S.R.O. 727(I)/2011, dated 1st August, 2011

SROS: S.R.O. 727(I)/2011, dated 1st August, 2011 SALES TAX EXEMPTION Notification No. S.R.O. 727(I)/2011, dated 1st August, 2011:- In exercise of the powers conferred by clause(a) of sub-section(2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt sales tax on the import of plant and machinery not manufactured locally and having no compatible local substitutes subject to the following conditions, namely:-- (i) the registered manufacturers or industrial importers shall submit to the customs authorities post-dated cheques equal to the amount of sales tax payable at import stage which shall be returned back on the filing of first sales tax return after import of the machinery; (ii) the commercial importers shall submit to the customs authorities good-for-payment cheque or bank guarantee or pay order or pay in cash equal to the amount of sales tax payable at import stage,-which shall be returned back, or as the case may be, refunded after providing evidence of next supply to the registered…