| Case ID |
44fd27f0-15b9-40a5-a51f-53c0be8d0174 |
| Body |
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| Case Number |
AT-24 of 2019 |
| Decision Date |
May 14, 2019 |
| Hearing Date |
May 06, 2019 |
| Decision |
The Appellate Tribunal ruled that Telenor Pakistan Ltd. was providing two types of services: normal telecommunication services and funds transfer services (branchless banking services). The Tribunal determined that the funds transfer service fell under Tariff Heading 9813.4600 of the Sindh Sales Tax on Services Act, 2011. Therefore, the appeal by the department was dismissed, confirming the earlier findings that the respondent was liable for sales tax at the applicable rate of 19.5% for telecommunication services. The Tribunal's decision emphasized the nature of services provided rather than the registration status of the service provider. |
| Summary |
In the case AT-24 of 2019, the Appellate Tribunal Inland Revenue examined the classification of services provided by Telenor Pakistan Ltd. The central issue was whether the branchless banking services offered to Tameer Bank were classified as banking services or telecommunication services under the Sindh Sales Tax on Services Act. The Tribunal concluded that Telenor was indeed providing both telecommunication services and funds transfer services. The decision reinforced the interpretation of tax obligations based on the nature of services rendered, affirming that the applicable sales tax rate was 19.5% for telecommunications. This case highlights the complexities of service classification in tax law, particularly in the telecommunications and banking sectors. It serves as a critical reference for similar cases where service definitions impact tax liabilities, underlining the importance of accurate service classification in compliance with tax regulations. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Telenor Pakistan Ltd.,
Tameer Bank
|
| Judges |
JUSTICE (RTD.) NADEEM AZHAR SIDDIQI,
AGHA KAFEEL BARIK
|
| Lawyers |
Not available
|
| Petitioners |
Vickey Dhingra
|
| Respondents |
Arsalan Siddiqui ACMA,
Junaid Siddiqui
|
| Citations |
2020 SLD 2283,
2020 PTD 1964
|
| Other Citations |
Not available
|
| Laws Involved |
Sindh Sales Tax on Services Act, 2011,
Sindh Sales Tax on Services Rule, 2011
|
| Sections |
3,
23,
43(3),
44,
47(1A),
35
|