The Federal Board of Revenue (FBR) has directed ICTO zone Islamabad to charge 16 percent sales tax on fifty-nine services.
The commissioner ICTO zone Islamabad Mohy UD DIN Ismail has directed its officers to facilitate such persons rendering or providing taxable services within their relevant jurisdiction to first get themselves registered and then, charge sales tax on these services as per the provisions of Islamabad Capital Territory (Tax on Services) Ordinance, 2001 and deposit the same into Federal Govt. treasury under the head “B-02366”.
The ICTO Zone holds jurisdiction over monitoring and collection of sales tax on various taxable services being rendered /provided within ICT under Islamabad Capital Territory (Tax on Services) Ordinance 2001 irrespective of the fact as to where those persons are registered for income tax purposes under Income Tax Ordinance 2001, except the cases falling within the jurisdiction Corporate Tax Office, Islamabad.
It is pertinent to note that FBR under the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 has imposed 16 percent sales tax on services provided by hotels, motels, advertisement on television and Radio, couriers as well as construction services, property developers or promoters, parlours, clinics and slimming clinics, body massage centres, management consultants, freight forwarding agents, and packers and movers, software or IT-based system, Manpower recruitment agents, security agencies, advertising agents, Share transfer or depository agents, business support services, laboratories, health clubs, gyms, physical fitness centres, Technical analysis and testing services, cable tv operators, Fund and asset (including investment) management services, event management and valuation services.
