ISLAMABAD (December 25 2002) : Making Sales Tax Refund Rules 2002 more business friendly, the government has decided to simplify the procedure for maintenance of record pertaining to chemicals used in the production of leather goods, a sales tax official told Business Recorder on Tuesday.
Under the proposed amendment, the record of chemicals would not be maintained separately for local consumption of leather products and export, as per new refund rules.
In this regard, sales tax officials and representatives of the Pakistan Tanners Association (PTA) have agreed in principle to modify procedure in a recent meeting of the Export Facilitation Committee (EFC) held in Export Promotion Bureau (EPB), Lahore.
The Pakistan Tanners Association opined that the system being adopted for maintaining inventory under new sales tax refund rules was extremely complex and cumbersome.
The leather industry uses more than 300 chemicals and it is not possible to maintain record of each and every chemical (invoice-wise) indicating quantity, value and sales tax separately on monthly basis for onwards transmission to the sales tax department.
Previously, the chemicals were clubbed together into four categories and the leather industry suggested that old system should be restored.
Record keeping should be quantity-based rather than keeping record of both quantity and value of chemicals, the industry maintained.
The Central Board of Revenue agreed to the proposal floated by the industry and decided to issue necessary amendments to implement the decision.
For maintenance of the inventory, the CBR would provide necessary software to the industry.
The CBR will also hold meetings with the association pertaining to the maintenance of inventory records under new sales tax rules, sources added.