Sales Tax Instructions

Sales Tax Instructions, 2009
Notification such plant and machinery has been notified by the Federal Government
which is entitled to the exemption of sales tax in terms of serial No. 44 of the Sixth
Schedule to the Sales Tax Act, 1990, provided the procedure and conditions prescribed in
the said notification are fulfilled. Therefore, your contention in this regard is not tenable.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary ST-L&P addressed to Mr. Saeed Ullah Sheikh, Chief Executive, M/s. MAGNA Tech
(Pvt.) Ltd., P-15, Rail Bazar,Faisalabad.]
ENCLOSURE.I
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MAGNA TECH. PVT LTD Dated 10 th January, 2002.
SUBJECT:--
Dear Sir,
REQUEST TO CLARIFY THAT THE CONDITIONS LAID DOWN IN
PARA 2 OF SRO 987(I)/99 dated 30.08.1999 ARE APPLICABLE ONLY TO
PLANT AND MACHINERY AND NOT TO THE COMPONENTS
M/s Magna Tech (Pvt) Ltd. off Manga Raiwind Road, Chak No. 65, Tehsil & District,
Kasur, is a manufacturer of textile rotary printing screens, which is a component part of textile
machinery. This aspect has been confirmed by Central Board of Revenue as we were issued Final
Certificate from Chief Survey and Rebate, CBR, for the import of raw materials for the
manufacturing of printing screens under SRO 501(I)/94 dated 09.06.1994.
2. Under SRO 230(I)/97 dated 29.03.1997, the Federal Government had granted exemption
of sales tax on plant and machinery which inter alia included component parts of machinery,
operated by power of any description such as is used in any industrial process for the manufacture
of goods. Rotary printing screen being a component part of textile machinery qualified for
exemption of sales tax under the aforesaid notification, which remained operative upto
11.06.1998.
3. In supercession of SRO 230(I)/97 dated 29.03.1997, the Federal Government issued SRO
582(I)/98 dated 12.06.1998, wherein exemption from sales tax was available to component parts
of machinery operated by power of any description to be used for the manufacture of taxable
goods by the registered persons. Rotary printing screen being a component part of machinery
operated by power and to be used for the manufacture of taxable goods i.e. textiles by Magna
Tech (Pvt) Ltd. who was registered person remained exempt from sales tax during the currency of
SRO 582(I)/98 dated 12.06.1998 which remained operative till 29.08.1999 when it was
superceded vide SRO 986(I)/99 dated 30.08.1999.
4. SRO 987(I)/99 dated 30.08.1999, which is operative till todate grant exemption of sales
tax on
(a)
Plant and machinery, operated by power of any description, as are imported or
purchased locally by a registered person to be used for the manufacture of
taxable goods by that registered person;