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Highlights
The time of supply for tax purposes would be actual time of delivery.
Input tax in excess of 90% of out put tax for that tax period shall not be allowed. The residual portion of input tax will allowed upon furnishing the statement along with the audited accounts duly certified by the auditors showing value addition less the limit prescribed on yearly basis in the 2nd month following the end of financial year.
Input tax related to acquisition of fixed assets shall be allowed for adjustment in 12 equal monthly installments after the start of production of new unit.
CBR has been required to process the refund claim within 45 days of the lodging of the refund claim.
Registered persons whose accounts are subject to audit under the Companies Ordinance, 1984, will be required to submit a certificate by the auditors certifying the payment of due tax along with a copy of the annual audited accounts.
Retention period of sales tax records has been increased from three years to five years.
Procedure for alternate dispute resolution has been amended.
An amnesty scheme is offered through SRO 463(1)/2007 providing that on the payment of principal amount of sales tax relating to any past period by the June 30, 2007 the whole of default, surcharge and penalty will be waived.
Various items relating to food, paper, plastic and chemical industry shall be charged @ 20% whether imported or supplied (SRO 466(1)/2007).
10% value addition at import stage for the commercial importers shall be withdrawn with immediate effect and they will be required to pay sales tax on supply of imported goods on the basis of actual value addition (SRO 468(1)/2007). |
Mr. Gohar Manzoor
