Amendments of the Islamabad Capital Territory (Tax on Services) Ordinance 2001
Finance Act 2023 to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2023, and to amend certain laws WHEREAS, it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2023, and to amend certain laws for the purposes hereinafter appearing. Certain laws were amended through this Finance Act, 2023.
Amendments of the Islamabad Capital Territory (Tax on Services) Ordinance 2001
In the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001),-
(1) In section 3, in clause (b), after the expression “serial number 2”, the expression “and serial number 8A” shall be inserted;
(2) in Table 1, in column (1). –
(i) against serial S. No. 1 and entries relating thereto in columns (2), (3) and (4), the following shall be substituted, namely:-
| “1. | (i) Services provided or rendered by hotels, motels, guest houses, farmhouses, marriage halls, lawns, clubs and caterers.
(ii) Services provided by restaurants including cafes, food (including ice- cream) parlors, coffee houses, coffee shops, deras, food huts, eateries, resorts and similar cooked, prepared or ready-to-eat food service outlets etc. |
98.01 | (i) Fifteen percent
(ii) (a) Five percent where payment against services is received through debit or credit cards, mobile wallets or QR scanning subject to the condition that no input tax adjustment or refund shall be admissible; and
(b) Fifteen percent where payment received in cash.”. |
(ii) against S. No.11 and entries relating thereto in columns (2), (3) and (4), the following shall be substituted; namely:-
| “11. | IT services and IT-enabled services.
Explanation:- For the purpose of this entry- (a) “IT services” include but not limited to software development, software maintenance, system |
Respective
headings |
Fifteen
percent.”. |
| integration, web design, web
development, web hosting and network design; and (b) “IT enabled services” include but not limited to inbound or outbound call centres, medical transcription, remote monitoring, graphics design, accounting services, human resources (HR) services, telemedicine centres, data entry operations, cloud computing services, data storage services, locally television programs and insurance claims processing. |
(iii) after S. No. 59, in columns (1), (2) and (3), the following new S. No. shall be added, namely:-
| “60. | Electric Power Transmission Services | — | 15%.”. |
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