Sales Tax Instructions

Sales Tax Instructions, 2009
Olein and Soyabean Oil are enclosed herewith which may invariably be followed while
conducting audit or scrutinizing adjustment of input tax and sanction of refund to
registered persons of Banaspati ghee/cooking oil industry. The calculations attached may
vary with variation of value of each input and price of output. Costing of mixture of
above oils may accordingly be worked with reference to respective proportion.
3. All the concerned officers/officials of the Collectorate may be informed
accordingly who shall conduct audit or allow refund as per proposed parameters and
retail price printed on containers/bottles etc.
4. Sector/industry note on Banaspati ghee/cooking oil industry will follow
shortly. Any suggestions for improvement and circulation to other collectorates would be
much appreciated.
[Issued by the CBR, Islamabad under the signature of Mr. Pervez Esbhani, Secretary
(STR), addressed to all the Collectors alongwith Audit Parameters for Banaspati Ghee Units.]
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INPUT TAX ADJUSTMENT
AUDIT PARAMETERS FOR
BANASPATI GHEE UNITS
1. Input tax adjustment has been claimed only for the quantity cleared on or after
15 th June, 02. Permission for adjustment of input tax on quantity cleared before
1 st June, 2002 has to be granted by Collector u/s 66 in case of already registered
persons.
2. Input tax has been apportioned under the apportionment rules issued vide SRO
698(I)/96 dated 22.08.1996, if exempt goods are produced or supplies are made.
Electricity/gas apportionment in case of use in non-taxable goods etc. shall be
verified.
3. No input tax adjustment or purchase of goods notified u/s 8 of the Act vide
notification SRO 578(I)/98 dated 12.06.1998 has been claimed.
VERIFICATION OF STOCKS
4. Stocks of all materials (edible oil, chemicals, containers, gas, etc. finished/packed
goods) are as per record. The stocks should be physically verified at the start of
the audit and compared with stock record. Reconciliation at this date shall prove
accuracy of records as at 15.11.2002.
5. Verification that stocks shown and input tax claimed on 15.06.2002 was correct
and no stocks of local materials (edible oil) were available.
6. Receipt of locally manufactured oil is properly shown in records. Samples of
imported/local edible oil (raw materials) are to be drawn from laboratory test that
the declarations are correct about description of stocks.
7. Quantification/verification of stocks by applying dip method as was done at the
time of Central Excise. If not, meters to measure outflow are installed at the
storage tanks.