Sales Tax Instructions

Sales Tax Instructions, 2009
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C. NO.3/58-STB/2000 (Pt.I) DATED 4 TH NOVEMBER, 2000
SUBJECT:- CLARIFICATION REGARDING NEW FOREIGN
INVESTMENT INCENTIVE IN PAKISTAN
I am directed to refer to your letter No.BOI/DB/5(28)/97, dated 11.10.2000
addressed to Member (Income Tax) which has been forwarded to this Sales Tax Wing for
comments and to clarify that:-
(i)
(ii)
(iii)
Refund of withholding tax is dealt by the Direct taxes Wing, who is
being requested to respond on this issue separately.
In order to streamline and expedite refunds SRO 417(I)/2000, dated
20.06.2000 has been issued by the Government. The exporters should
maintain proper records and submit complete set of documents as
required under rule 9 of the Refund Rules, 2000 for early settlement of
their claims. Exporters can apply for ‗Gold‘ or ‗Silver‘ categories
according to their entitlement which is specified in the refund
notification. Refund claims of ‗Gold‘ category are sanctioned within 72
hours while those of ‗Silver‘ category are sanctioned within 15 days of
filing the complete refund claim.
The main facility provided by sales tax scheme for export oriented
industries is zero rating of export and allowing input adjustment and
refunds of the tax paid on purchases used in such exported goods. In case
of manufacturer-cum-exporters, refund is also paid on balance unexported
stocks in such manner that 50% of the amount involved on such
stocks is sanctioned within 30 days (as per status of exporter ‗Gold‘,
‗Silver‘ or ‗Other‘) while remaining 50% is paid after scrutiny and
verification. If the process is not completed within the next 30 days, the
balance amount is also paid and the scrutiny / verification is completed
subsequently. This is a great facility to encourage exporters and enhance
their liquidity.
[Issued by the CBR., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (STP), addressed to Mr. Akhlaq Ahmed Malik, Director, Board of Investment, M. A.
Jinnah Roads, Karachi & copy to Chief (DTO), Direct Taxes Wing, CBR, Islamabad; Collector of
Sales Tax & Central Excise, Peshawar, Rawalpindi, Gujranwala, (East) Karachi, (West) Karachi,
Lahore, Multan, Hyderabad, Quetta, Faisalabad & Secretary (Sales Tax Education).
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U.O.No.1/98-TT/2000 DATED 8 TH NOVEMBER, 2000
SUBJECT:- EXEMPTION OF CUSTOM DUTIES ON INFORMATION
TECHNOLOGY EQUIPMENT.
The undersigned is directed to refer to Customs Wing‘s U.O. No.3(14)ICM/2000,
dated 8 th November, 2000 on the subject noted above and to state that under serial Nos.45
and 48 of Sixth Schedule to the Sales Tax Act, 1990, exemption of Sales Tax is available
only on the import/supply of computer hardware and software.