Sindh Sales Tax Special Procedure (Transportation or Carriage of Petroleum Oils through Oil Tankers) Rules, 2018

In exercise of the powers conferred by the provisions of sub-section (2) of section 8 and section 13 of the Sindh Sales Tax on Services Act, 2011 (Sindh Act No. XII of 2011), read with sub-section (4) of section 3, sub-section (3) of section 9, and section 72 thereof, the Sindh Revenue Board, with the approval of the Government of Sindh, is pleased to make the following rules, namely:--

1. Short tittle, application and commencement.
(1) These rules may be called Sindh Sales Tax Special Procedure (Transportation or Carriage of Petroleum Oils through Oil Tankers) Rules, 2018;

(2) These rules shall apply to such of the service or services of ²[* * *] transportation or carriage of petroleum oils by road which are provided or rendered through oil tankers and are classified under ³[CPC Code 65112]; and

(3) These rules shall come into force at once and shall apply in relation to such of the service or services as are provided or rendered on or after the first day of January, 2018.

2. Definitions.
(1) In these rules, unless there is anything repugnant in the subject or context,--

(a) “Act” means the Sindh Sales Tax on Services Act, 2011 (Sindh Act No. XII of 2011);

(b) “Board” or “SRB” means Sindh Revenue Board established under the Sindh Revenue Board Act, 2010 (Sindh Act No. XI of 2010);

⁴[(c) * * *]

(d) “Inter-Province service or services” means a service or services originating in or from any place in the Province of Sindh and terminating at any place (including Federal Capital Territory, FATA, PATA, AJK and GB) outside the Province of Sindh;

(e) “Intra-Province service or services” means a service or services originating in or from any place in the Province of Sindh and also terminating at any place in the Province of Sindh;

(f) “Invoice” means an invoice, bill, bilty, consignment note, cash memo, credit memo, advice or any other such transaction-related document containing the particulars mentioned in rule 29 of the Sindh Sales Tax on Services Rules, 2011, read with sub-rule (4) of rule 42G thereof;

(g) “Non-tariff area”, in relation to inter-province service or services, means the State of Azad Jammu and Kashmir, Gilgit Baltistan ⁵[* * *] and other similar territories or areas where sales tax on the service or the services of ⁶[* * *] transportation or carriage of petroleum oils by road through oil tankers has not been levied under the reverse charge mechanism.

(h) “Petroleum oils” means that petroleum oils classified under heading 27.10 of the Pakistan Customs Tariff, as given in the First Schedule to the Customs Act, 1969 (Act No. IV of 1969);

(i) “Registered person” means a person who is registered with SRB under sections 24, 24A or 24B of the Act, read with clause (71) of section 2 thereof;

(j) “Sales tax” or “tax” means the Sindh sales tax as defined in clause (92) of section 2 of the Act;

(k) “Service” or “services” means such of the service or the services of ⁷[* * *] transportation or carriage of petroleum oils by road through oil tankers, as are classified under ⁸[CPC Code 65112];

(l) “Service provider” means a person registered with SRB under the Sindh Sales Tax on Services Act, 2011, for providing or rendering such of the service or services as are mentioned in clause (k) of this rule;

(m) “Service recipient” means the person, receiving the service or the services, to whom the service provider issues the invoice;

(n) “These rules” means the Sindh Sales Tax Special Procedure (Transportation or Carriage of Petroleum Oils through Oil Tankers) Rules, 2018;

(o) “Un-registered person” means a person who is liable to be registered under the Act but is actually not registered and does not hold a Sindh Sales Tax Registration Number (SNTN) ⁹[and includes a person whose registration has been suspended or cancelled under section 25 of the Act or under rule 10 of the Sindh Sales Tax on Services Rules, 2011];

(p) “Withholding agent” means a person as defined in sub-rule (11) of rule 2 of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014; and

(q) “Withholding Rules” means the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014.”

(2) The words and expressions used in these rules but not defined herein shall have the same meaning as assigned to them in the Act.

3. Rate of tax.
¹⁰[The rate of tax on the transportation or carriage of petroleum oils through oil tankers shall be 15 per cent.]

4. Tax invoices.
The service provider shall issue an invoice in relation to the service or the services provided or rendered by him:

Provided that where the service or the services in any invoice involves more than one ¹¹[one tax jurisdictions (e.g. the inter-Province and intra-Province service or services, both)], the invoice shall clearly indicate the particulars of destinations, as per sub-clause (b) of clause (iv) of sub-rule (4) of rule 42G of the Sindh Sales Tax on Services Rules, 2011, and the value and the rate and amount of tax, separately, in the invoice.

5. Withholding of tax.
¹²[Fifty per cent of] the amount of sales tax shall be withheld by the service recipients who shall be the withholding agent and shall deposit ¹³[such withheld amount] in Sindh Government’s head of account “B-02384” in the manner prescribed in the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014:

Provided that, in relation to the tax on inter-Province service or services, other than the services provided in non-tariff areas, the withholding agent shall, in accordance with the agreement recorded in paragraph 3 of the minutes of the meeting held on 13th September, 2017, as circulated under the Ministry of Energy (Petroleum Division), Islamabad's letter No. DOM-1(24)/2015-III dated 22nd September, 2017, deposit ¹⁴[50% of the withheld amount of tax] in Sindh Government head of account “B-02384” in the aforesaid prescribed manner and the balance of the amount of sales tax shall be deposited in the jurisdiction of the Tax Authority of the respective Province in the manner as may be prescribed by that Authority ¹⁵[:]

¹⁶[Provided further that in case the services have been provided by an un-registered person, the service recipients shall withhold the whole of the amount of the sales tax involved for depositing such withheld amount in terms of the above Proviso:

Also provided further that the service recipient shall not release the amount of sales tax withheld by it in terms of this rule in case the service provider does not provide, to the service recipient, the evidence of having complied with the provisions of this rule for the previous month.]

6. Returns.
(1) The service provider shall e-file his tax returns, as defined in clause (75) of section 2 of the Act, in the prescribed manner:

Provided that where a service recipient agrees with the service provider to e-file the prescribed return on behalf of the service provider, such a service recipient shall e-file the prescribed return of the service provider ¹⁷[:]

¹⁸[Provided further that in the return e-filed under sub-rule (1), the return filer may enter and claim the input tax credits, as may be admissible in terms of sections 15,15A and 15B of the Act and rules 21, 22, 22A and 23 of the Sindh Sales Tax on Services Rules, 2011, and the payable balance amount of Sindh sales tax, if any as per the return, shall be paid in Sindh Government's head of account “B-02384” in the prescribed manner.]

¹⁹[(1A) The service recipient shall submit a monthly statement to the Assistant Commissioner incharge SRB Unit dealing with ²⁰[CPC Code 65112] showing the name and SNTN of the service provider, invoice number & date, invoice value, amount of sales tax involved, destination of Petroleum Oils, amount of Sindh sales tax share, withheld amount and released amount by the end of the month following the month to which the statement relates.]

(2) The service recipient shall e-file his own return in the manner prescribed in the Withholding Rules and he shall also issue the prescribed Certificate of Deduction/Withholding, in Form SSTW-06, to the service provider, besides complying with the other provisions of the Withholding Rules.

7. Application of other provisions.
All the provisions of the rules and notifications made or issued under the Act shall ²¹[* * *] mutatis mutandis apply in relation to the service or services, the service providers, service recipients or withholding agent covered by these rules, to the extent that ²²[the said provisions] are not inconsistent with the provisions of these rules.

²³[* * *]