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Sales Tax Ready Reference
June 12, 2008 Update
This
update covers:-
-Budget SROs dated June 11, 2008: 523 to 542, 547 to 552;
-Finance Bill 2008;
-Budget Speech;
-Notes on Clauses of Finance Bill; and
These
are briefly explained as under:–
Part III – Notifications
1.
On
page 7, SRO 609(I)/2004 dated July 16, 2004 has been deleted, having been
rescinded by SRO 534(I)/2008 dated June 11, 2008. This fixed
the minimum value for phosphatic fertilizers.
2. On page 9, SRO 544(I)/2006 dated June 5, 2006 has been deleted, having been rescinded by SRO 531(I)/2008 dated June 11, 2008. This fixed the value of local coal at Rs. 670 pmt. In its place on page 8, is reproduced SRO 532(I)/2008 dated June 11, 2008 fixing the minimum value of taxable supply of local coal at Rs. 1,000 per tonne.
3. On page 11, SRO 644(I)/2007 has been amended by SRO 537(I)/2008 dated June 11, 2008 to increase the special rates on import or supply of certain goods from 20% to 21% and from 17.5% to 18.5%.
4. On page 18 onwards, SRO 509(I)/2007 has been amended by SRO 538(I)/2008 dated June 11, 2008. This is re: zero-rating for import and supply of various items.
5. On pages 20 to 20P the following SROs have been deleted having been rescinded by SRO 550(I)/2008 dated June 11, 2008 (remaining matter has been re-arranged and pages have been renumbered):-
Rescinded
SRO
Nos.
Subject
343(I)/2002
Exports by manufacturers, taxable & exempt goods
515(I)/2005
Zero-rating for cotton-seed etc.
527(I)/2005
Zero-rating for RM etc. for making plant & machinery
530(I)/2005
Zero-rating for import or supply of plant & machinery
531(I)/2005
Zero-rating for RM from local vendors by tractor manf.
537(I)/2005
Zero-rating for import and supply of soya bean meal
548(I)/2006
Zero-rating for Dairy & Stationery products and Trucks
551(I)/2006
Zero-rating for supply of compost (non-chemical fertilizer)
1204(I)/2006
Fat filled milk
1270(I)/2006
Import and supply of buses and special taxis
462(I)/2007 Zero-rating for sewing machines, bicycles, stationery.
6. On page 20D, SRO 863(I)/2007 has been amended by SRO 540(I)/2008 dated June 11, 2008 to include acetic acid in the list of items for zero-rating of import of raw materials etc. for their manufacture.
7. On page 20R, SRO 549(I)/2008 dated June 11, 2008 has been reproduced. This provides for zero-rating of various imports.
8. On page 29D, SRO 645(I)/2007 dated June 27, 2007 has been deleted, having been rescinded by SRO 523(I)/2008 dated June 11, 2008. Thus abolishing the 17% fixed tax regime for commercial importers w.e.f. July 1, 2008.
9. On pages 29A, SRO 645(I)/2006 dated June 21, 2006 has been deleted, having been rescinded by SRO 533(I)/2008 dated June 11, 2008. This abolishes the 30% value addition on import and supply of pesticides.
10. On page 30B, SRO 647(I)/2007 has been amended by SRO 529(I)/2008 dated June 11, 2008. This is regarding exclusions from provision for adjustment of input tax upto 90% of output tax for electrical energy sector, petroleum, fertilizer, commercial importers, etc. etc.
11. On page 35, SRO 559(I)/2006 dated June 5, 2006 has been deleted, having been rescinded by SRO 528(I)/2008 dated June 11, 2008. Thus abolishing the requirement for furnishing of summary of purchases and sales by manufacturers and suppliers of items including yarns, leather, carpets, surgicals and sports goods.
12. On pages 36, SRO 543(I)/2006 dated June 5, 2006 has been deleted, having been rescinded by SRO 527(I)/2008 dated June 11, 2008. This abolishes the requirement of furnishing of summary of production and supplies by manufacturers and suppliers of sugar, tea, cigarettes, aerated waters, cements, and vehicles.
13. On pages 50B to 50E, 54D and 54E, SROs 556(I)/2006, 29(I)/2007, 993(I)/2007, 995(I)/2007, 996(I)/2007, 1069(I)/2007, 1197(I)/2007, 66(I)/2008, 100(I)/2008, 220(I)/2008 and 222(I)/2008 have been deleted, having been rescinded by SRO 548(I)/2008. These SROs are re: appointment of officers with reference to various Regional Tax Offices, simultaneously a consolidated SRO 547(I)/2008 has been issued.
14. On page 51, SRO 727(I)/2003 dated July 24, 2003 has been deleted, having been rescinded by SRO 548(I)/2008 dated June 11, 2008. The SRO was for appointment of Cost Accountants and Auditors of CBR as officers of Sales Tax.
15. On page 54E, SRO 547(I)/2008 dated June 11, 2008 has been reproduced. This is for appointments of officers of Sales Tax and Federal Excise with reference to the various Regional Tax Offices.
16. On page 58B(viii), SRO 524(I)/2008 dated June 11, 2008 has been reproduced. This provides a general amnesty by exemption to unregistered persons from sales tax, default surcharge and penalty for sales made prior to June 11, 2008 if they apply for registration by July 31, 2008 and thereafter file sales tax returns regularly and pay taxes due.
Part
IV – Exemptions
17. On pages 5, 7, 8, 9, 11, 12, 13, 14, 26, 32, 33, 34, 36, 37, 38, 41, 42, 47, 48, 50, 53, the following SROs have been deleted having been rescinded by SRO 552(I)/2008 dated June 11, 2008:-
Rescinded
SRO
No.
Subject
608(I)/1997
Import by manufacturers for international tenders
614(I)/2000
Exemption to stocks declared upto October 15, 2000
675(I)/2000
Amnesty to distributors
714(I)/2000
CNG kits and components for vehicles
90(I)/2001
Machinery and goods by units in Export Processing Zones
91(I)/2001
Exemptions for leather industry
392(I)/2001
Amnesty for arrears of tax
395(I)/2001
Amnesty for various textile units’ tax arrears
456(I)/2001
Import of pharmaceutical raw materials
207(I)/2002
Import and supply of ships’ floating crafts
474(I)/2002
Imports of canola seed
555(I)/2002
Exemption to pharmaceutical products
267(I)/2003
Exemption to fertilizer plant and machinery
345(I)/2003
Exemption for dry fruits imported from Afghanistan
455(I)/2003
Exemption for Auto Spare Parts imported for PM sect.
591(I)/2003
Edible oil extracted from imported oil seeds
874(I)/2003
Import of equipments for PM House security
875(I)/2003
Import of equipment for President House security
890(I)/2003
Supply of milk
1024(I)/2003
Imported oilseeds, meant for sowing
16(I)/2004
Import of 30 Walkie Talkie sets by IB
217(I)/2004
Equipment imported by Intelligence Bureau
218(I)/2004
Equipment imported by Intelligence Bureau
234(I)/2004
Equipment for PM’s Security
673(I)/2005
Exemption to pharmaceutical raw materials
1035(I)/2005
Supply of goods for earthquake victims
501(I)/2006
Relief to manufacturers failing export targets
552(I)/2006
Supply of milk
758(I)/2006
Commercial catalogues, exemption to imports
953(I)/2006
Posters etc. for earthquake victims
1205(I)/2006
Import and supply of iodized salt
135(I)/2008
Exemption to Margarine
19. On page 31, SRO 535(I)/2008 dated June 11, 2008 has been reproduced. This provides exemption on import and supply of various fertilizers.
20. On page 32, SRO 536(I)/2008 dated June 11, 2008 has been reproduced. This provides exemption on import and supply of various active ingredients for pesticides.
21. On page 35, SRO 539(I)/2008 dated June 11, 2008 has been reproduced. This exempts raw materials imported for manufacture of for manufacture of dextrose and saline infusion giving sets.
22. On page 38, SRO 551(I)/2008 dated June 11, 2008 has been reproduced. This exempts various goods.
Part V – Rules
23. On pages 1 onwards, a number of amendments have been made in the Sales Tax Rules, 2006 by SRO 530(I)/2008 dated June 11, 2008.
24. Pages 77 and 78, containing the Refund of Sales Tax (On Export of Specified Goods) Rules 2006 have been deleted. These Rules have been rescinded by SRO 526(I)/2008 dated June 11, 2008.
Part VA – Special Procedure Rules
25. On page 5 onwards, a number of amendments have been made in the Sales Tax Special Procedure Rules 2007 w.e.f. July 1, 2008 by SRO 525(I)/2008 dated June 11, 2008.
26. Page 43, containing the Processing of Refund Claims of Large Taxpayers Rules 2007 has been deleted. These Rules have been rescinded by SRO 526(I)/2008 dated June 11, 2008.
Part IX – Budget Instructions
27. On page 111 to 121, extract from Finance Bill, 2008 has been reproduced.
28. On page 123, extract from Budget Speech, 2008 has been reproduced.
29. On page 125 to 128, extracts from the Notes on Clauses of the Finance Bill, 2008 have been reproduced.
30. On page 129 to 133, extract from the Salient Features of the Budget, 2008 has been reproduced.