KARACHI: The Ministry of Finance (Revenue Division) has rationalize the sales tax on import and supply of mobile phones or satellite phones and shifted part burden of collecting sales tax towards cellular operators.
The sales tax on supplies of cellular phones (Sale or activation of SIM card) shall be charged, collected and paid by the cellular company operators on every new sale or activation of SIM card.
According to SRO No.460(I)2013, sales tax would be charged at the rate of Rs150 per set at import stage and Rs250 sales tax would be applied at the time of sale or activation of SIM card in case of low priced phone sets having camera of 2.0 mega-pixel or less, screen size of 2.6 inches or less and keypad.
The rate of tax at import stage would be Rs250 and Rs250 again at the time of sale or activation of SIM for medium-priced mobile phones/satellite phones having one or two cameras between 2.1 to 10 mega-pixel, screen size between 2.6 to 4.2 inches and microprocessor less than 2GHZ.
Sales tax of Rs500 at import stage and Rs250 at the time of sale or activation of SIM would be collected on smart cellular phones or satellite phones having one or two cameras of 10 mega-pixel and above, touch screen of 4.2 inches or above, 4GB or higher basic memory, microprocessor of 2.GHZ or higher, dual core or quad core and operating system of the type iOS, Android V2.3, Android Ginger Bread or higher, Windows 8 or Blackberry RIM.
The cellular operators shall, if not already registered, obtain registration under the Sales Tax Act, 1990.
No SIM card shall be sold or activated by a cellular company without charging and collecting the sales tax as specified.
The liability to charge, collect and pay the prescribed amount of sales tax shall be on the cellular company who shall deposit same through a monthly tax return in terms of section 26 of the Sales Tax Act and Rules made thereunder.
The cellular operator shall maintain proper records of all SIM cards sold or activated for a period of three years and such records shall be produced for inspection, audit or verification as and when required by the authorized officer of Inland Revenue.
No adjustment of input tax shall be admissible to the cellular company or the buyer against the sales tax chargeable and payable under this notification.