TAXABLE SERVICES WITH DESCRIPTION

Punjab Revenue Authority

Classification

Taxable Services Description of Service

Rate of tax

9801.1000, 9801.3000, 9801.4000, 9801.5000, 9801.6000, 9830.0000, 9837.0000

and 9862.0000

Services provided by hotels, motels, guest houses, marriage halls and lawns (by whatever name called) including pandal and shamiana services clubs including race clubs and caterers.

Marriage hall.- Marriage hall includes a marriage lawn or banquet hall or a place or premises where a ceremonial feast or meal is served for many people or which is used for hosting of social gatherings like receptions, reunion, parties, business events or other events for large number of people or is provided on rent, whether or not with facilities or utilities, for an agreed time where parties or functions are organized by the persons either with their own food items or on their own expense or otherwise, but does not include a hotel or a restaurant. Pandal and shamiana service.- Pandal and shamiana service means any service, either directly or indirectly, in connection with the preparation, arrangement, erection or decoration of a pandal or shamiana and includes the supply of furniture, fixtures, lights and lighting fittings, floor coverings and other articles for use therein. Clubs.- Clubs include any person or body of persons, firm, company, establishment or undertaking providing any services, facilities or advantages, for a subscription or any other amount, to its members, but does not include- (i) anybody established or constituted by or under any law; or (ii) any person or body of persons engaged in the activities of trade unions, promotion of agriculture, horticulture or animal husbandry; or (iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are of a charitable, religious or political nature; or (iv) any person or body of persons associated with press or media. Caterer.- Caterer includes any person who supplies, either directly or indirectly, any food, edible preparations, beverages, drinks or crockery and similar articles of accoutrements for any purpose including ceremony, party, get-together, event or occasion etc.

Sixteen percent

9802.1000 And

9802.2000

Advertisement on television and radio, excluding advertisements- (a) sponsored by an agency of the Federal or Provincial Government for health education; (b) financed out of funds provided by a Government under grant-in-aid agreement; and (c) conveying public service message, if telecast on television by the World Wide Fund for Nature (WWF) or United Nations Children’s Fund (UNICEF).

Advertisement.- Advertisement includes any notice, circular, wrapper, document, hoarding, billboards or any other audio or visual representation made either by means of paint, colouration, sound, light, smoke or gas or otherwise.

Sixteen percent

9805.4000 9805.8000

And 9805.2000

Services provided by persons authorized to transact business on behalf of others and (a) customs agents; b) ship chandlers; and (c) Stevedores.

Sixteen percent

9808.0000 and

9804.9000

Courier services including cargo services by road passenger transportation businesses and transportation through pipeline and conduit services.

Courier services.- Courier services mean the transmission, transportation or conveyance, whether door-to-door or not of time-sensitive documents, goods, articles or cargo whether or not utilizing the services of a person either directly or indirectly to accompany such documents, goods, articles or cargo and includes speed post, express cargo service and similar fast services of transmission, transportation and conveyance of documents, goods, articles or cargo. Cargo handling service.- Cargo handling service means loading, unloading, packing or unpacking of cargo and includes cargo handling services provided for freight in special containers or for non-containerized freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport and cargo handling service incidental to freight, but does not include handling of export cargo or passenger baggage or mere transportation of goods. Transport through pipeline.- Transport through pipeline means any service provided or to be provided to any person by any other person in relation to transport of goods, other than water, through pipeline or other conduit.

Sixteen percent

9802.5000 Advertisement on a cable television. Cable TV operator.- Cable TV operator means a person, a company, a firm, an establishment or an organization engaged or involved in the collection and distribution or dissemination of audio-video signals for public viewing whether through a cable, MMDS, LMDS or DTH (through satellite receiver).

Sixteen percent

98.12, 9857.0000

and 9858.0000

Telecommunication services- (a) telephone services; half per cent fixed line voice telephone service; (c) wireless telephone; (d) cellular telephone; (e) wireless Local Loop telephone; (f) video telephone; (g) payphone cards; (h) pre-paid calling cards; (i) voice mail service; (j) messaging service; (k) short message service (SMS); (l) multimedia message service (MMS); (m) bandwidth services used for voice and video telecommunication services; (i) copper line based; (ii) fiber-optic based; (iii) co-axial cable based; (iv) microwave based; (v) satellite based; (n) telegraph; (o) telex; (p) telefax; (q) store and forward fax services; (r) audio-text services; (s) tele-text services; (t) trunk radio services; (u) paging services; (v) voice paging services; (w) radio paging services; (x) vehicle and other tracking services; and (y) burglar and security alarm services; EXCLUDING: (a) Internet services whether

dialup or broadband including email services, data communication network services (DCNS) and value added data

Telecommunication services.- Telecommunication services mean the services involving a transmission, emission, or reception of signals, writing, images, sounds or information of any kind or nature by wire, radio, optical, or other electromagnetic systems, including related transfer or assignment of the right to use capacity for such transmission, emission or reception and a provision of access to a global or local information network, but does not include the supply of the underlying writing, images, sounds, or information. Telecom services take place where the effective use and enjoyment of the services occur.

Nineteen and a half

percent

services. (b) Such charges payable on the

international leased lines or bandwidth services used by— i. software exporting firms registered with the Pakistan software exporting board; and ii. data and internet service providers licensed by the Pakistan Telecommunication Authority.

98.13 Services provided in respect of insurance to a policy holder by an insurer, including a re-insurer – (a) goods insurance; (b) fire insurance; (c) theft insurance; (d) marine insurance; and (e) other insurance; EXCLUDING: (a) Marine insurance for export; (b) Life insurance; (c) Health insurance; (d) Crop insurance.

Insurance.- Insurance means insurance or guarantee against loss, damage, injury, or risk of any kind whatever, whether pursuant to any contract or any enactment and includes reinsurance. Insurer.- Insurer means any person carrying on an insurance business or general insurance business and includes a reinsurer.

Sixteen percent of the gross

premium paid

98.13 Services provided by banking companies, cooperative financing societies, modarbas, musharikas, ijarahs, leasing companies, non-banking financial institutions and other persons, businesses or enterprises providing or dealing in any such services.

Banking company.- Banking company includes companies which transact the business of banking in Pakistan and the branches and subsidiaries of banking companies incorporated in Pakistan but functioning outside Pakistan. Banking and other financial service.- Banking and other financial service means any service provided or to be provided to a customer by a banking company or a financial institution including a non-banking financing company or any other body corporate or any person of a foreign exchange broker in relation to banking and other financial services. Financial institution.-Financial institution includes: (a) a company or an institution whether established under any special enactment and operating within or outside Pakistan which transacts the business of banking or any associated or ancillary business through its branches; (b) a modaraba, leasing company, investment bank, venture capital company, financing company, housing finance company, a

Sixteen percent

non-banking finance company; and (c) any other institution or company authorised by law to undertake any similar business as the Government may, by notification, specify for the purpose. Non-banking finance company.-Non-banking finance company includes a company licensed by Pakistan Security and Exchange Commission under Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 to carry out any one or more of the following forms of business: (i) investment finance services; (ii) leasing; (iii) housing finance services; (iv) venture capital investment; (v) discounting services; (vi) investment advisory services; (vii) asset management services; and (viii) any other form of business which the Government may, by notification, specify; and (ix) such other business as the Government may, by notification, specify for the purpose. Ijarah.- Ijarah means an arrangement under which a bank leases equipment, building or other facility to a client against an agreed rental.

9819.1000 Services provided by the stock brokers.

Sixteen percent

9805.1000 Services provided by shipping agents Shipping agent.- Shipping agent means a person, who holds the license under the Customs Act, 1969 (IV of 1969), or the rules made thereunder and provides any service to entrance or clearance of a conveyance at a customs port and issues line or carrier bill of lading, for or on behalf of a shipping line and includes non-vessel operating common carriers, slot carriers, charterers, international freight forwarders and consolidators, rendering services in relation to import and export of cargo, independently or as subsidiary of a shipping line, carrier and non-vessel operating common carriers.

Sixteen percent

9801.2000 and

9801.9000

Services provided by restaurants including cafes, food (including ice-cream) parlors, coffee houses, coffee shops, deras, food huts, eateries, resorts and similar cooked, prepared or ready-to-eat food service outlets etc

Sixteen percent

-- Advertisements on hoarding boards, pole signs and sign boards and on closed circuit TV, Websites or internet.

Sixteen percent

9823.0000 and

9839.0000

Franchise service including intellectual property rights services.

Franchise.- Franchise means an authority given by a franchiser under which the franchisee is contractually granted any right to produce, manufacture, sell or trade or otherwise deal in or do any other business activity relating to goods or services or to undertake any process identified with franchiser against a fee or consideration including royalty or technical fee whether or not any use of trademark, service mark, trade name, logo, brand name or any such symbol is involved. Intellectual property service.- Intellectual property service means any right to intangible property, including trademarks, designs, patents or any other similar intangible property under any law, but does not include copyright.

Sixteen percent

9824.0000 and

9814.20000

Construction services EXCLUDING: (i) Construction projects

(industrial and commercial) of the value (excluding actual and documented cost of land) not exceeding Rs. 50 million per annum.

(ii) The cases where sales tax is otherwise paid as property developers or promoters.

(iii) Government civil works including Cantonment Boards.

(iv) Construction of industrial zones, consular buildings and other organizations exempt from income tax.

(v) Construction work under international tenders against foreign grants-in-aid.

(vi) Residential construction projects where the covered area does not exceed 10,000 square feet for houses and 20,000 square feet for apartments.

Commercial or industrial construction.- Commercial or industrial construction means: (i) construction of a new building or a civil structure or a part thereof; or (ii) construction of pipeline or conduit; or (iii) completion and finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services in relation to building or civil structure; or (iv) repair, alteration, renovation or restoration of, or similar services in relation to building or civil structure, pipeline or conduit, which is:

(a) used, or to be used, primarily for; or (b) occupied, or to be occupied, primarily with; or (c) engaged, or to be engaged, primarily in:

commerce or industry or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams.

Residential complex construction.- Residential complex construction means any complex comprising:

(i) a building or buildings, having more than twelve residential units;

Sixteen per cent

(ii) a common area; and

(iii) any one or more of facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system, located within a premises and the layout of such premises is approved by an authority under any law, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person.

9807.0000 and

respective sub-

headings of heading

98.14

Services provided by property developers and promoters (including allied services) EXCLUDING: Actual purchase value or documented cost of land.

(i) @ Rs. 100 per square yard for land development; and (ii) @ Rs. 50 per square feet for building construction.

9809.0000 Services provided by persons engaged in contractual execution of work or furnishing supplies. EXCLUGING: (i) Annual total value of the

contractual works or supplies does not exceed Rs. 50 million.

(ii) The contracts involving printing or supplies of books

sixteen per cent

9810.0000 9848.0000 9847.0000 9821.4000

and 9821.5000

Services provided for personal care by beauty parlors, clinics, sliming clinics including cosmetic and plastic surgery by such parlors/clinics. EXCLUDING: (i) if beauty parlor or clinics is not

a corporate or chain business; or

(ii) no aspect of the business is trade marked or franchised; or

Beauty parlour.- Beauty parlour includes hair cutting, hair dyeing, hair dressing, face and beauty treatment, cosmetic treatment, manicure, pedicure or counseling services on beauty, face care or make-up or such other identical or similar services.

Sixteen per cent

(iii) annual electricity bills of the business do not exceed Rs. 600,000/-

(iv) the facility of air-conditioning is not installed or available in the premises.

9815.4000 and

9826.0000

Management consultancy services including fund and asset (including investment) management services

Asset management services.- Asset management services‘ mean the services provided or rendered in relation to assets management , portfolio management, investment management or any kind of fund management and include the Companies which provide management of collective investment scheme.

sixteen per cent

9838.0000 and

respective headings

Services provided by port operators (including airports and dryports) and allied services provided at ports and services provided by terminal operators including services in respect of public bonded warehouses. EXCLUDING: The amounts received by way of fee under any law or by-law.

Port operator.- Port operator includes any person, authority, trust, institution, association, organization, managing directly or otherwise, the operations of any customs port including dryport and airport as declared under section 9 of the Customs Act, 1969 (IV of 1969).

sixteen per cent

9805.3000 Freight forwarding agents Freight forwarders.- Freight forwarders means a person who provides or is engaged for his principal or client for providing of services, for fee or charges or commission or remuneration for some or all the services being provided by a shipping agents clearing agent, stevedore, ship chandler, terminal operator or such services of warehousing and he may also provide cover or guarantee for insurance or banking services in respect of imports or exports of goods, whether independently or in partnership or in arrangement with any such service provider.

Rs. 400 per bill of

lading

9815.6000 Services provided by software or IT-based system development consultants.

Sixteen percent

9815.5000 9819.9400 9861.0000, 9815.5000

Services provided by technical, scientific & engineering consultants including technical inspection and certification services, quality control (standards’ certification), technical analysis and testing, erection, commissioning and installation services.

Scientific and technical consultancy.- Scientific and technical consultancy means any advice, consultancy, or scientific or technical assistance, rendered in any manner either directly or indirectly, by a scientist or a technocrat, or any science or technology institution or organization, to a client in one or more disciplines of science or technology. Technical, scientific and engineering consultant.- `Technical, scientific and engineering consultant’ means a person, providing or rendering the technical, scientific and engineering service, advice, consultancy, assistance or supervision, in any manner, either directly or indirectly, to any person in one or more disciplines of technology, science and engineering and includes a person known as a consulting engineer, professional engineer or

Sixteen percent

structural engineer. Technical inspection and certification.- Technical inspection and certification means inspection or examination of goods or process or material or any immovable property to certify that such goods or process or material or immovable property qualifies or maintains the specified standards, functionality or utility or quality or safety or any other characteristic or parameters but does not include any service in relation to inspection and certification of pollution level. Erection, commissioning or installation.- Erection, commissioning or installation means any service provided by a commissioning and installation agency in relation to: (i) erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise; or (ii) installation of:

(a) electrical and electronic devices, including wirings or fittings therefore; or

(b) plumbing, drain laying or other installations for transport of fluids; or

(c) heating, ventilation or air-conditioning including related pipe work, wood work, duct work and sheet metal work; or

(d) thermal insulation, sound insulation, fire proofing or water proofing; or

(e) lift and escalator, fie escape staircases or travelators; or (f) such other similar services.

9815.9000 9832.0000, 9827.0000, 9818.3000, 9818.2000, 9819.9300, 9852.0000

and 9859.0000

Services provided by other consultants including but not limited to human resource and personnel development services, exhibition or convention services, event management services, valuation services (including competency and eligibility testing services), market research services and credit rating services

Sixteen percent

9805.5100 9805.5000

and 9803.9000

Services provided by tour operators and travel agents including all their allied services or facilities (other than Hajj and Umrah including Ziyarat).

Tour operator service.- Tour operator service means any person engaged in the business of planning, scheduling, organizing or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours in any transport.

Sixteen percent

9805.6000 Manpower recruitment agents including labour and manpower supplies.

Manpower recruitment agency.- Manpower recruitment agency means a person or concern engaged in providing any service or services, directly or indirectly, in any manner for recruitment of manpower either to a client or otherwise.

Sixteen percent

Labour and manpower supply services.- Labour and manpower supply services’ include the services provided or rendered for a consideration in order to use services of a person through employment hired or supplied.

9818.1000 Services provided by security agency.

Security agency.- Security agency means any person or concern engaged in the business of rendering services relating to the security of any property, whether movable or immovable or of any person or group or establishment of persons, in any manner and includes the services of investigations detection or verification of any fact or activity, whether of a personal nature or otherwise, including the services of providing security personnel.

Sixteen percent

-- Services provided in respect of mining of minerals, oil & gas including related surveys and allied activities.

Survey and exploration of minerals.- Survey and exploration of minerals means geological, geophysical or other prospecting, surface or sub-surface surveying or map making service, in relation to location or exploration of deposits of mineral, oil or gas or any of the materials.

Sixteen percent

9805.7000 Services provided by advertising agents.

Agent.- Subject to section 71 of the Act, agent means a person who is authorized to act on behalf of another (called the principal) to create or maintain a legal relationship with a third party.

Sixteen percent

9805.9000 respective headings

Share transfer or depository agents including services provided through manual or electronic book-entry system used to record and maintain securities and to register the transfer of shares, securities and derivatives.

Share transfer agent.- `Share transfer agent’ means a person who maintains the record of holders of securities and deals with all matters connected with the transfer or redemption of securities or activities incidental to such services.

Sixteen percent

9805.9200 Services provided by business support services

Business support service.- Business support service means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfillment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assistance for marketing, formulation of customer service and pricing policies, infrastructural support services and other transaction processing.

Sixteen percent

9806.2000 and

9844.0000

Services provided by property dealers and realtors.

Property dealer.- `property dealer’ by whatever name called, means a person who is engaged in providing or rendering services, directly or indirectly or in any manner, in relation to sale, purchase, leasing, renting, supervision, maintenance, marketing, acquisition or management of real estate and includes a realtor, a real estate agent, a real estate broker or a real estate consultant.

Sixteen percent

9834.0000 and

9819.6000

Services provided by fashion designers whether relating to textile, leather, jewellery or other

Fashion designer.- `Fashion designer’ means a person or business providing or rendering services of fashion designing or any other economic activities relating to conceptualizing, outlining or

Sixteen percent

product regimes including allied services such as cutting, stitching, printing, manufacturing, fabrication, assembly, embellishment, adornments, display (including marketing, packing and delivery etc.).

creating designs or preparing designs or patterns for costumes, apparels, garments, clothing, accessories, jewelry, foot wears (including any other product regime) or any other services incidental to fashion designing.

9814.1000 9814.9000

Services provided by architects, town planners and interior decorators.

Architect.- Architect includes any person engaged in any manner, whether directly or indirectly, in rendering services in the field of architecture. Interior decorator.- Interior decorator means any person engaged, whether directly or indirectly, in the business providing advice, consultancy, technical assistance or any services in any manner relating to planning, designing, beautification, embellishment, ornation and furnishing of any interior or exterior space or spaces whether man-made or otherwise.

Sixteen percent

9819.3000 Services provided in respect of rent-a-car.

Rent-a-car operator.- Rent-a-car operator means any person or concern engaged, whether directly or indirectly, in the business of renting cabs and any other passenger transport.

Sixteen percent

9806.3000 and

9845.0000

Services provided by car/automobile dealers.

Car or automobile dealer. `Car or automobile dealer’ , whatever name called, means a person who is engaged in providing or rendering the services to sale, purchase, transfer, leasing, marketing or booking of new, old and used cars and automobiles, imported or locally assembled or manufactured including, old or used cars or automobiles.

Sixteen percent

9868.0000 9841.0000

and 9819.1400

Services provided in respect of manufacturing or processing on toll or job basis (against processing on conversion charges) including industrial and commercial packaging services and similar outsourcing of industrial or commercial processes.

Packaging.- Packaging means any service provided or to be provided to any person by any other person in relation to packaging activity.

Sixteen percent

98.20 Services provided by specialized workshops or undertakings (auto-workshops; workshops for industrial machinery, construction and earth-moving machinery or other special purpose machinery etc; workshops for electric or electronic equipments or appliances etc. including computer hardware; car washing or similar service stations and other workshops).

Car or automobile washing or similar service station.- `Car or automobile washing or similar service station’ means a service station or a service centre or an establishment providing or rendering the services in relation to maintenance, inspection, detailing, washing, cleaning, polishing, waxing, oil coating, lubricating tuning, changing of oils, filters and plugs, denting, painting, repairing or other similar services of cars or automobiles.

Sixteen percent

98.22 and 9860.0000

Services provided for specified purposes including fumigation services, maintenance and repair

Fumigation services. – Fumigation services’ mean the services provided or rendered in relation to pest control or insect control and include services of disinfecting and sterilizing of premises,

Sixteen percent

(including building and equipment maintenance and repair including after sale services) or cleaning services, janitorial services, dredging or desilting services and other similar services etc.

buildings, factories or complexes (commercial complexes, shopping complexes, office complexes, apartment or residential complexes, multiplexes, exhibition centres, residential units, commercial units or offices) but shall not include the public health fumigation services provided or rendered directly by the Government, a local government or a Cantonment Board free charge. Maintenance or cleaning services.- `Maintenance or cleaning services’ mean, in conjunction with or in addition to rules 31 and 64, the services provided or rendered in relation to repair, maintenance and cleaning, including specialized cleaning services such as disinfecting, exterminating or sterilizing of: (a) office equipment, or buildings, or any other premises; (b) commercial complexes including multiplexes, shopping complexes, office complexes and exhibition centres, apartment or residential complexes; and (c) factories, plants, machinery or equipment of any factory, elevators, escalators, thanks or reservoirs of any factory, office, building or commercial complex. Dredging.- Dredging includes removal of material including silt, sediments, rocks, sand, refuse, debris, plant or animal matter in any excavating, cleaning, deepening, widening or lengthening, either permanently or temporarily, of any river, port, harbour, backwater or estuary.

9829.0000, 9819.1200, 9819.1100, 9819.1300

and 9819.9100

Brokerage (other than stock) and indenting services including commission agents, under-writers and auctioneers.

Brokerage business.- Brokerage business means the services provided by a broker registered under the Brokers and Agents Registration Rules, 2001.

Sixteen percent

9865.0000 Call centres. Call centre. ‘Call centre’ means any establishment and enterprise, undertaking or a business providing or rendering the services of receiving or transmitting requests by telephone, facsimile, live support software, social media, e-mail and any other electronic means of communication, whether for the product support or business support of any person or information or inquiries from consumers or telemarketing, soliciting of donations or subscriptions, debt collection, market research or other similar services.

Nineteen and a half

percent

9816.0000 and 98.17

Services provided by laboratories other than services relating to pathological or diagnostic tests for patients.

Sixteen percent

9821.1000 and

9821.2000 9821.4000

Services provided in specified fields such as health care, gym, physical fitness, indoor sports, games and body or sauna massage etc.

Health club and fitness centre.- Health club and fitness centre means service for physical wellbeing such as, sauna and steam bath, Turkish bath, solarium, spas, reducing or slimming salons, gymnasium, yoga, meditation, massage (excluding therapeutic massage) or any other like service.

Sixteen percent

9811.0000 Services provided by laundries and dry cleaners.

Laundries and dry cleaners,- `Laundries and dry cleaners’ mean the services of washing, pressing, stain removing, darning or day cleaning of any kind of textile, fur or leather materials like apparels, clothes, garments, floor coverings, curtains, draperies, linens, bed-wears or similar products and their accessories on commercial basis.

Sixteen percent

9819.9000 Services provided by cable TV operators.

Cable TV operator.- Cable TV operator means a person, a company, a firm, an establishment or an organization engaged or involved in the collection and distribution or dissemination of audio-video signals for public viewing whether through a cable, MMDS, LMDS or DTH (through satellite receiver).

Sixteen percent

9828.0000 Services provided by TV or radio program producers or production houses.

Television and radio programme production service.- Television and radio programme production service means any person who produces a television or radio programme on behalf of another person.

Sixteen percent