As per SRO, the CBR has specified the following services on which Federal Excise Duty shall be levied and collected: Advertisement on closed circuit TV; advertisements on cable TV network; facilities for inland travel; travel by air; travel by train in air-conditioned Sleeper Class; travel by train in air-conditioned Parlour Class (Sitter); travel by train in First Class Sleeper; carriage of goods by air; services provided or rendered by persons authorised to transact business on behalf of others; shipping agents; services provided or rendered by persons engaged in telecommunication work in respect of telephone, telegraph, telex, telefax and alike; telephone; telegraph; telex; telefax and others.
According to the notification, other telecommunication services liable to Federal Excise Duty will cover telephone cards including payphone cards and pre-paid calling cards; Wireless Local Loop (WLL); very small aperture terminal (VSAT) services (voice-based); Voice cast (voice broadcasting service); installation of telephone connection; shifting of telephone connection; restoration of telephone connection; conversion of telephone connection into subscriber turn dialling/non-subscriber telephone dialling; provision of extension of telephone connection; changing of telephone connection and cost of telephone set.
Explanation: The persons or companies other than Pakistan Telecommunication Corporation Limited (PTCL), engaged in telecommunication services shall pay duty at the specified rate on charges excluding the charges billed by the PTCL.
This notification shall take effect from July 1, 2005.