S.R.O. 1248(I)/2020, Islamabad, the 23rd November, 2020

Sales Tax Special Procedure for Adjustment of Subsidy Against Sales Tax on Locally Manufactured Tractors Rules, 2020 GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS AND REVENUE (REVENUE DIVISION) Islamabad, the 23rd November. 2020. NOTIFICATION (SALES TAX) S.R.O. 1248(I)/2020.- In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, read with sub-section (4) of section 7 thereof, the Federal Government is pleased to make the following rules, namely: - 1. Short title and commencement. - (1) These rules shall be called the Sales Tax Special Procedure for Adjustment of Subsidy Against Sales Tax on Locally Manufactured Tractors Rules, 2020. (2) These rules shall come into force from 28th September, 2020 and shall remain in force till 30th June, 20 21 or till the time the amount of subsidy of rupees one and a half billion is exhausted, whichever is earlier. 2. Adjustment of subsidy against sales tax due. - (1) The subsidy granted, shall be allowed to be adjusted by the manufacturers of the tractors namely M/s Millat Tractors Limited, Al-Ghazi Tractors Limited and Orient Tractors (Pvt.) Limited, hereinafter referred to as the specified manufacturers, in the manner as provided under these rules: Provided that the Ministry of National Food Security and Research shall apportion the amount of subsidy amongst the specified manufacturers so that the same does not be exceed the limit of Rs. 1.5 billion. 3. Processing of claims for adjustment: - (1) A Tractors Subsidy Cell shall be established by the IR-Operations Wing of Federal Board of Revenue for processing subsidy adjustment claims under these rules. (2) The specified manufacturers of tractors shall submit data of supplies in the Annexure-C of the monthly return of the Sales Tax and Federal Excise by 5th day of the month following the end of the tax period. (3) The specified manufacturers shall sell the subsidized tractors only to the farmers and growers after obtaining a valid proof of land holding such as Agriculture Pass Book and copy of record of rights of agricultural land duly verified from Provincial Land Revenue Authorities and shall not charge and collect…