ISLAMABAD (October 16 2004): The Central Board of Revenue (CBR) has clarified the categories of services provided by stevedores for the purpose of levying sales tax under Sales Tax Provincial Ordinance 2000.
In a clarification issued to all the collectors of sales tax here on Friday, the CBR said that the stevedore is required to pay sales tax at the rate of 15 percent of the gross amount received from his clients on account of providing or rendering the service of stevedoring, ie, loading and unloading of cargo, including liquid/bulk cargo from ships, whether mechanically or otherwise.
All other reimbursable expenses incurred on providing ancillary services, if billed separately or mentioned separately in the sales tax invoice issued to the client, are not chargeable to sales tax.
The CBR has directed the collectors that if the services, other than stevedoring service, are not taxable services under Sales Tax Provincial Ordinance 2000, the same will not be charged to sales tax even if provided under the same name and style of the same company or under Memorandum and Association of Articles of the company.
