Sales Tax Instructions

TELEVISION (CCTV).
Sales Tax Instructions, 2009
A question has been raised whether or not advertisements released on Closed
Circuit Television (CCTV) [usually installed at airports, railway stations, bus stands,
shopping centers, etc] are chargeable to Sales Tax under the respective Provincial Sales
Tax Ordinances, 2000.
2. The issue has been examined in the Board and it has been observed that
during the Budget 2000-01, when Central Excise duty on services was brought under
GST mode through provincial legislation, the description ―advertisements on CCTV
falling under PCT sub-heading No.9802.3000‖ was not considered for inclusion in the
schedules of the respective Provincial Ordinances. The Ordinances cover only
―advertisements on television‖, which are separately classifiable under PCT sub-heading
No.9802.1000. Legally advertisements on TV and advertisement on CCTV are two
distinctly separate services, each having a separate description and classification.
3. It is, therefore, clarified that advertisements released on Closed Circuit
Television (CCTV) classifiable under PCT sub-heading No.9802.3000 are not chargeable
to sales tax. However, no refund of the sales tax already paid by the registered person on
this account and the incidence of which has been passed on to the consumer shall be
allowed / claimed on the basis of this ruling, in terms of the provisions of section 3B of
the Sales Tax Act, 1990.
[Issued by the CBR, Islamabad under the signature of Dr. Muhammad Zubair, Secretary
(STR & C) addressed to all the Collectors of Sales Tax/LargeTax Payers Unit, Karachi. Copy to
(i) M/s F. R Associates, Law/Tax Consultants & Advisors, Karachi with reference to their letter
Ref. 01/C1/QB/03 dated 18.09.2003.(ii) M/s Nasir Javaid Maqsood, Chartered
Accountants,Lahore with reference to their letter dated 05.07.2003. ]
********
SALES TAX RULING/ INSTRUCTION No.25/2003
C.No.1(17)STR/2000. DATED 31 ST OCTOBER, 2003
SUBJECT:-
CLARIFICATION REGARDING ADJUSTMENT OF INPUT TAX
PAID ON ADVERTISEMENT SERVICES BY REGISTERED
CLIENTS ON AMENDED INVOICES ISSUED BY PTV.
I am directed to refer to the Board‘s Ruling No. 12/2003 issued under C. No.
1(17)STR/2000 dated 19.05.2003 on the subject cited above and to state that a question
has been raised whether or not a banking instrument (such as bank draft, cheque, etc)
issued in the name of advertising agency covering the invoice amount (including agency
commission) for onward payment to PTV by such agency after deduction of agency
commission is admissible for the pur-poses of input tax adjustment in terms of section 73
read with section 7 of the Sales Tax Act, 1990, despite the fact that the invoice is issued
by PTV (service provider) directly in the name of client (registered person) and that the
adver-tising agency is a non registered person for the purposes of the Sales Tax Act,1990.
2. The matter has been re-examined in the Board. Considering the special