Input tax adjustment

olympia · 07-18-2011, 08:58 PM

We r going to buy some Safety items (Like jackets, shoes, gloves & Helmet..... etc) for our employees. Parties charged sales tax on these items. Could we adjust this sales tax or not?

student_of_law · 07-18-2011, 11:11 PM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by olympia
 We r going to buy some Safety items (Like jackets, shoes, gloves & Helmet..... etc) for our employees. Parties charged sales tax on these items. Could we adjust this sales tax or not?
<hr height="1" noshade id="quote"></blockquote id="quote">

According to Sales Tax Act, 1990, to claim input adjustment all the three following conditions are to be satisfied;

i You are making a taxable supply (s.8(1)). For making taxable supplies you must be retailer, supplier, manufacturer, importer of the goods supplied (see definition of taxable supplies & s.2(41))

ii. You must be a registered person S.8(3)

iii. You are selling that supplies and charging output tax (adjustment of input tax against such output tax should not be more than 90% of input tax) s.8B

[email protected] · 07-20-2011, 01:59 AM

Safty Items are adjustable because these items use for that type of employees who are directly involved in production or support the production teams however these item as itself not directly involved in production.
Em also claiming input tax on such item from many long times.

Regards

Umar

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by olympia
 We r going to buy some Safety items (Like jackets, shoes, gloves & Helmet..... etc) for our employees. Parties charged sales tax on these items. Could we adjust this sales tax or not?
<hr height="1" noshade id="quote"></blockquote id="quote">

olympia · 07-20-2011, 04:15 PM

thnks student of law & umar

shahzad ans. · 07-23-2011, 08:56 PM

can we claim/ adjust sales tax or fed in mobile phones as input tax

[email protected] · 07-24-2011, 03:24 AM

Salamx.

Yup. Input Tax on mobile fones @19.5 % is purely adjustable.

Regards

Umar

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by shahzad ans.
 can we claim/ adjust sales tax or fed in mobile phones as input tax
<hr height="1" noshade id="quote"></blockquote id="quote">

student_of_law · 07-25-2011, 03:18 PM

Please give a few examples of taxable supplies in respect of which input tax paid on mobile phones is deductible. Also discuss the status of supplier, I mean, trader, manufacturer or exporter. Reference to provisions of law, case law and SRO is requested.

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by [email protected]
 Salamx.

Yup. Input Tax on mobile fones @19.5 % is purely adjustable.

Regards

Umar

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by shahzad ans.
 can we claim/ adjust sales tax or fed in mobile phones as input tax
<hr height="1" noshade id="quote"></blockquote id="quote">
<hr height="1" noshade id="quote"></blockquote id="quote">