7. Determination of tax liability.―
Provided that the
taxpayer may adjust input tax paid on the purchases in the immediate twelve
preceding tax periods from the output tax subject to the condition that the
taxpayer specifies the reasons for such delayed input tax adjustment in the
revised sales tax return for such period or in the return for the immediately
succeeding tax period.
(2) A registered person shall not be
entitled to deduct input tax from output tax unless,--
(i)
in case of a claim for input tax in respect of a
taxable supply made, he holds a tax invoice in his name and bearing his
registration number in respect of such supply for which a return is furnished;
(ii)
in case of goods imported into Pakistan, he holds bill of
entry or goods declaration in his name and showing his sales tax registration
number, duly cleared by the customs under section 79 or section 104 of
the Customs Act, 1969 (IV of 1969);
(iii) in case of goods purchased in auction, he
holds a treasury challan, in his name and bearing his registration
number,
showing payment of sales tax;
(3) Notwithstanding anything in sub-sections
(1) and (2), the Federal Government may, by a special order, subject to such
conditions, limitations or restrictions as may be specified therein allow a
registered person to deduct input tax paid by him from the output tax
determined or to be determined as due from him under this Act.
[2][(4) Notwithstanding
anything contained in this Act or rules made thereunder, the Federal Government
may, by notification in the official Gazette, subject to such conditions,
limitations or restrictions as may be specified therein, allow a registered
person or class of persons to deduct such amount of input tax from the output
tax as may be specified in the said notification.]