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Are Modarabas, Musharikas and other financial institutions exempt from tax?

As per Second Schedule of the Act, modarabas, musharika and other financial institutions are liable to pay sales tax.

Have the rules under the above Act been promulgated? If yes, from where can we get a copy?

Rules have been promulgated and are available on website of KP Revenue Authority.

Where we can find list of authorized bank branches?

The list is displayed on website of KPRA.

What is appellate procedure?

Same as in the Federal Fiscal Laws. Appellate forums: i. Collector (Appeals); ii. Appellate Tribunal; and iii. High Court, in case question of law is involved. Administrative forums: i. Alternate Dispute Resolution Committee

How often a Sales Tax audit be conducted?

Ordinarily, once in a year.

Will a separate return required to be filled for the Provincial Sales tax purposes?

Yes. Separate return for the sales tax on services is filed electronically.

Is the Sales Tax based on self-assessment?

Yes. Sales tax on services originates with the principal of self-assessment and self-compliance.

Services often include charges for reimbursement of expenses incurred on behalf of the recipient (like custom duties and other charges paid by customs agent, out of pocket expenses incurred on behalf of the clients by professionals, cost of materials paid by an advertising agent, cost of airline ticket paid by a travel agent etc.), would these be subject to sales tax?

The expense payable to others acting as an agent of the principal would not generally form subject matter of tax. The details are provided in the rules.

Are there any exempt services?

All services outside of Second Schedule are exempt.

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