SALES TAX INSTRUCTIONS

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SALES TAX INSTRUCTIONS/
RULING NO. 24 / 2003

Government of Pakistan
(Revenue Division)
Central Board of Revenue
(Sales Tax Wing)
*****
C. No. 1(17)STR/2000. Islamabad, the 31^st October, 2003.

To:
The Collector,
Collectorate of Customs, Sales Tax and
Central Excise, Hyderabad/Quetta/Multan

The Collector,
Collectorate of Sales Tax and Central Excise,
Lahore/Gujranwala/Rawalpindi/Peshawar.

The Collector,
Collectorate of Sales Tax, Faisalabad

The Collector,
Collectorate of Sales Tax, Audit/Enforcement/Headquarter, Karachi

The Collector,
Large Taxpayer Unit, Karachi.

SUBJECT: SALES TAX ON ADVERTISEMENTS ON CLOSED CIRCUIT TELEVISION (CCTV).


A question has been raised whether or not advertisements released on Closed Circuit Television (CCTV) [usually installed at airports, railway stations, bus stands, shopping centers, etc] are chargeable to Sales Tax under the respective Provincial Sales Tax Ordinances, 2000.

2. The issue has been examined in the Board and it has been observed that during the Budget 2000-01, when Central Excise duty on services was brought under GST mode through provincial legislation, the description “advertisements on CCTV falling under PCT sub-heading No.9802.3000” was not considered for inclusion in the schedules of the respective Provincial Ordinances. The Ordinances cover only “advertisements on television”, which are separately classifiable under PCT sub-heading No.9802.1000. Legally advertisements on TV and advertisement on CCTV are two distinctly separate services, each having a separate description and classification.

3. It is, therefore, clarified that advertisements released on Closed Circuit Television (CCTV) classifiable under PCT sub-heading No.9802.3000 are not chargeable to sales tax. However, no refund of the sales tax already paid by the registered person on this account and the incidence of which has been passed on to the consumer shall be allowed / claimed on the basis of this ruling, in terms of the provisions of section 3B of the Sales Tax Act, 1990.

( Dr. Muhammad Zubair )
Secretary (STR & C)
Copy to:

1. M/s F. R Associates, Law / Tax Consultants & Advisors, 212, 2^nd floor, Business Arcade, Shahra-e-Faisal, Block-6, PECHS, Karachi with reference to their letter Ref. 01/C1/QB/ 03 dated 18.09.2003.

2. M/s Nasir Javaid Maqsood, Chartered Accountants, Room # 39, 3^rd floor, Sadiq Plaza, Shahra-e-Quaid-e-Azam, Lahore with reference to their letter dated 05.07.2003.

( Dr. Muhammad Zubair )
Secretary (STR & C)

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