By:

 
Farman  Zarkoon
Commissioner  (Operations)
Balochistan  Revenue  Authority
1. Offices and departments of Federal / Provincial / Local or District Governments and public-­‐sector
project or programme governed by such Governments ;
2. Autonomous bodies;
3. Public sector organizations, public corporations, state-­‐owned enterprises, regulatory bodies and
authorities;
4. Organizations, fully or partially funded from budget grants of the Federal or Provincial
Governments;
5. Companies;
§ Banking and non-­‐banking finance company, financial institution, body corporate, trust, cooperative society,
finance society, modaraba company and foreign association.
6. FBR or BRA registered persons or any of the above mentioned persons who receive or procure the
services of advertisement, advertising agent, intercity transport by road, renting of immovable
property, consultant and auctioneer.
1. Advertisement (Tariff Heading 98.02);
2. Intercity Transportation or carriage of goods by road (Tariff Heading 9804.1000);
3. Advertising Agent (Tariff Heading 9805.7000);
4. Renting of Immovable Property (Tariff Heading 9806.3000);
§ Includes: Renting, letting, sub-­‐letting, leasing, sub-­‐leasing, licensing or similar other arrangements for use in
course of business or commerce;
§ Excludes: Renting of land used for agriculture, aquaculture, farming, forestry, animal husbandry or mining
purposes, outdoor games and sports, residential purposes, hostels and boarding homes of recognized
institutions;
§ Excludes: Renting by Hotels, motels, guesthouses, clubs, marriage halls and lawns which are otherwise liable to
tax under tariff heading 98.01

5. Consultant (Tariff Heading 98.15);

6. Auctioneer (Tariff Heading 9819.9000);
1. Telecommunication

2. Banking
3. Insurance Company (except reinsurance company)

4. Financial institution
5. Port Operator

6. Airport Operator

7. Terminal Operator
8. Airport Ground Services

Note: The service provider has to be a BRA registered person

§ For  all  the  services  other  than  one’s  mentioned  in  previous  slides  the  withholding  agent  shall  deduct  or  

withhold  one-­‐fifth  of  the  amount  of  sales  tax  shown  in  invoice.
Ø 20%  of  tax  to  be  withheld  by  the  withholding  agent

Ø 80%  to  be  paid  by  the  service  provider  through  monthly  return

Illustration:
Value  of  taxable  services  excluding  sales  tax Rs.  1000
Sales  tax  chargeable @  15% Rs.  150
Sales  Tax  to  be  deducted  by  Withholding  Agent Rs.  30  (i.e.  Rs.150/5)

Sales  Tax  payable  by the  with  holding  agent  to  the  service  provider Rs.  120  (i.e.  Rs.150-­‐Rs.  30)

Balance amount  payable  to  the  service  provider  by  the  withholding  agent Rs.  1120  (i.e.  Rs.1000  +  Rs.120)
§ In case of “receiving services from un-­‐registered service providers” OR “when an invoice
issued by a registered person does not indicate the amount of sales tax” then rate of
sales tax shall be worked out on basis of gross value of service under the following Tax
Fraction Formula:

a / (100+a); where ‘a’ is the rate of tax specified in Second Schedule to the Act
§ In case of receiving services from unregistered service providers, 100% of the sales tax
shall be withheld.

§ Withholding agent shall be responsible to obtain and keep in record copy of CNIC (for
individual) and NTN (for AOP or Company)

§ The CNIC and NTN details to be entered in return Form BSTS-­‐03 or BSTW-­‐03
Tax Fraction Formula is applied to determine the rate and amount of tax when the service provider is:

Ø an un-­‐registered person;

Ø a registered person and invoice issued does not indicate the amount of sales tax separately.

Illustration:
If  total  amount  on  the  invoice  not  mentioning  the  amount  of  Sales  Tax   Rs.  1150

Sales  tax  rate  for  the services  specified  in  Second  Schedule   15%

Sales  Tax  rate  as  per  Tax  Fraction  Formula 15%  /  (100%+15%)  =  15/115  =  13.043%

Sales  Tax  amount  as  per  Tax  Fraction  Formula   13.043%  of  Rs.1150  =  Rs.150
The  value  of  service  provided  before  tax Rs.1150  – Rs.150  =  Rs.1000

In case of receiving services from unregistered persons, 100% of the sales tax shall be withheld.
§ Withholding agent not already registered with the Authority shall electronically apply

for registration;
§ Withholding agent intending to receive taxable services shall indicate in a notice in
Form BSTW-­‐05 that the sales tax shall be deducted and withheld by him from payment
made or to be made to the service provider;

§ Deduct the BSTS as per prescribed rate/share against each service;

§ Deposit the withholding tax in the Government of Balochistan account head “B-­‐02387-­‐

BSTS” forthwith;

§ Issue a certificate of deduction in Form BSTW-­‐06 to the service provider with

prescribed details.
§ BRA registered withholding agent who is also a registered service provider shall file his

monthly return in Form BSTS-­‐03 in manner prescribed in Chapter-­‐III of BSTS Rules, 2018;
Ø Withholding agent who files his return in Form BSTS-­‐03 is not required to file separate

return in Form BSTW-­‐03.

§ If withholding agent is not registered with BRA but holds NTN he shall file return on

BSTW-­‐03 electronically and deposit money through Challan;

§ Shall pay default surcharge, in case there is delay in payment after due date;

§ Shall furnish such data or information as required by the Authority;

§ Office or department of Federal Government:

§ AGPR or DAO or Office responsible for payment.

§ Offices or department under Balochistan Government or District or Local Government:

§ AG-­‐Balochistan, or DAO or Office responsible for payment.

§ Offices or department under Provincial Government other than Provincial Government, District
Government and Local Government, of Balochistan:
§ Respective AG office or DAO or Office responsible for payment.

§ Office or Department falling in purview of Military Accountant General:

§ The Military Accountant General (MAG)

§ DDOs  shall  prepare  the  return  and  file  it  in  Form  BSTW-­‐03  for  each  month  as  prescribed.
§ To issue tax-­‐invoice to withholding agent;

§ To allow withholding of BSTS ‘only’ to such recipients who are:

§ declared as withholding agents under BSTW Rules, 2018; and

§ have provided prescribed notice to the service provider;

§ To file monthly return, taking due credit of his tax deducted by withholding agent;

Note: If service provider allows withholding of BSTS by person that is not declared as
withholding agent under these rules then service provider shall be liable to pay the tax
involved along with surcharge
§ BSTW-­‐01:  Signup  Form  for  BRA  Withholding  Agent

§ BSTW-­‐02:  De-­‐Signing  Form  for  BRA  Withholding  Agent

§ BSTW-­‐03:  Monthly  Sales  Tax  Return  for  BRA  Withholding  Agent

§ BSTW-­‐04:  Tax  Payment  Challan  Form  for  BRA  Withholding  Agent

§ BSTW-­‐05:  Notice  of  Withholding  Tax-­‐Rule  3(1)

§ BSTW-­‐06:  Certificate  of  Deduction  /  Withholding  Tax