This refers to the reply of Uzma Ghory, Assistant Commissioner (Tax Policy), SRB, carried by Business Recorder on 1st October, 2015 who asserted that immovable rented for commercial purposes amounts to services like restaurants who charge, collect and pay sales tax on the services provided or rendered by them.
Restaurants sell their commodities (food items) in two ways: (1) take away at home, (2) lunch or dining at restaurants where a good number of services are rendered and provided such as (a) birthday parties, (b) office meetings, (c) conferences (d) hall services for a large number of people, (e) other ceremonial functions like Nikkah, Rukhsati, Mehndi etc. Generally, they also provide (f) sofas (g) chairs (h) tables with mantelpieces, (i) services of attendants (waiters), (j) head attendants for complaints in (food or services), (k) tables with multi-lights, ashtrays, telephone facility for local and overseas calls, carpets, durris, wall carpets. These all and other facilities are for "comforts" and they readily pay for "extra" services along with food and tea etc, juices of many types. These services are in contrast to the barren immovable property leased as per agreements. How come these two are categorised "alike"?
Besides there is no clarification and explanation to the following situations:
1. Immovable property whether self-occupied or vacant.
2. Immovable property self-occupied
3. Immovable property rental wholly or partially
4. Renting of immovable property services
5. Renting of immovable property services under tariff heading 9806.3000
6. Immovable property rented for residential purposes but does not amount to services
7. Rented immovable property for commercial purposes amounts to services
8. Immovable property rented amounts to services like restaurants who provide services and pay sales tax, etc.