AVN 64.02 Decreased By ▼ -0.57 (-0.88%)
BAFL 28.78 Decreased By ▼ -0.47 (-1.61%)
BOP 4.03 Increased By ▲ 0.01 (0.25%)
CNERGY 3.46 Decreased By ▼ -0.02 (-0.57%)
DFML 11.78 Increased By ▲ 0.08 (0.68%)
DGKC 43.91 Increased By ▲ 1.46 (3.44%)
EPCL 46.78 Increased By ▲ 0.58 (1.26%)
FCCL 11.96 Increased By ▲ 0.10 (0.84%)
FFL 5.41 Decreased By ▼ -0.08 (-1.46%)
FLYNG 5.82 Increased By ▲ 0.03 (0.52%)
GGL 10.57 Decreased By ▼ -0.10 (-0.94%)
HUBC 67.53 Increased By ▲ 0.43 (0.64%)
HUMNL 5.40 Decreased By ▼ -0.02 (-0.37%)
KAPCO 24.09 Increased By ▲ 0.04 (0.17%)
KEL 2.07 Increased By ▲ 0.01 (0.49%)
LOTCHEM 25.35 Increased By ▲ 0.22 (0.88%)
MLCF 25.98 No Change ▼ 0.00 (0%)
NETSOL 73.23 Decreased By ▼ -0.77 (-1.04%)
OGDC 83.36 Decreased By ▼ -0.49 (-0.58%)
PAEL 11.30 Increased By ▲ 0.75 (7.11%)
PIBTL 4.22 Increased By ▲ 0.43 (11.35%)
PPL 63.96 Increased By ▲ 0.16 (0.25%)
PRL 12.14 Decreased By ▼ -0.13 (-1.06%)
SILK 0.88 Increased By ▲ 0.02 (2.33%)
SNGP 39.09 Decreased By ▼ -0.21 (-0.53%)
TELE 7.44 Decreased By ▼ -0.25 (-3.25%)
TPLP 14.20 Increased By ▲ 0.15 (1.07%)
TRG 106.04 Increased By ▲ 0.27 (0.26%)
UNITY 13.29 Increased By ▲ 0.19 (1.45%)
WTL 1.18 Decreased By ▼ -0.01 (-0.84%)
BR100 4,056 Increased By 20.6 (0.51%)
BR30 14,367 Increased By 35 (0.24%)
KSE100 40,001 Increased By 152.5 (0.38%)
KSE30 14,853 Increased By 85.8 (0.58%)
Follow us

ISLAMABAD: The Federal Tax Ombudsman (FTO) on Tuesday directed the Federal Board of Revenue (FBR) to confirm the chargeability of sales tax under the Sales Tax Act, 1990, on computerised arms licences, in the form of cards being supplied by the National Database and Registration Authority (Nadra).

The FTO issued an important order here on Tuesday on the chargeability of sales tax by the Nadra.

A complaint was filed under Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance) against inaction on the part of the FBR to take cognisance of the fact that the Nadra, Islamabad, was not charging sales tax on the supply of goods in the form of machine readable passports, vehicle registration cards, and computerised arms licences.

The complainant stated that he is registered as an informer and according to him the supply of goods/ services by the Nadra was subject to levy and deposit of sales tax/ FED, but no tax/ duty was being charged by the Nadra. Therefore, the complaint is against the FBR for their inefficiency in taking cognisance of the fact that the Nadra is not charging sales tax on the supply of (i) machine readable passports, (ii) vehicle registration cards, and (iii) computerised arms licenses.

The FTO’s findings stated that the Nadra is paying sales tax on the supply of machine readable passports to the Directorate General of Immigration and Passport, Islamabad as the supply of services @ five per cent of value in the light of the ICT (Tax on Services) Ordinance 2001. They are regularly filing sales tax returns as informed by the Large Tax Office (LTO), Islamabad.

The Nadra is charging and paying sales tax @ 17 per cent of value (as goods) of chip-based vehicle registration cards and as per contention of the LTO, Islamabad sales tax is not chargeable on the supply of computerised arms licenses by the Nadra in terms of ICT (Tax on Services) Ordinance, 2001. However, they are silent about the chargeability of sales tax (on goods) under Sales Tax Act, 1990.

In the light of elaborate discussion and legal provisions as supra, the Revenue Division is required to examine chargeability or otherwise of sales tax under the Sales Tax Act, 1990 on computerised arms licenses in the form of cards, being supplied by the Nadra, Islamabad to the federal government, and the provincial governments on the analogy of chip-based vehicle registration cards, the FTO order added.

Copyright Business Recorder, 2023


Comments are closed.

amir Mar 22, 2023 10:38pm
How can NADRA and LTO doubt sales tax chargeability on Chip-based Arms Licence, when notices appearing on Deputy Commissioner offices announced that "16% GST (1,400+16%=1,624) will also be payable from 15 May 2019 along with Rs.1,400 fee for computerization of arms licences." And that instead of depositing fee with UBL Omni, it should be deposited at NADRA's E-sahulat franchise".
thumb_up Recommended (0)
amir Mar 22, 2023 10:43pm
How can NADRA and LTO Islamabad doubt chargeability of sales tax on fee for the computerized Arms Licence, when there are public notices to the effect that (i) From 15 May 2019, GST tax (1,400+16%=1624)) will also have to be deposited along with fee for computerization of Arms Licences and (ii) the fee is now to be deposited with Nadra Esahulat franchise, instead of in UBL Omni ???
thumb_up Recommended (0)

Computerised arms licences: FBR asked to confirm sales tax chargeability

Renewable energy sector: PM urges UAE firm to make investment

Textile exports may fall by $3bn this year, warns APTMA

China has rolled over $2bn loan, Dar tells Senate

Rating downgrades may have added to IMF’s concerns: Pasha

India regulator probing some Adani offshore deals for possible rule violations

If not effected, up to 9pc of amount to be marked as lien: SBP asks exporters to bring in delayed proceeds by 30th

SBP seen raising key rate to record 22pc as inflation bites

Election delay case: SC rejects govt’s full court plea

Corporate farming: LHC stays handing over of land to army

All categories of consumers: Nepra approves Rs3.23/ unit surcharge