C.No. 01/POS/IR/2021-Part-IV/5819-R, Islamabad, 15th March, 2022

SROS: C.No. 01/POS/IR/2021-Part-IV/5819-R, Islamabad, 15th March, 2022 Disallowance of 60% Adjustable Input Tax. Government of Pakistan Revenue Division Federal Board of Revenue Inland Revenue — Operation Wing **** C.No. 01/POS/IR/2021-Part-IV/5819-R Islamabad, 15th March, 2022 To, The Chief Commissioner Regional Tax Office, Lahore Subject: Disallowance of 60% Adjustable Input Tax. Kindly refer to your letters No. 184 dated 07-03-2022, CCIR/RTO/POS/12180 dated 09-03-2022 and CCIR/RTO/POS/12181 dated 09-03-2022 on the above cited subject. 2- I am directed to state that the IR Policy Wing has issued SRO. 407(l)/2022 dated 08-03- 2022 wherein a Sales Tax return has been notified with new Rows 6b Sc 6c. The Row 6b caters for inadmissible input tax in terms of section 8B(6) of the Sales Tax Act, 1990. If a taxpayer is included as a non-integrated T-IR in any of the STGOs, the input tax for the month shall be equal to 60% (being inadmissible input tax) of the value under Sales Tax (Row 5 - Input for the month) and find mention in row 6b of the Sales Tax Return. 3. If a taxpayer (T-IR) was to be integrated as a T-IR and its name got included in a STGO and got integrated after that, its 60% input tax previously disallowed (during the period/months its name was included in the STGO), will not be allowed reversal in any…