S.R.O. 698(I)/96, Islamabad, the 22nd August, 1996

SROS: S.R.O. 698(I)/96, Islamabad, the 22nd August, 1996 APPORTIONMENT OF INPUT TAX RULES, 1996 S.R.O. 698(I)/96, Islamabad, the 22nd August, 1996:- In exercise of the powers conferred by section 50 of the Sales Tax Act, 1990, read with sub-section(2) of section 8 thereof, the Central Board of Revenue is pleased to make the following rules, namely.- 1. Short title, application and commencement.- (1) These rules may be called Apportionment of Input Tax Rules, 1996. (2) These shall apply to the registered persons who make taxable and exempt supplies simultaneously. 2. Definition.- For the purpose of these Rules,- (a) Act means the Sales Tax Act, 1990; and (b) residual input tax means the amount of tax paid on raw materials, components and capital goods being used for taxable as well as exempt supplies but does not include the input tax paid on raw materials used wholly for making taxable or exempt supplies. 3. Determination of input tax.- (1) Input tax paid on raw materials relating wholly to the taxable supplies shall be admissible under the law. (2) Input tax paid on raw materials relating wholly to exempt…