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.

THE BALOCHISTAN SALES TAX ON SERVICES 2015 Act, 2015 (Act No Vi of 2015)

AN
ACT
to provide for the levy of a tax on services provided,
rendered, initiated, received, originated, executed or
consumed in Balochistan.

Preamble. Where it is expedient to provide for the levy of a tax on

services provided, rendered, initiated, originated,
executed, received or consumed in Balochistan and to
deal with ancillary matters.
It is hereby enacted as follows: -
CHAPTER – I
PRELIMINARY

Short Title, Extent and 1. (1) This Act shall be called the Balochistan Sales Tax
Commencement. on Services Act 2015.
(2) It extends to the whole of Balochistan except its
Tribal Areas.
(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.
Definitions. 2. In this Act unless there is anything repugnant in the
subject or context:
(1) “Act” means the Balochistan Sales Tax on Services
Act, 2015.
(2) “Appellate Tribunal” means the Appellate Tribunal
established under law and notified by the Government
as the Appellate Tribunal for purposes of the Act;
(3) “Arrears”, in relation to a person, shall mean, on any
day, the tax due and payable by the person under the
Act or the rules before that day but which has not yet
been paid;
1
(4) “Assistant Commissioner” means a person appointed
as an Assistant Commissioner of the Authority;

(5) “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 intentions of a
third person but two persons shall not be
associates solely by reason of the fact that one
person is an employee of the other or both
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 paragraph

(a) and subject to paragraph (c), the following
persons shall always be treated as associates:-

(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 members, either alone or
together with an associate or associates under
another application of this section controls fifty
percent 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 section,
controls either directly or through one or more
interposed persons:-

(a) fifty percent or more of the voting power in the

company;
(b) fifty percent or more of the rights to dividends;
or
(c) fifty percent 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 section,
controls either directly or through one or more
interposed persons:-
a. fifty percent or more of the voting power
in both companies;
b. fifty percent or more of the rights to
dividends in both companies;
2
 c. fifty percent or more of the rights to
capital in both companies; and
d. two persons shall not be associates under
Serial Number (i) or (ii) of clause (b)
where the Commissioner 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 Serial Number (i);

(6) “Association of persons” includes a firm; any artificial

or juridical person and body of persons formed under a
foreign law, but does not include a company;

(7) “Authority” means Balochistan Revenue Authority

established under the Balochistan Revenue Authority
Act, 2015;

(8) “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 Balochistan;

(9) “Commissioner” means a person appointed as

Commissioner of the Authority;

(10) “Commissioner (Appeals)” means a person

appointed as Commissioner (Appeals) of the Authority;

(11) “Common taxpayer identification number” means

the registration number or any other number or
identification code allocated to a registered person;

(12) “Company” means:-

(a) a company as defined in the Companies
Ordinance, 1984 (XLVII of 1984);
(b) a body corporate formed by or under any law;
(c) a modarba and any other Islamic financial
institution;
(d) a body incorporated outside Pakistan;
(e) a trust, a co-operative society or a finance society
or any other society established or constituted by
or under any law; or
(f) a foreign association, whether incorporated or
not, which the Authority has, by general or
special order, declared to be a company for
3
 purposes of the Act;

(13) “Computerized system” means any comprehensive

information technology system, including its
development, up-gradation or updation, to be used by
the Authority or any other office as may be notified by
the Authority, for carrying out the purposes of the Act;

(14) “Default surcharge” means the default surcharge

levied under the Act;

(15) “Defaulter” means a person and, in the case of

company or firm, every Director of the company or
partner of the firm and includes guarantors or
successors, who fail to pay the arrears of tax under the
Act and the rules;

(16) “Deputy Commissioner” means a person appointed

as a Deputy Commissioner of the Authority;

(17) “Document” includes any electronic data, computer

programmes, computer tapes, computer disks,
microfilms or any other medium or mode for the storage
or conveyance of such data;

(18) “Due date” in relation to the furnishing of a return

under Chapter VI means the 15th day of the month
following the end of the tax period, or such other date as
the Authority may, by notification in the official
Gazette, specify;

(19) “Economic activity” shall have the meaning given

to it in section 6;

(20) “E-intermediary”” means a person appointed as e-

intermediary under the Act;

(21) “Exempt service” means a service which is exempt

from the tax under section 12;

(22) “FBR” means the Federal Board of Revenue

established under the Federal Board of Revenue Act,
2007;

(23) “Financial year” means the period from 1st July of a

year to 30th June of the following year;

(24) “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;

(25) “Goods” include every kind of movable property

other than actionable claims, money, stocks, shares and
4
securities but does not include a service defined under
the Act;

(26) “Government” means Government of Balochistan;

(27) “Inter-bank rate” means the Karachi inter-bank

offered rate prevalent on the first day of each quarter of
a financial year;

(28) “Officer of the Authority” means any officer of the

Authority;

(29) “Open market price” shall have the meaning as

given to it in section 8;
(a) (30) “Person” means:-
(b) an individual;
(c) a company;
(d) Federal Government;
(e) a Provincial Government;
(f) a local authority or local government; or
(g) a foreign government, a political subdivision of a
foreign government, or public international
organization;

Explanation
The use of the word “he” in the Act shall be taken to
refer to any or all mentioned from (a) to (f) as required
in the context of the relevant provision;

(31) “Place of business” means that a person:-

(a) Owns, rents, shares or in any other manner
occupies a space in Balochistan from where he
carries on an economic activity whether wholly
or partially; or
(b) Carries on an economic activity whether wholly
or partially through any other person such as an
agent, associate, franchise, branch, office, or
otherwise in Balochistan but dose not includes a
liaison office;

(32) “Prescribed” means prescribed by the rules;

(33) “Registration number” means the number allocated

to a registered person for purposes of the Act;

(34) “Registered person” means a person who is

registered or is liable to be registered under the Act but
the person liable to be registered and has not registered
shall not be entitled to any benefit available to a
registered person under any of the provisions of the Act
or the rules;

(35) “Return” means any return required to be furnished

5
under Chapter VI of the Act;

(36) “Resident” means:-

(a) An individual who, in a financial year, has:-
(i) a place of business, 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; or
(b) An association of persons or a company,
which, in a financial year, has:-
(i) its registered office in Balochistan
(ii) its place of business, 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
affairs of the association of persons is
situated in Balochistan at any time during
the financial year;

(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,
6
 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.
Taxable Service 3. (1) Subject to such exclusion as mentioned in Second
Schedule, a taxable service is a service listed in Second
Schedule, which is provided by a person from his office
or place of business in Balochistan in the course of an
economic activity, including the commencement or
termination of the activity.

Explanation

(1) This sub-section deals with services provided by a

person regardless whether such services are provided to
a resident person or a non-resident person.

(2) if a service listed in Second Schedule is provided to a

resident person by a non-resident person in the course
of an economic activity, including the commencement or
7
 termination of the activity, it shall be treated as a
taxable service.

Explanation
This sub-section deals with services provided by a non-
resident person to a resident person whether or not the
end consumers, if any, of such services are identifiable
for purposes of this Act or the rules.

(3) For purposes of sub-section (2), where a person has a

registered office or plan of business in Balochistan and
another outside Balochistan, the registered office or
place of business in Balochistan and that outside
Balochistan shall be treated as separate legal persons,

(4) The Authority may, with prior approval of the

Government, by notification in the official Gazette,
prescribe rules for determining the conditions under
which a particular service or class of service shall be
considered to have been provided by a person from his
registered office or place of business in Balochistan.

(5) For purposes of this Act and the rules, providing of

service shall, where the context requires, include
rendering, supply, initiation, origination, execution,
reception, consumption or termination of service
whether in whole or in part.

Application of Principles of 4. (1) Where a person is providing taxable services in

Origin and Reverse Charge Province other than Balochistan but the recipient of
in Certain Situations 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, he shall deduct the whole
amount of tax in respect of the service received and pay
the same to the Government.

(3) Where a person is providing taxable services in more

than one provinces or territory in Pakistan including
Balochistan, such person shall be liable to pay tax to the
Government to the extent the tax is charged from a
person resident in Balochistan or from a person, who is
otherwise availing such services in Balochistan,

(4) Where rendering of a taxable service originates from

Balochistan but terminates outside Pakistan, such
person shall be required to pay tax on such service to
the Government.

(5) Where a taxable service originates from outside

8
 Pakistan but is received or terminates in Balochistan,
the recipient of such service shall be liable to pay the tax
to the Government.

(6) The persons who are required to pay the tax to the
Government in terms of sub-sections (1), (2), (3), (4),
and (5) shall be liable to registration for purposes of this
Act and the rules.

(7) All questions or disputes relating to the application

of the principle of origin given in this section shall be
resolved in terms of the already recorded understanding
between the Federal Government and the Provincial
Governments on the implementation of reformed
General Sales Tax provided that pendency of any such
question or dispute shall not absolve the concerned
person from his obligation to deposit the tax.

(8) The provisions of this section shall apply

notwithstanding any other provision of this Act or the
rules and the Government may specify special procedure
to regulate the provisions of this section.

Amendment in Second 5. (1) The Government may, by notification in the

Schedule official Gazette, make an amendment in Second Schedule
by modifying, adding or deleting any entry or entries
with reference to the classification, if any, description of
any service or class of service and the rate or rates of tax
chargeable on any service or class of services not
exceeding the minimum rate prescribed in Second
Schedule.

(2) A notification issued under sub-section (1) shall be

effective from such date as may be specified in the
notification by such date shall not be prior to the date on
which the notification is published in the official
Gazette.

(3) The Government shall at the time of presenting the

Annual Budget Statement for the next financial year, lay
before the Provincial Assembly of Balochistan all the
notifications relating to the amendments in the Second
Schedule during the current financial year.

Economic Activity 6. (1) An economic activity means any activity carried

on whether continuously, regularly or otherwise by a
person that involves or is intended to involve the
provision of services to another person and includes:-
(a) an activity carried on in the form of a business,
including a profession, calling, trade or
undertaking of any kind, whether or not the
activity is undertaken for any consideration or
profit;
9
 (b) the supply of movable property by way of lease,
license or such similar arrangement; 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 employee; or
(b) a private recreational pursuit or hobby of an
individual.

Value of a Taxable Service 7. (1) The value of a taxable service is the consideration
(by whatever name called such as charges or price ) in
money including all the Federal and the Provincial
duties, taxes or charges, if any, which the person
providing a service receives from the recipient of the
service but does not include the amount of the tax.

(2) In case the consideration for a service is in kind or is

partly in kind and partly in money, the value of the
service shall mean the open market price of the service
as determined under section 8 excluding the amount if
the tax.

(3) In case the person who provides the service and the
recipient of the service are lower associated persons and
the service is supplied for no consideration or for a
consideration which is lower than the price at which the
person provides the service to other persons who are not
associated persons, the value of the service shall mean
the price at which the service is provided to such other
persons but does not include the tax.

(4) In case a person provides a service for no

consideration or for a consideration, which is lower than
the price at which such a service is provided by such
person, the value of the service shall mean the open
market price for such a service.

(5) In case of trade discounts, the value of the service

shall mean the discounted price, excluding the amount
of the tax, provided the invoice shows that the
discounted price and the related tax and the discount
allowed is in conformity with customary business
practice.

(6) In case there is reason to believe that the value of a

service has not been correctly declared in the invoice or
for any special nature of transaction it is difficult to
10
 ascertain the value of a service, the value of the service
shall be the open market price.

(7) Notwithstanding anything in sub-sections (1) to (6),

where the Authority deems it necessary, it may, by
notification in the official Gazette, fix the value of any
service or class of or similar types of services but if the
value at which the service is provided is higher than the
value fixed by the Authority, the value of the service
shall, unless otherwise directed by the Authority, be the
value at which the service is provided.

Explanation

For the purpose of this section, the value of the utilities

or facilities, if any, ancillary to providing of taxable
services shall be included in the value of such services.

(8) The Authority may, by notification in the official

Gazette issue valuation rule for any service or class of
services for the purposes of assessment or determination
and payment of tax under this Act and prescribe
threshold, parameters, standards, methods, formula,
criteria or bases for the determination of value of any
taxable service or class of taxable services and the
assessment of the tax on any service or class of services.

Open market price 8. (1) The open market price of a service is:-
(a) the price, the service would fetch in an open
market transaction freely entered into between
persons who are not associated persons; or
(b) if it is not possible to determine an amount
under paragraph (1), the price, a similar service
would fetch in an open market transaction
freely made between persons who are not
associated persons, adjusted to take account of
the differences between the similar service and
actual service;
(c) determined on the basis of the market
conditions prevailing at the time and place at
which the service is provided.

(2) If the open market price of a service cannot be

determined under sub-section (1), it may be determined
by using any method or formula specified by the
Authority for calculating an objective approximation of
the price, the service would fetch in an open market
transaction freely made between persons who are not
associates.

Provision of Services Over a 9. (1) Where a service is provided over a period of time
Period of Time and payment for the same is made on a periodic basis,
the service shall be treated as comprising two or more
11
 separate and distinct services each corresponding to the
part of the service to which each separate part of the
consideration relates.

ILLUSTRATIONS
(a) Where services are provided for a two years period
and payment is made on a semi-annual basis, the
provision of services for each six months period
constitutes a separate service
(b) Where an insurance company provides as insurance
policy over a five years period and receives a
premium on an annual basis, each premium relates
to a separate service.
(c) Note: The above illustrations are merely
explanatory and shall not be construed as
conclusive in any manner whatsoever.

(2) This section does not apply to services for which

payment is made on installments basis.

CHAPTER – II
SCOPE OF TAX

Scope of Tax and Allied 10. (1) Subject to the provisions of this Act and the
Matters rules, there shall be charged, levied collected and paid
the tax on the value of a taxable service at the rate or
rates specified in the Second Schedule.

(2) 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.

(3) Notwithstanding other provisions of this Act, the

Authority may, with the prior approval of the
Government and by notification in the official Gazette
and subject to the conditions, restrictions, limitations or
otherwise, fix the limit or threshold of annual turnover
of any service or class of services provided by any
person or class of persons below which such person or
class of person shall be exempt from payment of tax
under the Act.

(4) A person required to pay tax under this Act shall be

entitled to deduct from the payable amount, the amount
of tax already paid by him on the receipt of taxable
services used exclusively in connection with taxable
services provided by such person subject to the
12
 condition that he holds a true and valid tax invoice not
older than six tax periods, showing the amount of tax
earlier charged and paid under the Act on the services so
received but the Authority may, by notification in the
official Gazette, disallow or restrict such deduction in
case of any service or services as it may deem
appropriate.

Person Liable to Pay Tax 11. (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 registered person providing the service.

(2) Where a service is taxable by virtue of sub-section

(2) of section 3, the liability to pay the tax shall be on
the person receiving the service.

(3) The Authority may, by notification in the official

Gazette, specify the service or Services in respect of
which the liability to pay tax shall be on any person,
other than the person providing the taxable service, or
the person receiving the taxable service.

(4) Nothing contained in this section shall prevent the

collection of tax from different person if that person is
made separately or jointly or severally liable for the tax
under section 19.

Exemptions 12. (1) Notwithstanding the provisions of sections 3 and

10, the Authority may, with the approval of the
Government and subject to such conditions, limitations
or restrictions as it may impose, by notification in the
official Gazette, exempt:-
(a) taxable service or services from the whole or any
part of the tax;
(b) taxable service or services provided by a person
or class of persons from the whole or any part of
the tax;
(c) recipient or recipients of service or services,
including international organizations and
institutions, from the payment of the whole or
any part of the tax; and
(d) a class of persons, any area or areas of
Balochistan from the whole or any part of the
tax.

(2) The exemption under sub-section (1) may be allowed

from any previous date specified in the notification
issued under sub-section (1).

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

13
Special Procedure and Tax 14. (1) Notwithstanding anything contained in this Act,
Withholding Provisions the Authority may, by notification in the official
Gazette, prescribe a special procedure for the payment
of tax, registration, book keeping, invoicing or billing
requirements, returns and other related matters in
respect of any service or class of services, as may be
specified.

(2) Notwithstanding other provisions of this Act, the

Authority may require any person or class of person
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 precision 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.

Delegation of Power to 15. (1) The Government may, in accordance with article
Collect, Administer and 147 of the Constitution of the Islamic Republic of
Enforce Tax on Certain Pakistan, authorize the Federal Board of Revenue or any
Services 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), the tax on taxable services notified under sub-
section (1), the tax on taxable services notified under
sub-section (1) shall be administered, collected and
enforced by the Authority the same mode and manner as
all other taxable services.

Adjustments 16. (1) The Authority may, subject to such conditions

and restrictions as it may specify, allow registered
persons to claim adjustments or deductions, including
refunds arising as a result thereof, in respect of 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
14
 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).

CHAPTER – III
PAYMENT AND COLLECTION OF TAX ON TAXABLE SERVICES

Collection of Excess Tax 17. (1) Any person who has collected or collects 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.

(2) Any amount payable to the Government under sub-

section (1) shall be deemed to be an arrear payable under
the Act and shall be recovered accordingly.

(3) The burden of proof that the incidence of tax or

charge referred to in sub-section (1) has been or has not
been passed to the person to whom the service is
provided shall be on the person collecting the tax or
charge.

Time, Manner and Mode of 18. (1) The tax in respect of a taxable service provided
Payment during a tax period shall be paid by a person 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.

15
 (4) The tax due on taxable service shall be paid by any
of the following modes:-
(a) through deposit in a bank designated by the
Authority; or
(b) through such other mode and manner as may be
specified by the Authority.

Joint and Several Liability 19. (1) Where a registered person receiving a taxable
of Registered Persons service from another registered person is in the
Where Tax Unpaid knowledge of or has reasonable grounds to suspect that
some or all of the tax payable in respect of that taxable
service provided would go unpaid as against the
requirements of this Act, such person as well as the
person providing the taxable service shall be jointly and
severally liable for payment of such unpaid amount of
the tax.

(2) The Authority may, by notification in the official

Gazette, exempt any person, service or transaction or
class of persons, services or transactions from the
provision of sub-section (1)

Sales of Taxable Activity or 20. (1) Where the ownership of any business providing
Transfer of Ownership 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.

(2) The tax chargeable on 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.

Estate of Deceased Person 21. 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.

Estate in Bankruptcy 22. (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.

Liability for Payment of Tax 23. Where any private company or business enterprise
in Case of Private is wound up and any tax chargeable on or payable by
Companies or Business the company or business enterprise, whether before, or
16
Enterprises 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.

Assessment of Tax 24. (1) Where on the basis of any information acquired
during an audit, inquiry, inspection or otherwise, an
officer of the Authority is of the opinion that a
registered person has not paid the tax due on taxable
services provided by him or has made short payment,
the officer shall make an assessment of the tax actually
payable by that person and shall impose a penalty and
charge default surcharge in accordance with section 48
and 49.

(2) No order under sub-section (1) shall be made unless

a notice to show cause is given to the person in default
within five year from the conclusion of the tax period to
which the assessment relates specifying the ground on
which it is intended to proceed against him and the said
officer shall take into consideration the representation
made by such person and provide him with an
opportunity of being heard if the person so desires.

(3) An order under sub-section (1) shall be made within

one hundred and twenty days of issuance of the show
cause notice or within such extended period as the
officer may, for reasons to be recorded in writhing, fix
provided that such extended period shall ordinarily not
exceed sixty days.

(4) In computing the period specified in sub-section (3)

any period during which the proceedings are adjourned
on account of a stay order or proceedings under section
69 or the time taken through adjournments by the
person shall be excluded.

(5) An order passed by an officer under sub-section (1)

may be further amended as may be necessary when on
the basis of any additional information acquired during
an audit, inquiry, inspection or otherwise the officer is
satisfied that:-
(a) any tax has been under-assessed or assessed at a
low 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).

17
 CHAPTER – IV
REGISTRATION

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

(a) provides any taxable service from his office or

place of business in Balochistan; or
(b) is otherwise required to be registered under any
of the provisions of the Act or the rules; or
(c) fulfills any other criteria or requirement which
the Authority may prescribe under sub-section
(2).

(2) The registration under this section will be regulated

in such manner and subject to such conditions and
restrictions as the Authority may, by notification in the
official Gazette, prescribe.

(3) A person who receives a service, which is a taxable

service by virtue of sub-section (2) of section 3, and is
not a registered person shall be deemed to be a
registered person for the purposes of the tax period in
which:-
(a) such person receives the service;
(b) an invoice for the value of the service is issued or
sent to or received by the person; or
(c) consideration for the service is paid by the
person:-
whichever is earlier and all the provisions of this
Act and the rules shall be applicable to such
person for that particular tax period and any
matters relating to, arising out of, or concerning
that tax period as if that person had provided
the service.

(4) The Authority may publish on its website a list or

persons registered under this Act.

(5) It shall be reasonable for a person to believe that

another person is registered under this Act if that other
person is on the list placed on the website of the
Authority.

Voluntary Registration 26. (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
18
 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. (ii) complied with his obligations under
other applicable taxation laws.

Compulsory Registration 27. (1) If the Authority is satisfied that a person who is
required to be registered and has not applied for
registration, the Authority shall register the person and
shall, not later than fifteen before the day on which the
registration takes effect, notify the person of the
registration, the day on which it takes effect, and the
registration number issued to the person.

(2) No person shall be registered compulsorily without

being given an advance notice and an opportunity of
being heard in such manner as the Authority may
specify.

(3) The Authority may, by notification in the official

Gazette, authorize any officer to perform any of the
functions under this section relating to compulsory
registration of a person for any of the taxable services.

Suspension of Registration 28. (1) Subject to sub-section (3), the Authority may
temporarily inactivate the registration of a person if it is
satisfied that the person:-
(a) is not entitled to be registered; or
(b) has failed to comply with obligations under this
Act or the rules.

(2) The Authority 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 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 may suspend that person’s
registration.

(4) The suspension of registration shall be effected by

removing the name of the person from the list of
19
 registered persons published on the Authority’s website.

(5) At any time within a period of sixty days of

suspension, the Authority 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 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 either through enquiry, investigation or audit
is satisfied that circumstances exist necessitating such
cancellation and under no circumstances, the
cancellation of registration shall absolve the person of
his other obligations and liabilities under the Act or the
rules.

De-registration 29. (1) The Authority 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 to be de-registered.

(3) If upon receiving such an application, the Authority

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 receives an application under

sub-section (2), it shall dispose off the application within
a period of three months from the date of the receipt of
the application, or within such extended period, not
exceeding sixty days, as the Authority may, for reasons
to be recorded in writing, fix.

CHAPTER – V
BOOK KEEPING AND AUDIT PROCEEDINGS

Issuance of Tax Invoices 30. (1) A registered person providing a taxable service
shall issue a numbered and dated tax invoice containing
the following particulars:-
20
 (a) name, address and registration number of the
service provider;
(b) name, address and registration number, if any,
of the service recipient;
(c) description of service or services;
(d) amount of the tax; and
(e) value inclusive of the tax.

(2) The Authority may, by notification in the official

Gazette, specify such modified invoices for different
services or persons and prescribe the manner and
procedure for regulating the issuance and authentication
of tax invoices.

(3) A registered person providing a taxable service may,

subject to such condition and restrictions as the
Authority may, by notification in the official Gazette,
specify, issue invoices to another registered person or
other recipient of taxable service electronically and
transmit images or statements of such invoices to the
Authority as well as to the Commissioner, as may be
specified.

Records 31. (1) A registered person providing taxable service

shall maintain and keep at his business premises or
registered office in English or Urdu the following
records of taxable service (including exempt service)
provided by him or by his agent acting on this behalf in
such form and manner as would permit ready
ascertainment of his tax liability during a tax period:-
(a) records of taxable service provided
indicating:-
(i) the description and type of service;
(ii) the value of the service;
(iii) the particulars of the person to whom the
service was provided; and
(iv) any other information as may be specified
by the Authority;
(b) records of exempt service; and
(c) such other records as may be specified by the
Authority.

(2) The Authority may, by notification in the official

Gazette, require a registered person or class of
registered persons to declare and use as many number of
business bank accounts as may by specified by the
Authority in such notification to make or receive
payments on account of providing service for 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 class of person
21
 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.

(5) The registered persons, whose accounts are subject

to audit under the Companies Ordinance, 1984 (XLVI of
1984), shall be required to submit a copy of the annual
audited accounts, along with a certificate by the auditors
certifying the payment of the tax due and any deficiency
in the tax paid by the registered person.

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

(2) A person who is required to maintain any record or

documents under this Act or any other law shall, as and
when required by an officer not below the rank of the
Assistant Commissioner, produce records or documents
which are in his possession or control or in the
possession or control of his agent, and where such
records or documents have been stored as electronic
data, he shall allow to such officer full and free access to,
and use of, such data of any machine.

Audit Proceedings 33. (1) An officer authorized by the Authority or the

Commissioner may, on the basis of the return or returns
submitted by a registered person or the records
maintained 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 my registered person in
involved in tax fraud or evasion of tax, it or as the case
may be, he may authorize an officer not below the rank
of Assistant Commissioner, to conduct an inquiry or
investigation, which may or may not be in addition to
any audit carried out for the same period.

(3) Where the officer is to conduct an audit under sub-

22
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.

(4) The officer shall conduct audit and issue an audit

observation or observations pointing out the
contraventions of this Act or the rules and the amount
of the tax evaded or short paid, and the registered
person may, within a period of twenty one days of the
receipt of the audit observation, submit his reply in
writing.

(5) If no reply is received within the specified time or the

reply furnished by the registered person is found
unsatisfactory, the officer shall issue an audit report
specifying the amount of the tax or charge that has not
been levied or has been short levied or any other
violation of any provision of the Act or the rules.

(6) After completion of the audit under this section or

any other provision of this Act or the rules, an officer
having pecuniary jurisdiction in terms of section 60
shall, if required, pass an order determining the correct
amount of payable tax, charging default surcharge and
imposing a penalty.

(7) Notwithstanding the penalties prescribed in section

48:-
(a) if a registered person wishes to deposit the
amount of the tax short paid or evaded along
with default surcharge voluntarily, whenever it
comes to his notice, he may, before receipt of
notice of audit, file a revised return and may
deposit the amount of tax short paid or evaded
along with default surcharge, in which case no
penalty shall be recovered from him;
(b) if a registered person wishes to deposit the
amount of the tax short paid or evaded along
with default surcharge during the audit, or at
any time before issuance of show cause notice
in lieu of the audit report, he may file a revised
return and may deposit the short paid or
evaded amount of the tax, default surcharge
under section 49 and twenty percent of the
penalty payable under section 48 in which case
the show cause notice in lieu of the audit report
shall not be issued in the matter;
(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
23
 tax, default surcharge under section 49, and
fifty percent of the penalty payable under
section 48 and, there after, the show cause
notice shall abate.

Special Audit by Chartered 34. (1) The Authority may, by notification in the official
Accountants or Cost Gazette, appoint a Chartered Accountant as defined
Accountants under Chartered Accountants Ordinance, 1961 (X of
1961) or a Firm of Chartered Accountants or a Cost and
Management Accountant within the meaning of the
Cost and Management Accountants Act, 1966 (XIV of
1966) or a firm of Cost and Management Accountants,
for conducting a special audit to the records of any
registered person.

(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 sab-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.

(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.

CHAPTER – VI
RETURNS

Returns 35. (1) Every registered person shall furnish, not later
than the due date, a true, correct and properly filled-up
return in the prescribed form to a designated bank or
any other office specified by the Authority, indicating
the tax due and paid during a tax period and such other
information or particulars as may be prescribed by the
Authority.

(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,
24
 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
gazette, prescribe the criteria for eligibility of the data of
such returns and e-intermediaries who shall digitize the
data of such returns and transmit the same
electronically under their digital signatures.

(5) If there is a change in the rate of the tax during a tax

period, a separate return in respect of each portion of tax
period showing the application of different rates of tax
shall be furnished.

(6) A registered person, 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.

Special Returns 36. In addition to the return or returns specified under

section 35, the Commissioner may require any person,
whether registered or not, to furnish a return (whether
on his own behalf or as an agent or trustee) in
prescribed from and such person shall furnish the return
not later than the date specified in this regard.

Final Return 37. If a person applies for de-registration in terms of

section 29, he shall before such de-registration, furnish a
final return to the Authority or the Commissioner in the
specified form in such manner and at such time as may
be directed by directed by the Authority or the
Commissioner.

Return Deemed to Have 38. A return purporting to be made on behalf of a

Been Made 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

Appointment of Authorities 39. (1) For the purposes of this Act and the rules, the
Authority may, in the prescribed manner and by
notification in official Gazette, appoint in relation to any
25
 area or cases specified in the notification, any person to
be a:-
(a) Commissioner;
(b) Commissioner (Appeals);
(c) Additional Commissioner of the Authority;
(d) Deputy Commissioner;
(e) Assistant Commissioner;
(f) Audit Officer of the Authority;
(g) Inspector of the Authority or
(h) An officer of the Authority with any other
designation

(2) The Commissioner (Appeals) and the Commissioner

shall be subordinate to the Authority.

(3) The Additional Commissioners, Deputy

Commissioners and the Assistant Commissioners shall
be subordinate to the Commissioner and unless
otherwise directed by the Authority or the
Commissioner, both the Deputy Commissioner and the
Assistant Commissioner shall also be subordinate to the
Additional Commissioner.

(4) The Audit Officers and Inspectors and the officers of

other such equal or lower designations, if any, shall be
subordinate to the Deputy Commissioner or to the
Assistant Commissioner.

(5) The Authority may designate any Deputy

Commissioner supervisory incharge of any Assistant
Commissioner either by name or by designation in any
of its subordinate offices or formations.

(6) The Authority may distribute the work and related

functions amongst the above designations in a manner it
deems appropriate and make changes in such work
distribution as and when deemed proper.

(7) The Authority may, by notification in the official

Gazette, prescribe uniform including shoulder strips and
badges for different classes of the officers or officials of
the Authority.

(8) All jurisdictional and competency issues arising

under this Act or the rules shall be decided by the
Authority in such manner as it thinks fit.

Powers 40. (1) An officer appointed under section 39 shall

exercise such powers and discharge such duties as are
conferred on him under this Act and the rules and he
shall also be empowered and competent to exercise all
powers and discharge all duties or functions conferred
upon any officer subordinate to him.
26
 (2) The Authority may, by general or special order,
impose such limitations, restrictions or conditions on
the exercise of such powers and discharge of such duties
or functions as it deems fit.

Distribution of Powers 41. (1) The Authority may, by notification in the official
Gazette, and subject to such limitations or conditions,
empower by name or by designation:-
(a) An Additional Commissioner to exercise or
perform any of the powers or functions of a
Commissioner;
(b) A Deputy Commissioner to exercise or
perform any of the powers or functions of an
Additional Commissioner;
(c) An Assistant Commissioner to exercise or
perform any of the powers or functions of a
Deputy Commissioner; and
(d) Any other officer to exercise or perform any of
the powers or functions of an Assistant
Commissioner.

(2) The Authority may confer power and functions of

any officer as additional duties to any officer of the same
rank or a step senior or junior in rank.

(3) An officer to whom any powers or functions are

conferred under this section shall not assign such
powers or functions to any other officer except with the
prior permission of the Authority.

Special Judges 42. (1) The Government may, by notification in the

official Gazette, appoint any person who is serving or
has served as District and Session Judge for a period of
at least five years as Special Judge in consultation with
the Chief Justice of Balochistan High Court and, where
it appoints more than one Special Judge, it shall specify
in the notification the headquarters of each Special
Judge and the territorial limits within which he shall
exercise jurisdiction under this Act and the rules.

(2) If a Special Judge is, for any reasons, unable to

perform his duties under this Act or the rules, District
and Sessions Judge of the District shall perform the
duties of the Special Judge for the District.

Cognizance of Offence 43. (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
27
 by the Authority;
(b) receiving a complaint or information of facts
constituting such offence made or
communicated by any person; or
(c) his knowledge acquired during any proceeding
before him.

(2) If the Special Judge receives a report under clause (a)

of sub-section (1), the Special Judge shall proceed with
the trial of the accused.

(3) If the Special Judge receives a complaint or

information under clause (b) of sub-section (1), on the
basis of his own knowledge, the Special Judge shall,
before issuing a summon or warrant for appearance of
the person, hold a preliminary inquiry for purposes of
ascertaining the truth or falsehood of the complaint,
information or knowledge or direct any Magistrate or
any officer to hold such inquiry and submit a report, and
such Magistrate or officer, shall conduct such inquiry
and make a report accordingly.

(4) If, after conducting such an inquiry or after

considering the report of such Magistrate or officer, the
Special Judge may dismiss the complaint if there are no
grounds to proceed further, or may decide to proceed
against the person in accordance with Law.

(5) A Special Judge or a Magistrate or an officer holding

an inquiry under sub-section (3) may hold such inquiry,
as nearly as possible, in accordance with the provisions
of section 202 of the Code of Criminal Procedure, 1898
(V of 1898).

Application of the Code of 44. (1) The provisions of the Code of Criminal
Criminal Procedure, 1898 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.

Exclusive Jurisdiction of 45. No court other than the Special Judge having
Special Judge jurisdiction, shall try an offence punishable by the
Special Judge under this Act.
28
Place of Sitting 46. A Special Judge shall ordinarily hold sittings at his
headquarters provided that keeping in view the general
convenience of the parties or the witnesses, he may hold
sittings at any other place.

Persons who may Conduct 47. (1) An officer not below the rank of an Assistant
Prosecution 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.

CHAPTER – VIII
OFFENCES AND PENALITIES

Offences and Penalties 48. (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
S.No Offences Penalties Section
1 Any person who is requiredSuch person shall be liable to pay a penalty 25
to apply for registration of ten thousand rupees or five percent of
under this Act fails to make
the amount of the tax he would have been
an application for
liable to pay had he been registered,
registration before
whichever is higher. In the case of non-
providing any taxable compliance of compulsory registration, the
services minimum penalty shall be ten thousand
rupees;
If such person who is required to get
himself registered under this Act, fails to
get registered within ninety days of
providing taxable services, he shall be
further liable, upon conviction by a Special
Judge, to imprisonment for a term which
may extend to one year or with fine which
may extend to the amount of the tax he
would have been liable to pay had he been
registered, or with both.
2 Where any person fails to Such person shall be liable to pay a penalty 35
29
 furnish a return within the of five thousand rupees provided if a
due date return is not filed within fifteen days of
the due date, a penalty of hundred rupees
for each day of default shall be levied.

3 Where any person fails to (a) Such person shall be liable to pay a 3, 4, 10
deposit the amount of the penalty of ten thousand rupees or five 11, 17,
tax due or any part thereof percent of the tax payable for that period, 18 and
in the time or manner laid whichever is higher 68
down under this Act or the (b) If the amount of the tax due is not paid
rules. even after the expiry of a period of sixty
days of issuance of the notice for such
payment by an officer, not below the rank
of Assistant Commissioner, the person
shall be further liable, upon conviction by
a Special judge, to imprisonment for a
term which may extend to three years, or
with fine which may extend to the amount
of the unpaid tax, or with both.
(c) No penalty shall be levied if any
miscalculation is made for the first time
during a year.
4 Any person who fails to Such person shall pay a penalty of ten 30, 31
maintain record required thousand rupees of five percent of the total and 32
under the Act or the rules. tax payable for the tax period for which he
has failed to maintain the required record,
whichever is higher.
5 Where a registered person Where such person is a Company, it shall 30, 32,
who, without anybe liable to pay a penalty of ten thousand 53 and
reasonable cause, in non- rupees. 57
compliance with the
Where such person is not a Company, he
provisions of this Act fails shall be liable to pay a penalty of five
to produce records on thousand rupees.
receipt of notice from the Where such person fails to produce the
Authority or any officer of record within sixty days of receipt of the
the Authority directing notice, he shall be liable to pay the penalty
him to produce such prescribed for the offence at serial No. 4
records. above.
6 Any person who knowingly Such person shall be liable to pay a penalty General
or fraudulently: of twenty thousand rupees or one hundred
(a) submits a false or forged percent of the tax payable for the tax
document to any officer of period to which the offence relates,
the Authority; or whichever is higher.
(b) destroys, alters,
Such person shall be further liable, upon
mutilates or falsifies the conviction by a Special Judge, to
records; or imprisonment for a term which may
(c) makes a false statement, extend to five years or with fine which
false declaration, false may extend to an amount equal to the tax
representation, false
payable for the tax period to which the
personification, or gives offence relates, or with both.
any false information.
7 Where any person who Such person shall be liable to pay a penalty 31, 32
denies or obstructs the of twenty five thousand rupees or one and 56
30
 access of an authorized hundred percent of the tax payable for the
officer to the business tax period to which the offence relates,
premises, registered office whichever is higher. Such persons shall,
or to any other place where further be liable, upon conviction by a
records are kept, or Special Judge, to imprisonment for a term
otherwise refuses access to which may extend to five years, or with a
accounts of records. fine which may extend to an amount equal
to the tax payable for the tax period to
which the offence relates, or with both.
8 Where any person Such person shall be liable to pay a penalty 2 (43)
commits, cause to commit of up to five hundred thousand rupees, but
or attempts to commit tax not less than twenty five thousand rupees,
fraud, or abets or connives or one hundred percent of the tax payable
in the commission of tax for the tax period to which the offence
fraud equal to twenty five relates, whichever is higher.
thousand rupees or more. Such person shall, further be liable, upon
conviction by a Special Judge, to
imprisonment for a term which may
extend to five years, or with fine which
may extend to an amount equal to the tax
payable for the tax period to which the
offence relates, or with both.
9 Where any person violates Such person shall be liable to pay a penalty 70
any embargo placed on of twenty five thousand rupees or ten
providing of service in percent of the amount of the tax sought to
connection with recovery be recovered, whichever is higher.
of the tax Such person shall, further be liable, upon
conviction by a Special Judge, to
imprisonment for a term which may
extend to one year, or with fine which may
extend to amount equal to the amount of
the tax sought to be recovered, or with
both.
10 Where any person Such person shall be liable to pay a penalty General
obstructs any officer of the of twenty five thousand rupees or one
Authority in the hundred percent of the tax payable for the
performance of his official tax period to which the offence relates,
duties under this Act or the whichever is higher.
rules Such person shall be further liable, upon
conviction by a Special Judge, to
imprisonment for a term which may
extend to one year or with fine not
exceeding fifty thousand rupees or with
both.
11 Where any person who Such person shall be liable to pay a penalty General
fails to fulfill any of the of five thousand rupees or three percent of
conditions, limitations or the tax payable for the tax period to which
restrictions prescribed in a the offence relates, whichever is higher.
notification issued under
any of the provisions of the
Act or the rules.
12 Where any person who Such person shall be liable to pay a penalty General
contravenes any provision of ten thousand rupees of three percent of
31
 of this Act or the rules for the tax payable for the tax period to which
which no penalty has the offence relates, whichever is higher.
specifically been provided
in this section.
13 Where any person repeats Such person shall be liable to pay twice the General
an offence for which a amount of penalty provided under the Act
penalty is provided under for the said offence.
this Act.
14 Where any person:- Such person shall pay a penalty of twenty General
(a) knowingly and without five thousand rupees or one hundred
lawful authority gains percent of the amount equal to the loss
access to or attempts to caused to the tax revenue.
gain access to the Such person shall further be liable, upon
computerized system; or conviction by the Special Judge, to
(b) unauthorizedly uses or imprisonment for a term which may
discloses or publishes or extend to one year, or with fine which may
otherwise disseminates extend to an amount equal to the loss
information obtained from caused to the tax revenue, or with both.
the computerized system;
or
(c) falsifies any record or
information stored in the
computerized system; or
(d) knowingly or
dishonestly damages or
impairs the computerized
system; or
(e) knowingly or
dishonestly damages 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.

Default Surcharge 49. (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
32
 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 inter-bank rate plus three 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
sixteenth 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.

Exemption from Penalty and 50. The Government may, by a notification in the
Default Surcharge official gazette, exempt any registered person or any
taxable service from payment of the whole of any part of
the penalty and default surcharge subject to such
conditions and limitations as may be specified.

Compounding of Offences 51. 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.

Recovery of the Tax not 52. (1) Where by reason of inadvertence, error,
Levied or Short-levied misconstruction 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 three years of the
relevant tax period requiring him to show cause for
payment of the amount specified in the notice.

(2) Where by reason of some collusion, abetment,

33
 deliberate attempt, mis-statement, fraud, forgery, false
or fake document:-
(a) any tax or charge has not been paid or is,
short paid or the person liable to pay such tax
shall be served with a notice within five years
of relevant tax period, 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 five years of the
receipt of such refund to show cause of
recovery of such refund.

(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 twenty 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 not exceeding thirty days shall be excluded.

Power to Summon Persons 53. (1) An officer may summon any person whose
to give Evidence and attendance he considers necessary either to tender
Produce Documents evidence or to produce documents or any other thing in
any audit, inquiry, investigation or proceedings which
such officer 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 may direct.

(3) Notwithstanding anything in sub-section (1) and (2),

a person who is exempt from personal appearance in the
Court under sections 132 and 133 of the Code of Civil
Procedure 1908(V of 1908), shall not be required to
appear in person.

(4) Any proceedings under this Act or the rules before

an officer shall be deemed to be judicial proceedings
within the meanings of sections 193 and 288 of the
34
 Pakistan Penal Code 1860 (XLV of 1860).

Power to Arrest and 54. (1) An officer authorized by the Authority by

Prosecute notification in the official Gazette in this behalf, who on
the basis of material evidence has reasonable cause to
believe that any person has committed a tax fraud or
any offence warranting prosecution under this Act, may
cause arrest of such person.

(2) All arrests made under this Act shall be carried out
in accordance with the relevant provisions of the Code
of Criminal Procedure, 1898 (V of 1898).

(3) Where the person suspected of tax fraud or any

offence warranting prosecution under this Act is a
Company, every Director or officer of that Company
whom the officer reasons to believe is personally
responsible for actions of the Company contributing to
the tax fraud or any offence warranting prosecution
under this Act shall be liable to arrest provided that
such arrest shall not absolve the Company from the
liabilities of payment of the tax, default surcharge and
any penalty imposed or due under this Act.

Procedure to be Followed 55. (1) When an officer arrests a person under section
on Arrest of a Person 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.

(2) Notwithstanding anything contained in sub-section

(1), any person arrested under this Act shall be produced
before the Special Judge or if there is no Special Judge
within a reasonable distance to the nearest Magistrate
within twenty-four hours of such arrest, excluding the
time necessary for the journey from the place of arrest
to the Court of the Special Judge or of the Magistrate.

(3) When any person is produced under sub-section (2)

before the Special Judge, the Special Judge may, on the
request of such person, after perusing the record, if any,
and after giving the prosecution an opportunity of being
heard, admit him to bail on his executing a bound, with
or without sureties, or refuse to admit him to bail and
direct his detention at such place as he deems fit.

(4) Nothing contained herein shall preclude the Special

Judge from cancelling the bail of any such person at a
subsequent stage if, for any reason, he considers such
cancellation necessary but before passing such order he
shall afford such person an opportunity of being heard,
unless for reasons to be recorded he considers that the
affording of such opportunity shall defeat the purpose of
35
this Act.

(5) When such person is produced under sub-section (2)

before a Magistrate, such Magistrate may, after
authorizing his detention in such custody at such place
and for such period as he considers necessary or proper
for facilitating his earliest production before the Special
Judge direct his production before the Special Judge on a
date and time to be fixed by him or direct such person to
be forthwith taken to, and produced before the Special
Judge and he shall be so taken or produced.

(6) Nothing in sub-section (2), (3) and (4) shall preclude

the Special Judge or the Magistrate from remanding any
such person to the custody of the officer holding an
inquiry or investigation against that person if such
officer makes a request in writing to that effect, and the
Special Judge or the Magistrate, after perusing the
record, if any, and hearing such person is of the opinion
that for the completion of inquiry or investigation it is
necessary to make such order but the total period of
such custody shall not exceed fourteen days.

(7) When any person is arrested under this Act, the

arresting officer shall record the fact of arrest and other
relevant particulars in the register specified in sub-
section (11) and shall immediately proceed to inquire
into the charge against such person and if he completes
the inquiry within twenty-four hours of his arrest, and
he may after producing such person before the Special
Judge or the Magistrate, make a request for his further
detention in his custody.

(8) While holding an inquiry under sub-section (7), the

officer shall exercise the same powers as are conferred
upon or exercisable by an officer in charge of a police
station under the Code of Criminal Procedure 1898 (V of
1898), but such officer shall exercise such powers
subject to the foregoing provisions of this section while
holding an inquiry under this Act.

(9) If the officer, after holding an inquiry, is of the

opinion that there is no sufficient evidence or reasonable
ground for suspicion against such person, he shall
release him on his executing a bond, with or without
sureties, and shall direct such person to appear, as and
when required, before the Special Judge, and make a
report to the Special Judge for the discharge of such
person and shall make a full report of the case to his
immediate superior.

(10) The Special Judge to whom a report has been made

under sub-section (8) may, after the perusal of record of
36
 the inquiry, and hearing the prosecution, agree with
such report and discharge the accused or, if he is of the
opinion that there is sufficient ground for proceedings
against such person proceed with his trial and direct the
prosecution to produce evidence.

(11) The officer holding an inquiry under this section

shall maintain a register to be called register of arrests
and detentions in the form prescribed by the
Government in which he shall enter the name and other
particulars of every person arrested under this Act,
together with the time and date of arrest, the details of
the information received, the details of things, goods or
documents, recovered from his custody, the name of the
witnesses and the explanation, if any, given by him and
the manner in which the inquiry has been conducted
from day to day; and, such register or authenticated
copies of its entries shall be produced before the Special
Judge, whenever it is directed by the Special Judge.

(12) After completing the inquiry, the officer shall, as

early as possible, submit to the Special Judge, a
complaint in the same form and manner in which the
officer in charge of a police station submits a report
before a Court.

(13) Any Magistrate of the first class may record any

statement or confession during inquiry or investigations
under this Act in accordance with the provisions of
section 164 of the Code of Criminal Procedure, 1898 (V
of 1898).

Authorized Officers to have 56. (1) Any officer authorized in this behalf by the
Access to Premises, Stocks, Authority by notification in the official Gazette, shall
Accounts and Records 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.

37
 (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 if
inquiry or investigation under this section.

Obligation to Produce 57. (1) Notwithstanding anything contained in this Act

Documents and Provide or any other law, any person required to maintain any
Information record under this Act and rules, shall, on demand by an
officer, 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).

(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 pinion of the officer, is relevant to such
audit, inquiry or investigation.

(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, is required for purposes of formulation of
policy or administering or implementing this Act ad the
rules.

(4) Every person, department, company or organization

shall furnish the information requisitioned by the
Authority or the officer under sub-section (2) and (3),
within the time specified in the notice issued by the
Authority.

Searches under Warrants 58. (1) Where any officer has reason to believe that any
documents or things which in his opinion, may be useful
38
 for, or relevant to, any proceedings under this Act are
kept in any place, he may after obtaining a warrant
from the Magistrate or from the Commissioner, enter
that place and cause a search to be made at any time.

(2) All searches made under sub-section (1) shall be

carried out in accordance with the relevant provisions of
the Code of Criminal Procedure, 1898 (V of 1898).

Posting of an Officer to 59. (1) Subject to such conditions and restrictions as it

Business Premises 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 evasion of the tax or tax fraud, he may, by
recording the grounds in writing, post an officer of the
Authority to the premises of such registered person to
monitor provision of services by such person.

(3) A person to whose premises, an officer of the

Authority is posted under this section, shall provide on
his own cost, all facilities required to meet the
departmental requirements of such posting as
determined by the Authority or the Commissioner.

Powers of Adjudication 60. (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) Additional Commissioner: Cases without
any restriction as to the amount of the tax
involved or amount erroneously refunded;
(b) Deputy Commissioner: Cases where the
amount of the tax involved or the amount
erroneously refunded exceeds one million
rupees, but does not exceed two and a half
million rupee;
(c) Assistant Commissioner: Cases where the
amount of the tax involved or the amount
erroneously refunded dose not exceed one
million rupees; and
(d) Other officers of the Authority: Such cases,
other than those mentioned above, as may be
prescribed.

(2) The Commissioner may adjudicate any case falling in

the jurisdiction and powers of any officer subordinate to
39
 him and appeal against the order passed by he
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.

Revision by the 61. (1) The Commissioner may, of his own motion or on
Commissioner an application made in writing by a registered person
for revision, call for and examine the record of any
proceedings under this Act in which an order has been
passed by an officer subordinate to him.

(2) If after examining the record under sub-section (1),

the Commissioner is not satisfied with the legality or
propriety of any order passed by an officer, the
Commissioner may make such revision to the order as
he may deem fit.

(3) No order imposing or enhancing any penalty or fine

requiring payment of a greater amount of the tax than
the originally levied amount shall be passed unless the
person affected by such order has been given an
opportunity of showing cause and of being heard.

(4) The Commissioner shall not revise any order under

sub-section (2) if:-

(a) an appeal under section 63 is pending or the

matter has been referred for resolution under
section 71;
(b) where an appeal against the order lies under
section 63, the time within which such appeal
can be made has not expired or the person has
not waived in writing his right of appeal;
(c) in the case of an application made by a person,
the application has not been made within
ninety days of the date on which such order
was served on the person, unless the
Commissioner is satisfied that the person was
prevented by sufficient cause from making the
application within the time allowed; and
(d) in the case where the Commissioner has on his
own motion called for and examined an order
passed by a subordinate officer, more than five
40
 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.

Revision by the Authority 62. (1) The Authority may, of its own motion, call for
and examine the record of any departmental
proceedings under this act or the rules for the purpose
of satisfying itself as to the legality or propriety of any
decision or order passed therein by an officer.

(2) If after examining the record under sub-section (1),

the Authority is not satisfied with the legality or
propriety of any decision or order passed by an officer, it
may pass such order as it may deem fit.

(3) No order imposing or enhancing any penalty or fine

requiring payment of a greater amount of the tax than
the originally levied amount shall be passed unless the
person affected by such order has been given an
opportunity of showing cause and of being heard.

(4) No proceeding under this section shall be initiated in

a case where an appeal under section 67 is pending or
the matter has been referred for resolution under section
71.

(5) No order shall be made under this section after the

expiry of five years from the date of the original decision
or order of the subordinate officer referred to in sub-
section (1).

CHAPTER – IX
APPEALS AND REFERENCES

Appeals 63. (1) Any person, other than the Authority or any of
its employees, aggrieved by any decision or order passed
under section 60 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;
(d) be accompanied by the fee specified in sub-
section (3); and
41
 (e) be lodged with the Commissioner (Appeals)
within the time set out in sub-section (4).

(3) The prescribed fee shall be:-

(a) where the appellant is a company, one
thousand rupees; or
(b) where the appellant is not a company, two
hundred rupees.

(4) An appeal shall be preferred to the Commissioner

(Appeals) within thirty days of the receipt of the
decision or order passed under section 60.

(5) The Commissioner (Appeals) may, upon application

in writing by the appellant, admit an appeal after the
expiration of the period specified in sub-section (4) if the
Commissioner (Appeals) is satisfied that the appellant
was prevented by sufficient cause from lodging the
appeal within that period.

Procedure in Appeal 64. (1) The Commissioner (Appeals) shall give notice of
the day fixed for the hearing of the appeal to the
appellant and to the officer of the Authority against
whose order the appeal has been made.

(2) The Commissioner (Appeals) may adjourn the

hearing of the appeal from time to time.

(3) The Commissioner (Appeals) may, before the hearing

of an appeal, allow the appellant to file any new ground
of appeal not specified in the grounds of appeal already
filed by the appellant where the Commissioner (Appeals)
is satisfied that the omission from the appellant in the
form of appeal was not willful or unreasonable.

(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)
42
 may require resecting the matters arising in the appeal
or cause further inquiry to be made by the officer of the
Authority.

Decision in Appeal 65. (1) In disposing of an appeal lodged under section

63, the Commissioner (Appeals) may pass such order as
he deems fit, confirming varying, altering, sting aside or
annulling the decision or order appealed against.

(2) In deciding an appeal, the Commissioner (Appeals)

may make such further inquiry as may be necessary
provided that he shall not remand the case for de novo
consideration.

(3) The Commissioner (Appeals) shall not increase the

amount of any tax payable by the appellant unless the
appellant has been given an opportunity of showing
cause against such increase.

(4) The Commissioner (Appeals shall communicate his

order to the appellant and the Authority.

(5) An order passed by the Commissioner (Appeals)

under sub-section (1) shall be passed not later than one
hundred and twenty days from the date of filing of
appeal or within such extended period, not exceeding
sixty days, as the Commissioner (Appeals) may, for
reasons to be recorded in writhing, 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 was lodged, the Commissioner
(Appeals) shall transfer his appeal to the Appellate
Tribunal and the Tribunal shall decide the appeal under
this Act as if it has been filed against the order of the
Commissioner (Appeals).

(8) While transferring the undecided appeal to the

Appellate Tribunal, the Commissioner (Appeals) shall
attach his comprehensive report explaining the
circumstances and reasons due to which the appeal could
not be decided within time.

(9) For purposes of sub-section (5), any period during

which the hearing of an appeal is adjourned on the
request of the appellant shall be excluded in the
43
 computation of the period mentioned in the sub-section.

Appellate Tribunal 66. (1) The Appellate Tribunal shall consist of two
judicial and one technical members.

(2) The Government shall appoint the judicial members

of the Appellate Tribunal from amongst the District and
Session Judges in consultation with the Balochistan
High Court.

(3) The Government shall appoint a person as Technical

member of the Appellate Tribunal for a period of three
years, who is or has been:
a. an officer in B-21 of the Federal Board of
Revenue possessing local/domicile of
Balochistan province; or
b. an officer in B-21 of the of Finance
Department or Federal Finance Division,
possessing local/domicile of Balochistan
province; and
c. shall not be more than sixty two years age at
the time of appointment.

(4) The Technical member of the Appellate Tribunal

shall be eligible for re-appointment for a similar term,
provided that the age at the time of re-appointment for
second term shall not exceed sixty five years.

Provided that there shall be no further re-appointment

of such person on expiry of second term.

(5) The Government shall designate on of the judicial

members of the Appellate Tribunal as its Chairperson

(6) The Appellate Tribunal may exercise its powers and

discharge its functions in the prescribed manner in such
Benches as the Chairperson may constitute from
amongst the members of the Appellate Tribunal.

(7) Subject to the provisions of sub-section (6), the

Appellate tribunal shall have the power to regulate its
own procedure, and the procedure of the Benches of the
Appellate Tribunal in all matters relating to the
discharge of its functions including the places at which
the Benches shall hold their sittings.

44
 (8) The Government may from time to time increase or
decrease the number of members of the Appellate
Tribunal by way of notification.

Appeal to the Appellate 67. (1) Where the taxpayer or an officer not below the
Tribunal rank of Additional Commissioner 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;
(c) accompanied, except in case of an appeal
preferred by an officer by the fee specified in
sub-section (3); and
(d) preferred to the Appellate Tribunal within
sixty days of the date of receipt of the order of
the Commissioner (Appeals) by the taxpayer
or the officer.

(3) The fee for an appeal shall be two thousand rupees.

(4) The Appellate Tribunal may, upon application in

writing, admit an appeal after the expiration of the
period specified in clause (d) of sub-section (2) if it is
satisfied that the person appealing was prevented by
sufficient cause from filing the appeal within that period.

Disposal of Appeals by the 68. (1) The Appellate Tribunal may, before disposing if
Appellate Tribunal 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 odder 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
45
 confirmed or varied shall remain operative for not more
than ninety days including any period for which the
recovery may have been stayed prior to the confirmation
or variation of the stay order.

(4) In deciding the appeal, the Appellate Tribunal may,

without prejudice to the powers specified in sub-section
(2), make an order to:-
(a) affirm, modify or annul the order being
appealed against; or
(b) remand the case to the officer or the
Commissioner (Appeals) for making such
inquiry or taking such action as the Tribunal
may direct.

(5) The Appellate Tribunal shall not increase the

amount of any tax payable, penalty or default surcharge
unless the taxpayer has been given a reasonable
opportunity of showing cause against such increase.

(6) The Appellate Tribunal shall communicate its order

to the taxpayer and the Commissioner.

(7) Save as provided in any other law, the decision of the

Appellate Tribunal on an appeal shall be final.

Reference to the High Court 69. (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.

(3) The High Court may dismiss a reference in limine if

it is satisfied that the reference does not contain any
question of law for determination.

(4) The reference under this section shall be heard by a

bench of at least two Judges of the High Court and
provision of section 98 of the Code of Civil Procedure
1908 (V of 1908) shall, as far as possible, apply to such
reference.

(5) The High Court shall send a copy of the judgment

under the seal of the Court to the
Appellate Tribunal.

(6) Notwithstanding that a reference has been preferred

in the High Court, the tax shall be paid in accordance
with the order of the Appellate Tribunal.

46
 (7) If the tax liability is reduced by the High Court and
the Authority decides to seek leave to appeal to the
Supreme Court, the Authority may, within thirty days of
the receipt of the judgment of the Court, apply to the
High Court to postpone the refund until the decision by
the Supreme Court.

(8) Section 5 of the Limitation Act 1908 (IX of 1908)

shall apply to a reference under
Sub-section (1).

(9) A court fee of rupees one thousand shall be affixed on

a reference under this section except when it is filed by
the Authority.

Deposit of the Tax Demand 70. Where in any appeal, the decision or order appealed
while Appeal is Pending 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.

Alternate Dispute 71. (1) Notwithstanding any other provisions of this Act
Resolution 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;
(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.

(2) Notwithstanding anything contained in sub-section

(1), the Authority shall not accept an application under
sub-section (1) where criminal proceedings have been
initiated or where the Authority is of the opinion that
the interpretation of a question of law having a larger
impact on revenue or on a number of similar cases is
involved.

(3) The Authority may, after examination of the

application of a registered person, appoint a committee
of not less than three persons within thirty days of
receipt of such application, consisting of an officer of the
Authority not below the rank of an Additional
Commissioner and nominees from the notified panel
47
 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.

CHAPTER – X
RECOVERY OF ARREARS

Recovery of Arrears of Tax 72. (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;
(c) require by a notice in writing any bank to attach
that person’s bank accounts;
(d) seal the person’s business premises till such time
48
 as the amount of the tax is paid or recovered in
full;
(e) attach and sell any movable or immovable
property of the person from whom the tax is due;
and
(f) recover such amount by attachment and sale of
any movable or immovable property of the
guarantor, person, company, bank or financial
institution where a guarantor or any other
person, company, bank or financial institution
fails to make payment under such guarantee,
bond or instrument.

(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.

CHAPTER – XI
AGENTS, REPRESENTATIVES AND E-INTERMEDIARIES

Agent 73. (1) For purposes of this Act and subject to sub-
section (2) and (3), the expression ‘agent’ in respect of a
registered person, means:-
(a) where the person is an individual under a legal
disability, the guardian or manager who receives
or is entitled to receive income, financial gains or
benefits, funds, money or property on behalf, or
for the benefit of, 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,
49
 any individual responsible for accounting for the
receipt and payment of moneys or funds on
behalf of the Federal Government; or
(g) where the person is a public international
organization, or a foreign government or
Political sub-division of a foreign government,
any individual responsible for accounting for he
receipt and payment of moneys or funds in
Pakistan on behalf of the organization,
government, or political subdivision of the
government; or
(h) when any person is expressly or impliedly
authorized by a registered person to be his agent
for all or any of the purposes of this Act.

(2) Where Court of Wards, Administrator General,

Official Trustee, or any receiver or manager appointed
by, or under any order of a Court receives or is entitled
to receive income on behalf, or for the benefit of any
person, such Court of Wards, Administrator General,
Official Trustee, receiver or manager shall be the agent
of the person for purposes of this Act.

(3) Notwithstanding anything in this section, any

registered person may expressly or impliedly authorize
another person to be his agent for all or any of the
purposes this Act.

Liability and Obligations of 74. (1) Every agent of a person shall be responsible for
Agents 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
50
 the principal and such an agent or a person as to the
amount to be so retained, such agent or person may
obtain from the Commissioner a certificate stating the
amount to be so retained pending final determination of
the tax liability and the certificate so obtained shall be
his conclusive authority for retaining that amount.

(5) Every agent shall be personally liable for the

payment of any tax due by the agent if, while the
amount remains unpaid, the agent:-
(a) alienates, charges or disposes of any moneys
received or accrued in respect of which the tax
is payable; or
(b) disposes of or parts with any moneys or funds
belonging to the registered person that if such
tax could legally have been paid from or out of
such moneys or funds.

(6) Nothing in this section shall relieve any person from

performing any duties imposed by or under this Act on
the person, which the agent of the person has failed to
perform.

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

Appearance by Theorized 76. A registered person required to appear before the

Representative Appellate Tribunal or an officer 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.

E-intermediaries to be 77. (1) Subject to such conditions, limitations and

Appointed restrictions as the authority may impose, the Authority
may, by a notification in the official Gazette, appoint a
person as e-intermediary to electronically file returns
and other electronic document under this Act and the
rules on behalf of a registered person.

(2) A registered person may authorize an e-intermediary

to electronically file returns or any other documents on
his behalf as specified in sub-section (1).

(3) The return or such other documents filed by an e-

intermediary on behalf of a registered person shall be
deemed to have been filed by that registered person.

(4) Where this Act requires anything to be done by a

registered person and if such thing is done by an e-
intermediary authorized by the registered person under
sub-section (2), unless the contrary is proved, such thing
51
 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

Power to Make Rules 78. (1) The authority may, with the approval of the
government and by notification in the official Gazette,
make the rules for carrying out the purposes of any of
the provisions of this Act.

(2) All rules made under sub-section (1) during a

financial year shall be laid before the Provincial
Assembly of Balochistan at the time of presentation of
the Annual Budget for the next financial year.

(3) The rules made under this Act shall be collected,

arranged and published along with general orders and
departmental instructions, directions, notifications and
rulings, if any, at appropriate intervals and sold to the
public at a reasonable price.

Computerized System 79. (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, by notification in the official Gazette, specify.

52
 (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.

Service of Orders and 80. (1) Subject to this Act, any notice, order or
Decisions 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;
(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 summons under the Code of Civil Procedure,
1908 (V of 1908).

53
 (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 discontinuance.

(5) The validity of any notice issued under this Act or

the validity of any service of a notice shall not be called
into question after notice has been complied with in any
manner.

(6) Any registered person may indicate, in the manner

prescribed by the Authority, that he whishes to
electronically receive all or specific communications,
including notifications, orders, assessments and
requisitions from the Authority, the Appellate Tribunal
or any officer of the Authority.

(7) The Authority may, by notification in the official

Gazette, direct that all or specific communications,
including notification order assessments and
requisitions from the authority, the Appellate Tribunal
or any officer to a specific registered person or class of
registered persons shall be made electronically.

(8) For purposes of sub-section (6) and (7), a registered

person shall be considered to have received the
electronic communication within seventy two hours of
the sending of the electronic communication by the
Authority, Appellate Tribunal or the officer of the
Authority.
(9) For purposes of sub-section (6), (7) and (8), an
electronic communication includes a communication
sent by email.

Correction of Clerical Errors 81. (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.

54
Issuance of Duplicate of the 82. An officer of the Authority not below the rank of the
Tax Documents Assistant Commissioner may, on payment of one
hundred rupees, issue an attested copy of any document
filed by a registered person with the Authority.

Power to Issue Orders, 83. The Authority may issue such orders, instructions
Instructions and Directions 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.

Officers of the Authority to 84. (1) All officers of the Authority and other persons
Follow Orders 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

Computation of Limitation 85. In computing the period of limitation prescribed for

Period 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.

Condonation of Time-limit 86. (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.

(2) The Authority may, by notification in the official

Gazette, and subject to such limitations or conditions as
may be specified therein, empower any Commissioner or
the officer of the Authority to exercise the power under
this section in any case or class of cases.

Bar of Suits, Prosecution 87. (1) No suit shall be brought in any Civil Court to set
and other Legal Proceedings aside or modify any order passed, any assessment made,
any tax levied, any penalty or default surcharge imposed
or any tax made under this Act.
55
 (2) No suit, prosecution or other legal proceedings shall
lie against the Government or against any public
servant in respect of any order passed in good faith
under this Act.

(3) Notwithstanding anything in any other law, no

investigation or inquiry shall be undertaken or initiated
by any government agency against any officer or official
for anything done in his official capacity under this Act,
except with the permission of the Authority.

Removal of Difficulties 88. (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 2ho years from the commencement of
this Act.

Repeal and Saving 89. (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, forum any court by way
of adjudication, assessment, appeal, reference, revision
or prosecution shall be continued and disposed off as if
this Act has not come into force.

(3) Where the Government or the Authority takes any

action, makes any decision or orders, issues any
instructions, directions, clarifications or notifications in
pursuance of or in exercising of powers conferred under
nay provision of any law in respect of any matter
relating to the tax and allied issues covered under this
Act or the rules, such actions, decisions, orders,
instructions, directions, clarifications and notification
shall be deemed to have been validly issued to serve the
purposes of this Act and the rules.

(5) 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.

56
 (Mir Khalid Hamayun Langov)
Advisor to the Chief Minister for
Finance Department

(Secretary)
Balochistan Provincial Assembly

57
 BALOCHISTAN SALES TAX ON SERVICES ACT, 2015
FIRST SCHEDULE
(Classification of Services)
(see sub-section (38) of section 2)
Classification Description
(1) (2)

98.01 Services provided by hotels, motels, guest houses,

restaurants, marriage halls, lawns, clubs and caterers.
9801.1000 Services provided by hotels, motels and guesthouses.
9801.2000 Services provided by restaurants.
9801.3000 Services provided by marriage halls and lawns.
9801.4000 Services provided by clubs
9801.5000 Services provided by caterers, suppliers of food and drinks
9801.6000 Ancillary services provided by hotels, motels, guesthouses,
restaurants, marriage halls, lawns, and caterers.
9801.7000 Services provided by messes and hotels.
9801.9000 Others.
98.02 Advertisements
9802.1000 Advertisements on T.V.
9802.2000 Advertisements on Radio.
9802.3000 Advertisements on Closed Circuit T.V.
9802.4000 Advertisements in Newspapers and Periodicals.
9802.5000 Advertisements on Cable T.V. Network.
Advertisements on Poles.
Advertisements on Billboards.
9802.9000 Others.
98.03 Facilities for travel.
9803.1000 Travel by air of passengers within the territorial jurisdiction of
Pakistan.
9803.1100 Travel by air of passengers embarking on international journey
from Pakistan.
9803.2000 Domestic travel by train.
9803.2100 Others.
98.04 Services provided for inland carriage of goods.
9804.1000 Carriage of goods by air.
9804.2000 Carriage of goods by train.
9804.9000 Others.
98.50 Services provided by persons authorized to transact business
on behalf of others.
9805.1000 Shipping agents.
9805.2000 Stevedores.
9805.2100 Ship management service.
9805.3000 Freight forwarding agents
9805.4000 Customs agents.
9805.5000 Travel agents.
58
Classification Description
(1) (2)

9805.5100 Tour operators.

9805.6000 Recruiting agents.
9805.7000 Advertising agents.
9805.8000 Ship chandlers.
9805.9000 Share transfer agent.
9805.9100 Sponsorship services.
9805.9200 Business support services.
9805.9090 Others.
98.06 Services provided in matters of hire.
9806.1000 Purchase or sale of moveable or immovable goods or property.
9806.2000 Property dealers.
9806.3000 Car/automobiles dealers.
9806.9000 Dealers of second hand good other than automobiles.
9807.0000 Services provided by property developers and promoters.
9808.0000 Courier Services.
9809.0000 Services provided by persons engaged in contractual
execution of work or furnishing supplies.
9810.0000 Services provided for personal care by beauty parlors/clinics,
slimming clinics and others.
9811.0000 Services provided by laundries and dry cleansers.
98.12 Telecommunication Services.
9812.10000 Telephone Services.
9812.1100 Fixed line voice telephone service.
9812.1200 Wireless telephone.
9812.1210 Cellular telephone.
9812.1220 Wireless Local Loop telephone.
9812.1300 Video telephone.
9812.1400 Payphone cards.
9812.1500 Prepaid calling cards.
9812.1600 Voice mail service.
9812.1700 Messaging service.
9812.1710 Short message service (SMS).
9812.1720 Multimedia message service (MMS).
9812.1910 Shifting of telephone connection.
9812.1920 Installation of telephone connection.
9812.1930 Provision of telephone extension.
9812.1940 Changing of telephone connection.
9812.1950 Conversion of NWD connection to non-NWD or vice versa.
9812.1960 Cost of telephone set.
9812.1970 Restoration of telephone connection.
9812.1990 Others.
9812.2000 Bandwidth Services.
9812.2100 Copper line based.
Classification Description

59
(1) (2)

9812.2200 Fiber-optic based

9812.2300 Co-axial cable based.
9812.2400 Microwave based
9812.2500 Satellite based
9812.2900 Others.
9812.3000 Telegraph.
9812.4000 Telex.
9812.5000 Telefax.
9812.5010 Store and forward fax services.
9812.5090 Others.
9812.6000 Internet services
9812.6100 Internet services including services.
9812.6110 Dial-up Internet services.
9812.6120 Broadband servers for DSL connection.
9812.6121 Copper line based
9812.6122 Fiber-optic based.
9812.6123 Co-axial cable based.
9812.6124 Wireless based.
9812.6125 Satellite based.
9812.6129 Others.
9812.6130 Internet/email/data/SMS/MMS services on WLL networks.
9812.6140 Internet/email/data/SMS/MMS services on cellular mobile
networks.
9812.6190 Others.
9812.6200 Data Communication network services (DCNS).
9812.6210 Copper line based.
9812.6220 Co-axial cable based.
9812.6230 Fiber-optic based.
9812.6240 Wireless/radio based.
9812.6250 Satellite based
9812.6290 Others
9812.6300 Value added data services.
9812.6310 Virtual Private Network Services (VPN)
9812.6320 Digital Signature Services
9812.6390 Others
9812.9000 Audio text services
9812.9100 Tele-text services
9812.9200 Trunk radio services
9812.9300 Paging services.
9812.9400 Voice paging services.
9812.9410 Radio paging services.
9812.9490 Vehicle tracking services.
9812.9500 Burglar alarm services.
9812.9090 Others.

Classification Description
(1) (2)
60
98.13 Services provided by banking companies, insurance companies,
cooperative financing societies modarbas, musharikas,
leasing companies, foreign exchange dealers, non-banking
financial intuitions and other persons dealing in any such
services.
9813.1000 Services provided in respect of insurance to policyholder by an
insurer, including a reinsure.
9813.1100 Goods insurance.
9813.1200 Fire insurance.
9813.1300 Theft insurance.
9813.1400 Marine insurance.
9813.1500 Life insurance.
9813.1600 Other insurance.
9813.2000 Services provided in respect of advances and loans.
9813.3000 Services provided in respect of leasing.
9813.3010 Financial leasing.
9813.3020 Commodity or equipment leasing.
9813.3030 Hire-purchase leasing.
9813.3090 Others.
9813.3900 Services provided in respect of musharika financing.
9813.4000 Services provided by banking companies in relation to;
9813.4100 Guarantee.
9813.4200 Brokerage.
9813.4300 Letter of credit.
9813.4400 Issuance of pay order and demand draft.
9813.4500 Bill of exchange.
9813.4600 Transfer of money including telegraphic transfer, mail transfer and
electronic transfer.
9813.4700 Bank guarantee.
9813.4800 Bill discounting commission.
9813.4900 Safe deposit lockers.
9813.4910 Safe vaults.
9813.5000 Issuance, processing and operation of credit and debit cards.
9813.6000 Commission and brokerage of foreign exchange dealings.
9813.7000 Automated Teller Machine operations, maintenance and
management.
9813.8000 Service provided as banker to an issue.
9813.8100 Others.
9813.9000 Service provided by a foreign exchange dealer or exchange
company
or money changer.
98.14 Services provided by architects, town planners, contractors,
property developers or promoters, interior decorators.
9814.1000 Architects or town planners.
9814.2000 Contractors of building (including water supply, gas supply and
sanitary works), roads and bridges, electrical and mechanical
works
including air conditioning), horticultural works, multi-discipline
works (including turn-key projects) and similar other works.
9814.3000 Property developers or promoters.

61
9814.4000 Landscape designers.
Classification Description
(1) (2)

9814.9000 Others.

98.15 Services provided by professionals and consultants etc.

9814.1000 Medical practitioners and consultants.
9814.2000 Legal practitioners and consultants.
9814.3000 Accountants and auditors.
9814.4000 Management consultants.
9814.5000 Technical, scientific and engineering consultants.
9814.6000 Software or IT based system development consultants.
9814.9000 Other consultants.
9816.0000 Services provided by pathological laboratories.

98.17 Services provided by medical diagnostic laboratories including

X-resect scan, M.R. Imaging etc.
9817.1000 Scientific laboratories.
9817.2000 Mechanical laboratories
9817.3000 Chemical laboratories
9817.4000 Electrical or electronic laboratories.
9817.9000 Other Such laboratories

98.18 Services provided by specialized agencies.

9818.1000 Security agencies.
9818.2000 Credit rating agencies.
9818.3000 Market research agencies.
9818.9000 Other such agencies.

98.19 Services provided by specified persons or businesses.

9819.1000 Stockbrokers.
9818.1100 Under writers.
9818.1200 Indenters.
9818.1300 Commission agents.
9818.1400 Packers.
9818.2000 Money exchangers.
9818.3000 Rent a Car.
9818.4000 Prize bond dealers.
9818.5000 Surveyors.
9818.6000 Designers.
9818.7000 Outdoor photographers.
9818.8000 Art painters.
9818.9000 Cable TV Operators.
9818.9100 Auctioneers.
9818.9200 Public relations services.
9818.9300 Management consultants.
9818.9400 Technical testing and analysis service.
9818.9500 Service provided by a registrar to an issue.
9818.9090 Others.

62
Classification Description
(1) (2)

98.20 Services provided by specialized workshops or undertakings.

9820.1000 Auto-workshops.
9820.2000 Workshops for industrial machinery construction and earth-
moving machinery or other special purpose machinery etc.
9820.3000 Workshops for electric or electronic equipment’s or appliances etc.
including computer hardware.
9820.4000 Car washing or similar service stations.
9820.9000 Other workshops.

98.21 Services provided for specified purposes.

9821.1000 Healthcare center, gyms or physical fitness center etc.
9820.2000 Indoor sports and games center.
9820.3000 Baby care center.
9820.4000 Baby massage center.
9820.5000 Pedicure center.

98.22 Services provided for specified purposes.

9822.1000 Fumigation services
9822.2000 Maintenance or cleaning services.
9822.3000 Janitorial services.
9822.4000 Dredging or de-silting services.
9822.9000 Other similar services

9823.0000 Franchise services.

9824.0000 Construction services.
9825.0000 Consultancy services.
9826.0000 Management services including fund and asset management
services.
9827.0000 Market research agencies.
9828.0000 Program producers.
9829.0000 Brokerage (other than stock) and indenting services.
9830.0000 Race Clubs.
9831.0000 General insurance agents.
9832.0000 Exhibition or convention services.
9833.0000 Data Processing and provision of information, services of
engineers, handling and storage of goods.
9834.0000 Fashion designers.

63
Classification Description
(1) (2)

9835.0000 Cable operators.

9836.0000 Internet cafe.
9837.0000 Pandal and shamiana services
9838.0000 Airport services.
9839.0000 Intellectual property services.
9840.0000 Forward contract services.
9841.0000 Packaging services.
9842.0000 Services provided in matters of hire.
9843.0000 Purchase or sale of moveable or immovable goods or
property.
9844.0000 Property dealers and realtors.
9845.0000 Automobile dealers.
9846.0000 Dealers of second hand goods other than automobiles.
9847.0000 Cosmetic and plastic surgery.
9848.0000 Beauty parlor and beauty clinics.
9849.0000 HR consultants.
9850.0000 Corporate law consultants.
9851.0000 Tax consultants.
9852.0000 Human resources & personnel development services.
9853.0000 Coaching centers.
9854.0000 Vocational centers.
9855.0000 Actuarial services.
9856.0000 Training services.
9857.0000 Tracking services.
9858.0000 Security alarm services.
9859.0000 Human resource development.
9860.0000 Building maintenance and service provider.
9861.0000 Quality control services (ISO certification authority).
9862.0000 Services provided by motels, guest houses and farm houses.
9863.0000 Debt collection agencies.
9864.0000 Amusement parks.
9865.0000 Call centers.
9866.0000 Film and drama studios including mobile stage shows or
cinemas.
9867.0000 Entertainment services.
9868.0000 Services provided in respect of manufacturing or processing
on toll basis.

64
 BALOCHISTAN SALES TAX ON SERVICES ACT, 2015
SECOND SCHEDULE
(Taxable Services)
[See section 3]
Part A
Tariff
Description Rate of tax
Classification

(1) (2) (3)

98.12 Telecommunication services 19.5%

9812.1000 Telephone services 19.5%

9812.1100 Fixed line voice telephone service 19.5%

9812.1200 Wireless telephone 19.5%

9812.1210 Cellular telephone 19.5%

9812.1220 Wireless Local Loop telephone 19.5%

9812.1300 Video telephone 19.5%

9812.1400 Payphone cards 19.5%

9812.1500 Prepaid calling cards 19.5%

9812.1600 Voice mail service 19.5%

9812.1700 Messaging service 19.5%

9812.1710 Short Message service (SMS) 19.5%

9812.1720 Multimedia message serve (MMS) 19.5%

9812.1910 Shifting of telephone connection 19.5%

9812.1920 Installation of telephone extension 19.5%

9812.1930 Provision of telephone extension 19.5%

9812.1940 Changing of telephone connection 19.5%

Conversion of NWD connection to no NWD or vice
9812.1950 19.5%
versa
9812.1960 Cost of telephone set 19.5%

9812.1970 Restoration of telephone set 19.5%

65
9812.1990 Others 19.5%

9812.2000 Bandwidth services 19.5%

9812.2100 Copper line based 19.5%

9812.2200 Fiber-optic based 19.5%

9812.2300 Co-axial cable based 19.5%

9812.2400 Microwave based 19.5%

9812.2500 Satellite based 19.5%

9812.2900 Others 19.5%

9812.3000 Telegraph 19.5%

9812.4000 Telex 19.5%

9812-5000 Telefax 19.5%

9812.5010 Store and forward fax services 19.5%

9812.5090 Others 19.5%

9812.6000 Internet services 19.5%

9812.6100 Internet services including email services 19.5%

9812.6110 Dial-up internet services 19.5%

9812.6120 Broadband services for DSL connection 19.5%

9812.6121 Copper line based 19.5%

9812.6122 Fiber-optic based 19.5%

9812.6123 Co-axial cable based 19.5%

9812.6124 Wireless based 19.5%

9812.6125 Satellite based 19.5%

9812.6129 Others 19.5%

Internet/email/Data/SMS/MMS services on WLL
9812.6130 19.5%
networks
Internet/email/Data/SMS/MMS services on cellular
9812.6140 19.5%
mobile networks
9812.6190 Others 19.5%

9812.6200 Data Communication Network Services (DCNS) 19.5%

66
9812.6210 Copper Line based 19.5%

9812.6220 Co-axial cable based 19.5%

9812.6230 Fiber-optic based 19.5%

9812.6240 Wireless/Radio based 19.5%

9812.6250 Satellite based 19.5%

9812.6290 Others 19.5%

9812.6300 Value added data services 19.5%

9812.6310 Virtual private Network services (VPN) 19.5%

9812.6320 Digital Signature service 19.5%

9812.6390 Others 19.5%

9812.9000 Audiotext services 19.5%

9812.9100 Teletext services 19.5%

9812.9200 Trunk radio services 19.5%

9812.9300 Paging services 19.5%

9812.9400 Voice paging services 19.5%

9812.9410 Radio paging services 19.5%

9812.9490 Vehicle tracking services 19.5%

9812.9500 Burglar alarm services 19.5%

9812.9090 Others 19.5%

Part B
Tariff
Description Rate of tax
Heading

(1) (2) (3)

Services provided or rendered by hotels, motels,
98.01 guest houses, restaurants, marriage halls, lawns,
clubs and caterers.
9801.1000 Services provided or rendered by hotels 15%

9801.2000 Services provided or rendered by restaurants 15%

67
 Services provided or rendered by marriage halls,
9801.3000 15%
lawns, pandal and shamiana

9801.4000 Services provided or rendered by clubs 15%

Services provided or rendered by caterers, suppliers

9801.5000 15%
of food and drinks
Ancillary services provided or rendered by hotels,
9801.6000 restaurants, marriage halls and lawns, clubs and 15%
caterers
98.02 Advertisement

9802.1000 Advertisement on T.V. 15%

9802.2000 Advertisement on radio 15%

9802.3000 Advertisement on closed circuit T.V. 15%

9802.4000 Advertisement in newspaper and periodicals 15%

9802.5000 Advertisement on cable T.V. network 15%

9802.6000 Advertisement on poles 15%

9802.7000 Advertisement on billboards 15%

Others Advertisement including those on web or

9802.9000 15%
internet

9805.1000 Shipping agents 15%

9805.2000 Stevedores 15%

9805.2100 Ship management services 15%

9805.3000 Freight forwarding agents 15%

9805.4000 Customs agents 15%

9805.5100 Tour operators 15%

9805.6000 Recruiting agents 15%

9805.7000 Advertising agents 15%

9805.8000 Ship chandlers 15%

68
9805.9000 Share transfer agents 15%

9805.9100 Sponsorship services 15%

9805.9200 Business Support Services 15%

Services provided or rendered in the matter of

sale purchase or hire

9806.1000 Purchase or sale or hire of immovable property 15%

9806.2000 Property dealers 15%

9806.3000 Cars or automobile dealers 15%

Services provided or rendered by property 15

9807.0000
developers or promoters for
(a) Development of purchased or leased land
for conversion into residential or commercial
plots.
(b) Construction of residential or commercial
units.
9808.0000 Courier services 15%

Services provided or rendered by persons

9809.0000 engaged in contractual execution of work or 15%
furnishing supplies
Services provided or rendered for personal care
9810.0000 by beauty parlors, beauty clinics, slimming 15%
clinics or centres and others
Services provided or rendered by laundries and 15%
9811.0000
dry cleaners

Services provided or rendered by Banking

companies, Insurance companies, Cooperative
financing societies, modarabas, musharikas, 15%
98.13
leasing companies, foreign exchange dealers,
non-banking financial institutions and other
persons dealing in any such services
Services provided or rendered in respect of
9813.1000 insurance to a policy holder by an insurer, including 15%
a reinsurer
9813.1100 Goods insurance 15%

9813.1200 Fire insurance 15%

9813.1300 Theft insurance 15%

69
9813.1400 Marine insurance 15%

9813.1500 Life insurance 15%

9813.1600 Other insurance including reinsurance 15%

9813.3000 Services provided or rendered in respect of leasing 15%

9813.3010 Financial leasing 15%

9813.3020 Commodity or equipment leasing 15%

9813.3030 Hire purchase leasing 15%

Services provided or rendered in respect of

9813.3900 15%
modaraba and musharika financing
Services provided or rendered by banking
9813.4000 15%
companies in relation to:

9813.4100 Guarantee 15%

9813.4200 Brokerage 15%

9813.4300 Letter of credit 15%

9813.4400 Insurance of pay order and demand draft 15%

9813.4500 Bill of exchange 15%

Transfer of money including telegraphic transfer,

9813.4600 15%
mail transfer and electronic transfer

9813.4700 Bank guarantee 15%

9813.4800 Bill discounting commission 15%

9813.4900 Safe deposit lockers 15%

9813.4910 Safe vaults 15%

9813.4990 Other services not specified elsewhere 15%

Issuance, processing and operation of credit and

9813.5000 15%
debit cards
Commission and brokerage of foreign exchange
9813.6000 15%
dealings

70
 Automated Teller Machine operations, maintenance
9813.7000 15%
and management

9813.8000 Service provided as banker to an issue 15%

Others, including the services provided or rendered
9813.8100 by non-banking, finance companies, modaraba and 15%
musharika companies and other financial institutions
Service provided or rendered by a foreign exchange
9813.9000 15%
dealer or exchange company or money changer

9814.1000 Architects or town planners 15%

Contractor of building (including water supply, gas
supply and sanitary works), electrical and
9814.2000 mechanical works (including air conditioning), multi- 15%
disciplinary works (including turn-key projects) and
similar other works
9814.3000 Property developers or promoters 15%

9814.9000 Interior decorators 15%

Services provided or rendered by professionals

98.15
and consultants, etc..

9815.2000 Legal practitioners and consultants 15%

9815.3000 Accountants and auditors 15%

9815.4000 Management consultants 15%

9815.5000 Technical, scientific and engineering consultants 15%

Software or IT based system development

9815.6000 15%
consultants

9815.9000 Tax consultants 15%

Services provided or rendered by specialized

98.18
agencies

9818.1000 Security agency 15%

9818.3000 Market research agency 15%

Services provided or rendered by specified

98.19
persons of businesses

9819.1000 Stockbrokers and commodity brokers 15%

9819.2000 Money exchanger 15%

71
9819.3000 Rent a car and automobile rental service 15%

9819.5000 Surveyors 15%

9819.7000 Outdoor photographers and videographers 15%

9819.9000 Cable TV operators 15%

9819.9300 Management consultants 15%

9819.9400 Technical testing and analysis service 15%

Services provided or rendered by a registrar to an

9819.9500 15%
issue
Services provided or rendered by port operators,
9819.9090 airport operators, airport ground service providers 15%
and terminal operators
Service provided or rendered by specialized
98.20
Workshops or undertakings.
Auto workshops, including authorized service
9820.1000 15%
stations
Workshops for industrial machinery, constructions
9820.2000 and earth-moving machinery or other special 15%
purpose machinery, etc.
Workshop for electric or electronic equipment or
9820.3000 15%
appliances, etc, including computer hardware

9820.4000 Car or automobile washing or similar service station 15%

98.21 Services provided or rendered in specified fields

Health care centre, gyms or physical fitness centre,

9821.1000 15%
etc

9821.4000 Body massage centre 15%

9821.5000 Pedicure centre 15%

Services provided or rendered for specified

98.22
purposes

9822.1000 Fumigation services 15%

9822.2000 Maintenance or cleaning services 15%

9822.3000 Janitorial services 15%

72
9823.0000 Franchise services 15%

9824.0000 Construction services 15%

Management services including fund and assets

15%
management services

Airport services 15%

Tracking services 15%

Security alarm services 15%

Services provided by motels and guest houses 15%

Event management services including the services
by event photographers, event videographer and 15%
persons related to such event management
Exhibition services 15%

9828.0000 Public bonded warehouses 15%

9829.0000 Labour and manpower supply services 15%

Services provided in the matter of manufacturing or

9830.0000 15%
processing for other on toll basis
Race Clubs:
(a) Rs.200 per
(a) Service of entry/admission entry ticket
or entry
pass of the
person
9831.0000 visiting the
race event.

(b) Other services (b) 15%

Services provided or rendered by program producers

9832.0000 15%
and production houses
Services provided or rendered by corporate law
9833.0000 15%
consultants

9834.0000 Services provided or rendered by fashion designers 15%

9835.0000 Services provided or rendered by call centres 15%

73
 Services provided or rendered by persons engaged
9836.0000 in inter-city transportation or carriage of goods by 15%
road or through pipeline or conduit

*********

74