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Dear
All ,
Whats
happeing with these new charges on the PRIs which PTCL is aiming to colect form
the date of installation . Not only is this absolutely wrong its also illegal .
The
big question here is if PTA realizes this !!
Naeem
Haq
NEXLINX
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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