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Federal Board of Revenue has issued Notification (Sales Tax) / S.R.O. 713 (1)/2008 dated 3rd July, 2008. The said Notification has amended S.R.O. 647(I)/2007 dated 27th June 2007, which provides exclusions to certain sectors from the limitation as prescribed in section 8B of the Sales Tax Act, 1990. The sectors specified in the S.R.O. are not subject to limitation of input tax adjustment to the extent of 90% of output tax. Presently, following sectors are given this benefit under S.R.O. 647(I)/2007:
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1. |
Persons registered in electrical energy sector. |
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2. |
Oil marketing companies and petroleum refineries. |
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3. |
Fertilizers manufacturers. |
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4. |
Manufacturers consuming raw materials chargeable to sales tax at the rate of 18.5% or 21% provided value of such raw materials exceeds 50% of value of all taxable purchases in a tax period. |
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5. |
Wholesalers-cum-retailers operating in Chapter XII of the Sales Tax Special Procedures Rules, 2007. |
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6. |
Commercial importers provided the value of imports subjected to 2% value addition tax under Chapter X of the Sales Tax Special Procedures Rules, 2007, exceeds 50% of value of all taxable purchases in a tax period. |
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7. |
Person making zero-rated supplies provided value of such supplies exceeds 50% of value of all taxable supplies in a tax period. |
Through amendment by S.R.O. 713(I)/2008, following sectors have been added to the existing list:
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Muhammad Hafeez Mughal
Secretary PR Jul 04, 2008
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