ISLAMABAD (September 21 2004): The Central Board of Revenue (CBR) has announced that central excise duty (CED) would not be liveable on closed circuit television system (CCTV) exclusively engaged in tele-casting information about flight schedule at airports.
However, advertisements shown on closed circuit television (CCTV) are liable to excise duty. The telecast on CCTV for sale promotion or advertisements would be chargeable to central excise duty.
Official sources told Business Recorder here on Monday that CBR has issued instructions to all collectors of sales tax to forthwith implement the decision.
The clarification was issued on the request of several companies seeking waiver of CED on advertisements on CCTV at airports.
The CBR has directed all collectors of sales tax that if the telecast on CCTV installed at the airports is regarding information pertaining to flight schedule and other such information, the same is not chargeable to central excise duty.
However, if the telecast is for the purpose of projection of a product, service or idea with the object of propagating/promoting sale, purchase or hire of the product, service or idea for creating other related effects, the same comes within the definition of 'advertisement', and is chargeable to central excise duty, the CBR maintained.
The CBR has also launched a countrywide exercise to start sales tax registration of CCTV networks showing advertisements at airports.
In this connection, the CBR has directed all collectors to collect data from the Civil Aviation Authority (CAA) about the number of advertisements run on CCTV installed at various airports and register the concerned persons for sales tax purposes.
The CBR has asked the collectors of sales tax to complete the entire exercise within one month, officials added.
