Sales Tax Instructions

Sales Tax Instructions, 2009
(iii)
(iv)
(v)
Rule 5 of SRO 666(I)/2005 provides that the manufacturer shall intimate
the Collector that he intends to utilize the amount claimed in refund for
the purpose of adjustment. The word ―intends‖ connotes that the option
lies with the taxpayer.
The requirement of first applying for adjustment advice and then again
waiting for three months to apply for refund runs counter to the spirit of
facilitating the taxpayers. A taxpayer has to unnecessarily fulfill
formalities at two stages and then wait for three months to apply for
refund.
Once the principle has been laid down in section 10(2) that the excess
input tax has to be refunded on monthly basis, then it appears
unreasonable to make the taxpayer wait for a long time and engage in
inconvenient procedures.
4. In view of above, the Board, in exercise of powers under section 55 of the
Sales Tax Act, 1990, allows that the manufacturers making local supplies may directly
file refund claim of excess of input tax over output tax under chapter V of the Sales Tax
Rules, 2006, without having to undergo through the procedure stipulated in SRO
666(I)/2005 dated 30.06.2005.
[Issued by the CBR. (Sales Tax & Federal Excise Wing), Islamabad, under the signature
of Mr. Abdul Hameed Memon, Secretary (ST&FE-L&P),addressed to Collector, Large Taxpayers
Units (LTU), Lahore, (Enforcement) / (Hqrs.)/ (Audit), Karachi, the Collector, Collectorate of
Sales Tax & Federal Excise, Lahore/ Faisalabad/ Gujranwala/ Rawalpindi/ Peshawar. the
Collector, Customs, Sales Tax & Federal Excise, Multan/ Hyderabad/ Quetta]
********
C. No. 1(3)CEB/04(Pt) DATED 4 TH OCTOBER, 2006
SUBJECT:
PAYMENT OF REFUND ON EXPORT OF GHEE/ COOKING
OIL
I am directed to refer to the subject noted above.
2. A meeting with manufacturers of ghee/ cooking oil was held in CBR on
4.10.2004 wherein it was highlighted that refunds on account of exports made prior to
January 2006 are still pending. The Chairman, CBR, has expressed displeasure on this
delay and desired that admissible refunds be paid without further delay.
3. As regards, the refund/ drawback in respect of exports made in January
2006 and onwards, it was decided to pay drawback as notified under SRO 993(I)/2006
dated 21.09.2006 on provisional basis. The Board‘s instructions for finalization of such
drawback cases will be issued subsequently.
[Issued by the CBR, Islamabad, under the signature of Mr. Abdul Hameed Memon,
Secretary (ST&FE-L&P), addressed to All Collectors, Collectorates of Sales Tax & Federal
Excise and copy to Pakistan Vanaspati Manufacturers‘ Association, Islamabad.]