Government of Pakistan
Central Board of Revenue
Islamabad, the 12th June, 2004.
S.R.O.504(I)/2004.—In exercise of the powers conferred by section 37 of the Central Excises Act, 1944 (I of 1944), the Central Board of Revenue is pleased to direct that the following further amendments shall be made in the Central Excise Rules, 1944, namely:-
In the aforesaid Rules,—
(1) in rule 2, clause (bbb) shall be omitted;
(2) in rule 42B,—
(i) in sub-rule (1), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
“Provided that the provisions of this sub-rule shall not apply to the Large Taxpayers Unit, Karachi.”; and
(ii) in sub-rule (2), after the second proviso, the following new proviso shall be inserted, namely:-
“Provided also that the provisions of this sub-rule and the first proviso thereto shall not apply to the cigarette manufacturing units falling in the jurisdiction of the Collectorate of Large Taxpayers Unit, Karachi.”.
(3) for rule 96ZZK the following shall be substituted, namely:-
“96ZZK. Special procedure for collection of central excise duty from shipping agents.- (1) Every shipping agent, hereinafter called the agent, shall charge, collect and pay the central excise duty at the rate of 15% of value of excisable services, which shall be the commission charged by an agent on the net ocean freight amount of C & F export cargo for such services provided or rendered by him.
(2) For the purposes of levy of central excise duty, the value of excisable services shall not include reimbursable expenses incurred by an agent, such as freight, pilotage and berth hire charges, port dues, cargo expenses, brokerage paid on export cargo, ship handling expenses paid to the stevedores including all ancillary charges.
(3) An agent shall be required to be registered under section 14 of the Sales Tax Act, 1990.
(4) An agent shall file monthly sales tax return-cum-payment challan by the 15th day of the month following the month in which the services were provided or rendered.
(5) The central excise duty due along with the monthly return shall be deposited in the designated branch of the National Bank of Pakistan within the due date, as aforesaid.
(6) In case, an agent fails to pay the duty of excise by the due date, he shall, in addition to the payment of duty under section 3 of the Act and additional duty payable under section 3B of the Act, be also liable to penalty under these Rules.
(7) An agent shall issue serially numbered invoices containing all the particulars as prescribed under section 23 of the Sales Tax Act, 1990, for the excisable services provided or rendered.
(8) An agent shall maintain all the records prescribed under section 22 of the Sales Tax Act, 1990, which shall be retained for a minimum period of five years, as laid down in section 24 of the said Act.
(9) Audit of the records for verification of correct payment of sales tax on monthly basis shall be conducted once in a year.”;
(4) in rule 139,—
(i) in clause (1), the commas and words “, paints, varnishes, metal containers, wires and cables” shall be omitted; and
(ii) clauses (2), (3), (4), (6) and (7) and entries relating thereto shall be omitted;
(5) in rule 174, in sub-rule (3), after the second proviso, for the full stop, at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
“Provided also that the manufacturers or producers of vegetable ghee and cooking oil paying central excise duty under the third proviso to sub-section (1) of section 3 of the Central Excises Act, 1944 (I of 1944), shall not be required to obtain central excise licence.”;
(6) in rule 175, in sub-rule (1), the words and comma “or before the expiry of the current licence,” and the words “or renewal thereof” shall be omitted;
(7) in rule 224, in sub-rule (1-B), the words “cement factories and those beverage manufacturing” shall be omitted; and
(8) in Form A.R.,—
(i) in serial number 7, after the word “and”, the word “complete” shall be inserted; and
(ii) after serial number 7 amended as aforesaid, the following new serial number and entry relating thereto shall be inserted, namely:-
“7A. Invoice No. and date (if any) ____________________”.
(Muhammad Iqbal Bhawana)