Dear ISPAK Members:
PTCL October 2k1 Telephone bills, include CALL WAITING
Charges@ Rs. 750/- per PRI, payable from the date of activation of
PRI's.
Happened with all ISPs?
Regards,
Razaq
nadeem wrote:
Dear All, If
you remember, I had cautioned everybody about the change in August 2001.
However, nobody took notice of this. Under
the new tariff, all computer equipment is subject to 5% custom duty and
15% sales tax. Clearing under chpt. 99,
is not meant for organizations who intend to import for sale purpose. The
matter has already been taken up with Mr. Salman Ansari, who has included
the issue in the letter sent by MoST to CE. We
need to take up the matter, may be with the Minister of Finance from ISPAk
platform. Regards
----- Original Message -----
Sent: Monday, October 22, 2001 11:38
AM
Subject: ISPAK: Sales TAX
| Collectors directed to charge sales tax on import of computer
networking equipment |
| SOHAIL SARFARAZ |
.......ISLAMABAD : In order to
resolve a major tax ambiguity in the information technology sector, the
Central Board of Revenue (CBR) has directed all collectors of sales tax
to charge general sales tax (GST) on the import of computer networking
equipment and data communication devices. The Sales Tax Department has
issued this ruling after receiving bulk of queries from the leading importers
of computer hardware, who were unable to decide whether computer networking
apparatus falls under the exemption category or not.
.......Now, the department has issued
these instructions for levying GST on such equipment.
....... The ruling issued by CBR on Saturday
reads as "Serial number 45 of the Sixth Schedule of the Sales Tax Act,
1990 grants exemption to computer hardware including laptops, notebooks,
PCs, mainframes and their peripheral units and parts thereof. Networking
equipment and data communication devices do not constitute peripheral units
of computer hardware or parts thereof having multiple uses/applications
and therefore, are not exempt from sales tax."
.......The CBR has also conveyed separately
to the collectorates of customs to follow the procedure adopted under the
new order.
....... The importers and suppliers of
such equipment have out rightly rejected this decision and demanded of
the government to review it in the light of the presentations earlier made
by them to the tax authorities. They were of the view that these devices
connect and operate only on the periphery of computers and allow them to
exchange information by executing specific tasks. Technically, such equipment
are passive in their function and cannot carry out any task on their own.
Networking equipment and data communication devices are also peripheral
devices to computers and such falls within the definition of the computer
hardware.
.......In fiscal budget 2001-2002, the
government has amended First Schedule of the Custom Act to introduce a
new PCT heading 9908.0080, which attracted zero-rate customs duty covering
items relating to the computers networking, which were earlier treated
as apparatus of communication sector. The exemption of duty was available
to items encompassing LAN bridge, hubs and routers, etc. The newly introduced
Chapter 99 of the Pakistan Custom Tariff has specified names of hundreds
of computer related items exempted from customs duty.
....... Under the new Sixth Schedule of
the Sales Tax Act, 1990, the exemption of GST has been available to computer
hardware i.e. laptops, notebooks, PCs, mainframe and other peripheral and
parts thereof and computer software. However, the serial numbers 45 and
48 of the Schedule do not cover LAN bridge, hubs, routers and other networking
equipment.
....... The sales tax officials have refused
to include networking equipment in the Sixth Schedule on the grounds that
such items are not a part of computer hardware. On the contrary, the customs
authorities have already exempted networking equipment from the payment
of customs duty in fiscal budget 2001-2002.
....... Sources said that over 95 percent
of the importers and suppliers of networking apparatus were unaware of
the fact that such devices were not exempted from (GST). They continued
to avail this exemption on the presumption that such items are exempted
from GST. Both the buyers and sellers were treating such equipment as exempted
items. However, the situation will become further complicated when the
importers/suppliers will face auditors and Charted Accountant Firms by
the end of current fiscal.
.......The First Schedule of the Custom
Act was revised to introduce a new PCT heading 9908.0050 in budget 2001-2002,
which attracted zero-rate customs duty covering items relating to the computers
and information technology. The exemption of duty was available to the
following items; computers, automatic data processing machines, servers;
LAN bridge, hubs, routers; multi-static access units, SNA cluster controllers;
software of CD-ROM, magnetic tapes, diskettes and different types of items
related with the networking and computer peripherals. These items were
brought under the computer regime, which were earlier treated under the
communication sector.
.......The serial number 45 of the Sixth
Schedule of the Sales Tax Act, 1990 does not cover LAN bridge, hubs, routers
and other networking equipment. Under serial numbers 45 and 48 of the Schedule,
the exemption of GST has been available to computer hardware encompassing
lap tops, note books, PCs, mainframe and other peripheral and parts thereof
and computer software.
.......Copyright 2001 Business Recorder
(http://www.brecorder.com) |
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Fibre Net
Internet Services Provider
E-65, Defence Chowk, Walton Road, Lahore Cantt. 54810- PAKISTAN.
Tel: 042-6660066, 6677025 Fax: +92-42-6673553
http://www.fibre.net.pk
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