04-08-2011, 02:56 AM
Can anyone please summarize this SRO 283 and highlight main points in this SRO . Also tell about in what conditions 4 % or 6 % or zero rated tax is applied ?
04-08-2011, 02:56 AM
04-13-2011, 08:02 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by FARHAN123</i>
<br />Can anyone please summarize this SRO 283 and highlight main points in this SRO . Also tell about in what conditions 4 % or 6 % or zero rated tax is applied ?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
In my opinion SRO 283 may be summarized as under
1- It has replaced SRO 509
2- Zero rating and reduced rates facility is available/applicable only to five given sector.
3- In the five sectors RP (REgistered Person) to RP supplies (means goods available in the SRO 283) is zero rated.
4- In the five sectors RP to URP (Un Registered Person) supplies are at reduced rates.
5- Reduced rate 6% would be charged if RP of given sectors make supplies to URP for (A) textiles upto the stage of spinning including the product of spinning such as yarn and its bye product and (B) tennery supplies to any URP.
6- Reduced rate 4% would be charged if RP of given sectors make supplies to URP for (A) Incase of textiles After the stage of spinning means sizing, weaving, processing etc. and (B) Other sector After tennery supplies all finished product of leather, sports, surgical goods to any URP or retailer.
7- No input tax adjustment or refund of Reduced rate of Tax means story finished.
8- Refund or Adjustment is available only for supplies to RP.
9- SRO is Applicable from 01-04-2011 for the goods provided in the SRO and supples in the given sectors.
10- Past history of zero rating or exemption of goods (PCT heading) has been changed. Now an item would be Charged at standard Rate to other than given sectors and in the given sector supply would be at zero rated to RP and at reduced rate to URP.
I am unable to understand how and who will determin RP and specially URP (Whole seller , importers, traders etc ) doing business in the given sectors.
<br />Can anyone please summarize this SRO 283 and highlight main points in this SRO . Also tell about in what conditions 4 % or 6 % or zero rated tax is applied ?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
In my opinion SRO 283 may be summarized as under
1- It has replaced SRO 509
2- Zero rating and reduced rates facility is available/applicable only to five given sector.
3- In the five sectors RP (REgistered Person) to RP supplies (means goods available in the SRO 283) is zero rated.
4- In the five sectors RP to URP (Un Registered Person) supplies are at reduced rates.
5- Reduced rate 6% would be charged if RP of given sectors make supplies to URP for (A) textiles upto the stage of spinning including the product of spinning such as yarn and its bye product and (B) tennery supplies to any URP.
6- Reduced rate 4% would be charged if RP of given sectors make supplies to URP for (A) Incase of textiles After the stage of spinning means sizing, weaving, processing etc. and (B) Other sector After tennery supplies all finished product of leather, sports, surgical goods to any URP or retailer.
7- No input tax adjustment or refund of Reduced rate of Tax means story finished.
8- Refund or Adjustment is available only for supplies to RP.
9- SRO is Applicable from 01-04-2011 for the goods provided in the SRO and supples in the given sectors.
10- Past history of zero rating or exemption of goods (PCT heading) has been changed. Now an item would be Charged at standard Rate to other than given sectors and in the given sector supply would be at zero rated to RP and at reduced rate to URP.
I am unable to understand how and who will determin RP and specially URP (Whole seller , importers, traders etc ) doing business in the given sectors.
04-14-2011, 03:53 AM
Thanks for sharing waseem.
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by wasim akram</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by FARHAN123</i>
<br />Can anyone please summarize this SRO 283 and highlight main points in this SRO . Also tell about in what conditions 4 % or 6 % or zero rated tax is applied ?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
In my opinion SRO 283 may be summarized as under
1- It has replaced SRO 509
2- Zero rating and reduced rates facility is available/applicable only to five given sector.
3- In the five sectors RP (REgistered Person) to RP supplies (means goods available in the SRO 283) is zero rated.
4- In the five sectors RP to URP (Un Registered Person) supplies are at reduced rates.
5- Reduced rate 6% would be charged if RP of given sectors make supplies to URP for (A) textiles upto the stage of spinning including the product of spinning such as yarn and its bye product and (B) tennery supplies to any URP.
6- Reduced rate 4% would be charged if RP of given sectors make supplies to URP for (A) Incase of textiles After the stage of spinning means sizing, weaving, processing etc. and (B) Other sector After tennery supplies all finished product of leather, sports, surgical goods to any URP or retailer.
7- No input tax adjustment or refund of Reduced rate of Tax means story finished.
8- Refund or Adjustment is available only for supplies to RP.
9- SRO is Applicable from 01-04-2011 for the goods provided in the SRO and supples in the given sectors.
10- Past history of zero rating or exemption of goods (PCT heading) has been changed. Now an item would be Charged at standard Rate to other than given sectors and in the given sector supply would be at zero rated to RP and at reduced rate to URP.
I am unable to understand how and who will determin RP and specially URP (Whole seller , importers, traders etc ) doing business in the given sectors.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by wasim akram</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by FARHAN123</i>
<br />Can anyone please summarize this SRO 283 and highlight main points in this SRO . Also tell about in what conditions 4 % or 6 % or zero rated tax is applied ?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
In my opinion SRO 283 may be summarized as under
1- It has replaced SRO 509
2- Zero rating and reduced rates facility is available/applicable only to five given sector.
3- In the five sectors RP (REgistered Person) to RP supplies (means goods available in the SRO 283) is zero rated.
4- In the five sectors RP to URP (Un Registered Person) supplies are at reduced rates.
5- Reduced rate 6% would be charged if RP of given sectors make supplies to URP for (A) textiles upto the stage of spinning including the product of spinning such as yarn and its bye product and (B) tennery supplies to any URP.
6- Reduced rate 4% would be charged if RP of given sectors make supplies to URP for (A) Incase of textiles After the stage of spinning means sizing, weaving, processing etc. and (B) Other sector After tennery supplies all finished product of leather, sports, surgical goods to any URP or retailer.
7- No input tax adjustment or refund of Reduced rate of Tax means story finished.
8- Refund or Adjustment is available only for supplies to RP.
9- SRO is Applicable from 01-04-2011 for the goods provided in the SRO and supples in the given sectors.
10- Past history of zero rating or exemption of goods (PCT heading) has been changed. Now an item would be Charged at standard Rate to other than given sectors and in the given sector supply would be at zero rated to RP and at reduced rate to URP.
I am unable to understand how and who will determin RP and specially URP (Whole seller , importers, traders etc ) doing business in the given sectors.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
04-14-2011, 09:16 PM
After understanding SRO 283 learned panelist are requested to give their anomolies. Its marits and demerits etc so that budget anomolies / Correspondance can be made with the FBR.
Anomolies i can suggest are.
1- It will destroy the local manufacturing industry and inflation will climb up. ( simply After all one has to charge GST at least at 4%).
2- Manufacturing industries other than 5 sectors previously enjoying zero rating would have to pay tax @ Standard rate for onward transactions means at least 19.5% addition. again inflation.
3- Suppose a person is registered importer of goods used in textile sector and import goods at zero rated. He will enjoy now by selling invoice (only) to registered person and delivering goods to unregistered person at higher rate. Mojan e Mojan. Goods from Local industry would available at higher rate than the imported goods. The best way to destroy economy of Pakistan.
4- Suppose A RP purchased 3 items to manufacture an item. out of three, he paid GST on 1 say @ 17% Rs.100. He made supplies to URP of of given sector and paid GST @ 6%. Undoubtedly He can't claim or adjust GST paid on Supplies @ 6%. What will happen with GST paid as input i.e. Rs.100 which is receiveable / adjustable / refundable in the books of accounts. If it is gone / finish with 6% then manufacturere has to add Rs.100 in cost so as to pay further tax @ 6%. (Again prices will go up).
5- It is firt time in the history of pakistan and might be internationally that an item (PCT heading) has dual effects.
6- It is misunderstood that due to SRO 283 registration will inclrease. Not at all. Instead specific 5 sectors would have been aimed to destroy.
7- If SRO 283 is aimed to collect GST from auxiliary industry then new PCT heading might be added in the custom tarrif like indian and chinese custom tarrif.
8-I am unable to understand how and who will determin RP and specially URP (Whole seller , importers, traders etc ) doing business in the given sectors.
9- In short SRO 283 is very very harmfull to the local industry and might have been designed by some person who do not know ground reality and simply philaspher of Pakistan Economy sitting outside Pakistan.
Anomolies i can suggest are.
1- It will destroy the local manufacturing industry and inflation will climb up. ( simply After all one has to charge GST at least at 4%).
2- Manufacturing industries other than 5 sectors previously enjoying zero rating would have to pay tax @ Standard rate for onward transactions means at least 19.5% addition. again inflation.
3- Suppose a person is registered importer of goods used in textile sector and import goods at zero rated. He will enjoy now by selling invoice (only) to registered person and delivering goods to unregistered person at higher rate. Mojan e Mojan. Goods from Local industry would available at higher rate than the imported goods. The best way to destroy economy of Pakistan.
4- Suppose A RP purchased 3 items to manufacture an item. out of three, he paid GST on 1 say @ 17% Rs.100. He made supplies to URP of of given sector and paid GST @ 6%. Undoubtedly He can't claim or adjust GST paid on Supplies @ 6%. What will happen with GST paid as input i.e. Rs.100 which is receiveable / adjustable / refundable in the books of accounts. If it is gone / finish with 6% then manufacturere has to add Rs.100 in cost so as to pay further tax @ 6%. (Again prices will go up).
5- It is firt time in the history of pakistan and might be internationally that an item (PCT heading) has dual effects.
6- It is misunderstood that due to SRO 283 registration will inclrease. Not at all. Instead specific 5 sectors would have been aimed to destroy.
7- If SRO 283 is aimed to collect GST from auxiliary industry then new PCT heading might be added in the custom tarrif like indian and chinese custom tarrif.
8-I am unable to understand how and who will determin RP and specially URP (Whole seller , importers, traders etc ) doing business in the given sectors.
9- In short SRO 283 is very very harmfull to the local industry and might have been designed by some person who do not know ground reality and simply philaspher of Pakistan Economy sitting outside Pakistan.
04-14-2011, 09:30 PM
Dear wasim
pls elobrate point no 2 if possible with exapmle
pls elobrate point no 2 if possible with exapmle
04-14-2011, 10:03 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Information Consultant</i>
<br />Dear wasim
pls elobrate point no 2 if possible with exapmle
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Very simple dear. Think why FBR issue 283. just because to restrict application to five sectors otherwise 509 was there. Goods included in 509 and now in 283 have multiple applications. Before 283 a PCT heading was considered zero rated now a PCT heading can and can't be taxable. Examples as given some where in this forum Corrogated box to EBM and Ahmad Fabrics, Polythene bags, Pigments, etc. so many things.
<br />Dear wasim
pls elobrate point no 2 if possible with exapmle
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Very simple dear. Think why FBR issue 283. just because to restrict application to five sectors otherwise 509 was there. Goods included in 509 and now in 283 have multiple applications. Before 283 a PCT heading was considered zero rated now a PCT heading can and can't be taxable. Examples as given some where in this forum Corrogated box to EBM and Ahmad Fabrics, Polythene bags, Pigments, etc. so many things.
04-14-2011, 10:25 PM
Thanks i got ur point infact example of EBM and gul ahmed was posted by me . To summarize
As per sro 509 yarn is zero rate as per sro 283 yarn can be zero rate and cant be zero rate depend upon the registration /unregistration status for un registerd yarn cost include 4 % sales tax .Same as in the case of Retailer while AL karam sold it fabric to its retail outlet which is a seprate entity charge 4 % sales tax cost will auto matically increase .pls correct me if u find something wrong .
As per sro 509 yarn is zero rate as per sro 283 yarn can be zero rate and cant be zero rate depend upon the registration /unregistration status for un registerd yarn cost include 4 % sales tax .Same as in the case of Retailer while AL karam sold it fabric to its retail outlet which is a seprate entity charge 4 % sales tax cost will auto matically increase .pls correct me if u find something wrong .
04-14-2011, 10:42 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Information Consultant</i>
<br />Thanks i got ur point infact example of EBM and gul ahmed was posted by me . To summarize
As per sro 509 yarn is zero rate as per sro 283 yarn can be zero rate and cant be zero rate depend upon the registration /unregistration status for un registerd yarn cost include 4 % sales tax .Same as in the case of Retailer while AL karam sold it fabric to its retail outlet which is a seprate entity charge 4 % sales tax cost will auto matically increase .pls correct me if u find something wrong .
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
ok ok go ahead, dig out and suggest anomolies. A high ranking officer has asked me to give our anomolies at earliest. so I want to share it at forum for valueable suggestions before submission. I m as usual unable to understand lethargic support from active members of this forum. I don't know why? Although I considered them very good teachers.
<br />Thanks i got ur point infact example of EBM and gul ahmed was posted by me . To summarize
As per sro 509 yarn is zero rate as per sro 283 yarn can be zero rate and cant be zero rate depend upon the registration /unregistration status for un registerd yarn cost include 4 % sales tax .Same as in the case of Retailer while AL karam sold it fabric to its retail outlet which is a seprate entity charge 4 % sales tax cost will auto matically increase .pls correct me if u find something wrong .
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
ok ok go ahead, dig out and suggest anomolies. A high ranking officer has asked me to give our anomolies at earliest. so I want to share it at forum for valueable suggestions before submission. I m as usual unable to understand lethargic support from active members of this forum. I don't know why? Although I considered them very good teachers.