Islamabad Capital Territory (Tax on Services) Ordinance, 2001
The Islamabad Capital Territory (Tax on Services) Ordinance, 2001, is a piece of legislation in Pakistan that governs the taxation of services provided within the Islamabad Capital Territory (ICT). This ordinance provides the legal framework for the imposition, collection, and regulation of taxes on various services offered by service providers within the ICT
(TAX ON SERVICES)
ORDINANCE,
2001
(ORDINANCE NO. XLII OF 2001)
Updated vide Finance Act, 2022
By
a team of Provincial Taxes Wing,
Federal Board Revenue,
Islamabad.
(Any inadvertent error may kindly be reported for necessary correction to any of above mentioned
officers at following phone numbers):
Ph: 051-9204520
(Amendments by the Finance Act, 2022 have been shown in RED)
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
2
Table of Contents
ISLAMABAD CAPITAL TERRITORY (TAX ON SERVICES) ORDINANCE, 2001 ………….. 3
- Short title, extent and commencement……………………………………………………………………… 3
- Interpretation………………………………………………………………………………………………………… 4
- Scope of tax………………………………………………………………………………………………………….. 4
THE SCHEDULE (Table-1)…………………………………………………………………………………………. 6
(Table-2) …………………………………………………………………………………………………….12
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
3
The
ISLAMABAD CAPITAL TERRITORY
(TAX ON SERVICES)
ORDINANCE,
2001
1
[Notification No. F. 2(1)/2001-Punj., dated 18th August, 2001.—The following
Ordinance promulgated by the President is hereby published for general information:–
ORDINANCE NO. XLII OF 2001
AN
ORDINANCE
to provide for levy of sales tax on services rendered or provided in the Islamabad Capital
Territory
WHEREAS it is expedient to provide for levy of sales tax on the services rendered or
provided in the Islamabad Capital Territory and for matters ancillary thereto or connected
therewith;
AND WHEREAS the President is satisfied that circumstances exist which render it
necessary to take immediate action;
NOW, THEREFORE, in pursuance of proclamation of Emergency of the fourteenth day
of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the Provisional
Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers enabling him in that
behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the
following Ordinance;-
- Short title, extent and commencement.–(1) This Ordinance may be called the Islamabad
Capital Territory (Tax on Services) Ordinance, 2001.
1
Issued by the Ministry of Law and Justice, under the signature of Mr. Justice Faqir Muhammad Khokhar, Secretary, vide Ex. Ord. Gaz.of Pak.,
2001, Pt. I, P.923.
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
4
(2) It extends to whole of Islamabad Capital Territory.
(3) It shall come into force at once.
- Interpretation.–In this Ordinance, unless there is anything repugnant in the subject or
context, the words and expression used but not defined shall have the same meaning as in the Sales
Tax Act, 1990.
- Scope of tax.— 2
[(1) Subject to the provisions of this Ordinance, there shall be
charged, levied and paid a tax known as sales tax at rates specified in column (4) of Table-1 of the
Schedule to this Ordinance of the value of the taxable services rendered or provided in the
Islamabad Capital Territory:
Provided that the services specified in Table-2 of the Schedule shall be charged to tax at
such rates and subject to such conditions and limitations as specified therein;]
3
[(1A) Notwithstanding the provision of sub-section (1), the export of services shall be
charged at the rate of zero per cent.]
(2) The tax shall be charged and levied on the services specified in4
[column (2) of]
5
[Table-1 or Table-2 of the Schedule to this Ordinance, as the case may be,] in the same manner
and at the same time, as if it were a sales tax leviable under sections 3, 3A or 3AA, as the case
may be, of the Sales Tax Act,1990.
6
[(2A) The following provisions of the Sales Tax Act, 1990, shall apply, mutatis mutandis,
to the services rendered or provided under this Ordinance, namely:−
(a) clause (b) of sub-section (2) and sub-sections (6) and (7) of section 3;
2 Sub-section (1) substituted by Finance (Supplementary) Act, 2022.
3 New sub-section (1A) inserted by the Finance Act, 2021.
4The words brackets and figure “column (2) of” inserted by the Finance Act, 2015
5
Expression substituted by Finance (Supplementary) Act, 2022.
6 New sub-sections (2A) added through Finance Act, 2016.
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
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- b) serial number 2, in column (1), and the entries relating thereto of the Fifth
Schedule read with section 4;
- c) sub-sections (2), (3), (6) and (7) of section 13; and
(d) serial number 48, in column (1), and entries relating thereto of Table 1 of
Sixth Schedule read with section 13.”.
7
[(2B) The tax levied under sub-section (1) shall not be applicable to regulatory and
licensing services rendered or provided by an organization established by or under a Federal
statute].
(3) All the provisions of the Sales Tax Act, 1990, and rules made and notifications, orders and
instructions issued there under shall, mutatis mutandis, apply to the collection and payment of tax
under this Ordinance in so far as they relate to –
(a) manner, time and mode of payment;
(b) registration and de-registration;
(c) keeping of records and audit;
(d) enforcement and adjudication;
(e) penalties and prosecution; and
(f) all other allied and ancillary matters.
————————
7
Sub-section (2B) inserted by Finance Act, 2016
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
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8
[Table-1]
[See section 3(2)]
S.No. Description
PCT Heading, if
applicable
Rate of Tax
(1) (2) (3) (4)
9
[1. Services provided or rendered by hotels, motels,
guest houses, farmhouses, restaurants, marriage
halls, lawns, clubs and caterers.
Services provided are rendered by hotels motels,
guest houses and farmhouses.
Services provided or rendered by restaurants.
Services provided or rendered by marriage halls
and lawns.
Services provided or rendered by clubs.
Services provided or rendered by carters,
suppliers of food and drinks.
98.01
10[Fifteen percent
- Advertisement on television and radio,
excluding advertisements–
(a) sponsored by an agency of the Federal or
Provincial Government for health education;
(b) sponsored by the Population Welfare
Division relating to educational promotion
campaign;
(c) financed out of funds provided by a
Government under grant-in-aid agreement; and
(d) conveying public service messages, if telecast
on television by the World Wide Fund for Nature
9802.1000 and
9802.2000
10[Fifteen percent
8Existing Schedule re-named as Table-1 through the Finance (Supplementary) Act, 2022.
9
Serial number substituted through Finance Act, 2022.
10Substituted for the words “sixteen percent” and “seventeen percent” through Finance Act, 2022.
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
7
(WWF) or United Nations Children’s
Fund(UNICEF)
- Services provided by persons authorized to
transact business on behalf of others–
(a) stevedore;
(b) customs agents; and
(c) ship chandlers.
9805.2000
9805.4000 and
9805.8000
10[Fifteen percent
- Courier services and cargo services by road
provided by courier companies;
9808.0000
9804.9000
10[Fifteen percent
- 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
9824.0000
and
9814.2000
10[Fifteen percent
- Services provided by property developers and
promoters (including allied services) excluding
the actual purchase value or documented cost of
land.
9807.0000
and
respective subheadings of
heading 98.14
Rs.100 per square
yard for land
development, and
Rs.50 per square
feet for building
construction
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
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- Services provided by persons engaged in
contractual execution of work, excluding:
(i) annual total value of the contractual works
or supplies does not exceed Rs.50 million;
(ii) the contract involving printing or supplies
of books.
9809.0000
10[Fifteen percent
- Services provided for personal care by beauty
parlours, clinics and slimming clinics, body
massage centres, pedicure centres; including
cosmetic and plastic surgery by such
parlours/clinics, but excluding:
(i) annual turnover does not exceed Rs.3.6
million; or
(ii) the facility of air-conditioning is not
installed or available in the premises.
9810.0000
9821.4000 and
9821.5000
10[Fifteen percent
- Management consultancy services 9815.4000,
9819.9300
10[Fifteen percent
- Services provided by freight forwarding agents,
and packers and movers.
9805.3000,
9819.1400
10[Fifteen percent
- Services provided by software or IT-based
system development consultants.
9815.6000 Sixteen percent
- Services provided by technical, scientific and
engineering consultants
9815.5000
10[Fifteen percent
- Services provided by other consultants including
but not limited to human resource and personnel
development services; market research services
and credit rating services.
9815.9000
9818.3000
9818.2000
10[Fifteen percent
- Services provided by tour operators and travel
agents including all their allied services or
facilities (other than Hajj and Umrah)
9805.5100
9805.5000
9803.9000
10[Fifteen percent
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
9
- Manpower recruitment agents including labour
and manpower supplies.
9805.6000
10[Fifteen percent
- Services provided by security agencies. 9818.1000
10[Fifteen percent
- Services provided by advertising agents 9805.7000
10[Fifteen percent
- 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.
9805.9000
10[Fifteen percent
- Business support services. 9805.9200
10[Fifteen percent
- Services provided by fashion designers, whether
relating to textile, leather, jewellery or other
product regimes, including allied services,
marketing, packing, delivery and display, etc.
9819.6000
10[Fifteen percent
- Services provided by architects, town planners
and interior decorators.
9814.1000
9814.9000
10[Fifteen percent
- Services provided in respect of rent a car. 9819.3000
10[Fifteen percent
- Services provided by specialized workshops or
undertakings (auto-workshops; workshops for
industrial machinery, construction and earthmoving machinery or other special purpose
machinery etc; workshops for electric or
electronic equipments or appliances etc.
Including computer hard ware; car washing or
similar service stations and other workshops).
98.20
10[Fifteen percent
- Services provided for purposes including
fumigation services, maintenance and repair
(including building and equipment maintenance
and repair including after sale services) or
cleaning services, janitorial services, dredging or
de-silting services and other similar services etc.
98.22
10[Fifteen percent
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
10
- Services provided by underwriter, indenters,
commission agents including brokers (other than
stock) and auctioneers
9819.1100,
9819.1200,
9819.1300
and
9819.9100
10[Fifteen percent
- Services provided by laboratories other than
services relating to pathological or diagnostic
tests for patients.
98.17 10[Fifteen percent
- Services provided by health clubs, gyms,
physical fitness centres, indoor sports and games
centres and body or sauna massage centres
9821.1000
and
9821.2000
9821.4000
10[Fifteen percent
- Services provided by laundries and dry cleaners. 9811.0000 10[Fifteen percent
- Services provided by cable TV operators 9819.9000 10[Fifteen percent
- Technical analysis and testing services 9819.9400 10[Fifteen percent
- Services provided by TV or radio program
producers or production houses.
—
10[Fifteen percent
- Transportation through pipeline and conduit
services.
—
10[Fifteen percent
- Fund and asset (including investment)
management services.
—
10[Fifteen percent
- Services provided by inland port operators
(including airports and dry ports) 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.
—
10[Fifteen percent
- Technical inspection and certification services
and quality control (standards’ certification)
services
—
10[Fifteen percent
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
11
- Erection, commissioning and installation
services.
—
10[Fifteen percent
- Event management services —
10[Fifteen percent
9
[38. Valuation services; competency and eligibility
testing services excluding education testing
services provided or rendered under a bilateral
or multilateral agreement signed by the
Government of Pakistan],
—
10[Fifteen percent
- Exhibition or convention services —
10[Fifteen percent
- Services provided in respect of mining of
minerals, oil & gas including related and allied
activities
—
10[Fifteen percent
- Services provided by property dealers and
realtors.
—
10[Fifteen percent
- Call centres. —
10[Fifteen percent
12
[43. Services provided by car/ automobile dealers. —
10[Fifteen percent
- Advertisement on hoarding boards, pole signs
and signboards, and websites or internet
9802.9000 10[Fifteen percent
- Services provided by landscape designers 9814.4000 10[Fifteen percent
- Sponsorship services 9805.9100 10[Fifteen percent
- Services provided or rendered by legal
practitioners and consultants
9815.2000 10[Fifteen percent
- Services provided by accountants and auditors 9815.3000 10[Fifteen percent
- Service provided or rendered by Stockbrokers,
future brokers and commodity brokers, money
exchanger, surveyors, outdoor photographers,
event photographers, videographers, art
painters, auctioneers (excluding value of goods)
and registrar to an issue
9819.1000,
9819.2000,
9819.5000,
9819.7000,
9819.8000,
9819.9100,
9819.9500 and
9819.9090
10[Fifteen percent
- Services provided by race clubs:
Entry/ admission and
other services
– –
10[Fifteen percent
11Serial number substituted through Finance Act, 2016.
12Serial numbers 43 to 58 added through Finance Act, 2019.
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
12
- Services provided or rendered by corporate law
consultants
9815.9000 10[Fifteen percent
- Visa processing services, including advisory or
consultancy services for migration or visa
application filing services
– –
10[Fifteen percent
- Debt collection services and other debt recovery
services
– –
10[Fifteen percent
- Supply chain management or distribution
(including delivery) services
– –
10[Fifteen percent
- Services provided or rendered by persons
engaged in inter-city transportation or carriage
of goods by road or through pipeline or conduit
– –
10[Fifteen percent
- Ready mix concrete services – –
10[Fifteen percent
- Public relations services – –
10[Fifteen percent
- Training or coaching services other than
education services
– –
10[Fifteen percent
- Cleaning services including janitorial services,
collection of waste and processing of domestic
waste
9822.2000,
9822.3000 and
9822.9000
10[Fifteen percent
13 [Table -2]
S.No. Description
PCT Heading,
if applicable
Rate of Tax
(1) (2) (3) (4)
- 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
building and other organizations exempt
from income tax; and
9814.2000
and
9824.0000
Zero per cent
subject to the
condition that no
input tax
adjustment or
refund shall be
admissible
13Table-2 inserted by Finance (Supplementary) Act, 2022.
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
13
(v) Residential construction projects where
the covered area does not exceed 10,000
square feet for houses and 20,000 square
feet for apartments.
- Services provided for personal care by beauty
parlours, clinics and slimming clinics, body
massage centers, pedicure centers, including
cosmetic and plastic surgery by such parlours /
clinics, but excluding cases where –
(i) annual turnover does not exceed Rs.3.6
million; or
(ii) the facility of air-conditioning is not
installed or available in the premises.
9810.0000,
9821.4000
and
9821.5000
Five per cent
subject to the
condition that no
input tax
adjustment or
refund shall be
admissible.
- Services provided by freight forwarding agents,
and packers and movers.
9805.3000
and
9819.1400
Five percent or Rs.
1000 per bill of
lading, whichever
is higher subject to
the condition that
no input tax
adjustment or
refund shall be
admissible.
- Services provided by tour operators and travel
agents including all their allied services or
facilities (other than Hajj and Umrah).
9803.9000,
9805.5000
and
9805.5100
Five per cent
subject to the
condition that no
input tax
adjustment or
refund shall be
admissible.
- Services provided by specialized workshops or
undertakings (auto-workshops; workshops for
industrial machinery, construction and earthmoving machinery or other special purpose
98.20 Five per cent
subject to the
condition that no
input tax
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
14
machinery etc; workshops for electric or electronic
equipment or appliances etc. Including computer
hard ware; car washing or similar service stations
and other workshops).
adjustment or
refund shall be
admissible.
- Services provided by health clubs, gyms, physical
fitness centers, indoor sports and games centers
and body or sauna massage centers.
9821.1000,
9821.2000 and
9821.4000
Five per cent
subject to the
condition that no
input tax
adjustment or
refund shall be
admissible.
- Services provided by laundries and dry cleaners. 9811.0000 Five per cent
subject to the
condition that no
input tax
adjustment or
refund shall be
admissible.
- Services provided by property dealers and realtors. Respective
headings
Zero per cent
subject to the
condition that no
input tax
adjustment or
refund shall be
admissible.
- Services provided by car / automobile dealers. Respective
headings
Five per cent
subject to the
condition that no
input tax
adjustment or
Islamabad Capital Territory (Tax on Services) Ordinance, 2001
15
refund shall be
admissible.
- Services provided or rendered by marriage halls
and lawns, by whatever name called, including
“pandal” and “shamiana” services and caterers.
Respective
headings
Five per cent
subject to the
condition that no
input tax
adjustment or
refund shall be
admissible.
14[11. Services provided by software or IT-based system
development consultants
9815.6000 Five Percent
- Services provided by property developers and
promoters (including allied services) relating to
low cost housing schemes sponsored or approved
by Naya Pakistan Housing and Development
Authority or under Government’s Ehsaas
programme.
9807.0000
and respective
sub-headings of
heading 98.14
Zero per cent
subject to the
condition that no
input tax
adjustment or
refund shall be
admissible.
14Serial number substituted through Finance Act, 2022.
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