S.R.O.
390(I)/2001.- In exercise of the powers conferred by section 19 of the
Customs Act, 1969 (IV of 1969), sub-sections (3A) and
(6) of section 3, clause (b) of sub-section (1) of section 8, clause (a)
of sub-section (2) of section 13 and section 71 of the Sales Tax Act, 1990, the
Federal Government is pleased to exempt customs-duty leviable under the First
Schedule to the Customs Act, 1969 (IV of 1969), and sales tax on the import or,
as the case may be, on the supply of cellular telephone sets (hand-held sets) to
the extent that the combined effect of both the levies shall be one thousand
rupees per such set, hereinafter called the said amount, subject to the
following conditions, namely:-
(i) No customs-duty or
sales tax shall be collected on such cellular telephone sets at the time of
import or, as the case may be, at the time of supply, but the said amount will
be charged, collected and paid by the cellular company operator at the
time the sets are presented to the cellular company operator for activation or
energization;
(ii) Omitted;
(iii)
the cellular
company operator shall, if not already registered, obtain registration under the
Sales Tax Act, 1990;
(iv)
no cellular
telephone set shall be activated or energized by the cellular company operator
without charging and collecting the said amount;
(v) the said amount
shall also be charged, collected and paid on every new
activation or energization done by the cellular company operator;
(vi) the liability to
charge, collect and pay the said amount shall be on the cellular company
operator who shall deposit same through a monthly tax return in terms of section
26 of the Sales Tax Act, 1990, and rules made thereunder;
(vii) the cellular
company operator shall maintain proper records, whether in electronic form or
otherwise, of all the sets energized or activated after payment of the aforesaid
amount for a period of five years, and such records
shall be produced for inspection, audit or verification as and when
required by an officer authorised by the Collector of Sales Tax, and such
officer shall not ask for proof of import of cellular telephone sets activated
or energized; and
(viii) no adjustment of
input tax shall be admissible to the cellular company operator or the buyer
against the amount chargeable and payable under this notification.
Explanation 2.— For the purpose of condition (v), the expression "new activation or energization" means a new
connection or number given by the cellular company operator but does not include a change in number given to a
customer due to change in package or his location in Pakistan.
[C.
No. 3(9)STL&P/2001]