The provisions of SRO 621(I)/2004 would not be applicable on slot carriers, but they have to pay excise duty at the standard rate of 15 percent on commission received by them.
Sources said here on Monday that the CBR has issued a clarification on the imposition of CED in VAT mode on shipping agents, which has been dispatched to all collectors of sales tax and Pakistan Ship Agents Association.
According to clarification, if a slot carrier is not issuing 'house bill of landing" or collecting freight, the provisions of amendment made through SRO 621(I)/2004 of July 17, 2004, should not apply and he is required to charge, collect and pay central excise duty at the standard rate of 15 percent on the commission received by him.
Earlier, the CBR had amended Central Excise Rules 1944 through SRO 621(I)/2004 to notify that four categories of shipping agents, including non-vessel operating common carriers (NVOCC), international freight forwarders, slot carriers and consolidators would pay a fixed amount of central excise duty (CED) on their services.
According to the notification, "NVOCC, international freight forwarders, slot carriers and consolidators shall charge, collect and pay Rs 200 as excise duty on every 'house bill of landing' issued by them instead of the rate specified for the shipping agents".
The organised shipping agent, shall charge, collect and pay the central excise duty at the rate of 15 percent of value of excisable services, which shall be the commission charged by an agent on the net ocean freight amount of C & F export cargo for such services provided or rendered by him.
Pakistan Ship Agents Association had approached CBR for the applicability of SRO 621(I)/2004 in cases where slot carriers are not issuing "house bill of landing" or collecting freight.
The CBR has conveyed to the association that if a slot carrier is not issuing "house bill of landing" the provisions of SRO 621(I)/2004 would not apply.