The Table-II of the First Schedule of the Federal Excise Act would be deleted in budget (2010-11) to transfer powers of collection of VAT on excisable services from Federal Board of Revenue to provinces from July 1, 2010. Sources told Business Recorder on Thursday that excise duty would be abolished on the services sector under the new Value Added Tax regime.
The powers of the FBR to collect federal excise duty on excisable commodities would remain intact after introduction of the VAT from next fiscal year. The excisable goods advertisements in news papers and periodicals (excluding and Classified advertisements) of hoarding boards, poles signs and sign boards; facilities for travel including services provided or rendered in respect of travel by air of passenger within the territorial jurisdiction of Pakistan, services provided or rendered in respect of travel by air of passengers embarking on international journey to or from Pakistan, Passengers embarking or from Saarc region, UAE (Middle East), Saudi Arabia, Africa, Afghanistan, passengers embarking to or from Europe, Far East, China, USA, Canada, Australia, South America, others; inland carriage of goods by air; shipping agents; telecommunication services including telephone services, fixed line voice telephone services, wireless telephone, cellular telephone, wireless local loop telephone, video telephone, payphone card, pre-paid calling cards, voice mail service, messaging service, short message service (SMS), multimedia message service (MMS), bandwidth services used for voice and video telecommunication vices, fibre-optic based, co-axial cable based, microwave based, satellite based, telegraph, telex, telefax, store and forward fax services, audiotext services, teletext services, trunk radio services, paging services, voice paging services, radio paging services, vehicle tracking services, burglar alarm services, services provided or rendered in respect of insurance to a policy holder by an insurer, including a re-insurer [in case where direct insurance service has been provided] including goods insurance, fire insurance, theft insurance, marine insurance, other insurance; services provided by banking companies or non-banking financial companies; franchise services, services provided by property developers or promoters for development of purchased or leased land for conversion into residential or commercial plots, construction of residential of residential or commercial units, services provided of rendered by stock brokers, services provided or rendered by port and terminal operators in relation to imports excluding stevedoring services.
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