The Islamabad Capital Territory (Tax on Services) Ordinance, 2001

¹[Notification No. F. 2(1)/2001-Punj., dated 18th August, 2001.—The following Ordinance promulgated by the President is hereby published for general information:--

to provide for levy of sales tax on services rendered or provided in the Islamabad Capital Territory

WHEREAS it is expedient to provide for levy of sales tax on the services rendered or provided in the Islamabad Capital Territory and for matters ancillary thereto or connected therewith;

AND WHEREAS the President is satisfied that circumstances exist which render it necessary to take immediate action;

NOW, THEREFORE, in pursuance of proclamation of Emergency of the fourteenth day of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the Provisional Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the following Ordinance;-

1. Short title, extent and commencement.
(1) This Ordinance may be called the Islamabad Capital Territory (Tax on Services) Ordinance, 2001.

(2) It extends to whole of Islamabad Capital Territory.

(3) It shall come into force at once.

2. Interpretation.
In this Ordinance, unless there is anything repugnant in the subject or context, the words and expression used but not defined shall have the same meaning as in the Sales Tax Act, 1990.

3. Scope of tax.
²[(1) Subject to the provisions of this Ordinance, there shall be charged, levied and paid a tax known as sales tax at rates specified in column (4) of Table-1 of the Schedule to this Ordinance of the value of the taxable services rendered or provided in the Islamabad Capital Territory:

Provided that the services specified in Table-2 of the Schedule shall be charged to tax at such rates and subject to such conditions and limitations as specified therein:]²

⁶[Provided further that from such date and in such mode and manner, as may be prescribed through a general order by the Board, any service provider as mentioned in Table 1 and Table 2 of the Schedule shall integrate his businesses with the Board’s computerized system for real-time reporting of provision of services.]⁶

³[(1A) Notwithstanding the provision of sub-section (1), the export of services shall be charged at the rate of zero per cent.]³

(2) The tax shall be charged and levied on the services specified in ⁴[column (2) of]^{4 5}[Table-1 or Table-2 of the Schedule to this Ordinance, as the case may be,]⁵ in the same manner and at the same time, as if it were a sales tax leviable under sections 3, 3A or 3AA, as the case may be, of the Sales Tax Act,1990.

[(2A) The following provisions of the Sales Tax Act, 1990, shall apply, mutatis mutandis, to the services rendered or provided under this Ordinance, namely: −

(a) clause (b) of sub-section (2) and sub-sections (6) and (7) of section 3;

⁷[b) serial number 2, and serial number 8A in column (1), and the entries relating thereto of the Fifth Schedule read with section 4;

c) sub-sections (2), (3), (6) and (7) of section 13; and

⁹[(d) serial number 48, 147 and 163 in column (1), and entries relating thereto of Table 1 of Sixth Schedule read with section 13.”.

⁸[(2B) The tax levied under sub-section (1) shall not be applicable to regulatory and licensing services rendered or provided by an organization established by or under a Federal statute]⁸.

(3) All the provisions of the Sales Tax Act, 1990, and rules made and notifications, orders and instructions issued there under shall, mutatis mutandis, apply to the collection and payment of tax under this Ordinance in so far as they relate to –

(a) manner, time and mode of payment;

(b) registration and de-registration;

(c) keeping of records and audit;

(d) enforcement and adjudication;

(e) penalties and prosecution; and

(f) all other allied and ancillary matters.

¹⁰[(4) Notwithstanding the provisions of this section, the Board may, whenever deem necessary, subject to such conditions, restrictions and limitations, specify a Negative List of services exempt from tax under this Ordinance in Table-3 to the Schedule, by notification in the official Gazette.

THE SCHEDULE

¹¹[Table-1]¹¹

[See section 3(2)]

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¹⁶[Table-2]¹⁶

[See section 3(1)]

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