June 11, 2006	Sunday	Jumadi-ul-Awwal 14, 1427

ISLAMABAD, June 10: The Central Board of Revenue (CBR) said on Saturday that a manufacturer while making supplies under the hire-purchase agreement would pay sales tax on the value of supply inclusive of the lease amount in such cases.

An official announcement made by the CBR said that the decision was taken by virtue of the amendment in the definition of `supply' envisaged under clause (33) of section 2 of the Sales Tax Act, 1990, proposed in the Finance Bill, 2006.

However, the services provided or rendered by the leasing companies including banks and non-banking financial companies (NBFC), classifiable under Chapter-98 of the Pakistan Customs Tariff, would continue to remain out of the ambit of sales tax and federal excise duty (FED).

Similarly, the services provided or rendered by the stockbrokers dealing in various stock exchanges also did not become chargeable to FED by virtue of the amendments proposed in the First Schedule to the Federal Excise Act, 2005.