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2. Definitions.―
In this Act, unless there is anything repugnant in the
subject or context,--
(1)
"Appellate Tribunal" means the Customs, Excise and Sales
Tax Appellate Tribunal constituted under section 194 of the Customs Act;
(2)
"appropriate
officer" means an officer of Sales Tax authorised by the Board by
notification in the official Gazette to perform certain functions under this
Act;
(2A)
'arrears' includes the un-paid amounts of
tax, additional tax, further tax, extra amount of tax, fines, penalties, fees or
any other sums, however described, as have been assessed, adjudged or demanded
under this Act;
(3)
"associated persons" means any two or more persons who
are close relatives to each other or who are interconnected with each other in
the following way, namely:--
(ii)
if a person who is the owner or partner or director of
a company or undertaking, or who, directly or indirectly, holds or controls
twenty per cent shares in such company or undertaking, is also the owner,
partner or director of another company or undertaking, or, directly or
indirectly, holds or controls twenty per cent shares in that company or
undertaking;
Explanation.-- For the purpose of this clause, the expression “close
relatives" mean the family, parents, brothers, sisters and dependents of
registered person;
(4)
"Board" means the Central Board of Revenue constituted
under the Central Board of Revenue Act, 1924 (IV of 1924);
(5) "Collector"
means the Collector of Sales Tax appointed under section 30;
(5A)
"common taxpayer identifier' means the identification number
allocated under section 20 of the Finance Act, 1999 (IV of 1999);
(6)
"Customs Act" means the Customs Act 1969 (IV of 1969),
and where appropriate all rules and notifications made under that Act ;
(6A)
'defaulter' means a person and, in the case of company or firm,
every director, or partner of the company, or as the case may be, of the firm,
of which he is a director or partner or a proprietor and includes guarantors or
successors, who fail to pay the arrears;
(7)
"distributor" means a person appointed by a manufacturer,
importer or any other person for a specified area to purchase goods from him for
further supply and includes a person who in addition to being a distributor is
also engaged in supply of goods as a wholesaler or a retailer;
(8)
"document" includes any electronic data, computer
programmes, computer tapes, computer disks, micro-films or any other medium for
the storage of such data;
(9)
"due date", in relation to the furnishing of a return
under section 26, sub-section (6) of section 26A and section 26AA means the 15th
day of the month following the end of the tax period, or such other date as the
Federal Government may, by notification in the official Gazette, specify;
(9a)
"enrolled person" means a person who is enrolled or is
liable to be enrolled under this Act:
Provided that a person liable to be enrolled but not enrolled
under this Act shall remain liable to further tax under sub-section (1A) of
section 3 and shall not be entitled to any benefit available to an enrolled
person under any of the provisions of this Act or the rules made thereunder;
(10)
"establishment" means an undertaking, firm or company,
whether incorporated or not, an association of persons or an individual;
(11) "exempt supply" means a
supply which is exempt from tax under section 13;
(13) "importer"
means any person who lawfully imports any goods into Pakistan;
(14) "input tax",
in relation to a registered person, means the tax --
(a) levied under this Act on the supply of goods
received by that person;
(d) chargeable as duties
of excise under section 3 of the Central Excises Act, 1944 (I of 1944), on such
excisable services as are notified by the Federal Government under the third
proviso to sub-section (1) thereof and on which such duties are charged, levied
and paid as if it were a tax payable under section 3 of this Act;
(15)
"Local Sales Tax Office" means the office of
Superintendent of Sales Tax, or such other office as the Board may, by
notification in the official Gazette, specify;
(16) "manufacture" or "produce" includes -
(b) process of printing, publishing,
lithography and engraving; and
(c)
process and operations of assembling, mixing, cutting,
diluting, bottling, packaging, repacking or preparation of goods in any other
manner;
(17)
"manufacturer" or "producer" means a
person who engages, whether exclusively or not, in the production or manufacture
of goods whether or not the raw material of which the goods are produced or
manufactured are owned by him; and shall include --
(a)
a person who by any process or operation assembles, mixes, cuts, dilutes,
bottles, packages, repackages or prepares goods by any other manner;
(b)
an assignee or trustee in bankruptcy, liquidator, executor, or
curator or any manufacturer or producer and any person who disposes of his
assets in any fiduciary capacity; and
(c)
any person, firm or company which owns, holds, claims or
uses any patent, proprietary, or other right to goods being manufactured,
whether in his or its name, or on his or its behalf, as the case may be, whether
or not such person, firm or company sells, distributes, consigns or otherwise
disposes of the goods:
Provided that for the purpose of refund under this Act, only
such person shall be treated as manufacturer-cum-exporter who owns or has his
own manufacturing facility to manufacture or produce the goods exported or to be
exported;
(18) "Officer
of Sales Tax" means an officer appointed under section 30;
(19)
"open market price" means the consideration in money
which that supply or a similar supply would generally fetch in an open market;
(20)
"output tax" in relation to any registered person means
the tax charged under this Act in respect of a supply of goods made by that
person and shall include duties of excise chargeable under section 3 of the
Central Excises Act, 1944 (I of 1944) on such excisable services as are notified
by the Federal Government under the third proviso to sub-section (1) thereof and
on which such duties are charged, levied and paid as if it were a tax payable
under section 3 of this Act;
(21)
"Person" includes a company, an association, a body of
individuals whether incorporated or not, a public or local authority, a
Provincial Government or the Federal Government;
(22)
"Prescribed" means prescribed by rules made under this
Act;
(23)
"registered office" means the office or other place of
business specified by the registered person in the application made by him for
registration under this Act or through any subsequent application to the
Collector;
(24)
"registration number" means the number allocated to the
registered person for the purpose of this Act;
Provided that a person liable to be registered but not
registered under this Act shall remain liable to further tax under sub-section
(1A) of section 3 and shall not be entitled to any benefit available to a
registered person under any of the provisions of this Act or the rules made
thereunder;
(26)
* * *
(27)
"retail price", with reference to the Third Schedule,
means the price fixed by the manufacturer or the importer, inclusive of all
charges and taxes (other than sales tax) at which any particular brand or
variety of any article should be sold to the general body of consumers or, if
more than one such price is so fixed for the same brand or variety, the highest
of such price;
(28)
"retailer" means a person (***), supplying goods to
general public for the purpose of consumption:
Provided that any person, who combines the business of import
and retail or manufacture or production with retail, shall notify and
advertise wholesale prices and retail prices separately, and declare the address
of retail outlets, and his total turnover per annum shall be taken into account
for the purposes of registration under section 14.
(28A) "retail
tax" means tax levied under section 3AA;
(29)
"return" means any return
required to be furnished under Chapter-V of this Act;
(30)
"Schedule" means a Schedule
appended to this Act;
(31)
"similar supply", in
relation to the open market price of goods, means any other supply of goods
which closely or substantially resemble the characteristics, quantity,
components and materials of the aforementioned goods;
(31A) "special audit" means an audit conducted
under section 32A;
(33)
"supply" includes sale,
lease (excluding financial or operating lease) or other disposition of goods
(***) carried out for consideration and also includes --
(34)
"tax" means the sales tax, turnover tax, retail tax or
enlistment tax, and includes additional tax or any other sum payable under any
of the provisions of this Act or the rules made thereunder;
(35)
"taxable activity" means any activity which is carried
on by any person, whether or not for a pecuniary profit, and involves in whole
or in part, the supply of goods or rendering of services on which sales tax has
been levied under the respective ordinance and use of goods acquired for private
purposes or for the manufacture of exempt goods without making supply to any
other person, whether for any consideration or otherwise, and includes any
activity carried on in the form of a business, trade or manufacture;
(36)
"tax fraction" means the amount worked out in accordance
with the following formula:--
('a' is
the rate of tax specified in section 3):
(37)
"tax fraud" means knowingly, dishonestly or fraudulently and
without any lawful excuse (burden of proof of which excuse shall be upon the
accused) –
(i)
doing of any act or causing to do any act; or
(ii)
omitting to take any action or causing the omission to take any action,
in contravention of duties or obligations imposed under this
Act or rules or instructions issued thereunder with the intention of
understating the tax liability or underpaying the tax liability for two
consecutive tax periods or overstating the entitlement to tax credit or tax
refund to cause loss of tax;
(38)
"tax identification number (TIN)" means the registration
number or any other number allocated to a taxable person;
(39)
"taxable goods" means all goods
other than those which have been exempted under section 13;
(40)
"tax invoice" means a document
required to be issued under section 23;
(41)
"taxable supply" means a supply of taxable goods made (***) by
an importer; manufacturer, wholesaler (including dealer), distributor or
retailer other than a supply of goods which is exempt under section 13 and
includes a supply of goods chargeable to tax at the rate of zero per cent under
section 4;
(42) * * *
(43)
"tax period" means a period of one month or such other period
as the Federal Government may; by notification in the official Gazette, specify;
(44)
"time of supply" means a supply (***) shall be deemed to have
taken place at the earlier of the time of delivery of goods or the time when any
payment is received by the supplier in respect of that supply:
Provided
that where any part payment is received –
(a)
for a supply in a tax period, it shall be accounted for in the
return for that tax period; and
Provided further that –
(45) "turnover
tax" means tax levied under section 3A of this Act.
(46) "value
of supply" means:--
(a)
in respect of a taxable supply, the consideration in money including all
Federal and Provincial duties and taxes, if any, which the supplier receives
from the recipient for that supply but excluding the amount of tax:
Provided that--
(i) in case the consideration
for a supply is in kind or is partly in kind and partly in money, the value of
the supply shall mean the open market price of the supply excluding the amount
of tax;
(ii)
in case the supplier and recipient are associated persons and
the supply is made for no consideration or for a consideration which is lower
than the open market price, the value of supply shall mean the open market price
of the supply excluding the amount of tax; and
(iii)
in case a taxable supply is made to a consumer from general public
on installment basis on a price inclusive of mark up or surcharge rendering it
higher than open market price, the value of supply shall mean the open market
price of the supply excluding the amount of tax.
(b)
in case of trade discounts, the discounted price
excluding the amount of tax; provided the tax invoice shows the discounted price
and the related tax and the discount allowed is in conformity with the normal
business practices;
(c)
in case where for any special nature of transaction it
is difficult to ascertain the value of a supply, the open market price;
(d)
in case of imported goods, the value determined under
section 25 or 25B of the Customs Act, including the amount of customs-duties and
central excise duty levied thereon;
(e)
in case where there is sufficient reason to believe
that the value of a supply has not been correctly declared in the invoice, the
value determined by the Valuation Committee comprising representatives of trade
and the Sales Tax Department constituted by the Collector; and
(f)
in case the goods other than taxable goods are
supplied to a registered person for processing, the value of supply of such
processed goods shall mean the price excluding the amount of sales tax which
such goods will fetch on sale in the market:
(g)
in case of a taxable supply, with reference to retail
tax, the price of taxable goods excluding the amount of retail tax, which a
supplier will charge at the time of making taxable supply by him, or such other
price as the Board may, by a notification in the official Gazette, specify:
Provided that, where the Central Board of Revenue deems it
necessary, it may, by notification in the official Gazette, fix the value of any
taxable supplies or class of supplies and for that purpose fix different values
for different classes or description of same type of supplies:
Provided further that where the value at which the supply is
made is higher than the value fixed by the Central Board of Revenue, the value
of goods shall, unless otherwise directed by the Board, be value at which the
supply is made;
(47)
"wholesaler” includes a dealer and means any person who
carries on, whether regularly or otherwise, the business of buying and selling
goods by wholesale or of supplying or distributing goods, directly or
indirectly, by wholesale for cash or deferred payment or for commission or other
valuable consideration or stores such goods belonging to others as an agent for
the purpose of sale; and includes a person supplying taxable goods to persons
deducting advance tax under sub-section (4) of section 50 of the Income Tax
Ordinance, 1979 (XXXI of 1979), and a person who in addition to making retail
supplies is engaged in wholesale business; and
(48)
"zero - rated supply" means a taxable supply which is
charged to tax at the rate of zero per cent under section 4.
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