ISLAMABAD (May 26, 2010) – The Federal Board of Revenue (FBR) has withdrawn the condition of compulsory sales tax audit of steel melters and re-rollers annually, who opt to pay sales tax ad valorem under Sales Tax Special Procedure Rules 2007. The FBR has amended Sales Tax Special Procedure Rules 2007 through a notification issued here on Tuesday.
According to the notification, the board has rescinded the condition that the record maintained by registered persons opting to pay sales tax under this rule shall be subjected to audit every year. This condition of annual audit of steel melters and re-rollers has been taken away through amended rules.
The FBR has also abolished the condition for steel melters and re-rollers that the production subject to sales tax liability shall be determined at one metric ton of billets or ingots per 800 kWh of electricity consumed by steel melters and at one metric ton of mild steel products per 130 kWh of electricity consumed for steel re-rollers. These registered persons would not be required to pay sales tax on the production as determined as above at minimum value of Rs 47,000 per metric ton of billets or ingots or at minimum value of Rs 54,000 per metric ton of re-rolled mild steel products, as the case may be.