Law: Sales Tax Act, 1990

Section: 7,8,11(2),47

Law: Punjab Sales Tax on Services (Audit) Rules 2012

Section: 70,76

Sales Tax Act, 1990 (VII of 1990)-- ----Ss. 7, 8, 11(2) & 47--Claiming of input tax amount--Non-deposit of withholding and sales tax on receipt of advertisement services--Show cause notice--Sale Tax and iput tax adjustment--Order was passed by DCIR for recovery of sales tax--Appeal--Confirmed--Appeal before tribunal--Partly allowed--Jurisdiction--Challenge to--Once input tax adjustment is claimed against taxable supplies under Act of 1990, then notwithstanding fact that Act of 2012 was enforced on 30.06.2012, jurisdiction will be of FBR to examine if said input tax adjustment was admissible or not--It is admitted position between parties that for first time, notification/SRO 212(I)/2014 dated 26.03.2014 ("SRO") was issued by Government of Pakistan under clause (22-A) of Section 2 of Act of 1990 to declare tax levied under Act of 2012, to be provincial sales tax for purpose of input tax under Act of 2012--Similarly notification was reiterated on 02.09.2016 through SRO No. 814(I)/2016--Bare reading of SRO shows that tax levied inter alia under Act of 2012 was to be treated as "provincial sales tax" for purpose of input tax under said Act--This SRO being given effect from 01.07.2013, means that before 01.07.2013, for purpose of "input tax", tax levied under Act of 2012 was not provincial sales tax--Therefore before 01.07.2013, jurisdiction of FBR was not excluded to examine validity of input tax claimed under Act of 1990--Ambient facts and legal position discussed above would lead to ineluctable conclusion that for period from July 2012 to June 2013, regarding input tax adjustment, under Act of 1990, FBR had jurisdiction in matter--Necessary corollary and effect is that finding rendered by Tribunal to this effect being contrary to law is to be treated as non-est. Punjab Sales Tax on Services Act, 2012-- ----Ss. 70 & 76--Purpose of input tax--Taxable services--Recovery of arrears--Notification--Jurisdiction--The Act of 2012 provides mechanism for payment and collection of tax on taxable services and also recovery of arrears of tax under Section 70 of the Act of 2012--Authority under Section 76 of the Act of 2012 with the approval of Government can also make…

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