Excise Duty on Property - Amendments in the Federal Excise Rules, 2005

Government of Pakistan
Revenue Division
Federal Board of Revenue
Inland Revenue

Islamabad, the 5th September, 2024.

NOTIFICATION

S.R.O. No. 1376(I)/2024.- In exercise of the powers conferred by section 40 of the Federal Excise Act, 2005, the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Federal Excise Rules, 2005, namely: -

In the aforesaid Rules, after Chapter XVI, the following new Chapter shall be added, namely:-

"Chapter XVII

EXCISE DUTY ON PROPERTY

90. Application. - The provisions of this Chapter shall apply to collection and payment of duty on property in terms of entries in columns (2) to (4) against S. No.1 in column (1) of Table-III of the First Schedule to the Act.

91. Definitions. - In this Chapter, unless there is anything repugnant in the subject or context, -

(a) "developer" means a person engaged in development of land for conversion into residential or commercial plots and sale thereof and includes a housing society, a cooperative society, a development authority or a similar entity engaged in the development of land for conversion into residential or commercial plots and sale thereof;

(b) "builder" means a person engaged in construction of residential or commercial buildings for sale thereof, and includes a housing society, a cooperative society, a development authority or a similar entity engaged in the same construction activity;

(c) "dutiable property" means excisable property as specified in the Table-III of the First Schedule to the Act; and

(d) "open plot" means any immovable property without a superstructure.

92. Procedure for collection of duty. - (1) Every developer or builder at the time of allotment or transfer of commercial property and first allotment or first transfer of open plots or residential property shall collect duty at the rate of -

(a) 3% of gross amount of consideration involved where the buyer is appearing on active taxpayer list maintained under section 181A of the Ordinance on the date of acquisition of the property;

(b) 5% of gross amount of consideration involved where the buyer has not filed the income tax return by due date as specified in proviso to rule 1A of Tenth Schedule to the Ordinance; or

(c) 7% of gross amount of consideration involved where the buyer is not appearing on active taxpayer list maintained under section 181A of the Ordinance, on the date of acquisition of the property.

(2) The duty collected by developer or builder shall be credited to the Federal Government on the same day through a computerized payment receipt (CPR) or SWAPS payment receipt (SPR) as set out in the Form 'A' attached to these rules.

(3) The developer or builder shall furnish to the Commissioner a monthly statement as per Form 'B' attached to these rules.

(4) Where, for any reason, the duty is not paid or short paid, by way of credit to the Federal Government, by the developer or builder, the Officer Inland Revenue having jurisdiction over the developer or builder for the purposes of the Act, shall proceed to collect the amount of duty so unpaid or short paid under section 14 of the Act and the amount of default surcharge under section 8 of the Act on the duty unpaid or short paid for the period commencing on the date on which the duty was due and ending on the date on which it was paid .

(5) Where at the time of recovery of duty it is established that the duty that was to be collected from a person has meanwhile been paid by that person, no recovery shall be made from the developer or builder who had failed to collect the duty but the developer or builder shall be liable to pay the default surcharge at the rate as provided under section 8 of the Act from the date the person failed to collect the duty to the date the duty was paid.

Form 'A'
[see rule 92(2)]

SALES TAX DEPARTMENT
COMPUTERIZED PAYMENT RECEIPT ( CPR - FE )

SBP Banking Services Corporation
Alternative Delivery Channel - ADC (0101) :

CPR No : FE-NNNNNNNN-NNNN-NNNNNNN
Payment Date : DD-MM-YYYY

Province: Province Name
District: District Name
Tehsil / Town / Housing Authority / Islamabad Capital Territory
Tax Year : YYYY
Tax Office : Tax Office Name
Buyer ATL Status: ATL/Non-ATL/Late Filer

A. PARTICULARS OF BUYER(s)

B. PARTICULARS OF SELLER(s)

C. LOCATION & PARTICULARS OF PROPERTY

Type: Commercial / Residential
Land Size: ____ Acre(s) ____ Kanal(s) ____ Marla(s) ____ Sarsai(s) ____ Sq Yards ____ Sq Feet
Covered Area: ____ Sq Yards / Sq Feet
Address:
Plot / House / Flat / Shop/ Office No.
Street / Lane etc. No.
Sector / Phase / Mohalla/ Block etc.
Khasra/Khewat/Acre/etc. No.
Province
District/Tehsil/Housing Society
Date of Purchase/Acquisition by the Current Seller DD/MM/YYYY
Purchase Price / Value ____
NAM Code: B02485
FED Rate ____
FED Amount ____
Amount payable in words ____

D. PAYMENT DETAILS

Amount of Tax :
Amount of Tax in Words :

FE-NNNNNNNN-NNNN-NNNNNNN

Signature & Stamp of Manager / Authorized officer

Form 'B'
[see rule 92(3)]

Federal Excise Duty on Property

NTN: ____ Name of developer or builder: ____ Tax Period: MM/YY

.".

[C. No. 3(3)/ST&FE-POLICY/2024]

(Izhar Zuberi)
Second Secretary (ST&FE-Policy)