The Central Board of Revenue (CBR) has announced special procedure for the collection of central excise duty from shipping agents.
The CBR has amended Central Excise Rules, 1944 through a SRO 504(I)/2004 of June 12 replacing rule 96ZZK with the new rule.
Under the procedure, every shipping agent shall charge, collect and pay the central excise duty at the rate of 15 percent of value of excisable services, which shall be the commission charged by an agent on the net ocean freight amount of C&F export cargo for such services provided or rendered by him.
The shipping agents would be required to be registered under section 14 of the Sales Tax Act, 1990 and file monthly sales tax return-cum-payment challan by the 15th day of the month, following the month in which the services were provided or rendered.
For the purposes of levy of CED, the value of excisable services shall not include reimbursable expenses incurred by an agent, such as freight, pilotage and berth hire charges, port dues, cargo expenses, brokerage paid on export cargo, ship handling expenses paid to the stevedores including all ancillary charges.
The central excise duty due along with the monthly return shall be deposited at the designated branch of the National Bank of Pakistan within the due date.
In case, an agent fails to pay the duty by the due date, he shall, in addition to the payment of duty under section 3 of the Act and additional duty payable under section 3B of the Act, be also liable to penalty under the excise rules.
The shipping agents would issue serial-numbered invoices containing all the particulars as prescribed under section 23 of the Sales Tax Act, 1990, for the excisable services provided or rendered by them.
Moreover, the shipping agents would maintain all the records prescribed under section 22 of the Sales Tax Act, 1990, which shall be retained for a minimum period of five years, as laid down in section 24 of the said Act.
The audit of the record, for verification of correct payment of sales tax on monthly basis, would be conducted once a year.
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