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THE SPECIAL PROCEDURE FOR SUPPLY OF FOOD RULES, 1999

THE SPECIAL PROCEDURE FOR SUPPLY OF FOOD RULES, 1999

THE SPECIAL PROCEDURE FOR SUPPLY OF FOOD RULES, 1999   The Special Procedure for Supply of Food Rules, 1999, is a set of regulations in Pakistan that govern the supply and distribution of food items through a specialized procedure. These rules are designed to ensure the efficient and controlled distribution of food commodities, with a focus on quality and compliance with relevant standards.   14th  September, 1999 In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, the Federal Government is pleased to make the following rules, namely:-   Short title, application and commencement : — (1)    These rules may be called the Special Procedure for Supply of Food Rules, 1999. (2)    These rules shall apply for collection and payment of Sales Tax on foods, drinks, and other eatables supplied by hotels, restaurants, clubs, caterers, parlours, kitchens and other such similar establishments, whether for consumption inside the premises of such establishments or for supply for outside consumption or use. (3)    They shall come into force at once.   Definitions : — (1)    In these Rules, unless there is anything repugnant in the subject or context : — (a)    “Act” means the Sales Tax Act, 1990; (b)    “caterer” means a person or establishment, by whatever name called, which in ordinary course of business supplies foods, drinks and other eatables in any mode or manner or on any occasions, whether or not it provides entertainment or supplies furniture or crockery and cutlery, or ornamental or decorative accessories or lighting for illumination, on hire, lease or for any other consideration; (c)    “club” means an establishment, organization or place, other than a hotel or restaurant, the membership of which is restricted to a particular class of people or which is run on the basis of mutality and supplies foods, drinks or other eatables, whether or not it has any arrangement for boarding, lodging or games; (d)    “Daily Gross Take (DGT)” means the total value of supply received during each day and includes the amount of tax; (e)    “Fiscal Electronic Cash Register (FECR)” means an electronic cash register with fiscal memory (black box), fiscal screw and seal and capability to simultaneously print second copy (record copy) containing all information in addition to that on the first paper roll (customer copy) and having two displays, one for operator and the other for customer. (f)    “food” includes baked, cooked, prepared or fresh food, ice-cream, beverages or drinks, whether alcoholic or otherwise, and other eatables, whether prepared by the person supplying the same or other wise procured from others; (g)    “hotel” means an establishment, organization or place where rooms, suites of rooms, or halls or any other such premises are let out on rent, and it also supplies food; (h)    “kitchen” includes a flight kitchen and means an establishment, organization or place where food is prepared and supplied on board any aircraft, ship, bus, wagon, railway train or any other means of transportation irrespective of the fact whether the kitchen is owned by the person operating the conveyance or not; (i)    “person” includes a caterer, hotel, restaurant, club, parlour, kitchen, kiosk or such other establishment or organization making supplies of food; and (j)    “restaurant” means an establishment, organization or place by whatever name called, supplying food consumed in that premises or catered outside or supplied as take-away, whether or not it provides any other services, facilities or utilities and includes a club, marriage hall or establishment meant for holding ceremonies where food is supplied on such ceremonies. (2)    All other words and expressions used, but not defined herein, shall have the meanings assigned to them in the Act.   Levy and Collection : — (1)    Every person supplying food, in or from the premises of clubs, caterers, kitchens, hotels or restaurants shall be liable to charge and pay sales tax at the rate specified in sub-section (1) of section 3 of the Act irrespective of the fact whether food is consumed in that premises or supplied or catered outside or supplied as take-aways. (2)    The taxable supplies made by the said person shall not be subjected to the further tax leviable under subsection (1A) of section 3 of the Act. (3)    Every such person, whose total annual turnover exceeds rupees two and a half million during the last twelve months, shall be liable to registration and shall get himself registered under the Act, if not already registered. (4)    The sales tax on food served in a tax period shall be calculated in accordance with the following formula, namely :-   Amount of sales Tax = Total value of supply due from consumer or recipient of food     x    Rate of Sales tax 100 + rate of sales tax   (5)    Every person shall submit the monthly return as prescribed in the Act. The tax due alongwith monthly return shall be deposited in the Government Treasury under the relevant head “0220000-Sales Tax” by the 15th day of the month following the month in which supplies were made; Provided that in respect of supplies made by clubs, the date shall be 15th day of the second month following the month in which supplies were made by the club. (6)    If the supplies are made free of charge or for some other consideration or a consideration which is lower than the listed prices, the sales tax shall be charged as if it were supplied at the price listed in the menu card in terms of sub-clause (a) of clause (46) of section 2 of the Act. (7)    Such person shall be entitled for input tax credit for the tax paid on his purchases or utilities consumed for preparation or supply of food against output tax payable subject to the limitations and restrictions imposed under section 8 of the Act or the notifications issued thereunder; Provided that the input tax credit shall only be admissible for amount of tax which was paid on the purchases made during that tax period for which return is being submitted.

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The Sales Tax Act, 1990

The Sales Tax Act, 1990

The Sales Tax Act, 1990   The Sales Tax Act, 1990, is a significant piece of legislation in Pakistan that governs the imposition, collection, and administration of sales tax on the supply of goods and services. This act is designed to regulate and generate revenue from the sales tax, which is a crucial component of Pakistan’s taxation system. An Act to consolidate and amend  the law relating to the levy of a tax on the sale, importation, exportation, production, manufacture or consumption of goods. WHEREAS it is expedient to consolidate and amend the law relating to the levy of a tax on the sale, importation, exportation, production, manufacture or consumption of goods; It is hereby enacted as follows:– Chapter – I Preliminary   Short title, extent and commencement. (1) This Act may be called the Sales Tax Act, 1990. (2) It extends to the whole of Pakistan. (3) It shall come into force on such date as the Federal Government may, by notification in the official Gazette, appoint.   Definitions. – In this Act, unless there is anything repugnant in the subject or context,– (1) “Appellate Tribunal” means the Customs, Excise and Sales Tax Appellate Tribunal constituted under section 194 of the Customs Act; (2) “appropriate officer” means an officer of Sales Tax authorised by the Board by notification in the official Gazette to perform certain functions under this Act; (2A) “arrears” includes the un-paid amounts of tax, default surcharge additional tax, further tax, extra amount of tax, fines, penalties, fees or any other sums, however described, as have been assessed, adjudged or demanded under this Act, (3) “associated persons” means any two or more persons who are close relatives to each other or who are interconnected with each other in the following way, namely:– (i) if the persons, being companies or undertakings, are under common management or control or one is the subsidiary of the other; (ii) if a person who is the owner or partner or director of a company or undertaking, or who, directly or indirectly, holds or controls twenty per cent shares in such company or undertaking, is also the owner, partner or director of another company or undertaking, or, directly or indirectly, holds or controls twenty per cent shares in that company or undertaking; Explanation. : —  For the purpose of this clause, the expression It close relatives” mean the family, parents, brothers, sisters and dependents of registered person; (4) “Board” means the Central Board of Revenue constituted under the Central Board of Revenue Act, 1924 (IV of 1924); (5) “Collector” means the Collector of Sales Tax appointed under section 30; (5A) “common taxpayer identifier” means the identification number allocated under section 20 of the Finance Act, 1999 (IV of 1999) (6) “Customs Act” means the Customs Act 1969 (IV of 1969), and where appropriate all rules and notifications made under that Act; (6A) “defaulter” means a person and, in the case of company or firm, every director, or partner of the company, or as the case may be, of the firm, of which he is a director or a partner or a proprietor and includes guarantors or successors, who fail to pay the arrears; (6B)      “Default Surcharge” means the surcharge payable by a defaulter at the rate specified in section 34 of this Act; (7) “distributor” means a person appointed by a manufacturer, importer or any other person for a specified area to purchase goods from him for further supply and includes a person who in addition to being a distributor is also engaged in supply of goods as a wholesaler or a retailer; (8) “document” includes any electronic data, computer programmes, computer tapes, computer disks, micro-films or any other medium for the storage of such data; (9) “due date”, in relation to the furnishing of a return under section 26 means the 15th day of the month following the end of the tax period, or such other date as the Federal Government may, by notification in the official Gazette, specify; (10) “establishment” means an undertaking, firm or company, whether incorporated or not, an association of persons or an individual; (11) exempt supply” means a supply which is exempt from tax under section 13; (12) “goods” include every kind of movable property other than actionable claims, money, stocks, shares and securities; (13) “importer” means any person who lawfully imports any goods into Pakistan; (14) “input tax”, in relation to a registered person, means the tax – (a) levied under this Act on the supply of goods received by that person; (b) levied under this Act on goods imported, entered and cleared under section 79 or section 104 of the Customs Act, by that person; (c) levied under the Sales Tax Act, 1990 of Pakistan as adapted in the State of Azad Jammu and Kashmir, on the supply of goods received by that person. (15) “Local Sales Tax Office” means the office of Superintendent of Sales Tax, or such other office as the Board may, by notification in the official Gazette, specify; (16) “manufacture” or “produce” includes – (a) any process in which an article singly or in combination with other articles, materials, components, is either converted into another distinct article or product or is so changed, transformed or reshaped that it becomes capable of being put to use differently or distinctly and includes any process incidental or ancillary to the completion of a manufactured product; (b) process of printing, publishing, lithography and engraving; and (c) process and operations of assembling, mixing, cutting, diluting, bottling, packaging, repacking or preparation of goods in any other manner; (17) “manufacturer” or “producer” means a person who engages, whether exclusively or not, in the production or manufacture of goods whether or not the raw material of which the goods are produced or manufactured are owned by him; and shall include – (a) a person who by any process or operation assembles, mixes, cuts, dilutes, bottles, packages, repackages or prepares goods by any other manner; (b) an assignee or trustee

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