Amendments of the Islamabad Capital Territory (Tax on Services) Ordinance 2001

Amendments of the Islamabad Capital Territory (Tax on Services) Ordinance 2001

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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