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Finance Act, 2004

 

 

            WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2004, and to amend certain laws for the purposes hereinafter appearing : —

 

            It is hereby enacted as follows : —

 

1.                  Short title, extent and commencement : —   (1)  This Act may be called the Finance Act, 2004.

 

(2)               It extends to the whole of Pakistan.

 

(3)        It shall come into force at once except the provisions of section 6 which shall come into force from the first day of July, 2004.

 

2.         Amendment of Act I of 1944 : —  The following amendments shall be made in the Central Excises Act, 1944 (I of 1944), namely : —

 

(1)               in section 2 : —

 

(a)        after clause (5), the following new clause shall be inserted, namely : —

 

“(5A)   ‘cable TV network’ means a person, a company, a firm, an establishment or an organization involved in collection and distribution or dissemination of audio-video signals for public viewing whether through a cable, MMDS, LMDS or DTH (through satellite receiver) : — and

 

(b)   for clause (34), the following shall be substituted, namely : —

 

“(34)    ‘shipping agent’ means a person, whether or not licensed under the Customs Act, 1969 (IV of 1969), or the rules made thereunder, who provides or renders any service in relating to entrance or clearance of a conveyance at a customs port and issues Line or Carrier bill of lading or House bill of laiding, for or on behalf of a shipping line and includes Non-vessel Operating Common Carriers (NVOCC), Slot Carriers, Charters, International Freight Forwarders and Consolidators, rendering services in relation to import and export of cargo, whether independently or as subsidiary of shipping line, carriers and Non-vessel Operating Common Carriers (NVOCC). : —

 

(2)               in section 3 : —

 

(i)                  in sub-section (1), in the third proviso, after the word “excisable” the words “goods and” shall be inserted : —  and

 

(ii)                in sub-section (11), for the proviso the following shall be substituted, namely : —

 

“Provided that in case of excisable goods or services notified under the third proviso to sub-section (1) —

 

(a)                a registered person manufacturing or producing such goods or providing or rendering such services shall be entitled to deduct input tax paid during the tax period from the amount of duty of excise due from him on such goods or services in respect of that tax period : —

 

(b)               a registered person shall be entitled to deduct the amount of duty of excise paid or payable by him on such goods or services as are acquired by him during a tax period from the output tax due from him in respect of that tax period : —

 

(c)                a registered person supplying such goods or providing or rendering such services shall be entitled to deduct duty of excise paid or payable on such goods or services as are acquired by him during the tax period from the amount of duty of excise due from him on such goods manufactured or produced or services as are provided or rendered by him during that period : —  and

 

(d)               a person shall be entitled to deduct duty of excise paid or payable, on such goods or services as are acquired by him during a month, from the amount of duty of excise due from him on such goods manufactured or produced or such services as are provided or rendered by him, during that month.

 

Explanation : —  For the purposes of this proviso,

 

(a)               the expression ‘person’ means a person manufacturing or producing excisable goods or providing or rendering excisable services notified under the third proviso to sub-section (1) of section 3 : —

 

(b)               the expression ‘registered person’ means a person registered under the Sales Tax Act, 1990 : —  and

 

(c)               the expressions  ‘input tax’, ‘output tax’ and ‘tax period’ shall have the same meanings as are assigned to them in the Sales Tax Act, 1990.  : —

 

(3)               in section 4, in sub-section (2), for the second proviso, the following shall be substituted, namely : —

 

“Provided further that the Central Board of Revenue, so far as it appears to be necessary or expedient, may by a notification, in the official Gazette, fix the minimum price of any goods or class of goods, for the purpose of charging of the duty, which shall include the product cost, incidence of duty of excise, trade margins and cost of manufacturing or any other component as determined by the costing of products.  : —  and

 

(4)               after section 36C, the following new section shall be inserted, namely : —

36D.   Alternate Dispute Resolution : — (1)            Notwithstanding any other provision of this Act, or the rules made thereunder, any aggrieved person in connection with any matter of central excise pertaining to liability of central excise duty, additional duty, admissibility of refund or rebate, waiver or fixation of penalty or fine, confiscation of goods, relaxation of any time period or procedural and technical condition may apply to the Central Board of Revenue for the appointment of a committee for the resolution of any hardship or dispute mentioned in detail in the application.

 

(2)        The Central Board of Revenue may, after examination of the application of an aggrieved person, appoint a committee consisting of an officer of central excise and one or two persons from a notified panel of Chartered or Cost Accountants, Advocates or reputable taxpayers for the resolution of hardship or the dispute.

 

(3)        The committee constituted under sub-section (2) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of central excise or any other person to conduct an audit and make recommendations in respect of the resolution of dispute as it may deem fit.

 

(4)        The Board may, on the recommendation of the committee, pass such order, as it may deem appropriate.

 

(5)        The aggrieved person may make the payment of central excise duty and other taxes as determined by the Board in its order under sub-section (4) and all decisions, orders and judgements made or passed shall stand modified to that extent and all proceedings under this Act or the rules made thereunder by any authority or forum shall abate:

 

Provided that, in case the matter is already sub judice before any forum or tribunal or the court, an agreement made between the aggrieved person and the Board in the light of recommendations of the committee shall be submitted before that forum, tribunal or the court for consideration and order as deemed appropriate.

 

(6)        In case the aggrieved person is not satisfied with the orders of the Board, he may file an appeal with the appropriate forum, tribunal or court under the relevant provisions of this Act within a period of sixty days of the order passed by the Board under this section has been communicated to the aggrieved person.

 

(7)        The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.  : —

 

(5)               in the First Schedule, in Chapter 98, under heading “Services”, in the first column, after heading number 9802.4000 and the entries relating thereto in the second and third columns, the following new heading number and the entries relating thereto in second and third columns, shall be inserted, namely : —

 

“9802.5000

Advertisements on cable T.V. network.

50% of the charges”

 

 

 

3.         Amendment of Act IV of 1969 : — The following further amendments shall be made in the Customs Act,1969 (IV of 1969), namely : —

 

    (1)        section 6, shall be renumbered as sub-section (1) thereof and after sub-section (1) re-numbered as aforesaid, the following new sub-section shall be added, namely : —

 

“(2)      No officer entrusted with any functions of any officer of customs under this Act shall interfere in any manner in the performance or discharge of any duty by an officer of customs in places notified under section 9.  : —

 

            (2)        for section 15, the following shall be substituted, namely : —

 

“15. Prohibitions : —  No goods specified in the following clauses shall be brought into or taken out of Pakistan, namely : —

 

(a)               counterfeit coins, forged or counterfeit currency notes, and any other counterfeit product : —

 

(b)               any obscene book, pamphlet, paper, drawing, painting, representation, figure, photograph, film, or, article, video or audio recording, CDs or recording on any other media : —

 

(c)               goods having applied thereto a counterfeit trade mark within the meaning of the Pakistan Penal Code, 1860 (Act XLV of 1860), or a false trade description within the meaning of the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Layout-Designs of Integrated Circuits Ordinance, 2000 (XLIX of 2000), the Registered Designs Ordinance, 2000 (XLV of 2000), the Patents Ordinance, 2000 (LXI of 2000), and the Trade Marks Ordinance, 2001(XIX of 2001),  and section 32 of this Act : —

 

(d)               goods made or produced outside Pakistan and having applied thereto any name or trade mark, being or purporting to be the name or trade mark of any manufacturer, dealer or trader in Pakistan unless,-

 

(i)                 the name or trade mark is, as to every application thereof, accompanied by a definite indication of the goods having been made or produced in a place outside Pakistan : —  and

 

(ii)               the country in which that place is situated is in that indication shown in letters as large and conspicuous as any letter in the name or trade mark, and in the same language and character as the name or trade mark : —

 

(e)               goods involving infringement of copyrights, layout-design of integrated circuits, industrial designs, patents within the meaning of the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Designs Ordinance, 2000 (XLV of 2000),  and the Patents Ordinance, 2000 (LXI of 2000), respectively : —  and

 

(f)                 goods made or produced outside Pakistan and intended for sale, and having applied thereto, a design in which copyright exists under the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Layout-Designs of Integrated Circuits Ordinance, 2000 (XLIX of 2000), the Registered Designs Ordinance, 2000 (XLV of 2000), the Patents Ordinance, 2000 (LXI of 2000), and the Trade Marks Ordinance, 2001 (XIX of 2001) , in respect of the class to which the goods belong or any fraudulent or obvious imitation of such design, patent, copyright except when the application of such design has been made with the licence or written consent of the registered proprietor, right holder of the design, patent or copyright, as the case may be.  : —

 

(3)              in section 25A, for sub-section (1), except clauses (i), (ii) and (iii), the following shall be substituted, namely : —

 

“(1)      If any person makes an offer in writing to buy the imported goods sought to be cleared at value declared by an importer in the bill of entry or goods declaration, the Assistant Collector or any other higher officer of customs may order the following without prejudice to any other action against the importer or his authorised agent, namely : —  

 

(4)              section 25B shall be omitted : —

 

(5)        in section 30, after the second proviso, the following new provisos shall be inserted, namely : —

 

“Provided further that in case of the goods illegally removed from the warehouse, the rate of duty shall be the rate prevalent either on the date of in-bonding or detection of case or date of payment of the duty and taxes, whichever is higher:

 

Provided further that in case of exercising option for redemption of fine in lieu of confiscation of the goods seized during anti-smuggling operations, the rate of duty shall be the rate prevalent either on the date of seizure or date of payment of duty and taxes, whichever is higher:  : —

 

(5)              after section 32, a new section 32A shall be inserted, namely : —

 

“32A Fiscal fraud : —  (1) If any person, in connection with any matter related to customs-

 

(a)               causes to submit documents including those filed electronically, which are concocted, altered, mutilated, false, forged, tempered or counterfeit to a functionary of customs : —

 

(b)               declares in the bill of entry or bill of export or electronically filed customs declaration, the name and address of any exporter or importer which is physically non-existent at the given address : —

 

(c)               declares in the bill of entry or bill of export or electronically filed customs declaration, an untrue information regarding description, quantity, quality, origin and value of goods : —

 

(d)               alters, mutilates or suppresses any finding of the customs functionary on any document or in the computerized record : —  or

 

(e)               attempts, abets or connives in any action in relation to offences mentioned in clauses (a), (b), (c) and (d) above,

he shall be guilty of an offence under this section.

 

(2)        Where, by any reason as referred to in sub-section (1) as aforesaid, any duty or tax charged or fee or fine and penalty levied under any provision of law has not been levied or has been short levied or has been refunded, the person liable to pay any amount on that account shall be served with a notice within a period of 180 days of the date of detection of such custom duty and tax fraud, requiring him to show cause as to why he should not pay the amount specified in the notice along with any other amount imposed as fine or penalty under the provisions of this Act.

 

(3)        The appropriate Adjudicating Officer, after considering the written or verbal representation of such person, may determine the amount of duty or tax charged or fee payable by such person which shall in no case exceed the amount specified in the notice and such person shall pay the amount so determined besides the fine or penalty or both.  : —

 

(7)      in section 35,  in the Explanation at the end, after the figure “131”, the word, figure and letter “or 131A” shall be added : —

 

(8)       in  section 79, for sub-section (3), the following shall be substituted,  namely : —

 

“(3) An officer not below the rank of Additional Collector of Customs may permit substitution of a goods declaration for home consumption for a goods declaration for warehousing or vice versa.  : —

 

(9)       in section 80, in sub-section (1), for the full stop at the end the colon shall be substituted and thereafter the following proviso shall be inserted, namely : —

 

“Provided that the Collector for reasons to be recorded in writing may defer the examination of goods or any class of goods or goods belonging to a particular importer or class of importers and cause it to be performed at a designated place he deems fit and proper.  : —

 

(10)     in section 98, in first proviso, for the word “two” the word “one” shall be substituted : —

 

 (11)    in section 131, after the proviso, the following new proviso shall be inserted, namely : —

 

“Provided further that the Collector for reasons to be recorded in writing may cause the examination of goods or any class of goods or good belonging to a particular exporter or class of exporters at a designated place as he deems fit and proper.  : —

 

(12)     in section 131A, in clause (a), the words “before filing of declaration” at the end shall be omitted : —

 

(13)     in section 139, for the full stop at the end the colon shall be substituted and thereafter the following proviso shall be added, namely : — –

 

“Provided that where the Customs Computerized System is operational, all declarations and communications shall be electronic.”

 

(14)     in section 156, in sub-section (1), in the Table, after serial No.14 and the entries relating thereto in columns 1, 2 and 3, the following new serial number and the entries relating thereto shall be inserted, namely : —

 

14A

If any person commits an offence under section 32A.

such person shall be liable to a penalty not exceeding three times the value of the goods in respect of which such offence is committed and such goods shall also be liable to confiscation and upon conviction by a Special Judge he shall further be liable to imprisonment for a term which may extend to ten years but shall not be less than five years or to fine, or to both.

32A 

 

 

(15)     in section 156, in sub-section (1), in the Table, in serial No.92 and entry relating thereto in column 2, for the word “three”, the word “seven”  shall be substituted : —

 

(16)      in section 166, in sub-section (1), the words “in connection with the smuggling of any goods” shall be omitted : —

 

(17)     in section 168, in sub-section (2) , in the first proviso, for the full stop at the end, the colon shall be substituted and thereafter the following new proviso shall be added, namely : —

 

“Provided further that the limitation prescribed under sub section (2) shall not apply to goods specified under the first proviso to section 181.: —-

 

(18)     in section 186, in sub-section (1),-

 

(i)          after the word “consideration” the comma and words “,or pending any inquiry or investigation”, shall be inserted : —  and

 

(ii)          after the word “paid” at the end, the words “or such inquiry and investigation has been completed” shall be inserted : —

 

(19)     in section 188, in clause (b) for the full stop at the end the colon shall be substituted and thereafter the following proviso shall be added, namely : —

 

“Provided that where the Customs Computerized System is operational, system generated documents shall be accepted as true and correct.  : —

 

(20)     after section 195-B, a new section 195-C shall be inserted, namely : —

 

195-C.  Alternate Dispute Resolution : —   (1) Notwithstanding any other provision of this Act, or the rules made thereunder, any aggrieved person in connection with any matter of Customs pertaining to liability of customs duty, admissibility of  refund or rebate, waiver or fixation of penalty or fine, confiscation of goods, relaxation of any time period or procedural and technical condition may apply to the Central Board of Revenue for the appointment of a committee for the resolution of any hardship or dispute mentioned in detail in the application.

 

(2)                 The Central Board of Revenue may, after examination of the application of an aggrieved person, appoint a committee consisting of an officer of customs and one or two persons from a notified panel of Chartered or Cost Accountants, Advocates or reputable taxpayers for the resolution of the hardship or dispute.

 

(3)                 The committee constituted under sub-section (2) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of customs or any other person to conduct an audit and make recommendations in respect of the resolution of dispute as it may deem fit.

 

(4)                 The Board may, on the recommendation of the committee, pass such order, as it may deem appropriate.

 

(5)                 The aggrieved person may make the payment of customs duty and other taxes as determined by the Board in its order under sub-section (4) and all decisions, orders and judgments made or passed shall stand modified to that extent and all proceedings under this Act or the rules made thereunder by any authority or forum shall abate:

 

Provided that, in case the matter is already sub-judice before any forum or tribunal or the court, an agreement made between the aggrieved person and the Board in the light of recommendations of the committee shall be submitted before that forum, tribunal or the court for consideration and order as deemed appropriate.

 

(6)                 In case the aggrieved person is not satisfied with the orders of the Board, he may file an appeal with the appropriate forum, tribunal or court under the relevant provision of this Act within a period of sixty days of the orders passed by the Board under this section has been communicated to the aggrieved person.

 

(7)                 The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.

 

(21)      in section 196, in sub-section (2), for the full stop at the end the colon shall be substituted and thereafter, the following proviso shall be added, namely : —  

 

“Provided that the High Court may, upon being approached by an aggrieved person, if satisfied that the delay was beyond the control of the applicant and that by not granting such extension, there is a possibility of some loss or hardship to the applicant being mitigated or prevented, extend the time limit laid down under sub-section (2) by not more than thirty days.  : —  

 

(22)      in section 199, in sub-section (1), after the word “agent”, the words “or where the Customs Computerized System is operational in the presence of the custodian of the goods” shall be inserted : —  and

 

(23)     The amendments set out in the Schedule shall be made in the First Schedule to the Customs Act, 1969 (IV of 1969).

 

4.         Amendment in the Finance Act, 1989 (V of 1989) : —  The following further amendments shall be made in the Finance Act, 1989 (V of 1989), namely : —   

 

                (I)        in section 7,-

 

 

(i)                  in sub-section (1), after the words “air ticket”, the words, commas, figures and brackets “or purchase of modaraba certificates or any instrument of redeemable capital as defined in the Companies Ordinance, 1984 (XLVII of 1984), or shares of a public company, listed on any stock exchange in Pakistan by a resident person defined in section 81 of the Income Tax Ordinance, 2001 (XLIX of 2001)” shall be inserted : —

 

(ii)                in sub-section (2), after clause (D), the following new clause shall be added, namely : —

 

 

“(E) purchase of modaraba certificates or any instrument of redeemable capital as defined in the Companies Ordinance, 1984 (XLVII of 1984), or shares of a public company listed on stock exchange in Pakistan.

0.1% of the purchase value. : –

 

 

 

(iii)               in sub-section (4), after the second proviso, the following new proviso shall be added, namely : —

            “Provided further that the Member Stock Exchange shall collect Capital Value Tax on the purchase value of modaraba certificates or any instrument of redeemable capital or shares of a public company from the resident persons  : —  and

 

            (iv)       sub-section (5) shall be omitted.

 

5.         Amendment in Sales Tax Act, 1990  ¾ The following further amendments shall be made in the Sales Tax Act, 1990, namely:¾

 

(1)               in section 2 : —

 

(a)    in clause (2A), the words and comma “further tax,” shall be omitted : —

 

(b)   after clause (3), the following new clause shall be inserted, namely : —

 

“(3A)   “banking company” means a banking company as defined in the Banking Companies Ordinance, 1962 (LVII of 1962) and includes any body corporate which transacts the business of banking in Pakistan  : —

 

(c)    clause (5A) shall be omitted : —  

 

(d)   in clause (9), the commas, words, brackets, figures and letter “, sub-section (6) of section 26A” shall be omitted : —  

 

(e)    clause (9a) and (9aa), shall be omitted : —  

 

(f)     in clause (14), in sub-clause (d), after the word “excisable”, the words “goods or” shall be inserted : —  

 

(g)    in clause (20), after the word “excisable”, the words “goods or” shall be inserted : —  

 

(h)    in clause (25), in the proviso, after the word “Act”, the words, brackets, numbers and letters “shall remain liable to further tax under sub-section (1A) of section 3 and” shall be omitted : —  

 

(i)      in clause (33), —

 

(i)         in sub-clause (b), after the semicolon at the end, the word “and” shall be added : —  

 

(ii)                                                                in sub-clause (c), for the semicolon and the word “ : —  and” a colon shall be substituted : —  and

 

(iii)                                                               sub-clause (d), shall be omitted and thereafter the following new proviso shall be added, namely : —

 

“Provided that the Federal Government, may by notification in the official Gazette, specify such other transactions which shall or shall not constitute supply : — ”

 

(j)     in clause (34), the words and comma “turnover tax,” shall be omitted : —  

 

(k)   in clause (37), in sub-clause (ii), at the end, the words and comma “including the making of taxable supplies without getting registration under this Act,” shall be added : —  

 

(l)      clause (38) shall be omitted : —  

 

(m)  clause (45) shall be omitted : —  and

 

(n)    in clause (47), for the words, brackets, figures and comma “persons deducting advance tax under sub-section (4) of section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979)”, the words, comma, figures and brackets “a person whose income is not liable to tax under the Income Tax Ordinance, 2001 (XLIX of 2001) but has deducted income tax at source under section 153 of the said Ordinance” shall be substituted : —

 

(2)               in section 3 : —  

 

(a)                sub-section (1A) shall be omitted : —

 

(b)               in sub-section (5), the word, brackets, figure and letter “and (1A)” shall be omitted : —  

 

(3)               section 3A shall be omitted : —  

 

(4)               in section 3AA, in sub-section (4), for the words and figures “under section 18”, the words and figures “as prescribed under section 14” shall be substituted : —

 

(5)               in section 4, the words “a supply of”, shall be omitted : —

 

(6)               in section 7 : —

 

(a)                in sub-section (I) : —  

 

(i)                  after the word “paid“, the words “or payable“ shall be inserted : —  and

 

(ii)                after the words “output tax”, the words and commas “, excluding the amount of further tax,” shall be omitted : —

 

(b)               in sub-section (2), in clause (iii), after the word “challan“, the commas and words“, in his name and bearing his registration number,“ shall be inserted : —

 

(7)        in section 7A, the existing provision shall be re-numbered as sub-section (1) thereof, and thereafter the following new sub-section shall be added, namely : —

 

“(2)      Notwithstanding anything contained in this Act or the rules made thereunder, the Federal Government may, by notification in the official Gazette, and subject to the conditions, limitations, restrictions and procedure mentioned therein, specify the minimum value addition required to be declared by certain persons or categories of persons, for supply of goods of such description, or class as may be prescribed, and to waive the requirement of audit or scrutiny of records if such minimum value addition is declared.”

 

(8)        in section 8 : —

(a)                in sub-section (1),

 

(i)                  in clause (b), the word “and”, occurring after the semicolon shall be omitted : —

 

(ii)                in clause (c) : —

 

(a)        the word “on” shall be omitted : —  

 

(b)        for the words, brackets and figures “sub-sections (1A) and”, the word “sub-section” shall be substituted : —  and

 

(c)        for the full stop at the end, a semi-colon shall be substituted : —

 

(b)               after clause (c), amended as aforesaid, the following new clauses shall be added namely: —

 

(d)        fake invoices : —  and

 

(e)        purchases made by such registered person, in case he fails to furnish the information required by the Board through a notification issued under sub-section (5) of section 26.”

 

(c)                sub-section (4), shall be omitted : —

 

(d)               in sub-section (6), the words “or enrolled”, occurring twice shall be omitted : —  and

 

(e)                sub-section (7), shall be omitted : —

 

(9)        in section 10, in sub-section (1), for the first proviso the following shall be substituted, namely  : —

 

“Provided that any excess amount of tax carried forward, from the previous tax period may be refunded to the registered person subject to such conditions, restrictions and limitations as the Board, may by notification in the official Gazette, specify”.

 

(10)      in section 13, in sub-section (2), in clause (b), for the word “supply”, the words “import or supply of goods of such description or class, as may be specified”, shall be inserted : —  

 

(11)      for section 14, the following shall be substituted, namely : —

 

14.      Registration : —  Under this Act, registration will be required for such persons and be regulated in such manner and subject to rules as the Board may, by notification in the official Gazette, prescribe.”

 

(12)      sections 15, 17, 18, 19 and 20 shall be omitted : —  

 

(13)      for section 21, the following shall be substituted, namely : — —

 

21.      De-registration, blacklisting and suspension of registration : —  (1) The Board or any officer, authorized in this behalf, may subject to the rules, de-register a registered person or such class of registered persons not required to be registered under this Act.

 

(2)        Notwithstanding anything contained in this Act, in cases where the Collector is satisfied that a registered person is found to have issued fake invoices, evaded tax or has committed tax fraud, he may blacklist such person or suspend his registration in accordance with such procedure as the Board may, by notification in the official Gazette, prescribe.”

 

(14) in section 22, in sub-section (1), in clause (d), after the words and comma “bank statements,” the words, comma and figure “banking instruments in terms of section 73,” shall be inserted : —  

 

(15) in section 23 : —  

 

(a)    in sub-section (1), clause (ff) shall be omitted : —  and

 

(b)   in sub-section (2), the words “turnover tax or”, shall be omitted : —  

 

(16) in section 26 : —  

 

(a)        in sub-section (4), in the second proviso, the words, figures, letter and brackets “along with the amount of further tax as per provision of sub-section (1A) of section 3, if applicable”, shall be omitted : —  and

 

(b)        after sub-section (4), the following new sub-section shall be added, namely : —

 

“(5)      The Board may, by notification in the official Gazette, require any person or class of persons, for any goods of such description or class, to furnish such summary or details or particulars pertaining to the imports, purchases and supplies during any tax period or periods, in such format as may be specified.  : —

 

(17) section 26A, shall be omitted : —  

 

(18) in section 26AA, in sub-section (4), in the second proviso, the words, figure, letter,  brackets and comma “along with the amount of further tax as per provision of sub-section (1A) of section 3, if applicable”, shall be omitted : —  

 

(19) in section 27, in clause (a), the words “or enrolled” shall be omitted : —  

 

(20) in section 32AA, in sub-section (2), the words, figure and letter “turnover tax under section 3A or”, shall be omitted : —

 

(21) in section 33 : —

 

(b)               in sub-section (2) : —  

 

(i)                  in the proviso, after the word “Provided”, the word “further”, shall be inserted : —  and

 

(ii)                before the existing proviso, amended as aforesaid, the following new proviso shall be inserted, namely : —

 

“Provided that in case the amount of sales tax payable in the return does not exceed five thousand rupees, he shall pay a penalty of one thousand rupees:”

 

(c)                In sub-section (3) : —  

 

(i)                  in clause (a), —

 

(a)                the words “or enrollment” shall be omitted : —  and

 

(b)               for the words and semicolon “within the specified period : —  or”, the words and semicolon “for registration before making taxable supplies : — ”  shall be substituted  : —

 

(ii)                in clause (b), for the comma at the end, a semicolon and the word “or” shall be substituted and thereafter the following new clause shall be inserted, namely : —

 

“(c)      fails to furnish the information required by the Board through a notification issued under  sub-section (5) of section 26,  : —

 

(c)        in sub-section (4), for the word “thirty”, the words “one hundred” shall be substituted : —  and

 

(d)        in sub-section (6A), the words “or enrolled”, shall be omitted : —

 

(22)      in section 36, in sub-section (3), in the second proviso, the words “or enrolled” shall be omitted : —

 

(23)      in section 37C, in sub-section (1), in clause (b), for the words “of the expiry of the period given in section 15 read with clause (a) of sub-section (3) of section 33”, the words “of the commencement of taxable activity”, shall be substituted : —

 

(24)      after section 38, the following new section shall be inserted, namely : —

 

38A.   Power to call for information : — The Collector 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.  : —

 

(25)      for section 40, the following shall be substituted, namely: —

 

“40.     Searches under warrant-  (1) Where any officer of sales tax 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, enter that place and cause a search to be made at any time.

 

(2)        The search 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).  : —

 

(26) in section 45 : —

 

(a)    after the word “refunded”, the words “or any other contravention” shall be inserted : —  and

 

(b)   after the second proviso, in the explanation, for the words and commas “other than further tax or additional tax and in a case where only further tax, whether or not with additional tax, is involved, the amount of further tax and in all other cases additional tax”, the words and commas “other than additional tax, and in case where only additional tax is involved, the amount of additional tax” shall be substituted : —

 

(27) in section 45B, in sub-section (1), for the figures, comma and word “11, 36 or 45”, the figures, commas and word “10, 11, 36, 45 or 66” shall be substituted : —

 

(28) in section 46, in sub-section (9) : —  

 

(a)                                  in clause (a), after the word “involved” occurring for the second time, the words “does not exceed five hundred thousand rupees” shall be inserted : —  and

 

(b)                                 in clause (b), the semicolon occurring after the word “involved”, shall be omitted : —

 

(29)      for section 47A the following new section shall be substituted, namely : —

 

47A.   Alternate dispute resolution : — (1) Notwithstanding any other provision of this Act, or the rules made thereunder, any registered person aggrieved in connection with any matter of sales tax in respect of the following, namely : —

 

(a)                                        the liability of tax against the registered person, or admissibility of refunds, as the case may be : —  

 

(b)                                       the extent of waiver of additional tax and penalty : —  

 

(c)                                        the quantum of input tax admissible in terms of sub-section (3) of section 7 : —  

 

(d)                                       relaxation of any procedural or technical irregularities and condonation of any prescribed time limitation : —  and

 

(e)                                        any other specific relief required to resolve the dispute,

 

may apply to the Central Board of Revenue for the appointment of a committee for the resolution of any hardship or dispute mentioned in detail in the application.

 

(2)        The Central Board of Revenue may, after examination of the application of a registered person, appoint a committee consisting of an officer of sales tax and one or two persons from among the notified panel of chartered or cost accountants, advocates, representatives of trade bodies or associations, or any other reputable taxpayers for the resolution of the dispute.

 

(3)        The committee constituted under sub-section (2) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of sales tax or any other person to conduct an audit and make recommendations in respect of the resolution of the dispute as it may deem fit.

 

(4)        The Board may, on the recommendation of the committee, pass such order, as it may deem appropriate.

 

(5)        The registered person may make the payment of sales tax and other duty and taxes as determined by the Board in its order under sub-section (4) and all decisions, orders and judgements made or passed shall stand modified to that extent and all proceedings under this Act or the rules made thereunder by any authority or forum shall abate:

 

Provided that, in case the matter is already subjudice before any forum or tribunal or the court, an agreement made between the registered person and the Board in the light of recommendations of the committee shall be submitted before that forum, tribunal or the court for consideration and orders as deemed appropriate.

 

(6)        In case the registered person is not satisfied with the orders of the Board, he may file an appeal with the appropriate forum, tribunal or court under the relevant provisions of this Act within a period of sixty days of the order passed by the Board under this section has been communicated to the registered person.

 

(7)        The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.

 

(30)      after section 49, the following new section shall be inserted, namely : —

 

49A.   Liquidators : —   (1) Every person (hereinafter referred to as a “liquidator”) who is-

 

(a)        a liquidator of a company : —

 

(b)        a receiver appointed by a Court or appointed out of Court : —  

 

(c)    a trustee for a bankrupt : —  or

 

(d)   a mortgagee in possession,

 

shall, within fourteen days of being appointed or taking possession of an asset in Pakistan, whichever occurs first, give written notice thereof to the Collector.

 

(2)        The Collector shall, within three months of being notified under sub-section (1), notify the liquidator, in writing, of the amount which appears to the Collector to be sufficient to provide for any sales tax which is or will become payable by the person whose assets are in the possession of the liquidator.

 

(3)        A liquidator shall not, without leave of the Collector, part with any asset held as liquidator until the liquidator has been notified under sub-section (2).

 

(4)               A liquidator-

 

(a)                shall set aside, out of the proceeds of sale of any asset by the liquidator, the amount notified by the Collector under sub-section (2), or such amount as is subsequently agreed to by the Collector : —  and

 

(b)               shall be liable to the extent of the amount set aside for the sales tax liability of the person who owned the asset.

 

(5)        A liquidator shall be personally liable to the extent of any amount required to be set-aside under sub-section (4) for the tax referred to in sub-section (2) if, and to the extent that, the liquidator fails to comply with the requirements of this section.

 

(6)        Where the proceeds of sale of any asset are less than the amount notified by the Collector under sub-section (2), the application of sub-section (4) and (5) shall be limited to the proceeds of sale.

 

(7)        This section shall have effect notwithstanding anything contained in any other law for the time being in force.”

 

(31)      in section 51, after sub-section (2), the following new sub-section shall be added, namely : —

 

“(3)      Notwithstanding anything in any other law for the time being in force, no investigation or inquiry shall be undertaken or initiated by any governmental agency against any officer or official for anything done in his official capacity under this Act, rules, instructions or direction made or issued thereunder without the prior approval of the Board.”

 

(32)      after section 51, amended as aforesaid, the following new section shall be inserted, namely : —

 

“51A. Assistance to the officers of Sales Tax : —  All officers of Customs, Central Excise, Police and Civil Armed Forces and all officers engaged in the collection of land revenue are hereby empowered and required to assist officers of sales tax in the discharge of their functions under this Act”.

 

(33)           in section 59 : —  

 

(i)                  the commas and words “, other than the turnover tax,” shall be omitted : —  and

 

(ii)                for the word and figure “section 18” the words “this Act or the rules made thereunder” shall be substituted : —

 

(34)      in section 67, for the word “fourteen” the word “six” shall be substituted : —

 

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By |2019-04-23T06:50:51+00:00April 23rd, 2019|Laws|Comments Off on Finance Act, 2004