Sales Tax Instructions

Sales Tax Instructions, 2009
pharmaceutical products are exempt from payment of the whole of sales tax leviable
thereon provided that where such raw materials are imported then only those raw
materials shall be entitled to exemption under this notification if they are:
(a) specified in Notification No. SRO-372(I)/2002, dated the 15 th June,
2002; or
(b) liable to customs duty not exceeding ten per cent ad valorem in the First
Schedule to the Customs Act, 1969.
subject to the same conditions as are stipulated in the Notification specified in clause (a).
3. PPMA has complained that the offices of Ministry of Health are not
issuing Forms-I & II for the raw materials which are not included in the SRO-372(I)/2002
but are otherwise exempt under SRO-211(I)/2002. As a result release of such raw
materials is held up.
4. Ministry of Health is therefore requested to prepare a list of such raw
materials, which are exempt under SRO-211(I)/2002 but are not included in SRO-
372(I)/2002. This list may be sent to the Board for doing needful. Meanwhile, Customs
Collectorates are being advised to release the consignments of those raw materials, which
are exempt from payment of sales tax under SRO-211(I)/2002 and were included in
previous customs notification superceded by SRO-273(I)/2002. The Ministry is also
requested to issue instructions to its offices for issuance of Forms-I & II and other
certifications in respect of such raw materials so that release of imported raw
materials/ingredients is allowed as per the conditions laid down under SRO-372 (I)/2002,
dated 15 th June, 2002.
[ Amended vide O.M. No. 1(51)STT/96 dated 08.03.2003]