Murtaza bhai plz help me...............

do not panic friends, its just a syllabus. a few chapters only..
its theory not numaricals so plz dwnload the stuff and study with focus, i am sure you wont need any help..just have self confidence. 50 days are enough to start from the scratch and complete the preparation..
All the best....be confident.
problems can never be resolved at the same level of inteligence that created them.

Tax Reforms in Pakistan

Introduction:
Taxation has always been a vital part of any modern society. From time immemorial, we have been seeing governments taxing their citizens in order to finance their expenditure and for other constructive purposes. Tax structure of any country plays pivotal role in the country’s economic development. Revenue collection is not the sole purpose of tax system but it is also a tool that is utilized to reinforce or eliminate activities and pursuits that are determined by legal system.
Tax is described as follows:-
“A tax is a compulsory payment levied by the government on individuals or companies to meet the expenditure which is required for public welfare”.

Canons of Taxation:
Adam Smith in his book “The Wealth of Nations” came up with some standard characteristics that any country’s tax laws must possess in order to be perceived fair in the eyes of the citizens of that country. Those characteristics were:
• Ability to Pay: Any person should be liable to pay that amount of tax which he is capable of paying. No person should be subjected to more burden than he can bear.
• Convenience: The time and place of paying tax should be extremely convenient so that the taxpayer should not have any undue difficulty in paying the tax that he is liable to pay.
• Economy in Collection: The costs that shall be incurred in collecting the taxes should be minimized in order to allow the government to collect as much net revenue as it can.
• Certainty: The tax laws of a country should not be complicated and the tax collector must not have the power to charge extra tax or reduce any person’s tax liability. <!--[if !supportFootnotes]-->[1]<!--[endif]-->


Taxation system of Pakistan:
Like other countries there are two types of tax prevailing in Pakistan. One is Direct tax and other is Indirect Tax.
It is argued that a direct tax is one that cannot be shifted by the tax payer to someone else, whereas an indirect tax can be.<!--[if !supportFootnotes]-->[2]<!--[endif]-->
Direct tax is primarily on income and is collected directly from taxpayers. And indirect taxes include sales taxes and a well defined mechanism is formulated to deal and collect indirectly etc.

Fiscal Policy (budget estimates for 2009-10)
(% of GDP)
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Total Revenue 14.2 14.9 14.3 13.8 14.2 14.9 14.6 14.5 14.0 14.3
-Tax Revenue 10.9 11.5 11.0 10.1 10.6 10.2 10.6 9.5 10.1 10.5
-Non-Tax Revenue 3.3 3.4 3.3 3.7 3.6 4.7 4.4 5.1 3.9 3.8
Total Expenditure 18.3 18.5 16.7 17.2 18.5 19.1 22.2 19.9 20.3 18.0
Overall Deficit 4.3 3.7 2.4 3.3 4.3 4.3 7.6 5.3 6.3 4.0
(Economic survey of Pakistan)<!--[if !supportFootnotes]-->[3]<!--[endif]-->



Current Economic Situation of Pakistan:
It can be said that a flawed tax system of Pakistan is a primary reason for the persistent budget deficits that Pakistan has to face every year. Apart from the fact, the government is adopting non serious attitude in reducing the losses of the public sector enterprises such as PIA, Pakistan Railways and Pakistan Steel Mills. Moreover, Pakistan is borrowing from international financial institutions is also a direct consequence of its failure to collect significant amounts in tax revenue. Hence, if Pakistan is able to increase its tax revenue significantly, she shall definitely be able to avoid borrowing from institutions such as WB and IMF that impose tough conditions.
TAX-TO-GDP RATIO OF PAKISTAN
2000-01 TO 2009-10
(% of GDP)
Year Direct Taxes Indirect Taxes Surcharge/Levy* Total Taxes FBR Revenue Share of Direct Taxes
2000-01 2.99 6.89 0.73 10.61 9.42 28.18
2001-02 3.20 6.41 1.23 10.83 9.11 29.54
2002-03 3.17 6.94 1.41 11.53 9.57 27.49
2003-04 2.92 6.84 1.09 10.84 9.25 26.94
2004-05 2.72 7.01 0.41 10.14 9.05 26.82
2005-06 2.82 7.06 0.67 10.54 9.36 26.75
2006-07 3.85 6.41 0.74 11.00 9.76 35.00
2007-08 3.79 6.47 0.34 10.60 9.83 35.75
2008-09 3.46 6.00 0.99 10.44 9.08 33.14
2009-10 3.66 5.83 0.90 10.39 9.05 35.23
*on petroleum products and natural gas
Source: Ministry of Finance, Government of Pakistan<!--[if !supportFootnotes]-->[4]<!--[endif]-->
Tax Reforms in Pakistan:
Some reforms are being presented that can help in the improvement of tax system in Pakistan. These reforms would have long lasting impacts on the existing tax system of Pakistan.
Formation of Intelligence Tax Bureau:
There is immediate need for a Tax Intelligence institution. This should have substantial powers to inspect financial data from anywhere. It must be embellished with latest and modern technology and highly professional team. They should have proper job security and independence as well.
They would be able to perform certain tasks:
• Monitor the online transaction between banks to companies, companies to companies and customer to company and dealing with foreign financial institutions.
• Intercept the financial dealings of companies with local dealers, clients and agents.
• Major task of this to reduce the money laundering across globe.
• Getting financial data of Pakistani citizens from foreign countries.
• Make check over officials who directly deals with the collection and assessment of tax.
• Data Provision of those persons who evade tax and its basic purpose should be to expand the numbers of taxpayers.
Through this kind of bureau, a transparent tax system can be established. It will increase the number of tax payers and boost the performance of tax official as well. Corruption in tax collection can also be reduced while having public complaint department where they receive complaint from public about corruption and they will secretly investigate the matter.

Reformation of Legal procedures:
In Pakistan, no one ever convicted or sent to prison on the matter of tax evasion. There is dire need to impose strict legal implications upon those people who evade tax at high level. Inland Revenue commissioner should be given legal power or Government can give instructions to the police to act on the advice of commissioner.
It is commonly observed that in FBR every single and common letter or document need signature of Commissioner, Additional commissioner, Deputy Commissioner and Assistant commissioner. This is resulted in the wastage of much time and makes system and performance weak of FBR as well. Substantial rights and powers should be given at every level. However, critical matter should be approved by more than two officers including Commissioner.
Savings Tax:
A savings tax can also be proposed that will tax the savings of people in bank accounts. Such a tax will discourage people from keeping their money idle in bank accounts and instead encourage them to invest all that money in productive ventures in order to generate employment opportunities in Pakistan. Furthermore, the government can launch financial instruments as an alternative investment. All the funds derived by the government through such instruments can be used to finance national infrastructure programs such as dams, bridges and schools etcetera. Such a savings tax will ultimately lead to an increase in aggregate investment and consumption and allow Pakistan to extract itself from the recession into which it has fallen over the past several years.
Agricultural Tax:
The most important and perhaps the biggest flaw present in the tax laws of Pakistan is that agriculture which accounts for around 25% of the GDP and provides employment to around 40% of the total labor force is contributing not even a single penny to the national exchequer. Big landlords that earn millions from agriculture are not taxed in any way and those people who earn any other miscellaneous income also try to label that as agricultural income just to evade tax. Hence, if we want Pakistan to curtail its persistent budget deficit, we will have to collect tax from all the different sectors of the economy. As far as the details concerning such an agricultural tax is concerned, we can tax it similarly to business income where all the expenses incurred in order to derive that income are allowed as deductions. For agricultural income, expenses such as cultivation and harvesting of crops can be allowed as deductions from agricultural income. Small farmers and those people who indulge in agriculture on a subsistence level can be exempted from such a tax.
Another point to be noted over here is that some people in Pakistan have this misconception that any agricultural tax would lead to an increase in food inflation. However, it should be clear to all of us that the tax which is being proposed will be imposed on the profits that people earn from agriculture. This agricultural tax will not be imposed on the agricultural produce as what happens in a sales tax. Hence, to create false fears of food inflation just to exempt big landlords from paying taxes would be highly inequitable and unless Pakistan decides to tax all those segments of the society which can afford to pay their due share of taxes, Pakistan will continue to face the problem of budget deficits and ever mounting public debt. <!--[if !supportFootnotes]-->[5]<!--[endif]-->
Capital Gains Tax:
During the past decade, hundreds of people became millionaires and even billionaires in Pakistan by investing in the stock market and in the real estate. The boom in the stock and the real estate markets came and went, but those people who earned abnormal profits by investing in both these markets were not taxed to the extent that they should have been. Even now one can see that people who hold shares of listed companies for more than a year are completely exempt from paying even a single penny in tax.<!--[if !supportFootnotes]-->[6]<!--[endif]--> It can be argued that the government wants to encourage people to invest for the long term in the stock market. However, providing a complete exemption is clearly not logical and economically feasible in such economically trying times for the Pakistani government.
It would be a logical proposition to advise the government to start taxing stock market investments where the holding period is greater than a year and furthermore, the government should increase the tax rate on short term and speculative investment in the stock market which only makes the market more volatile. All these measures are extremely crucial in an environment in which the government is facing a fiscal squeeze and every single penny of tax collected by the government is extremely important. Similarly, investment in the real estate should also be taxed so that all those people who can afford to invest in such properties pay their due share of tax.
Corruption:
All the above mentioned reforms will surely increase the tax revenue being collected by the Pakistani tax machinery. However, the problem and menace of corruption if not eliminated will lay to waste all the efforts of any party or institution to increase the tax revenue of Pakistan. Corruption is the reason due to which a hefty portion of our tax revenue is wasted away and is not spent on social development and national infrastructure projects. Hence, in order to ensure that all the measures that have been cited above must also be complimented with some other ancillary measures in order to make sure that no hurdle is put in the path of greater tax collection in Pakistan. Some of those measures can be:
• Firstly, the customs department which is heavily involved in the under-invoicing and incorrect declarations should be revamped at war footings.
• Besides this competent and dedicated personnel should be hired. Most importantly the hiring should be done solely on merit, so that deserving and clean people could serve the country.
• Furthermore, the people who make up the tax machinery should be held accountable and their performance should be monitored regularly. An intelligence division should be made within the Directorate Intelligence and Investigation, in order to keep check on the employees.
• Moving on, any abuse of authority if observed should be punished suitably. In order to come with the proper environment in which everyone does his own work and do it properly the senior management should set an example for the juniors.
• Plus to generate honesty and reward hard work in the tax machinery, anyone who is doing good work should be given incentives plus any one who uncovers any major tax evasion or scam should be given 25% of the detected amount.
Hence, measures like these can lead to the creation of a control environment in the tax machinery of Pakistan that will ultimately lead to the increase in tax revenue being collected and a lot less money being wasted due to corruption.
Furthermore, in today’s environment it is crucial for the FBR to conduct strong audits in order to ensure that the tax returns filed by the taxpayers on self – assessment basis are accurate and complete and these returns do not in any way understate the income of the taxpayer. In order to facilitate the taxpayers a new scheme was introduced in the income tax ordinance called the universal self-assessment scheme (USAS). The scheme was that the taxpayer had to assess their income and file it honestly. This scheme basically was introduced to minimize the contact between the tax payers and the tax collector. Also the tax collector could not asses the income tax filed by the taxpayer, hence slashing the power of audit. The results of such scheme were catastrophic, the documentation and increase in revenue which started to take place in the nineties, faded away with this scheme. That is why strong audits are extremely necessary for the negative aspects of USAS to be eradicated.<!--[if !supportFootnotes]-->[7]<!--[endif]-->

Reduction in Non – Developmental Expenditure:
Non – developmental expenditure that eats up the most of the funds that Pakistan is able to generate include defence expenditure and the unnecessary and lavish expenditure that our politicians waste on their luxurious lifestyles. Hence, it would be useless to implement tax reforms if all that money is to be wasted on such non – developmental expenditure. It could be argued that in such tense times, it would not be advisable for Pakistan to reduce its defence expenditure. However, some tough decisions will have to be taken in order to reduce the budget deficit of Pakistan. Even the American military has decided to cut its defence expenditure considering the weak state of America’s economy.


Elimination of Black Economy:
Finally, another big problem that Pakistan is facing, which is a big cause of low tax collection is a lack of documentation. As the government does not have sufficient data on the incomes of people, it is obvious that it finds it really difficult to tax them as well. However, there is also a solution to this problem. If the government could get serious in making the tax system work properly, NADRA has its solutions in a single click. As Nadra issues the CNIC and that CNIC includes a unique ID number. Nowadays, nothing is possible without use of the CNIC. Suppose if you are going to open a bank account, you will require your CNIC. If you are spending something from your credit card, it includes your CNIC and moreover if you are buying an airline ticket, you require a CNIC. Nowadays, about everything requires a CNIC. If the government wants, with just a single click, you could easily track, who is doing what, how many bank accounts does he have and how many of them are actually declared, what is being earned and what is being spent. If the government wants, any information can be collected from the CNIC. Hence, such a measure if taken by the government can resolve the problem of documentation in Pakistan’s economy and result in more tax being collected as the government will have at its disposal the record of the income and expenditure of its taxpayers.



Conclusion:
The entire discussion in this working paper and the research that was done to prepare this document was ultimately meant to arrive at a set of reforms which if implemented would definitely lead to increased tax collection in Pakistan and a smaller or even a balanced budget for Pakistan. All this would help Pakistan to avoid going back for lending purposes to the IMF and WB. Finally, I would like to say that in today’s recessionary times when even the developed countries of the world are finding it really difficult to extract their economies out of their recession; it would be illogical of us to expect these countries to continue to provide aid to Pakistan. It is time that we should stand on our own feet and stop expecting aid and help from the so called “Friends of Democratic Pakistan”. Only self – reliance would help us revitalizing our own economy and competing with the rest of the world.

Stubborn taxation regime

SUCCESSIVE governments have been confronted with the issue of a stagnant or declining tax revenue stream. Many reforms of the Federal Board of Revenue, tax policy and tax administration have been attempted but the results have been painfully disappointing.
To analyse the reasons for the tax regime’s intractable nature we have to adopt a more systemic approach by dissecting the economy into sectors including rural and urban; formal, informal and illicit; agriculture, industry and services; and income distribution groups.
Of Pakistan’s potential labour force of 75 million, 18 million are not participating, five million are unemployed and 52 million employed. The rural labour force accounts for approximately 70pc of the total. Aside from the income of land holdings over and above 12.5 acres of irrigated and 25 acres of non-irrigated land, the labour force mostly consists of landless peasants, unpaid family help, casual workers, subsistence farmers, small vendors, etc. These categories are largely exempt from direct taxes and bear only indirect taxes on inputs and consumption. The main burden falls on urban incomes earned by 30pc of the labour force.
Direct evidence and hard facts regarding the formal, informal and illicit economy are difficult to gather. Casual empiricism or anecdotal evidence points to a gradual expansion in the informal sector’s share through workers’ remittances, understated property income, proliferation of unregistered enterprises operating out of residential areas such as boutiques, tuition centres, schools, clinics, beauty salons, restaurants and small and medium enterprises. Their common feature is that they are all outside the tax net.
In the last five to six years, illicit incomes earned through corruption and bribery by public office holders, extortion, robberies, ransom, extractions by land, water and other mafias, prostitution, gambling dens and other illegal and criminal activities have multiplied manifold. But the formal economy has remained stagnant or declined. Therefore, the taxable base even in urban areas is shrinking because of the transfer of incomes from the formal to the informal/illicit economy. The best estimates indicate that formal-sector employment isn’t more than 25pc of the total urban employment.
The number of those who qualify for the minimum threshold of taxable income — if properly assessed, audited and enforced — could stretch to some four million. Presently, only 1.5 million individuals and firms file tax returns. Leaving aside the salaried class, many of the filers do not fully disclose their income.
Less than 1.1pc of GDP is collected as actual direct income tax. Most of the additional yields would therefore accrue from the top 20pc who receive 50pc of the national income. Some 118,000 firms are registered in the sales tax system but only 15,000 actually pay any tax. As much as 82pc of the total sales tax and federal excise duty is collected from only 100 companies.
It is apparent that in this environment the traditional tools of rate changes, assessment, compliance, audit etc will remain blunt unless the share of income in the formal sector rises, and exemptions, concessions and waivers within this sector are eliminated and new assessees are added.
Studies on sectoral incidence show that industry bears more than two-thirds of the tax — while the services sector bears about 21pc and agriculture 3pc. About 90pc of farm families have subsistence holdings. Of the remaining, only a third holding more than 50 acres of land would cross the threshold of taxable income. To expect the agricultural sector (20pc of GDP) to make an equi-proportional contribution to national tax revenues is unrealistic. The yields from farm income are unlikely to exceed 1pc or 2pc of the current tax revenue collection. The filing of tax returns by agriculturists will, however, stop the leakages from non-agricultural incomes.
In the services sector, transportation and trade together account for one-third of GDP. Most transport movement takes place via roads and except for a few companies the sub-sector is dominated by small- and medium-size operators. Only air and shipping yield some revenues. Similarly, out of 1.5 million wholesale and retail trade units (employing a population of nine million) 85pc are small family-run stores. The entire direct and sales tax collection from the trade sub-sector constitutes 0.5pc of federal taxes. The scope from the services sector also remains limited.
As two-thirds of the tax collected is in the form of indirect taxes and one-fourth of the entire amount comes from petroleum and petroleum products at various stages (which is passed on to consumers) the overall incidence is regressive. Even where direct taxes are concerned, two-thirds consist of withholding taxes which are deemed to be the full and final settlement of tax liability. So, in terms of the impact on different income groups the burden falls disproportionately on the poor and middle-income groups.
On top of this, policymakers, in their attempt to attain revenue targets, impose additional levies on existing taxpayers. This disincentive leads to the quest for various loopholes in the complex tax code — saddled with enormous discretionary regulations — to understate incomes, claim exemptions and avoid paying full taxes.
The analysis here shows that the present taxation regime that is highly skewed towards the urban, industry and formal sectors is narrow, inequitable, regressive and distortive. Unless a structural transformation of the economy takes place — one that expands the formal sector, makes the rural sector and agriculture more efficient, raises middle-class numbers and makes taxes more progressive and less patronage-ridden — attempts to reform the tax regime will continue to produce unimpressive results.
The writer is a former governor of the State Bank of Pakistan.

i have done masters in Economics and am presently doing LL.B.
I have seen how painstaking it is to understand law, but once understood is a child's play. A note to those who would like to attempt IRS test.
dear, aspirants, the syllabi which you see on the FBR website are only bare acts (in law we call it the words of the parliament/legislature).
The language used in such bare acts is abstruse and elusive, especially for those who have least understanding of law. I would like to suggest you all to refer to books of writers i.e., Muhammad muazam ali, mirza munawar hussain.
Such books will set everything right. GoodLuck.
.
.

__________________
Wisdom comes through suffering...

SECTION 2. Definitions

(1) Appellate Tribunal
“Appellate Tribunal” means the Appellate Tribunal Inland Revenue established under section 130 of the Income Tax Ordinance 2001 (XLIX of 2001);
(2) appropriate officer
“appropriate officer” means an officer of Inland Revenue authorised by the Board by notification in the official Gazette to perform certain functions under this Act;

(2A) arrears
“arrears”, in relation to a person, means, on any day, the sales tax due and payable by the person under this Act before that day but which has not yet been paid
(3) “associates (associated persons)” means,

(i) subject to sub-clause (ii), where two persons associate and the relationship between the two is such that one may reasonably be expected to act in accordance with the intentions of the other, or both persons may reasonably be expected to act in accordance with the intentions of a third person;

(ii) two persons shall not be associates solely by reason of the fact that one person is an employee of the other or both persons are employees of a third person;
(iii) without limiting the generality of sub-clause (i) and subject to sub-clause (iv), the following shall be treated as associates, namely: – –

(a) an individual and a relative of the individual;
(b) members of an association of persons;
(c) a member of an association of persons and the association, where the member, either alone or together with an associate or associates under another application of this section, controls fifty per cent or more of the rights to income or capital of the association;
(d) a trust and any person who benefits or may benefit under the trust;
(e) a shareholder in a company and the company, where the shareholder, either alone or together with an associate or associates under another application of this section, controls either directly or through one or more interposed persons– –
(i) fifty per cent or more of the voting power in the company;
(ii) fifty per cent or more of the rights to dividends; or
(iii) fifty per cent or more of the rights to capital; and
(f) two companies, where a person, either alone or together with an associate or associates under another application of this section, controls either directly or through one or more interposed persons – –
(i) fifty per cent or more of the voting power in both companies;
(ii) fifty per cent or more of the rights to dividends in both companies; or
(iii) fifty per cent or more of the rights to capital in both companies.
(iv) two persons shall not be associates under sub-clause (a) or (b) of paragraph (iii) where the Commissioner is satisfied that neither person may reasonably be expected to act in accordance with the intentions of the other.
(v) In this clause, “relative” in relation to an individual, means– –
(a) an ancestor, a descendant of any of the grandparents, or an adopted child, of the individual, or of a spouse of the individual; or
(b) a spouse of the individual or of any person specified in sub-clause (a).
(3A) Association of Persons
“association of persons” includes a firm, a Hindu undivided family, any artificial juridical person and any body of persons formed under a foreign law, but does not include a company;
(3AA) Banking Company
“banking company” means a banking company as defined in the Banking Companies Ordinance, 1962 (LVII of 1962) and includes any body corporate which transacts the business of banking in Pakistan;
(4) Board
“Board” means the Federal Board of Revenue established under section 3 of the Federal Board of Revenue Act, 2007;
(4A) Chief Commissioner
“Chief Commissioner” means a person appointed as the chief Commissioner Inland Revenue under section 30;]
(5) Commissioner
“Commissioner” means the Commissioner of Inland Revenue appointed under section 30;
(5A) Common Taxpayer Identification Number
“common taxpayer identification number” means the registration number or any other number allocated to a registered person;
(5AA) Company
“company” means – –
(a) a company as defined in the Companies Ordinance, 1984 (XL VII of 1984);
(b) a body corporate formed by or under any law in force in Pakistan;
(c) a modaraba;
(d) a body incorporated by or under the law of a country outside Pakistan relating to incorporation of companies;
(e) a trust, a co-operative society or a finance society or any other society established or constituted by or under any law for the time being in force; or
(f) a foreign association, whether incorporated or not, which the Board has, by general or special order, declared to be a company for the purposes of the Income Tax Ordinance 2001 (XLIX of 2001);
(5AAA) Computerized System
“computerized system” means any comprehensive information technology system to be used by the Board or any other office as may be notified by the Board, for carrying out the purposes of this Act;
(5AB) Cottage Industry
”cottage industry” means a manufacturer whose annual turnover from taxable supplies made in any tax period during the last twelve months ending any tax period does not exceed five million rupees or whose annual utility (electricity, gas and telephone) bills during the last twelve months ending any tax period do not exceed seven hundred thousand rupees;
(5AC) CREST
“CREST” means the computerized program for analyzing and cross matching of sales tax returns, also referred to as COMPUTERISED RISK-BASED EVALUATIONof SALES TAX;
(6) Customs Act
“Customs Act” means the Customs Act, 1969 (IV of 1969), and where appropriate all rules and notifications made under that Act;
(6A) Defaulter
“defaulter” means a person and, in the case of company or firm, every director, or partner of the company, or as the case may be, of the firm, of which he is a director or partner or a proprietor and includes guarantors or successors, who fail to pay the arrears;
(6B) Default Surcharge
“default surcharge” means the default surcharge levied under section 34;

(7) Distributor
“distributor” means a person appointed by a manufacturer, importer or any other person for a specified area to purchase goods from him for further supply and includes a person who in addition to being a distributor is also engaged in supply of goods as a wholesaler or a retailer;
(8) Document
“document” includes any electronic data, computer programmes, computer tapes, computer disks, micro-films or any other medium for the storage of such data;
(9) Due Date
“due date” in relation to the furnishing of a return [under section 26], [ [...] and section 26AA] means the [15th] day of the month following the end of the tax period, or such other date as the [Board] may, by notification in the official Gazette, specify;
(9A) e-Intermediary
“e-intermediary” means a person appointed as e-intermediary under section 52A for filing of electronic returns and such other documents as may be prescribed by the Board from time to time, on behalf of a person registered under section 14;
(10) Establishment
“establishment” means an undertaking, firm or company, whether incorporated or not, an association of persons or an individual;
(11) Exempt Supply
“exempt supply” means a supply which is exempt from tax under section 13;
(11A) Firm
“firm” means the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all;
(12) Goods
“goods” include every kind of movable property other than actionable claims, money, stocks, shares and securities;

(13) Importer
“importer” means any person who [ ... ] imports any goods into Pakistan;
(14) Input Tax
“input tax”, in relation to a registered person, means – –
(a) tax levied under this Act on supply of goods to the person;
(b) tax levied under this Act on the import of goods by the person;
(c) in relation to goods or services acquired by the person, tax levied under the Federal Excise Act, 2005 in sales tax mode as a duty of excise on the manufacture or production of the goods, or the rendering or providing of the services;
(d) Provincial sales tax levied on services rendered or provided to the person; and
(e) levied under the Sales Tax Act, 1990 as adapted in the State of Azad Jammu and Kashmir, on the supply of goods received by the person;
(14A) KIBOR
The expression “KIBOR” means Karachi Inter-Bank Offered Rate prevalent on the first day of each quarter of the financial year;
(15) Local Inland Revenue Office
“Local Inland Revenue Office” means the office of Superintendent of Inland Revenue or such other office as the Board may, by notification in the official Gazette, specify;
(16) Manufacture
“Manufacture” or ‘produce’ includes – –
(a) any process in which an article singly or in combination with other articles, materials, components, is either converted into another distinct article or product or is so changed, transformed or reshaped that it becomes capable of being put to use differently or distinctly and includes any process incidental or ancillary to the completion of a manufactured product;
(b) process of printing, publishing, lithography and engraving; and
(c) process and operations of assembling, mixing, cutting, diluting, bottling, packaging, repacking or preparation of goods in any other manner;
(17) Manufacturer
“manufacturer” or “producer” means a person who engages, whether exclusively or not, in the production or manufacture of goods whether or not the raw material of which the goods are produced or manufactured are owned by him; and shall include – –
(a) a person who by any process or operation assembles, mixes, cuts, dilutes, bottles, packages, repackages or prepares goods by any other manner;
(b) an assignee or trustee in bankruptcy, liquidator, executor, or curator or any manufacturer or producer and any person who disposes of his assets in any fiduciary capacity; and
(c) any person, firm or company which owns, holds, claims or uses any patent, proprietary, or other right to goods being manufactured, whether in his or its name, or on his or its behalf, as the case may be, whether or not such person, firm or company sells, distributes, consigns or otherwise disposes of the goods
[Provided that for the purpose of refund under this Act, only such person shall be treated as manufacturer-cum-exporter who owns or has his own manufacturing facility to manufacture or produce the goods exported or to be exported;]
(18) Officer of Inland Revenue
“Officer of Inland Revenue” means an officer appointed under section 30;
(19) Open Market Price
‘open market price’ means the consideration in money which that supply or a similar supply would generally fetch in an open market;
(20) Output Tax
“output tax”, in relation to a registered person, means – –
(a) tax levied under this Act on a supply of goods, made by the person;
(b) tax levied under the Federal Excise Act, 2005 in sales tax mode as a duty of excise on the manufacture or production of the goods, or the rendering or providing of the services, by the person;
(c) Provincial sales tax levied on services rendered or provided by the person;
(21) Person
“person” means,–
(a) an individual;
(b) a company or association of persons incorporated, formed, organized or established in Pakistan or elsewhere;
(c) the Federal Government;
(d) a Provincial Government;
(e) a local authority in Pakistan; or
(f) a foreign government, a political subdivision of a foreign government, or public international organization;
(22) Prescribed
“Prescribed” means prescribed by rules made under this Act;
(22A) Provincial Sales Tax
“Provincial sales tax” means tax levied under, Provincial laws or laws relating to Islamabad Capital Territory, which are declared by the Federal Govt., through notification in the official Gazette to be Provincial Sales Tax for the purpose of input tax;]
(23) Registered Office
“registered office” means the office or other place of business specified by the registered person in the application made by him for registration under this Act or through any subsequent application to the [Commissioner];
(24) Registration Number
“Registration number” means the number allocated to the registered person for the purpose of this Act;
(25) Registered Person
“registered person” means a person who is registered or is liable to be registered under this Act:
Provided that a person liable to be registered but not registered under this Act [ ...] shall not be entitled to any benefit available to a registered person under any of the provisions of this Act or the rules made thereunder;
(27) Retail Price
“retail price”, with reference to the Third Schedule, means the price fixed by the manufacturer [...], inclusive of all [duties], charges and taxes (other than sales tax [...]) at which any particular brand or variety of any article should be sold to the general body of consumers or, if more than one such price is so fixed for the same brand or variety, the highest of such price.
[Provided that the Board may through a general order specify zones or areas for the purpose of determination of highest retail price for any brand or variety of goods]
(28) Retailer
“Retailer” means a person [[...]] supplying goods to general public for the purpose of consumption [:].
[Provided that any person, who combines the business of import and retail or manufacture or production with retail, shall notify and advertise wholesale prices and retail prices separately, and declare the address of retail outlets, and his total turnover per annum shall be taken into account for the purposes of registration under section 14.]
(29) Return
“return” means any return required to be furnished under Chapter-V of this Act;
(29A) Sales Tax
“sales tax” means – –
(a) the tax, additional tax, or default surcharge levied under this Act;
(b) a fine, penalty or fee imposed or charged under this Act; and
(c) any other sum payable under the provisions of this Act or the rules made thereunder;
(29AA) Sales Tax Account
“sales tax account” means an account representing the double entry recording of sales tax transactions in the books of account;

(30) Schedule
“Schedule” means a Schedule appended to this Act;

(31) Similar Supply
“similar supply”, in relation to the open market price of goods, means any other supply of goods which closely or substantially [resembles] the characteristics, quantity, components and materials of the aforementioned goods;

(31A) special audit
“special audit” means an audit conducted under section 32A;

(32) Special Judge
“Special Judge” means the Special Judge appointed under Section [37C of the act until such appointment is made by the Special Judge appointed under section] 185 of the Customs Act;
(33) Supply
“supply” means a sale or other transfer of the right to dispose of goods as owner, including such sale or transfer under a hire purchase agreement, and also includes – –
(a) putting to private, business or non-business use of goods produced or manufactured in the course of taxable activity for purposes other than those of making a taxable supply;
(b) auction or disposal of goods to satisfy a debt owed by a person; and
(c) possession of taxable goods held immediately before a person ceases to be a registered person:
Provided that the Federal Government, may by notification in the official Gazette, specify such other transactions which shall or shall not constitute supply;
(33 A) Supply Chain
“ Supply Chain” means the series of transactions between buyers and sellers from the stage of first purchase or import to the stage of final supply;”;
(34) Tax
“tax”, unless the context requires otherwise, means sales tax;
(35) Taxable Activity
“taxable activity”, means any economic activity carried on by a person whether or not for profit, and includes – –
(a) an activity carried on in the form of a business, trade or manufacture;
(b) an activity that involves the supply of goods, the rendering or providing of services, or both to another person;
(c) a one-off adventure or concern in the nature of a trade; and
(d) anything done or undertaken during the commencement or termination of the economic activity,
but does not include – –
(a) the activities of an employee providing services in that capacity to an employer;
(b) an activity carried on by an individual as a private recreational pursuit or hobby; and
(c) an activity carried on by a person other than an individual which, if carried on by an individual, would fall within sub-clause (b).

(36) Tax Fraction
“tax fraction” means the amount worked out in accordance with the following formula: –
a
100 + a

('a' is the rate of tax specified in section 3);
(37) Tax Fraud
“tax fraud” means knowingly, dishonestly or fraudulently and without any lawful excuse (burden of proof of which excuse shall be upon the accused) – –
(i) doing of any act or causing to do any act; or
(ii) omitting to take any action or causing the omission to take any action, [including the making of taxable supplies without getting registration under this Act [[; or],]
(iii) falsifying [or causing falsification] the sales tax invoices,]
in contravention of duties or obligations imposed under this Act or rules or instructions issued thereunder with the intention of understating the tax liability [or underpaying the tax liability for two consecutive tax periods] or overstating the entitlement to tax credit or tax refund to cause loss of tax;
(39) Taxable Goods
“taxable goods” means all goods other than those which have been exempted under section 13;
(40) Tax Invoice
'’tax invoice’’ means a document required to be issued under section 23;
(41) Taxable Supply
‘’taxable supply’’ means a supply of taxable goods made [...] [by an importer, manufacturer, wholesaler (including dealer), distributor or retailer] other than a supply of goods which is exempt under section 13 and includes a supply of goods chargeable to tax at the rate of zero per cent under section 4;
[42. *** ]
(43) Tax Period
“tax period” means a period of one month or such other period as the Federal Government may [, ] by notification in the official Gazette, specify;
(44) Time of Supply
“time of supply,” in relation to,– –
(a) a supply of goods, other than under hire purchase agreement, means the time at which the goods are delivered or made available to the recipient of the supply” [“or the time when any payment is received by the supplier in respect of that supply, which ever is earlier];
(b) a supply of goods under a hire purchase agreement, means the time at which the agreement is entered into; and
(c) services, means the time at which the services are rendered or provided;
[ “ Provided that in respect of sub clause ( a) ,(b) or (c), where any part payment is received, – –
(i) for the supply in a tax period, it shall be accounted for in the return for that tax period; and
(ii) in respect of exempt supply, it shall be accounted for in the return for the tax period during which the exemption is withdrawn from such supply ;]
(44A) Trust
“trust”, means an obligation annexed to the ownership of property and arising out of the confidence reposed in and accepted by the owner, or declared and accepted by the owner for the benefit of another, or of another and the owner, and includes a unit trust;
(44AA) Unit Trust
“unit trust”, means any trust under which beneficial interests are divided into units such that the entitlements of the beneficiaries to income or capital are determined by the number of units held;
[45. ***] OMITTED
(46) Value of Supply
“value of supply” means:--
(a) in respect of a taxable supply, the consideration in money including all Federal and Provincial duties [and taxes, if any, which the supplier receives from the recipient for that supply but excluding the amount of tax:
Provided that – –
(i) in case the consideration for a supply is in kind or is partly in kind and partly in money, the value of the supply shall mean the open market price of the supply excluding the amount of tax; [ ... ]
(ii) in case the supplier and recipient are associated persons and the supply is made for no consideration or for a consideration which is lower than the open market price, the value of supply shall mean the open market price of the supply excluding the amount of tax; [and]
(iii) in case a taxable supply is made to a consumer from general public on installment basis on a price inclusive of mark up or surcharge rendering it higher than open market price, the value of supply shall mean the open market price of the supply excluding the amount of tax.
(b) in case of trade discounts, the discounted price excluding the amount of tax; provided the tax invoice shows the discounted price and the related tax and the discount allowed is in conformity with the normal business practices;
(c) in case where for any special nature of transaction it is difficult to ascertain the value of a supply, the open market price;
(d) in case of imported goods, the value determined under section 25 [...] of the Customs Act, including the amount of customs-duties and central excise duty levied thereon; [...]
(e) in case where there is sufficient reason to believe that the value of a supply has not been correctly declared in the invoice, the value determined by the Valuation Committee comprising representatives of trade and the [Inland Revenue] constituted by the [Commissioner] [;] and]
(f) in case the goods other than taxable goods are supplied to a registered person for processing, the value of supply of such processed goods shall mean the price excluding the amount of sales tax which such goods will fetch on sale in the market:]
(g) in case of a taxable supply, with reference to retail tax, the price of taxable goods excluding the amount of retail tax, which a supplier will charge at the time of making taxable supply by him, or such other price as the Board may, by a notification in the official Gazette, specify.
[Provided] that, where the Board deems it necessary it may, by notification in the official Gazette, fix the value of any imported goods or taxable supplies or class of supplies and for that purpose fix different values for different classes or description of same type of imported goods or supplies:
Provided further that where the value at which import or supply is made is higher than the value fixed by the Board, the value of goods shall, unless otherwise directed by the Board, be the value at which the import or supply is made;]
(47) Wholesaler
‘‘wholesaler’’ [includes a dealer and] means any person who carries on, whether regularly or otherwise, the business of buying and selling goods by wholesale or of supplying or distributing goods, directly or indirectly, by wholesale for cash or deferred payment or for commission or other valuable consideration or stores such goods belonging to others as an agent for the purpose of sale; and includes [a person supplying taxable goods to [a person [who deducts income tax at source under the Income Tax Ordinance, 2001 (XLIX of 2001)]] [...]; and
(48) zero-rated supply
“zero-rated supply” means a taxable supply which is charged to tax at the rate of zero per cent under section 4.

I think students of Law , ACMA and CA have already studied the course, as I as a student of ACMA have studied all except one chapter.
Course is very difficult for simple graduates, fpsc should not have done it, because the tests should be taken from the subjects which the eligible candidates have already studied. They should either change the eligibility criteria or the test syllabus, so that the eligible candidates should not study subjects for the test from scratch.

Test should be taken from the subjects which the candidates have already studied.

__________________
Then which of the favours of your Lord will ye deny?
Al Rahmaan

Salaam! JazakALLAH, for sharing with us. Would you please share the source from where you found these information? Thanks.

Kindly share advertisement number 2/2015 link. Not pdf. Which can open in mobile phone