Sales Tax Instructions

Sales Tax Instructions, 2009
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C. NO. 4(8) DTRE/2001(Pt) DATED 30 TH DECEMBER, 2003
SUBJECT:- DTRE-RELATED ISSUES AND CBR‘S CLARIFICATION
THEREONE
Different Collectorates have raised several issues relating to DTRE scheme.
CBR has examined all these issues in consultation with some of the Collectorates and
firmed up its views on these issues. Details of these issues and CBR‘s clarification
thereon are given in the table below for the guidance of the Collectorates.
Issues
1. Whether the responsibility for
determining input/output ratio of raw
materials lies with DSAO or with
Sales Tax Audit.
2. Whether export to Export
Processing Zone is allowed under
DTRE scheme.
3. Whether ―Furnace Oil‖ is included
in definition of input goods as per rule
296(I)f.
CBR‘s clarification
The input–output ratios and wastages
declared at the time of applying for
DTRE approval are to be ascertained
by DSAO at the time of audit under
DTRE scheme unless DSAO (or
IOCO) has already verified/ accepted/
determined input-output ratios and
wastages in identical cases and the
DTRE applicant have based their
declaration on such verifications/
determinations. Director (DSAO/
IOCO) should regularly apprise all the
Collectors about the input/output ratio
and wastages as and when verified/
accepted/determined. The decision
already taken on this account in the
past may also be conveyed to the
Collectorates within two weeks of the
receipt of the letter. CBR may be kept
abreast about the progress made in
this regard.
Supply of goods to Exports Processing
Zone is deemed as export under EPZ
rules and thus such supply is eligible
for DTRE approval provided the
manufactured goods are exported out
of Pakistan and not repatriated into
traffic area.
The furnace oil used in the generation
of electricity to be consumed
exclusively for the manufacture of