08-08-2011, 04:14 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 [email protected]</i>
Dear Student of Law,
U r rite that 90% of the input is claimable. But i would like to explain that rule/Sec 8.b states that this rule only valid for those registered person who are traders or importers. such registered person must pay 10 % of their sales as out put tax.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Umar,
Thanks a lot for your valuable guidance. But I need your further assistance.
You said that manufacturers are exempt from operation of s.8B(i.e. rule that input tax claimed should not exceed 90% of output tax). After reading your reply I re-read s.8B but did not find such exemption there. Then on searching SRO I found SRO 647(I)/2007 dated 27.06.2007
[url="http//www.fbr.gov.pk/sros/SalesTaxSROS/2007/2007sro647.pdf"] click for SRO 647(I)2007[/url]
After going through a few amendments through 2 SROs, later the whole table was changed w.e.f 01.07.2008 vide
[url="http//www.fbr.gov.pk/sros/SalesTaxSROS/2008/2008SRO529.pdf"] SRO529(I)/2008[/url]
A few entries were further added vide
[url="http//www.fbr.gov.pk/sros/SalesTaxSROS/2008/2008SRO713.pdf"] SRO713(I)/2008[/url]
After the above amendments now the updated version of SRO 647enlists persons and items who are currently exempt from s.8B. On reading it I found that all manufacturers are not exempt but it allows exemption to only such manufacturers who have paid input tax at certain rates exceeding 17%. Similarly, it also gives exemption to commercial importers subject to certain conditions. Distributors and wholesalers are all exempt
<u>Please quote the relevant section or SRO</u> on the basis of which you are of the view that all manufacturers and exporters are exempt while all traders and importers are not exempt from operation of s.8B
I once again thank you that your point has lead me to undertake this research and to share it with the other readers. Please correct me where I am wrong. Please also give basis of your stance that all manufacturers are exempt
Dear Student of Law,
U r rite that 90% of the input is claimable. But i would like to explain that rule/Sec 8.b states that this rule only valid for those registered person who are traders or importers. such registered person must pay 10 % of their sales as out put tax.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Umar,
Thanks a lot for your valuable guidance. But I need your further assistance.
You said that manufacturers are exempt from operation of s.8B(i.e. rule that input tax claimed should not exceed 90% of output tax). After reading your reply I re-read s.8B but did not find such exemption there. Then on searching SRO I found SRO 647(I)/2007 dated 27.06.2007
[url="http//www.fbr.gov.pk/sros/SalesTaxSROS/2007/2007sro647.pdf"] click for SRO 647(I)2007[/url]
After going through a few amendments through 2 SROs, later the whole table was changed w.e.f 01.07.2008 vide
[url="http//www.fbr.gov.pk/sros/SalesTaxSROS/2008/2008SRO529.pdf"] SRO529(I)/2008[/url]
A few entries were further added vide
[url="http//www.fbr.gov.pk/sros/SalesTaxSROS/2008/2008SRO713.pdf"] SRO713(I)/2008[/url]
After the above amendments now the updated version of SRO 647enlists persons and items who are currently exempt from s.8B. On reading it I found that all manufacturers are not exempt but it allows exemption to only such manufacturers who have paid input tax at certain rates exceeding 17%. Similarly, it also gives exemption to commercial importers subject to certain conditions. Distributors and wholesalers are all exempt
<u>Please quote the relevant section or SRO</u> on the basis of which you are of the view that all manufacturers and exporters are exempt while all traders and importers are not exempt from operation of s.8B
I once again thank you that your point has lead me to undertake this research and to share it with the other readers. Please correct me where I am wrong. Please also give basis of your stance that all manufacturers are exempt
