Sales Tax Instructions

Sales Tax Instructions, 2009
17 th February, 1999 and Secretary General, Pakistan Sugar Mills Association, Rashid Plaza,
Jinnah Avenue, Islamabad.]
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C. NO.(18)STP/98 DATED 26 TH MARCH, 1999
SUBJECT:- REQUIREMENT OF DECLARATION/SCRUTINY OF INPUT-
OUTPUT RATIO FOR SANCTION OF EXPORT REFUND
CLAIMS OF EXPORTERS-CUM-MANUFACTU- RERS
I am directed to invite attention to the letter No. NCA(A)/39/266, dated
05.10.1998 (copy enclosed) from Pakistan Carpet Manufacturers and Exporters
Association, Lahore and No. PTA-102/98/1238, dated 10-10-1998 (copy enclosed) from
Pakistan Tanner Association, Karachi, on the above subject and to say that Notification
No. SRO 825(I)/98, dated 21.07.1998 does not require declaration / scrutiny of inputoutput
ratio at the refund processing and sanction stage in case of claims by exporterscum-manufacturers.
Such ratios are to be scrutinized at the unit-audit stage post-sanction.
2. The refund claims may be processed and scrutinized on merits urgently.
In case you seek any clarification, a self-contained reference may be made to CBR
without withholding sanction of the due and admissible claims.
3. Exporters and exporters-cum-manufacturers may also be encouraged to
consider applying for their profiling categorization under SRO 906(I)/98 so that they get
refund payment within 72 hours and 15 days if in GOLD and SILVER categories,
respectively.
[Issued by the CBR., Islamabad, under the signature of Mr.Muhammad Tahir, Secretary
(STP), addressed to the Collector, Collectorate of Sales Tax (East)Karachi/(West)Karachi/Hub
(Baluchistan)/ Hyderabad/ Multan/ Faisalabad/ Gujranwala/ Lahore/ Rawalpindi/ Peshawar,
with their letter No. NC(A)/39/266, dated 5 th October, 1998 and letter No. PTA-102/98/1238,
dated 10.10.1998.] Copy of letters are reproduced below:-
C. NO.NC(A)/39/266 DATED 5 TH OCTOBER, 1998
The Chairman,
Central Board of Revenue, Islamabad.
SUBJECT: DIFFICULTY IN OBTAINING SALES TAX REFUND
During processing of Sales Tax refund cases of our members there is an ambiguity about certain
points at the lower levels, which results in unnecessary delay in sanctioning of our refunds. We
request to give clear instructions to the Collectorates on the following points:
(a) INPUT/OUTPUT RATIOS
The staff at the lower level sanctions refunds on equivalent weight basis for the input consumed
and the goods exported which results in a loss to resulting in our exports not being zero rated. It is
therefore, requested that Input/Output ratio may be determined according to the Survey reports of
the department prevalent when sales tax was refunded as duty drawback.
(b) That refund may be given on sales tax paid for all inputs consumed such as,
Wool. (ii) Caustic Soda.
Hypo Solution. (iv) Dyes
Packing Materials (vi) Cotton Yarn.
The staff if only sanctioning refunds on wool. Yours instructions in this regard will certainly
straighten out bottlenecks being faced by our member at the lower at the lower level.