From July 1, the Federal Board of Revenue (FBR) would charge sales tax from stevedores on the basis of volume of cargo loaded or discharged from the vessels at Karachi Port and Port Qasim.
The Board on Saturday amended Sales Tax Special Procedures Rules, 2007 through SRO 678(I)/2007 for calculation of sales tax on services provided by registered stevedores. According to the procedure, stevedores would charge and pay tax on the basis of volume of cargo loaded on or discharged from the vessel, as per following rates:
Sales tax rate would be Rs 220 per move on loading and discharge of laden containers at Karachi Port and Port Qasim; Rs 25 per metric ton, sales tax on dry bulk or break bulk cargo handled at Karachi Port and Port Qasim; and Rs 6.50 per metric ton sales tax would be charged on liquid bulk cargo handled by commercial tank and bulk terminals at Karachi Port and Port Qasim.
Where the cargo is handled by stevedores without involving container terminal operators, tax shall be paid by the stevedores, while in case of containerised cargo passing through container terminals, the liability to pay tax shall be of the container terminal operators and in case of bulk cargo, the liability to pay tax shall be of the concerned commercial tank terminal operators, or as the case may be, of the bulk terminal operator.
The rules have specified that the stevedores shall not be entitled to any input tax adjustment, or refund, on any account whatsoever. A stevedore shall issue serially numbered sales tax invoice as required under section 23 of the Sales Tax Act, 1990.
Every person registered as stevedore shall file monthly sales tax return in the manner as prescribed in Chapter II of the Sales Tax Rules, 2006. The cases or disputes relating to the stevedores operating under these rules shall be dealt with in the Large Taxpayers Unit (LTU), Karachi.
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