Home » News » Finance » Provisional sales tax registration allowed

Provisional sales tax registration allowed

ISLAMABAD (January 23 2004): To encourage investment in the country, the Central Board of Revenue (CBR) has given facility of provisional sales tax registration to the investors intending to import plant and machinery for setting up manufacturing units in various sectors.

Sources told Business Recorder here on Thursday that the investors could import sales tax free apparatus and appliances under SRO.987 (I) 99 of August 30, 1999. However, the importer should hold a valid sales tax registration category as “manufacturer” for claiming GST exemption.

Moreover, the importers should also declare sales tax registration number along with other import documents.

A number of Karachi-based investors wanting to import machinery/equipment demanded provisional status of manufacturers to qualify for concession under SRO.987 (I) 99.

New importers applying for setting up manufacturing unit could not submit sales tax registration before the import of machinery/equipment.

Taking prompt action to facilitate the business community, the CBR has issued a directive to all collectors of sales tax that in case the collector is satisfied, on the basis of documents submitted by the applicant, that the importer genuinely intends to set-up a manufacturing unit, he can provisionally register him as manufacturer.

Later, the provisional registration would be converted into proper registration.

Sources said that the decision would practically help the investors, as applicants intending to set-up manufacturing units would not vanish after submission of indemnity bond under SRO.987 (I)/99.

The importer will also declare the description of taxable goods and their respective Pakistan Customs Tariff (PCT) heading numbers that he is manufacturing or intends to manufacture using such plant and machinery and shall also declare the intended site for the installation of said machinery.

Leave a Reply

X