4. Zero rating.—

Notwithstanding the provisions of section 3, the following goods shall be charged to tax at the rate of zero per cent:--

(a)       goods exported, or the goods specified in the Fifth Schedule;

(b)       supply of stores and provisions for consumption aboard a conveyance   proceeding to adestination outside Pakistan as specified in section 24 of the Customs Act, 1969 (IV of 1969);

 

(c)        such other goods as the Federal Government may, by notification in the official Gazette, specify:  

 

Provided that nothing in this section shall apply in respect of a supply of goods which–

 

(i)         are exported, but have been or are intended to be re-imported into Pakistan; or  

            

(ii)        have been entered for export under Section 131 of the Customs Act, 1969 (IV of 1969), but are not exported; or  

        

(iii)       have been exported to a country specified by the Federal Government, by Notification in the official Gazette:  

 

Provided further that the Federal Government may, by a notification in the official Gazette, restrict the amount of credit for input tax actually paid and claimed by a person making a zero-rated supply of goods otherwise chargeable to sales tax.

 

[1][(d)     such other goods as may be specified by the Federal Board of Revenue through a general order as are supplied to a registered person or class of registered persons engaged in the manufacture and supply of zero-rated goods.]



[1].         Added vide Finance Act, 2007.