CONSTRUCTION ASSOCIATION OF PAKISTAN vs The GOVERNMENT OF BALOCHISTAN Ss

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CONSTRUCTION ASSOCIATION OF PAKISTAN VS The GOVERNMENT OF BALOCHISTAN Ss.2(14), 2(86), 6 & 7---Sales tax on service---Rate---Economic activity---Petitioners/contractors assailed notifications charging sales tax on services and goods---Validity---Rates in question gave two options to petitioners / contractors, they either could opt for standard rate and get adjusted their input tax against their output tax or alternatively could go for lower rates and forgo adjustment of input tax against output tax---Notifications in question were merely explanation of provisions of Balochistan Sales Tax on Services Act, 2015, issued for information of general public and government departments---Such notifications had no binding force to override provisions of Balochistan Sales Tax on Services Act, 2015---Presence or absence of notifications did not make any difference to the application of Balochistan Sales Tax on Services Act, 2015---Each stage of economic activity involved purchase of goods and services and it was not an easy task to bifurcate contract into goods contract and services contract---If petitioners / contractors wanted to precisely work out burden of sales tax on services and sales tax on goods separately and then pass it on to end consumers from public at large, then they could opt for standard rate of sales tax on services---If contractors were filing both the returns of sales tax on goods with Federal Board of Revenue and return of sales tax on services with the Province, then they had to opt for standard rate of sales tax on services---Government of Balochistan was a withholding agent and one of the players in the chain of economic activity, who utilized the services of petitioners / contractors for furtherance of economic activity in terms of sales tax laws---High Court declined to interfere in the matter---Constitutional petition was dismissed, in circumstances.

CONSTRUCTION ASSOCIATION OF PAKISTAN vs The GOVERNMENT OF BALOCHISTAN Ss — 2024 PTD 331 QUETTA-HIGH-COURT-BALOCHISTAN

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