05-11-2007, 08:38 PM
Dear,
You need to study section 4 and 13 of Sales Tax Act, 1990.
Section 4 interalaia zero rates all those supplies that are exported out of Pakistan and also zero rates the items mentioned in Fifth Schedule to Sales Tax Act, 1990. Your software export would be zero rated unless it is exempt under law. For exemption list you have to see Sixth schedule to sales tax act 1990. Please note that there is a big difference in zero rated items and exempt items. One cannot claim input tax against exempt items while it is allowed for zero rated items.
Section 13 of the Act discusses the goods the supplies of which would be exmpt from sales tax under the Act. Under scetion 13, all such exempt items are enlisted in Sixth schedule to the sales tax act 1990.
Except exempt items, all other goods are subject to levy of sales tax unless these are declared as zero rated items.
Regards,
Kamran.
You need to study section 4 and 13 of Sales Tax Act, 1990.
Section 4 interalaia zero rates all those supplies that are exported out of Pakistan and also zero rates the items mentioned in Fifth Schedule to Sales Tax Act, 1990. Your software export would be zero rated unless it is exempt under law. For exemption list you have to see Sixth schedule to sales tax act 1990. Please note that there is a big difference in zero rated items and exempt items. One cannot claim input tax against exempt items while it is allowed for zero rated items.
Section 13 of the Act discusses the goods the supplies of which would be exmpt from sales tax under the Act. Under scetion 13, all such exempt items are enlisted in Sixth schedule to the sales tax act 1990.
Except exempt items, all other goods are subject to levy of sales tax unless these are declared as zero rated items.
Regards,
Kamran.
