Taxable services: Agencies would cover advertisements booked in Punjab for TV, radio
ISLAMABAD: The “taxable services” rendered by advertisement agencies would also cover advertisements booked in Punjab for broadcasting or telecasting on TV or radio stations based elsewhere, whether or not possessing landing rights in Punjab.
According to the draft of the Punjab Sales Tax on Services (Specific Provisions) Rules, 2012 issued here on Saturday. Every person providing services of advertisement on Television, Radio or Cable TV as an advertising agent (including advertising company or firm) shall obtain registration and pay sales tax. In relation to advertisements on television and radio, the expression “taxable services” include the services in respect of advertisements:
a) broadcast or telecast by TV or radio stations located in Punjab;
(b) booked in Punjab for broadcasting or telecasting on TV or radio stations based elsewhere, whether or not possessing landing rights in Punjab; and
(c) transmitted on cable T.V. networks.
The value of taxable service for the purposes of sales tax shall be the total consideration in money received or the gross amount charged by a registered person from his clients for broadcasting or telecasting of any advertisement on radio, television or cable TV, including all Federal and Provincial levies but excluding the amount of sales tax.
Where any cable operator receives advertisement bookings directly from the clients, he shall pay sales tax on the basis of gross amount charged by him including all Federal and Provincial taxes other than sales tax and such cable operator shall also be liable to registration.
The advertising agent or cable operator as the case may be, shall maintain proper records and account of all services provided by him. He shall issue a proper bill of charges for each transaction from a duly bound book of serially numbered bills of charges or electronically generated invoices which shall include the particulars (including registration number if any) of the persons providing and receiving service, description of the service provided and the amount charged.
A copy of the bill shall be given to the person to whom such services have been provided and one copy thereof shall be retained by the person providing services in the said bound book of bills of charges. Not more than one book of bill of charges shall be used at one time provided that where such person has more than one branches of the establishment, separate books of bill of charges may be used for each such branch, rules said.
The advertising agents and cable operators shall maintain their accounts in a register in the laid down form, rules added. About the payment of sales tax on shipping agents, the draft rules said that every shipping agent shall pay sales tax on monthly basis in respect of each ship handled by him, which calls on any port of Pakistan after foreign voyage.
The agent shall pay tax on the gross commissions charged for the services provided by him as apportioned on the basis of loadable or unloadable cargo originating from or destined to the territory of Punjab and reimbursable actual expenses, if any, incurred by such agent for and on behalf of his clients shall not be included in the base of taxable value. The Assistant Collector of Customs having jurisdiction shall not grant final port clearance to a ship unless the agent furnishes proof of filing of return and proof of payment of tax or give a proper affidavit to the effect that he will deposit the due tax at the time of filing sales tax return and furnished proof thereof in due course.
The agent shall furnish to the Authority a monthly statement in appropriate form in respect of ships handled and the ship-wise commissions apportioned for Punjab sales tax by the 20th day of the following month, rules added.