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2. Definitions.-
In
this Act, unless there is anything repugnant in the subject or context,--
(1)
"Appellate Tribunal" means the Customs, Excise and Sales Tax
Appellate Tribunal constituted under section 194 of the Customs Act;
(2)
"appropriate officer" means an officer of Sales Tax authorised
by the Board by notification in the official Gazette to perform certain
functions under this Act;
(2A)
'arrears' includes the un-paid amounts of tax, additional tax, further
tax, extra amount of tax, fines, penalties, fees or any other sums, however
described, as have been assessed, adjudged or demanded under this Act,
(3)
"associated persons" means any two or more persons who are close
relatives to each other or who are interconnected with each other in the
following way, namely:--
(i)
if the persons, being companies or undertakings, are under common management
or control or one is the subsidiary of the other;
(ii)
if a person who is the owner or partner or director of a company or undertaking,
or who, directly or indirectly, holds or controls twenty per cent shares
in such company or undertaking, is also the owner, partner or director
of another company or undertaking, or, directly or indirectly, holds or
controls twenty per cent shares in that company or undertaking;
Explanation.- For the purpose of this clause, the expression
It close relatives" mean the family, parents, brothers, sisters and
dependents of registered person;
(4)
"Board" means the Central Board of Revenue constituted under
the Central Board of Revenue Act, 1924 (IV of 1924);
(5)
"Collector" means the Collector of Sales Tax appointed under
section 30;
(5A)
"common taxpayer identifier' means the identification number allocated
under section 20 of the Finance Act, 1999 (IV of 1999)
(6)
"Customs Act" means the Customs Act 1969 (IV of 1969), and where
appropriate all rules and notifications made under that Act;
(6A)
'defaulter' means a person and, in the case of company or firm, every
director, or partner of the company, or as the case may be, of the firm,
of which he is a director or a partner or a proprietor and includes guarantors
or successors, who fail to pay the arrears;
(7)
"distributor" means a person appointed by a manufacturer, importer
or any other person for a specified area to purchase goods from him for
further supply and includes a person who in addition to being a distributor
is also engaged in supply of goods as a wholesaler or a retailer;
(8)
"document" includes any electronic data, computer programmes,
computer tapes, computer disks, micro-films or any other medium for the
storage of such data;
(9)
"due date", in relation to the furnishing of a return under
section 26 means the 15th day of the month following the end of the tax
period, or such other date as the Federal Government may, by notification
in the official Gazette, specify;
(10)
"establishment" means an undertaking, firm or company, whether
incorporated or not, an association of persons or an individual;
(11)
exempt supply" means a supply which is exempt from tax under section
13;
(12)
"goods" include every kind of movable property other than actionable
claims, money, stocks, shares and securities;
(13)
"importer" means any person who lawfully imports any goods into
Pakistan;
(14)
"input tax", in relation to a registered person, means the tax
-
(a)
levied under this Act on the supply of goods received by that person;
(b)
levied under this Act on goods imported, entered and cleared under section
79 or section 104 of the Customs Act, by that person;
(c)
levied under the Sales Tax Act, 1990 of Pakistan as adapted in the State
of Azad Jammu and Kashmir, on the supply of goods received by that person.
(15)
"Local Sales Tax Office" means the office of Superintendent
of Sales Tax, or such other office as the Board may, by notification in
the official Gazette, specify;
(16)
"manufacture" or "produce" includes -
(a)
any process in which an article singly or in combination with other articles,
materials, components, is either converted into another distinct article
or product or is so changed, transformed or reshaped that it becomes capable
of being put to use differently or distinctly and includes any process
incidental or ancillary to the completion of a manufactured product;
(b)
process of printing, publishing, lithography and engraving; and
(c)
process and operations of assembling, mixing, cutting, diluting, bottling,
packaging, repacking or preparation of goods in any other manner;
(17)
"manufacturer" or "producer" means a person who engages,
whether exclusively or not, in the production or manufacture of goods
whether or not the raw material of which the goods are produced or manufactured
are owned by him; and shall include --
(a)
a person who by any process or operation assembles, mixes, cuts, dilutes,
bottles, packages, repackages or prepares goods by any other manner;
(b)
an assignee or trustee in bankruptcy, liquidator, executor, or curator
or any manufacturer or producer and any person who disposes of his assets
in any fiduciary capacity; and
(c)
any person, firm or company which owns, holds, claims or uses any patent,
proprietary or other right to goods being manufactured, whether in his
or its name, or on his or its behalf, as the case may be, whether or not
such person, firm or company sells, distributes, consigns or otherwise
disposes of the goods;
(18)
"Officer of Sales Tax" means an officer appointed under section
30,
(19)
"open market price" means the consideration in money which that
supply or a similar supply would generally fetch in an open market;
(20)
"output tax" in relation to any registered person means the
tax charged under this Act in respect of a supply of goods made by that
person;
(21)
"Person" includes a company, an association, a body of individuals
whether incorporated or not, a public or local authority, a Provincial
Government or the Federal Government;
(22)
"Prescribed" means prescribed by rules made under this Act;
(23)
"registered office" means the office or other place of business
specified by the registered person in the application made by him for
registration under this Act or through any subsequent application to the
Collector;
(24)
"registration number" means the number allocated to the registered
person for the purpose of this Act;
(25)
"registered person," means a person who is registered or is
liable to be registered under this Act;
(27)
"retail price", with reference to the Third Schedule, means
the price fixed by the manufacturer, inclusive of all charges and taxes
(other than sales tax) at which any particular brand or variety of any
article should be sold to the general body of consumers or, if more than
one such price is so fixed for the same brand or variety, the highest
of such price,
(28)
"retailer" means a person, not being a manufacturer or producer
or an importer, supplying goods to general public for the purpose of consumption;
(28A)
"retail tax" means tax levied under section 3AA;
(29)
"return" means any return required to be furnished under Chapter
V of this Act;
(30)
"Schedule" means a Schedule appended to this Act;
(31)
"similar supply", in relation to the open market price of goods,
means any other supply of goods which closely or substantially resemble
the characteristics, quantity, components and materials of the aforementioned
goods;
(31A)
"special audit" means an audit conducted under section 32A;
(32)
"Special Judge" means the Special Judge appointed under Section
185 of the Customs Act;
(33)
"supply" includes sale, lease or other disposition of goods
in the course or furtherance of business carried out for consideration
and also includes –
(a)
putting to private, business or non-business use of goods acquired, produced
or manufactured in the course of business;
(b)
auction or disposal of goods to satisfy a debt owed by a person;
(c)
possession of taxable goods held immediately before a person ceases to
be a registered person; and
(d)
such other transaction as the Federal Government may, by notification
in the official Gazette, specify;
(34)
"tax" means the sales tax, turnover tax or retail tax, and includes
additional tax or any other sum payable under any of the provisions of
this Act or the rules made thereunder;
(35)
"taxable activity" means any activity which is carried on by
any person, whether or not for a pecuniary profit, and involves in whole
or in part, the supply of goods to any other person, whether for any consideration
or otherwise, and includes any activity carried on in the form of a business,
trade or manufacture;
(36)
"tax fraction" means the amount worked out in accordance with
the following formula:
a
100
+ a
('a'
is the rate of tax specified in section 3):
(37)
"tax fraud" means knowingly, dishonestly or fraudulently and
without any lawful excuse (burden of proof of which excuse shall be upon
the accused) –
(i)
doing of any act or causing to do any act; or
(ii)
omitting to take any action or causing the omission to take any action;
in
contravention of duties or obligations imposed under this Act rule or
instructions issued thereunder with the intention of understating the
tax liability or overstating the entitlement to tax credit or tax refund
to cause loss of tax;
(38)
"tax identification number (TIN)" means the registration number
or any other number allocated to a taxable person;
(39)
"taxable goods" means all goods other than those which have
been exempted under section 13;
(40)
"tax invoice" means a document required to be issued under section
23;
(41)
"taxable supply" means a supply of taxable goods made in Pakistan
by an importer; manufacturer, wholesaler (including dealer), distributor
or retailer other than a supply of goods which is exempt under section
13 and includes a supply of goods chargeable to tax at the rate of zero
per cent under section 4;
(43)
"tax period" means a period of one month or such other period
as the Federal Government may, by notification in the official Gazette,
specify;
(44)
"time of supply" means a supply made in Pakistan shall be deemed
to have taken place at the earlier of the time of delivery of goods or
the time when any payment is received by the supplier in respect of that
supply:
Provided
that where any part payment is received –
(a)
for a supply in a tax period, it shall be accounted for in the return
for that tax period; and
(b)
in respect of an exempt supply, it shall be accounted for in the return
for that tax period during which the exemption is withdrawn from such
supply:
Provided
further that –
(a)
where any goods are supplied by a registered person to an associated person
and the goods are not to be removed, the time of supply shall be the time
at which these goods are made available to the recipient; and
(b)
where the goods are supplied under hire purchase agreement, the time of
supply shall be the time at which the agreement is entered into;
(45)
"turnover tax" means tax levied under section 3A of this Act."
(46)
"value of supply" means; --
(a)
in respect of a taxable supply, the consideration in money including all
Federal and Provincial duties and taxes, if any, which the supplier receives
from the recipient for that supply but excluding the amount of tax:
Provided
that:
(i)
in case the consideration for a supply is in kind or is partly in kind
and partly in money, the value of the supply shall mean the open market
price of the supply excluding the amount of tax; and
(ii)
in case the supplier and recipient are associated persons and the supply
is made for no consideration or for a consideration which is lower than
the open market price, the value of supply shall mean the open market
price of the supply excluding the amount of tax;
(b)
in case of trade discounts, the discounted price excluding the amount
of tax,. provided the tax invoice shows the discounted price and the related
tax and the discount allowed is in conformity with the normal business
practices;
(c)
in case where for any special nature of transaction it is difficult to
ascertain the value of a supply, the open market price;
(d)
in case of imported goods, the value determined under section 25 or 25B
of the Customs Act, including the amount of customs-duties and central
excise duty levied hereon;
(e)
in case where there is sufficient reason to believe that the value of
a supply has not been correctly declared in the invoice, the value determined
by the Valuation Committee comprising representatives of trade and the
Sales Tax Department constituted by the Collector ; and
(f)
in case the goods other than taxable goods are Supplied to a registered
person for processing, the value of supply of such processed goods shall
mean the price excluding the amount of sales tax which such goods will
fetch on sale in the market;
Provided
that, where the Central Board of Revenue deems it necessary, it may, by
notification in the official Gazette, fix the value of any taxable supplies
or class of supplies and for that purpose fix different values for different
classes or description of same type of supplies:
Provided
further that where the value at which the supply is made is higher than
the value fixed by the Central Board of Revenue, the value of goods shall
be value at which the supply is made;
(g)
in case of a taxable supply, with reference to retail tax, the price of
taxable goods excluding the amount of retail tax, which a supplier will
charge at the time of making taxable supply by him, or such other price
as the Board may, by a notification in the Official Gazette, specify.
(47)
"wholesaler" includes a dealer and means any person who carries
on, whether regularly or otherwise, the business of buying and selling
goods by wholesale or of supplying or distributing goods, directly or
indirectly, by wholesale for cash or deferred payment or for commission
or other valuable consideration or stores such goods belonging to others
as an agent for the purpose of sale; and includes a person supplying taxable
goods to person deducting advance tax under sub-section (4) of section
50 of the Income Tax Ordinance, 1979 (XXXI of 1979), and a person who
in addition to making retail supplies is engaged in wholesale business;
and
(48)
"zero - rated supply" means a taxable supply which is charged
to tax at the rate of zero per cent under section 4.
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