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Sir ,
It
looks like no one really in ISPAK anymore ... this list itself has lost its
meaning .
I
suspect that these new charges are imposed by the PTCL LTR region , as noone
else seems to have gotten it.
Personally , I feel that we should visit the GM and try to resolve the
issue .
Thanks
,
Naeem
Haq
NEXLINX
Dear all:
What is the ISPAK
stand on this issue?
Regards,
Razaq
Naeem Haq wrote:
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
HaqNEXLINX
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,
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Tel: 042-6660066,
6677025 Fax: +92-42-6673553
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