S.R.O. 335(I)/2004, Islamabad, the 24th May, 2004

SROS: S.R.O. 335(I)/2004, Islamabad, the 24th May, 2004 RE-PAYMENT OR REFUND OF SALES TAX OF OIL SEEDS PAID ON IMPORT STAGE TO SOLVENT EXTRACTORS Notification No. S.R.O. 335(I)/2004, dated 24th May, 2004.-- WHEREAS during the budget for the financial year 2003-04, imported oil-seeds were subjected to sales tax @ 20%, the oil extracted therefrom was subjected to sales tax @ 15% on local supply, while the meal extracted from oil-seed remained exempt from payment of sales tax under the Sixth Schedule to the Sales Tax Act, 1990. Hence, in terms of section 7 and clause (a) of sub-section (1) of section 8 of the said Act, read with the Apportionment of Input Tax Rules, 1996, the refund or adjustment of input tax was admissible to the extent of taxable supplies (oil) only; AND WHEREAS the solvent extractors thus raised the issue that owing to higher inputs and lesser outputs, they could not adjust the entire amount of sales tax paid by them at import stage. It was, therefore, decided that the Government would share the burden of sales tax on meal to the extent of half of the increased impact of sales tax on meal, which is worked out to be equivalent to 10.5% of the average amount of sales tax paid at import stage. This relief would be in addition to any sales tax refund or carry forward…