30 January 2005	Sunday	19 Zilhaj 1425

ISLAMABAD, Jan 29: The registered printers would now pay sales tax at the rate of 15 per cent on the commission charges of the advertising agencies.

The decision was announced through a sales tax notification SRO78 issued here on Saturday by amending the Sales Tax Special Procedure Rules, 2004.

According to the amendment, the CBR allowed payment of sales tax on the commission charges of an advertising agent by the registered printers, who print and supply promotional material to the advertising agency.

The revised procedure envisaged payment of sales tax on agency commission, though not directly by the respective advertising agency, but by the printer, who carried out the printing job for the client.

Currently, the procedure notified through an SRO872 of 2004 did not cater for those advertising agencies, which did not opt for registration, but their registered printers/suppliers have agreed to include the commission component in the invoice value and pay sales tax thereon at their level.

Through the special procedure, an advertising agency, which was getting the printing job done through a registered vendor, was required to get itself registered under the sales tax act, 1990 and to pay sales tax at 15 per cent of the commission charges received from its clients.

The advertising agencies were also allowed to off set the amount of input tax paid by them on procurement and import stages. Besides, special dispensation of past liabilities was granted to the advertising agencies in the special procedure.