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Collection and Payment of Sales Tax on Natural Gas Rules, 1999

 

14th September

 

In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, the Federal Government is pleased to make the following rules, namely:-

 

1.      Short title, application and commencement. : —

(1)    These rules may be called the Collection and Payment of Sales Tax on Natural Gas Rules, 1999.

(2)    These rules shall apply for collection and payment of Sales Tax on Natural Gas including Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) imported, produced, transmitted and supplied by gas well-head companies and gas transmission and distribution companies licensed under Natural Gas Rules, 1960, including their distributors, dealers, sales agents, retailers or by any other person hereinafter called the "person" for the purposes of these rules and dealing in importation, production or distribution and supply of Natural Gas including Compressed Natural Gas and Liquefied Petroleum Gas.

(3)    They shall come into force at once.

 

2.      Definitions. : —

(1)    In these Rules, unless there is anything repugnant in the subject or context,–

 

(a)    "Act" means the Sales Tax Act, 1990; 

(b)    "CNG station" means any place or premises from where CNG is supplied to or filled in cylinders or tankers;

(c)    "Gas bill" means the bill of charges issued by the gas transmission and distribution companies to their consumers pertaining to a tax period for natural gas supplied by them;

(d)    "Natural gas" means the gas obtained from bore-holes and wells, whether unmixed or mixed with artificial gas consisting primarily of hydrocarbons whether gaseous or liquid in form, which are not oils and includes liquified petroleum gas (LPG) and compressed natural gas (CNG);

(e)    "LPG dealer" means any person authorized by the gas transmission and distribution company or by any other person to be a distributor or supplier who deals in the sale of LPG to any consumer whether in containers or otherwise; and

(f)    "Transmission and distribution company" means a person holding a licence for the transmission and distribution of natural gas whether imported or from various bore-holes or wells situated in Pakistan (e.g. Sui Southern Gas Pipelines Limited and Sui Northern Gas Pipelines Limited);

(2)    All other words and expressions used, but not herein defined shall have the meanings assigned to them in the Act.

 

3.      Levy and Collection. : —

(1)    Every person who supplies natural gas shall be liable to registration and shall charge and pay sales tax at the rate specified in sub-section (1) of section 3 of the Act.

(2)    Sales tax on natural gas shall be levied and collected at the following stages and in the following manners, namely :-

(i)     In case of its importation, the responsibility to pay sales tax shall be of the person importing natural gas who shall pay in the manner prescribed in sub-section (1) of section 6 of the Act and the value thereof shall be the value as determined under section 25 or 25B of the Customs Act, 1969 (IV of 1969) read with section 31-A thereof including the amount of customs duties and central excise duties levied thereon;

(ii)    In case of production and supply from the bore-holes and wells, the person responsible to charge and pay sales tax shall be the person making the supply at the bore-holes or the well-heads. The value for the purposes of levy of sales tax shall include price of natural gas, charges, rents, commissions and all duties and taxes, local Provincial and Federal, but excluding the amount of sales tax, as provided in clause (46) of section 2 of the Act;

(iii)   In case of supply of natural gas by the gas transmission and distribution company, the person responsible to charge, collect and deposit sales tax shall be the gas transmission and distribution company and the value for the purposes of tax shall be the total amount billed including price of natural gas, charges, rents, commissions and all duties and taxes, local, Provincial and Federal, but excluding the amount of sales tax as provided in clause (46) of section 2 of the Act;

(iv)    In case of supply of CNG, the person responsible to charge, collect and pay sales tax shall be the person supplying the gas to its customers and consumers and the value of supply in case of CNG shall include price of CNG, charges, rents, commissions and all duties and taxes, local, Provincial and Federal, but excluding the amount of sales tax as provided in clause (46) of section 2 of the Act;

(v)    In case of supply of LPG, the person responsible to charge, collect and deposit sales tax shall be the person who is a dealer, distributor or a retailer of LPG and the value of LPG for the purposes of levy of sales tax shall include price of LPG, charges, rents, commissions and all duties and taxes, local, Provincial and Federal, but excluding the amount of sales tax as provided in clause (46) of section 2 of the Act.

 

4.      Record keeping and invoicing. : —

(1)    Every person supplying or distributing natural gas, shall print in his bill or invoice, as the case may be, the rate and amount of sales tax required to be charged by him under sub-section (1) of section 3 of the Act.

(2)    The registered person shall submit monthly return as prescribed in the Act. The tax due shall be deposited in the Government Treasury under the relevant head "0220000-Sales Tax" by the 15th day of the month following the month in which the gas has been supplied, provided that in case of gas supplied by gas companies to its consumers directly, and charges are billed on monthly basis, the date shall be the 15th day of the second month following the month in which supplies were made.

(3)    If the supplies are made free of charge or for some other consideration or a consideration which is lower than the billed or invoiced prices, the sales tax shall be charged as if it were supplied at open market price in terms of sub-clause (a) of clause (46) of section 2 of the Act.

(4)    The registered person shall be entitled for input tax credit for the tax paid on his purchases for making taxable supplies against out put tax payable subject to the limitations and restriction imposed under section 8 of the Act, or the notifications issued thereunder.

 

Provided that the input tax credit shall be admissible for amount of tax which was paid on the purchases made during that tax period for which return is being submitted.

(5)    Where the said person is engaged in making taxable supplies as well as exempt supplies, the input tax credit shall be allowed as per the Apportionment of Input Tax Rules, 1996.

(6)    The registered person shall issue a serially numbered sales tax invoice for every supply made by him provided that in respect of supplies made by gas transmission and distribution companies, the monthly gas bills issued shall deem to be a tax invoice in terms of section 23 of the Act. The monthly gas bill issued to the registered person shall contain the registration number of that consumer.

(7)    The registered persons supplying natural gas using computerized accounting system may, with prior permission of the Collector of Sales Tax having jurisdiction, issue the computer-generated sales tax invoice and keep their record on the computer in the format and manner as the Collector may approve.

(8)    The registered person supplying natural gas, shall maintain records as prescribed under section 22 of the Act including records of daily stocks and sales stating therein quantity and value of the gas supplied and amount of sales tax charged thereon.

 

Provided that gas transmission and distribution companies shall not be required to maintain records of daily stocks and sales.

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