfer ⁴²⁸[the undecided]⁴²⁸ 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 ⁴²⁴[provided under sub section (5) of this section]⁴²⁴.

(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.

66. Appellate Tribunal.
⁴²⁵[(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.

⁴²⁶[(2) The Appellate Tribunal shall consist of three members of such number of judicial and technical members as are determined and appointed by the Government having regard to the needs of the Tribunal.]⁴²⁶

(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 ⁴²⁷[in case if the age is exceeding sixty-five years, the case shall be referred to provincial cabinet for approval]⁴²⁷; 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 ⁴²⁹[on the recommendations of a Government Committee as prescribed in section 3(4) of the Balochistan Revenue Authority Act, 2015]⁴²⁹ of the Appellate Tribunal for a period of three years from amongst the persons who –

(a) is a retired officer in BS-21 of the Federal Board of Revenue; or

(b) is or has been a Commissioner of the Balochistan Revenue Authority ⁴³⁰[***]⁴³⁰ having at least two years of experience as Commissioner (Appeals); or ⁴³¹ [(bb) is Associated Chartered Certified Accountant or Associated Chartered Accountant having at-least three years of experience in taxation;]

(c) is not more than sixty-five years of age on the date of appointment ⁴³²[in case if the age is exceeding sixty-five years, the case shall be referred to provincial cabinet for approval]⁴³².

⁴³³[(4A) Notwithstanding anything contained in sub-section (4), the Government may, for three years from the enforcement of this Act, appoint any person, as Technical Member, who has worked for a minimum of three years:

(i) in the Federal Board of Revenue or Provincial Excise and Taxation Department or Balochistan Board of Revenue in the rank not below BS-20 for five years in aggregate, or

(ii) as A Commissioner Inland Revenue (Appeals) under clause (c), sub-section (1) of section 30 of the Sales Tax Act 1990, for three years with service of at least five years in BS-20, as an Accountant Member of the Appellate Tribunal.]⁴³³

(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 ⁴³⁴[unless approved otherwise by the provincial cabinet]⁴³⁴.

(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 ⁴³⁵[:]⁴³⁵

⁴³⁶[Provided that in the event of the occurrence of any vacancy in the office of the Chairperson by reason of his death, resignation or otherwise, the senior most Member of the Tribunal shall act as the Chairperson until the date on which a new Chairperson, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office:

Provided further that where the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the senior most Member of the Tribunal shall discharge the functions of the Chairperson until the date on which the Chairperson resumes his duties.]⁴³⁶

(7) The powers and functions of the Appellate Tribunal shall be exercised and discharged ⁴³⁷[in the prescribed manner, if not provided in this section]⁴³⁷ 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, ⁴³⁸[subject to such conditions, limitations or restrictions as it may determine,]⁴³⁸ 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 ⁴³⁹[tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee, default surcharge or penalty determined in any order appealed against, does not exceed five hundred thousand rupees and which does not involve any question of law.]⁴³⁹ 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 ⁴⁴⁰[or are equally divided]⁴⁴⁰ on any point, the point shall be decided according to the opinion of the majority.

(13) ⁴⁴¹[***]⁴⁴¹

(14) ⁴⁴²[***]⁴⁴²

(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 ⁴⁴³[, in consultation with Authority and Finance Department,]⁴⁴³ from time to time increase or decrease the number of members of the Appellate Tribunal by way of notification in the official Gazette.

⁴⁴⁴[(17) No act or proceedings of the Appellate Tribunal shall be questioned or shall be invalid merely on the ground of the existence of any vacancy or defect in the constitution of the Appellate Tribunal.]⁴⁴⁴

⁴⁴⁵[66A. Member Qualification, Remuneration and Removal.
(1) Prior to appoint any person as Members of the Appellate Tribunal under section 66, the Government shall satisfy itself that such person does not have any financial or other interests which are likely to prejudicially affect his functions as such Member including Chairperson.

(2) The salary, allowances and other terms and conditions of service of the Members including Chairperson of the Appellate Tribunal shall be such as may be prescribed by the Government:

Provided that neither salary and allowances nor other terms and conditions of service of the Members of the Appellate Tribunal shall be varied to their disadvantage after their appointment.

(3) Any Member may, by notice in his hand writing addressed to the Government resign from his office:

Provided that the Member shall continue to hold office until the expiry of three months from the date of receipt of such notice by the Government or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.

(4) The Government may, after consultation with the Chief Justice of Balochistan High Court in case of Judicial Members only, remove Members from their office, who: -

(a) has been adjudged an insolvent; or

(b) has been convicted of an offence which, in the opinion of Government involves moral turpitude; or

(c) has become physically or mentally incapable of acting as Member; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as Member; or

(e) has so abused his position as to render his continuance in office prejudicial to the public interest:

Provided that the Member shall not be removed on any of the grounds specified in clauses (d) and (e), unless he has been informed of the charges against him and has been given an opportunity of being heard.

Provided further that, the Judicial Member shall not be removed from their office except by an order made by the Government on the ground of proved misbehavior or incapacity after an inquiry made by a Judge of the Balochistan High Court nominated by the Chief Justice of the Balochistan High Court on a reference made to him by the Government and of which the said Member had been given an opportunity of being heard.

(5) The Government, with the concurrence of the Chief Justice of Balochistan High Court, may suspend from office, the Judicial Members of the Appellate Tribunal in respect of whom a reference has been made to the Chief Justice of the Balochistan High Court under sub-section (4).]⁴⁴⁵

67. Appeal to the Appellate Tribunal.
(1) Where the taxpayers or an officer ⁴⁴⁶[of the Authority]⁴⁴⁶ not below the rank of ⁴⁴⁷[Deputy Commissioner]⁴⁴⁷ objects to any order passed by the 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; ⁴⁴⁸[(bb) 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;]⁴⁴⁸

(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 ⁴⁴⁹[forty]⁴⁴⁹ 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 ⁴⁵⁰[Twenty]⁴⁵⁰ 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.

68. Disposal of Appeals by the Appellate Tribunal.
(1) The Appellate Tribunal may, before disposing ⁴⁵¹[of]⁴⁵¹ an appeal, call for such particulars, documents, records or 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 ⁴⁵²[order]⁴⁵² 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 ⁴⁵³[of the Authority]⁴⁵³ or the 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 ⁴⁵⁴[concerned]⁴⁵⁴ Commissioner.

(7) Save as provided ⁴⁵⁵[in section 69 or]⁴⁵⁵ in any other law, ⁴⁵⁶[for the time being in force]⁴⁵⁶ the decision of the Appellate Tribunal on an appeal shall be final.

69. Reference to the High Court.
(1) a reference to the High Court shall lie only if a 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.

⁴⁵⁷[(2A) The statement to the High Court referred to in subsection (1), shall set out the facts related to the determination of the Appellate Tribunal and the question of law, which arises out of its order.

(2B) Where, on an application made under sub-section (1), the High Court is satisfied that a question of law arises out of the order referred to in sub-section (1), it may proceed to hear the case.]⁴⁵⁷

(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.

⁴⁵⁸[(4A) The High Court upon hearing a reference under this section shall decide the question of law raised by the reference and deliver a judgment thereon specifying the grounds on which the judgment is based and the order of the Tribunal shall stand modified accordingly.]⁴⁵⁸

(5) The High Court shall send a copy of the judgment under the seal of the Court to the Appellate Tribunal.

⁴⁵⁹[(5A) The cost of any reference to the High Court shall be in the discretion of the Court]⁴⁵⁹

(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.

⁴⁶⁰[(7A) Where recovery of tax has been stayed by the High Court by an order, such order shall cease to have effect on the expiration of a period of six months following the day on which it is made unless the reference is decided, or such order is withdrawn by the High Court before the expiry of six months.]⁴⁶⁰

(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.

70. Deposit of the Tax Demand while Appeal is Pending.
Where in any appeal, the decision or order appealed against relates to any tax demanded under this Act, the person who has filed the appeal shall, pending the appeal, deposit the admitted amount of 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.

71. ⁴⁶³[Alternative]⁴⁶³ Dispute Resolution.
(1) Notwithstanding any other provisions of this Act or the rules, any registered person aggrieved in connection with any dispute pertaining to: -

(a) the liability of the tax against the registered person;

(b) the extent of waiver of default surcharge and penalty;

⁴⁶⁴[(c) relaxation of any procedural or technical irregularities and condonation 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.]⁴⁶⁴

(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 ⁴⁶¹[Deputy Commissioner]⁴⁶¹ 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.

(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.

⁴⁶²[71A. Appointment of Ombudsman.
Government may appoint an Ombudsman or may assign 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. of 2019) dated January 15, 2019 effective from July 01, 2015.

No. II of 2019) dated January 15, 2019 effective from July 01, 2015. Substituted clauses (c), (d) and (e) read as follows:

(c) relaxation of any procedural or technical irregularities and condition of any

(d) prescribed time limitation; and

(e) 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.

Government may frame rules in consultation with the Authority for implementation of the provisions of this section.]⁴⁶²

CHAPTER X
RECOVERY OF ARREARS

72. Recovery of Arrears of Tax.
(1) Subject to sub-section (2), where any amount of the 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; ⁴⁶⁵[(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 ⁴⁶⁶[including running and demand finance]⁴⁶⁶, lease contracts, loan agreements, building loan contracts, life insurance contracts, employment or work contracts.]⁴⁶⁵

⁴⁶⁷[(c) require, by 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;]⁴⁶⁷

(e) attach and sell ⁴⁶⁸[or sell without attachment]⁴⁶⁸ 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 fails to make payment under such guarantee, bond or instrument ⁴⁶⁹[:]⁴⁶⁹

⁴⁷⁰[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 per cent the amount of the tax demanded from him]^{470 471}[;]⁴⁷¹

472[Provided further that in cases where Assessment of tax has been made under section 24 or where determination of tax not levied or short levied has been adjudged under section 52, action for the recovery of the tax and the default surcharge and penalty relating thereto shall not be made under this section for a period of thirty days from the date of the order of such assessment or determination.]⁴²⁵

(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.

⁴⁷³[(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, 1967 for the purposes of recovery of arrears of Sales Tax]⁴⁷³

CHAPTER XI
AGENTS, REPRESENTATIVES AND E-INTERMEDIARIES

73. Agent.
(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 ⁴⁷⁴[***]⁴⁷⁴ the 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 the 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.

(i) 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.

(j) 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 of this Act.

74. Liability and Obligations of Agents.
(1) Every agent of a person shall be responsible for performing any duties or obligations imposed by or under this Act 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.

75. Liability of the Registered Person for the Acts of his Agent.
A registered person shall be responsible for any and all acts done by his agent.

76. Appearance by ⁴⁷⁶[Authorized]⁴⁷⁶ Representative.
A registered person required to appear before the Appellate Tribunal or an officer ⁴⁷⁵[of the Authority]⁴⁷⁵ in connection with any proceedings under this 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.

77. E-intermediaries to be Appointed.
(1) Subject to such conditions, limitations and restrictions as the authority may impose, the Authority may, by a notification in the official Gazette, of 2019) dated January 15, 2019 effective from July 01, 2015. 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 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

78. Power to Make Rules.
(1) The authority may, ⁴⁷⁷[***]⁴⁷⁷ by notification in the official Gazette, make the rules for carrying out the purposes of any of the provisions of this Act. ⁴⁷⁸[***]⁴⁷⁸

(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.

⁴⁷⁹[78A. Power to Restrain Certain Authorities.
The Authority may, ⁴⁸⁰[***]⁴⁸⁰ and by notification in the official Gazette, require that any authority ⁴⁸¹[, including a regulatory authority,]⁴⁸¹ 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 ⁴⁸²[permission-holder]⁴⁸² furnishes the evidence that he is a duly registered person under section 25, section 26 ⁴⁸³[, section 26A]⁴⁸³ or section 27 of the Act.]⁴⁷⁹

⁴⁸⁴[78B. Classification of services.
(1) The Authority may, for the purposes of assessment, enforcement. administration, and facilitation under this Act, prescribe a classification system for services, including the adoption of the Central Product Classification (CPC) as issued and updated by the United Nations Statistics Division (UNSD), or any other classification framework, through notification in the official Gazette.

Provided that the inclusion or exclusion of any service from a code so prescribed shall not, by itself, determine the taxability or otherwise of such service.

(2) Any service, whether or not previously classified under the Harmonized System (HS) codes or described in any other definitions, shall, from the effective date of such notification, be classified in accordance with the system prescribed by the Authority.

(3) No tax, exemption, liability, recovery, assessment, or other action taken under a prior classification system shall be rendered invalid solely because of the adoption of a new classification system.

(4) In case of any inconsistency, ambiguity, overlap, or transitional complication arising from the adoption or application of a new classification system, the Authority may, by notification in the official Gazette, issue clarifications, prescribe transitional arrangements, or take such other measures as may be necessary for the effective implementation of this Act.]⁴⁸⁴

⁴⁸⁵[78C.
Notwithstanding the amendments made through the Balochistan Finance Act, 2025, the services on which tax was levied, charged and collected under this Act on 30th June, 2025, the tax shall continue to be levied, charged and collected at the same rate unless expressly exempted or subjected to reduced rate.]⁴⁸⁵

⁴⁸⁶[78D. Removal of Difficulties in Adopting Negative List Method.
For the purposes of removing any difficulty or for bringing the provisions of this Act into effective operation after adoption of negative list method, the Authority may by order, direct that the 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:

Provided that the power under this section shall not be exercised after the expiry of period of three years from the date of commencement of the Balochistan Finance Act, 2025.]⁴⁸⁶

79. Computerized System.
(1) The Authority may prescribe the use of a 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 persons or class of persons as the Authority may ⁴⁸⁷[make the rules to]⁴⁸⁷, by notification in the official Gazette, specify.

(2) The Authority may 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 [:]

⁴⁸⁸[Provided that the Authority may make arrangement or agreement, on reciprocal or multilateral basis with the Federal Board of Revenue and other provincial sales tax authorities, for sharing of electronic data of tax returns filed in the computerized system, subject to such limitations and conditions as may be specified by the Authority and agreed to in such agreements.]⁴⁸⁸

80. Service of Orders and Decisions.
(1) Subject to this Act, any notice, order or requisition 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; ⁴⁸⁹[(aa) sent electronically through e-mail or to the e-folder maintained for the purposes of e-filing of returns by the registered person;]⁴⁸⁹

(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 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 summon 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 ⁴⁹⁰[of]⁴⁹⁰ 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.

⁴⁹¹[(6) For the purposes of clause (aa) of sub-section (1) and sub-section (2), a registered person shall be deemed to have received the notice, order or requisition electronically at the expiry of seventy- two hours of sending the same through e-mail or to the e-folder maintained for the purposes of his e-filing of returns.]^{491 492}[***]⁴⁹²

81. Correction of Clerical Errors.
(1) Any clerical or arithmetical error in any assessment, 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.

⁴⁹³[82. Issuance of Duplicate of sales tax documents.
An officer of the Authority not below the rank of Assistant Commissioner may, on written request of a registered person, issue to that registered person an attested duplicate of any document filed by that person with the officer of the Authority or any notice or order issued against that person, on payment of Rs.1,000 per document or Rs.250 per page of such document, whichever is higher.

Provided that such amount shall be deposited into Provincial Consolidated Fund.]⁴⁹³

83. Power to Issue Orders, Instructions and Directions.
The Authority may issue such orders, instructions and directions, not inconsistent with this Act and the rules, to all officers of the authority, as it may deem necessary to implement, administer or enforce the provisions of this Act and the rules.

84. Officers of the Authority to Follow Orders.
(1) All officers of the Authority and other persons employed in the administration of this Act and the rules shall 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

85. Computation of Limitation Period.
In computing the period of limitation prescribed for any appeal or application under this Act, the day on which the order 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.

86. Condonation of Time-limit.
(1) Where any time or period has been specified under 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 application to be made or such act or thing to be done within such time or period as it may consider appropriate.

⁴⁹⁴[Explanation: For the purpose of this section, the expression “act or thing to be done” includes any act or thing to be done by a registered person or by the authorities specified in section 39 of the Act.]⁴⁹⁴

Appellate Tribunal or any officer [of the Authority] 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 electronic communication includes a communication sent by email.”

(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.

⁴⁹⁵[86A. Delegation of functions and powers by the Authority.
The Authority may, subject to such conditions and limitations as it may deem appropriate, delegate, to its chairman or a member or to an officer of the Authority, any of its functions and powers as assigned to it under this Act.]⁴⁹⁵

87. Bar of Suits, Prosecution and other Legal Proceedings.
(1) No suit ⁴⁹⁶[or other legal proceedings]⁴⁹⁶ shall be brought in any Civil Court to set aside or modify ⁴⁹⁷[any notice issued]⁴⁹⁷ any order passed, any assessment made, any tax levied, any penalty or default surcharge imposed or ⁴⁹⁸[any collection of tax made or any action taken for collection or recovery of any tax or arrears of tax]⁴⁹⁸ 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 ⁴⁹⁹[action taken or notice issued or any decision made or any]⁴⁹⁹ 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 ⁵⁰⁰[governmental]⁵⁰⁰ agency against any officer or official for anything done in his official capacity under this Act, ⁵⁰¹[rules, instructions or directions made or issued thereunder without prior]⁵⁰¹ permission of the Authority.

88. Removal of Difficulties.
(1) The Government may pass such order, for removing 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 after the expiry of ⁵⁰²[eight]⁵⁰² years from the commencement of this Act.

89. Repeal and Saving.
(1) The Balochistan Sales Tax Ordinance, 2000 (II of 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, ⁵⁰³[Appellate Tribunal, or]⁵⁰³ any court by way of adjudication, assessment, appeal, reference, revision or prosecution shall be continued and ⁵⁰⁴[disposed of]⁵⁰⁴ 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 ⁵⁰⁷[any]⁵⁰⁷ 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.

⁵⁰⁸[(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) may be recovered under this Act, but without prejudice to any action already taken for the recovery of the amount under the said Ordinance.]⁵⁰⁸

⁵⁰⁵[90. Prize Schemes to Promote Tax Culture.
The Authority may, with the approval of the Government, prescribe prize schemes to encourage the general public to make purchases only from registered persons issuing tax invoices.

91. Reward to Whistleblowers.
(1) The Authority may, with the approval of the 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.

92. Validation.
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 ⁵⁰⁶[for disallowing the claim, reclaim, adjustment or deduction of input tax on the services acquired or procured from a person who is liable to be registered under the Act but is not actually registered or who does not hold registration number]⁵⁰⁶ shall be deemed to have been validly issued or passed under this Act.]⁵⁰⁵

II of 2019) dated January 15, 2019 effective from July 01, 2015.

2019) dated January 15, 2019 effective from July 01, 2015. The substituted sub-section (5) reads as follows: “Where so directed by the Government, any tax payable but not paid under the Balochistan Sales Tax Ordinance, 2000 (II of 2000) may be recovered under this Act, but without prejudice to any action already taken for the recovery of the amount under the said Ordinance.”

⁵⁰⁹[Provided that the insertion of 24 A shall be deemed to be and shall always be deemed to have been validly incorporated on and from the 12th day of April, 2023 notwithstanding anything contained in this Act or any law for the time being in force or any judgment or decree or order of any court.]⁵⁰⁹

⁵¹⁰[Provided further that the addition of clause (bb) in section 16B shall be deemed to be and shall always be deemed to have validly added on and from the first day of July 2015 notwithstanding anything contained in this Act or any law for the time being in force or any judgment, decree or order of any Court.]⁵¹⁰

⁵¹¹[First Schedule

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[List of Exempt Services as specified in Section 10(2)]

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commencement of operations by such factory, or industry, or industrial undertaking as notified by the Government.

Explanation: the expressions “factory”, “industry” and “industrial undertaking” used in this provision, shall have the same meaning as assigned to them in the Balochistan Industrial Development and Regulations Act, 2025 (Act No. X of 2025).]⁵¹⁹

⁵²⁰[SECOND SCHEDULE

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Part B

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[List of Services specified in Section 10(3)]

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⁵²¹[THIRD SCHEDULE

[List of Services specified in Section 10(4)]

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Scroll horizontally to view all columns.

Scroll horizontally to view all columns.