KPMG Taseer Hadi & Co. Chartered Accountants Budget Brief … Brief 2017 - Provincial...

KPMG Taseer Hadi & Co. Chartered Accountants

Budget Brief 2017

Sindh & Punjab

Finance Bills 2017

This Budget Brief 2017 contains amendments introduced through Sindh Finance Bill 2017 as it relates to the Sindh Sales Tax on Services Act, 2011 & Punjab Finance Bill 2017 relating to the Punjab Sales Tax on Services Act, 2012 and Stamp Act, 1899.

The provisions of the Sindh & Punjab Finance Bills 2017 are generally applicable from 01 July 2017, unless otherwise specified.

This Memorandum contains the comments, which represent our interpretation of the legislation, and we recommend that while considering their application to any particular case, reference be made to the specific wordings of the relevant statutes.

06 June 2017

Contents

Sindh Finance Bill Sindh Sales Tax on Services 01

Other Laws 05 Punjab Finance Bill Punjab Sales on Services 07 Stamp Act, 1899 11

Contents

© 2017 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Budget Brief 2017 1 - Sindh & Punjab

Definition of term ‘Franchise’

Sections 2(46) Presently, the “consideration” in monetary terms is a cardinal condition to establish relationship between a franchiser and a franchisee for tax purposes. However, this requirement was not in agreement with the provisions of Rule 36 of Sindh Sales Tax on Services Rules, 2011, whereby deeming provision for determination of franchise services was introduced in 2013 to include where no formal franchise agreement exists or the agreement does not specify any consideration for the franchise relationship. In this case, the provision of Rule 36 requires the assessment of value for SST on franchise services at the rate of 10% of the turnover.

Now, the Bill proposes to amend the definition of term ‘franchise’ to include the franchise arrangements where the assessment of SST can be made under the deeming provisions of Rule 36. This is to bring harmony of the definition with the provisions of Rule 36.

Definition of term ‘place of business in Sindh’

Sections 2(64) The Bill seeks to broaden the scope of the definition of term ‘place of business in Sindh’, which will also cover the economic activity carried on through virtual presence or website or web-portal or through any other form of e-commerce, by whatever name called or treated. However, economic activity carried out through liaison office will still remain excluded.

Similar amendment is proposed in the definition of ‘place of business in Punjab’ under Punjab Sales Tax on Services Act, 2012.

These amendments are likely to create more intricacies in relation to determination of place of provisions of taxable services and may also give rise to disputes among Provincial tax authorities.

Definition of term ‘Programme’ Section 2(67B)

The services provided by programme producers and production houses are taxable under tariff heading 9832.0000 at reduced rate of 8%. The scope of such services is determined through definitions of terms ‘production house’ and ‘programme’ as provided under Sections 2(67A) and 2(67B) of the Sindh Act respectively.

The Bills seeks to enhance the scope of above services by including the following activities under the caption ‘programme’:

Re-recorded audio or visual matter;

Audio or visual matter subjected to any post production processes like dubbing, colouring, sub-titling or captioning.

By virtue of above amendment, the re-recording or provision of any of the above services within Sindh in connection with any audio or visual contents, will attract levy of Sindh Sales Tax.

Person liable to pay tax

Sections 9(1) Section 9(1) read with Section 3(1) of Sindh Act vests the liability to discharge SST liability to the registered person providing the taxable services.

The Bill proposes to insert a proviso to make the service provider and service recipient jointly and severally liable in case the service recipient fails to effect payment against SST invoice within 180 days from the date of invoice, and the service provider

Sindh Sales Tax on Services Significant Amendments

© 2017 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative

(“KPMG International”), a Swiss entity. All rights reserved.

2 Budget Brief 2017 - Sindh & Punjab

simultaneously fails to discharge the sales tax liability with SRB within the prescribed due date.

The Bill also seeks to insert two Explanations to this effect to clarify that:

The amount of withholding SST as per Sindh Sales Tax Special Procedure (Withholding) Rules, 2014 will be included in the ‘amount of tax’ to be assessed under the proposed Proviso.

Registered person will include a person prescribed as ‘Withholding Agent’ under the afore-stated Rules.

Input tax credit not allowed

Section 15A(jj) The Bill proposes the restriction on the input tax adjustment which are being charged on some specific rate, fixed rate or such other rates not based on value or rate lesser than 13%. This entails that input tax in excess of standard rate of 13% will not be allowed adjustment except telecommunication services, where the standard rate is proposed to be enhanced to 19.5%.

The Bill also inserts a proviso to the above proposed enactment, which provides that in case of telecom services payment sales tax at the rate not less than 19.5%, the amount of sales tax paid on goods and services at ad valorem rates not exceeding 17%, can be claimed by the person providing the taxable telecom service. This proviso is special dispensation for telecom services.

Adjustment of input tax paid on certain goods and services

Section 15B Presently, the registered service provider can claim whole amount of input tax paid on acquisition of capital goods and fixed assets including machinery, if such assets are exclusively used for providing or rendering of taxable services. .

Now, the Bill proposes an overriding provision to allow adjustment of input tax paid on acquisition of capital goods, machinery and fixed assets as classified under Chapters 84 and 85 of the First Schedule to the Customs Act, 1969 in 12 equal monthly installments.

This proposal may not only lead to cash flow issues but also create difficulties in record keeping particularly where the acquisition of machinery/fixed asset is a recurring feature.

Assessment of Tax and Recovery of tax not levied or short-levied

Sections 23(3) and 47(3) The Bill proposes to enhance the time period for passing the assessment order from 120 days to 180 days from the issuance of show-cause notice or with such extended period as the officer of the SRB may for reasons to be recorded in writing fix the same.

Offences and Penalties

Sections 43 The Bill seeks to prescribe a penalty where any person refuses or denies or obstructs the



compliance of the provisions of section 54A, which is also being inserted, as pertaining to monitoring or tracking of persons or services through electronic or other means. Under this caption, penalty of Rs. 100,000 or an amount equal to tax involved, whichever is higher is proposed. Such person may further be penalized in term of imprisonment upon conviction by a Special Judge or fine which may extend to Rs. 100,000 or both.

Short paid amounts recoverable without notice

Sections 47A

The Bill seeks to insert an overriding assessment provision to provide discretion to the tax authority to recover the short-paid amount of SST as determined through the SST return of the registered person alongwith default surcharge. Such short-paid amount of SST may be recovered without issuing any show-cause notice by attachment of the taxpayer’s bank accounts, without prejudice to any other recovery action as Section 66 of Sindh Act. However, it is also proposed that no penalty shall be imposed unless a show cause notice is given to the tax payer.

This insertion is adopted from Section 11A of the Sales Tax Act, 1990. This may provide leverage to SRB authorities to establish tax demands without proper assessment under Section 23 of Sindh Act.

Obligation to produce documents and provide information Section 52(4)

Section 52 is an overriding provision which empowers SRB authorities to require any person or organization to provide the specified information or records in relation with tax audits, enquiries, or investigations.

The Bill proposes to authorize the Board or the SRB officer to seek any data and documents from the specified persons. Previously, the powers were restricted to the extent of obtaining information.

Monitoring or tracking by electronic or other means

Section 54A The Bill proposes to enact a provision for monitoring or tracking by electronic or other means. The proposed provision empowers Board to specify any person or services for such electronic monitoring or tracking.

The Board is thus being empowered to devise and implement an electronic system for monitoring and capturing the transactions recorded or the invoices issued by the registered person and transferring the information to the computer system of the Board on real time basis or otherwise.

The Board may also require the persons providing taxable service for compulsory use of such electronic means or systems, including fiscal cash registers, as may be specified / prescribed by the Board in relation with invoicing.

Appeals

Section 57 Section 57 describes the assessment orders passed under various provisions of Sindh Act, where the aggrieved person can file appeal before the Commissioner (Appeals) SRB. Now, the Bill proposes to include reference of Section 25A, which pertains to the de-registration proceedings. This implies that any order of de-registration passed by SRB authorities shall be appealable before the Commissioner (Appeal).




Recovery of arrears of tax

Section 66(1)(f) The Bill seeks to insert a proviso to section 66(1)(f) to provide relief against recovery proceedings to such taxpayers whose appeal is pending for decision before the Commissioner (Appeals) subject to the condition that taxpayer deposits 25% of the amount of tax due. The proposed insertion brings harmony with other tax statutes e.g. Sales Tax Act, 1990, Federal Excise Act, 2005, Punjab Sales Tax on Services Act, 2012, etc., where similar provisions are also proposed.

Broadening of tax base through licensing regulatory authorities

Section 72A The Bill proposes to enact a new provision that empowers the Board, with the approval of Government by notification in the official Gazette, to require any authority competent to issue or renew license or permission for engaging into an economic activity, which is a taxable service, not to issue or renew such license or permission unless such persons submit the evidence of SST registration under the provisions of Sections 24 or 24A or 24B of Sindh Act. The proposed insertion seems a tax broadening measure to bring several service segments into the tax net.

Service of orders and decisions

Section 75(7) The Bill proposes to empower SRB authorities to issue any notification, notice or show-cause notice electronically. By virtue of this amendment, the notices served electronically shall be treated as legally valid.

Condonation of time limit

Section 81 The provision of Section 81 describes power of the Board and the Commissioner SRB (as empowered through a Gazette notification) to condone the time limit as specified under Sindh Act or allied Rules within which any act or thing including submission of any application, filing of return or payment of tax to be done. The Bill proposes to enact an Explanation after the proviso to Section 81 to restrict the scope of condonation to the registered person and SRB authorities only.

Proposed revision in SST Rates

Second Schedule read with Notification SRB-3-4/8/2013, dated 01 July 2013 It is noted from the Budget Speech that the following SST rates are proposed to be revised as presently governed through the captioned SRB notification:

Taxable Service Existing rate

Proposed rate

Telecommunication services

19% 19.5%

Travel Agents and tour operators

10% 8%

Specific class of indenters and call centers

13% 3%

Renting of immovable property services

8% 3%

The above proposed rates are likely to be notified through amendment notification in relation with the captioned parent notification.



Budget speech refers that amendments in Stamp Act, Registration Act are also being introduced but these are not part of Sindh Finance Bill 2017.

le 36 of Sindh Sales Tax

Other Laws



Due Date

Section 2(17)

The Bill seeks to amend the definition of due date so that different parts of the Punjab sales tax return may be filed on different dates as may be specified.

Apparently, the above amendment is proposed to align Punjab Sales tax return with the Sales Tax Real time Invoice Verification system as Federal law provides different dates for filing for different annexures of the sales tax return.

Place of business

Section 2(30)

The Bill seeks to amend the definition of place of business to include following economic activities, wholly or partially, under the ambit of place of business.

- Agent, associate, franchise

- Branch office or otherwise in the Punjab or through virtual presence or a website or a web portal or through any other form of e-commerce by whatever named called.

Joint and Several Liability for payment of Sales Tax

Section 11A

It is proposed that in case a registered service provider has not made payment of sales tax within prescribed due date and a registered person receiving the taxable services, being a withholding agent or otherwise, has failed to make payment of sales tax to a service provider within 180 days of issuance of tax invoice, both of the registered persons shall be jointly and severally liable for payment of Sales Tax to Punjab Revenue Authority (PRA).

Special procedure for collection of tax

Section 14A

The Bill proposes to insert a new section whereby the Punjab Revenue Authority may require any person or class of person to collect and deposit the tax within such time and such manner as specified in the official gazette. The person or class of person not necessarily a service provider or service recipient.

It is further proposed that in addition to special procedure for collection and deposit of tax in Government kitty, procedure for registration, invoicing, book keeping may also be specified.

Deduction and adjustment of tax on inputs to the business.

Section 16(2), 16(4), 16(5)

The Bill proposes to substitute sub section 2 of section 16 to allow the registered person to claim refund, deduction and adjustment of input tax with the condition to furnish a tax invoice or goods declaration in his name showing his National Tax Number (NTN).

The Bill proposes to substitute sub section 4 of section 16 through which Punjab Revenue Authority, with the approval of Government, by notification allow a registered person or class of persons to deduct such amount of input tax from the output tax as specified in the notification.

The Bill further proposes that deduction and adjustments of additional tax, extra tax, further tax, default surcharge, fine, penalty or fee imposed or charged under the Act or any other law shall not be allowed as an admissible adjustment.

Punjab Sales Tax on Services



Adjustment of input tax paid on certain goods and services

Section 16C

It is proposed through insertion of new section through which deduction and adjustment of input tax paid on capital goods, machinery and fixed assets, as are classified under section XVI, Chapters 84 and 85 of the first schedule of the Customs Act 1969, shall be allowed in 12 equal monthly installments in the sales tax returns of the registered person.

Time Limitation for Assessment of Sales Tax

Section 24(2)

It is proposed that the time limitation for the assessment of sales tax by any officer of the Authority shall be increased from 5 years to 8 years from the conclusion of the tax period to which the assessment relates.

Appointment of authorities

Section 39

The Bill proposes to introduce two new cadre of sales tax authorities i.e. Risk Compliance Officers and Enforcement Officers which shall be subordinate to Deputy Commissioner and Assistant Commissioner, as the case may be.

Offences and Penalties

Section 48

The Bill seeks to enhance the penalty in relation to obstruction of any officer of the Authority from Rs. 25,000 to Rs. 100,000.

It is further proposed to insert the reference of section 70 in colum 4 against the said entry so as to impose the penalty against obstruction of any officer of the Authority on recovery of arrears of tax.

Recovery of arrears of tax

Section 70

Section 70 deals with the recovery of arrears though various means. The Bill proposes to extend the scope of this section by inserting clause bb to recover the arrear through legally enforceable relations created between the taxpayer and the other person including but not limited to purchase contract, contracts with credit or financial institutions or with banking companies, lease contract, loan agreements, building loan contracts, life insurance contracts, employment or work contracts.

The Bill further seeks to provide that no coercive action shall be taken against the taxpayer for recovery of disputed amount where the taxpayer paid twenty five percent of the tax demand and the matter is pending adjudication before Commissioner (Appeals).

Power to restrain certain authorities

Section 76A,

A new section is proposed to be inserted which provides that Punjab Revenue Authority with the approval of Government and through notification shall make liable to any authority who is responsible for issuance & renew of license to any person which render taxable service shall not issue license or renew license till such time the person get registration under the Act with Punjab Revenue Authority.

Service of orders and decisions

Section 78(7)

Presently, Punjab Revenue Authority is empowered to direct that all or specific communication including notifications, orders, assessments and requisitions from Authority, the Appellate Tribunal or any officer to a specific registered person or class of registered person may be made electronically.



The Bill proposes to provide that notices and show cause communication may also be made electronically.

Condonation of time limit

Section 84

Section 84 inter-alia empowered the Punjab Revenue Authority to do such act or thing to be done within such time or period as may be considered appropriate.

The Bill proposes to insert explanation in order to clarify that act or thing to be done includes an act or thing to be done by sales tax authorities specified in section 39 and by registered person as well.

Amendment in Second Schedule

The bill proposes to make following amendments in Second Schedule of the Punjab Sales Tax on Services Act, 2012:

Telecommunication Service – Serial No. 6

Presently, internet whether dialup or broadband services including email services, data communication network services (DCNS) and value added data services is outside the purview of Punjab Sales Tax.

The Bill proposes to restrict the exemption to the extent of Rs. 1,500 per month if used by the student.

Construction services and services provided by contractor of building. Serial No. 14

The Bill seeks to change the standard rate of sales tax applicable for construction services to 5% with emphasis that no input tax credit / adjustment shall be allowed.

The Bill further proposes reduce rate for certain construction services in line with the notification No. SO(TAX)5-24/2016 dated 5 October 2016 applicable for the year 2016-17. These propose changes are tabulated below.

Service Rate %

All services specified at S.No.14 without input tax credit or adjustment to the extent of Government civil works including those of cantonment boards involved in the ongoing development schemes and projects launched during Financial Year 2016-17 and funded under the annual development plan of the Punjab Government or funded through foreign loans where the negotiations were finalized after 1st of July 2016 or funded under public sector development program of the Federal Government or funded by the Cantonment Boards.

One

All services specified at S.No.14 without input tax credit / adjustment to the extent of Government civil works including those of cantonment boards involved in the ongoing development schemes and projects launched prior to Financial Year 2016-17 and funded under the annual development plan of the Punjab Government or funded through foreign loans where the negotiations were finalized as on 1st of July 2016 or funded under public sector development program of the Federal Government or funded by Cantonment Boards

Zero

The Bill incorrectly numbered clause as 4(13)(iii) instead of 4(13)(ii)(b) which gives an impression that all services are subject to reduced rate of 5% without input tax adjustment.



Contract of works – Serial No. 16

Hitherto, services provided by persons in contractual execution of works or furnishing supplies are under the sales tax net. However, a person is not required to pay sales tax where the annual total value of the contractual works or supplies does not exceed Rs. 50 million.

The Bill seeks to withdraw the above exemption meaning thereby that contractual execution of works are now taxable without any threshold limit.



Recently, the Board of Revenue, Punjab has introduced e-stamping project for facilitation of public and to eliminate the usage of counterfeit stamp papers. Punjab Finance Bill, 2017 has proposed to omit section 6 of Punjab Finance Act, 2010 which relates to the imposition of Capital Value Tax (CVT). Accordingly, it is proposed that CVT and other taxes are merged in the stamp duty and the rates of stamp duty are proposed to be revised.

The Bill proposes to amend Stamp Act 1899 as under:

Definition of Urban Area

Clause 2(26)

The Bill proposes to introduce the definition of “urban area” which includes a rating area under the Punjab Urban Immovable property tax Act, 1958, the area already declared as an urban area under the Punjab Finance Act, 2010, an area developed by a development authority, housing authority, statutory body, cooperative housing society or a real estate company or developer and it shall also include any other area which the board of revenue may, by notification, declare as an urban area.

Additional Stamp Duty on Registration of Instruments

Schedule I

The Bill proposes to introduce additional stamp duty at the time of registration of the instrument on different articles as narrated below: Article Column

Description of Instrument

Proposed Additional

Stamp Duty

2 3 Administration Board Rs. 25/-

3 3 Adoption Deed Rs. 10/-

5 3 Agreement or Memorandum of an Agreement

0.1% of the value of

instrument

6 3 Agreement relating to Deposit of Title Deeds, Pawn or Pledge

0.1% of the value of

instrument

15 3 Bond Rs. 25/-

16 3 Bottomery Bond Rs. 25/-

26 3 Customs Bond Rs. 25/-

32 3 Further Charge (a) Rs.500 if the amount

of consideration

does not exceed

RS.500,000/-and

(b) Rs.1000 If the amount

of consideration

exceeds Rs.500,000/-

34 3 Indemnity Bond Rs. 25/-

40 (a), (b), (c)

3 Mortgage Deed (a) Rs.500 if the amount

of consideration

does not exceed

RS.500,000/-and


of consideration


45 3 Partition (a) Rs.500 if the amount

of consideration

does not exceed

RS.500,000/-and


of

Stamp Duty



consideration exceeds

Rs.500,000/-

46 3 Partnership Rs. 25/-

48(a) 3 Power of Attorney Rs. 25/-

48(b) 3 Power of Attorney (a) Rs.500 if the amount

of consideration

does not exceed

RS.500,000/-and


of consideration


48(bb) 3 Power of Attorney Rs. 25/-

54 3 Re-Conveyance of Mortgaged Property

Equal to the amount of the registration fee paid on the principal mortgage deed.

56 3 Respondentia Bond Rs. 25/-

57 3 Security Bond or Mortgage Deed

Rs. 25/-

58 3 Settlement (a) Rs.500 if the amount

of consideration

does not exceed

RS.500,000/-and


of consideration


61 3 Surrender of Lease 5/8th the stamp duty

which was paid on the original lease deed.

Substitution of Stamp Duty on Registration of Instrument

Schedule I

The Bill proposes to substitute the existing stamp duty on different instrument with the new proposed rates which are summarized as follows:

Article Description of Instrument Existing Proper Stamp Duty

Proposed Proper Stamp Duty

18 Certificate of sale (In respect of each property put up as a separate lot and sold) granted to the purchaser of any property sold by public auction by a civil of revenue court, of collector or other revenue officer:

a) in case of immovable property in an urban area

b) in any other case

Additional stamp duty: a) if the amount of

consideration does not exceed RS. 500,000/-

b) if the consideration exceeds Rs 500,000/-

33%

3% - -

5%

3%

Rs. 500/-

Rs. 1,000/-

23 “Conveyance as defined by section 2(10) not



being a Transfer charged or exempted under Article 62:






33%

3% - -

5%

3%

Rs. 500/-

Rs. 1,000/-

27-A Decree, rule of a court or an order of a court based on mutual consent of the parties in cases involving transfer of an immovable property including sale, exchange, gift of mortgage, declaring or conferring a right in, or title to, an immovable property:






33%

3% - -

5%

3%

Rs. 500/-

Rs. 1,000/-

31 Exchange of immovable property:






33%

3% - -

5% of the

highest value of property plus 2% of the lowest

value of the

property

3%

Rs. 500/-

Rs. 1,000/-

33 GIFT Instrument of including a memorandum of oral gift of an immovable property, note being a settlement (Article 58) or will be transfer (Article 62) – when executed in respect of an immovable property:


3

3%

5% of the value of immovable property provided if the gift deed is executed between spouses, father, mother, son, daughter, grandparent, sibling or from one wife of widow to another wife or widow then the rate shall be 3% of the value of immovable property







3% - -

of the same

husband 3%

Rs. 500/-

Rs. 1,000/-

35

LEASE, including an under lease or sublease and any agreement to let or sublet:

a) where by such lease the rent is fixed and no premium is paid or delivered:

i) where the lease purports to be for a term of less than twenty years.

ii) where the

lease purports to be for a term of twenty years.

— in case of immovable property in an urban area

2% of the amount payable under

lease (3 slabs

existed)

3.25% of the

average annual

rent of the lease

5.25% of the

average annual

rent of the lease

— in any other

case

(iii) where the

lease purports to be for a term in excess of twenty years or in perpetuity:

— in case of

immovable property in an urban area

— in any other case

(iv) where the

lease does not purport to be

2% of the consideration equal to the whole amount of

rents which would be paid or

delivered in respect of

the first ten years of the

lease.

2% of the consideration equal to the whole amount of

rents which would be paid or

delivered in respect of

the first ten years of the

lease.

3.25% of

the average annual

rent of the lease

5.25% of the

consideration equal

to the whole

amount of rents which

would be paid or

delivered in respect of the first ten years

of the lease.

3.25% of the

consideration equal

to the whole

amount of rents which

would be paid or

delivered in respect of the first ten years

of the lease.



for a definite period:

— in case of



b) i) where the

lease is granted for money advanced and where no rent is reserved:



2% of the consideration equal to

the amount or value of

the average annual rent

which would be paid or

delivered for the first ten years.


the amount or value of

the average annual rent

which would be paid or



the amount of such

advance as

5.25% of the

consideration equal

to the whole

amount of rent which would be paid or


3.25% of the

consideration equal

to the whole

amount of rent which would be paid or


5.25% of the

consideration equal

to the amount of

such

ii) where the lease is granted for a fine or premium and where no rent is reserved:



c) i) where the lease is granted for money advanced in addition to the rent reserved:

— in case of immovable

set forth in the lease.


the amount of such

advance as set forth in the lease.


the amount of such fine or premium as set forth in the lease.


the amount of such fine or premium as set forth in the lease.

advance as set

forth in the lease.

3.25% of the

consideration equal

to the amount of

such advance

as set forth in the

lease.

5.25% of the

consideration equal

to the amount of such fine

or premium

as set forth in the

lease.

3.25% of the

consideration equal


or premium

as set



property in an urban area



the amount of advance as set forth in the lease, in addition to the duty

which would have

been payable on such lease,

if no advance had been

paid or delivered; provided

that, in any case when

an agreement to lease is stamped

with the ad valorem stamp required for a lease and a lease

in pursuance

of such agreement

is subsequently executed, the duty on such lease shall not

forth in the lease.

5.25% of the

consideration equal

to the amount of advance

as set forth in the

lease, in addition to the duty which would have been

payable on such

lease, if no advance had been

paid or delivered: provided



with the ad valorem stamp

ii) where the lease is granted for a fine or premium in addition to the rent reserved:


exceed Rs.100/-


the amount of advance as set forth in the lease, in addition to the duty

which would have

been payable on such lease,






in pursuance

of such agreement

required for a lease

and a lease in

pursuance of such

agreement is

subsequently

executed, the duty on such

lease shall not exceed Rs.100/-.

3.25% of the

consideration equal

to the amount of advance

as set forth in the lease, in

addition to the duty which would

have been payable on such ease,


paid or delivered, provided



with the ad valorem stamp

required





exceed Rs.100/-.


the amount of such fine or premium as set forth in the lease, in addition to the duty

which would have

been payable on such lease if no fine or premium had been




with the ad valorem sta

for a lease and a

lease in pursuance

of such agreement

is subsequen

tly executed, the duty on such

lease shall not exceed Rs. 100/-.

5.25% of the

consideration equal


or premium



have been payable on such lease if no fine

or premium had been


that, in any

Exemption: Lease, executed in the case of a cultivator and for the purposes of cultivation (including a lease of trees for the production of food or drink) without the payment or delivery of any fine or premium when a definite term is expressed and such term does not exceed one year, or when the average annual rent reserved does not exceed one hundred rupees.

mp required for a lease and a lease

in pursuance

of such agreement


exceed Rs. 100/-.


the amount of such fine or premium as set forth in the lease, in addition to the duty

which would have

been payable on such lease if no fine or premium had been



an agreement

case when an

agreement to lease is stamped

with the ad

valorem stamp


and a lease in

pursuance of such

agreement is

subsequently


lease shall not

exceed Rs. 100/-.

3.25% of the

consideration equal


or premium



have been payable on such lease if no fine

or premium had been

paid or delivered;



to lease is stamped


in pursuance

of such agreement


exceed Rs. 100/-.

No Change

provided that, in any case when


with the ad

valorem stamp


and a lease in

pursuance of such

agreement is

subsequently


lease shall not

exceed Rs. 100/-.

No Change

40(d) Mortgage Deed

(i)

(ii)

mortgage with banking companies, that is to say, simple or legal mortgage for banking companies or other financial institutions, when the entire finance is not based on interest; in any other case

0.2% of the loan

amount subject to a maximum

of Rs. 1,000/-

0.2% of the loan amount


subject to a

maximum of Rs. 1,000/-


55 Release i.e. whereby a person renounces a claim upon another person or against any specified property:



Additional stamp duty:

a) if the amount of consideration does not exceed RS. 500,000/-


3% of such

amount of the

claim or value of

the property.

3% of such

amount of the

claim or value of

the property.

-

-

5% of such

amount of the claim

or value of the

property.

3% of such

amount of the claim

or value of the

property.

Rs. 500/-

Rs. 1,000/-

63 Transfer of Lease: a) in case of


3% of

consideration equal

to the

5% of

consideration

equal to




Additional stamp duty:

a) if the amount of consideration does not exceed RS. 500,000/-


amount of the

consideration for

the transfer.

3% of consideration equal

to the amount of the

consideration for

the transfer.

-

-

the amount of the

consideration for

the transfer.

3% of

consideration

equal to the

amount of the

consideration for

the transfer.

Rs. 500/-

Rs. 1,000/-

63A

Transfer of Right or Interest relating to an Immovable Property:



3% of the value of

the property.

3% of the value of

the property.

5% of the

value of the

property

3% of the

value of the

property

a Offices in Pakistan

Karachi Office Sheikh Sultan Trust Building No. 2 Beaumont Road Karachi 75300 Phone +92 (21) 3568 5847 Fax +92 (21) 3568 5095 eMail [email protected]

Lahore Office 2nd Floor, Servis House 2-Main Gulberg, Jail Road Lahore 54000 Phone +92 (42) 3579 0901-6 Fax +92 (42) 3579 0907 eMail [email protected]

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KPMG Taseer Hadi & Co. Chartered Accountants Budget Brief … Brief 2017 - Provincial...

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