Home » News » Finance » Date for claiming sales tax refund extended

Date for claiming sales tax refund extended

ISLAMABAD (February 27 2003) : To speed up the payment of sales tax refund to the commercial exporters, the Central Board of Revenue has extended the date for claiming sales tax refund from December 31, 2002 to June 30, 2003 as per previous Sales Tax Refund Rules 2000.

Now, the commercial exporters who have exported goods up to June 30, 2003 are entitled to claim sales tax refund under the old Sales Tax Refund Rules 2000 instead of filing their claims through refund procedure of 2002.

The CBR has made amendments in the Sales Tax Refund Rules 2002 through SRO (I)/2003 issued here on Wednesday.

This major demand of the business community was accepted by the sales tax authorities to provide another lucrative incentive to the commercial exporters for redressing their complaints on clearance of backlog pertaining to such claims.

Under the concession, the CBR has allowed the commercial exporters to claim sales tax refund till June 30, 2003 under the previous rules.

The refund claims filed by the commercial exporters for exports made till June 30, 2003 would be sanctioned after production of Bank Credit Advice (BCA) showing receipt of sales proceeds in foreign exchange from the country to which the goods have been exported.

The CBR has included a new proviso in Rule 14 of the Sales Tax Refund Rules 2002, which says, “Refund claims filed by the commercial exporters may be sanctioned and paid if a bank guarantee, in the format prescribed by the Board, is submitted by the commercial exporters in lieu of Bank Credit Advice (BCA) for refund claims filed before 30th June 2003.”

Sources said that the government was making serious efforts to clear pending refund and speed up the processing of new claims under the law.

However, there was a difference between the refund claimed by the exporter and actual amount to be paid after process of verification.

The text of the SRO (I)/2003 issued here Wednesday.

“In exercise of the powers conferred by section 50 of the Sales Tax Act, 1990, read with the first and second proviso to sub-section (1) and sub-section (2) of section to thereof, the Central Board of Revenue is pleased to direct that the following amendments shall be made in the Sales Tax Refund Rules 2002, namely:-

“In the aforesaid notification Rules, in rule 14, in the proviso-

(a) for the figures and words 31st December 2002″ the figures and word 30th June 2003″ shall be substituted; and

(b) for the full stop, at the end, a colon shall be substituted and thereafter the following further proviso shall be added namely:-

“Provided further that refund claims filed by commercial exporters may be sanctioned and paid if a bank guarantee, in the format prescribed by the Board, is submitted by the commercial exporters in lieu of Bank Credit Advice (BCA) for refund claims filed till 30th June 2003.

Leave a Reply

X