Central Board of Revenue is pleased to allow the refund of sales tax as input tax credit to the extent specified in

GOVERNMENT OF PAKISTAN (REVENUE DIVISION) CENTRAL BOARD OF REVENUE ******** Islamabad, the 4th December, 2006. NOTIFICATION (SALES TAX) S.R.O. 1211(I)/2006.¾In exercise of the powers conferred by the second proviso to sub-section (1) of section 10 of the Sales Tax Act, 1990, the Central Board of Revenue is pleased to allow the refund of sales tax as input tax credit to the extent specified in column (4) of Table I below, paid on the import or local purchase of the raw materials, specified in column (2) of that Table and used in the production or manufacture and export of goods specified in column (3) thereof, subject to the following conditions, namely:- (i) The refund of sales tax on inputs other than those specified in column (2) of Table I below, if due, shall be allowed, in the same manner as provided in Chapter V of the Sales Tax Rules, 2006, on the basis of excess input tax over and above output tax as mentioned in the monthly return to be filed under section 26 of the Act: Provided that the manufacturer-cum-exporter claiming refund under this notification shall not be entitled to claim adjustment or refund of input tax paid on items specified in column (2) of Table I below, in monthly sales tax return, if used in the production or manufacture of electric fans exported; (ii) the exporter shall file refund claim, within two hundred and ten days of exportation or of the publication of this notification whichever is later, to the concerned Collector of Sales Tax for the payment of refund under this notification on monthly basis duly accompanied by the following documents, namely:- (a) Input tax invoices or, as the case may be, goods declaration for imports in respect of which refund is being claimed; (b) Bank Credit Advice; (c) goods declaration for export (quadruplicate copy) indicating Mate Receipt number with date or airway bill or railway receipt or postal receipt besides the examination report endorsed on the reverse side thereof by the customs authorities; (d) copy of House and Master bill of lading and airway bill or, as the case may be, railway receipt in token of verification of the goods taken out of Pakistan; and (e) a monthly inventory-cum-production statement in the format as set out in the Annexure to this notification. This statement shall be verified on six-monthly basis through desk audit; (iii) the applicable export policy conditions and procedures shall be adhered to as usual; and (iv) the refund claim under this notification shall be processed through manual scrutiny of purchase invoices and other documents and in the same manner, as far as applicable, as prescribed under Chapter V of the Sales Tax Rules, 2006. The payment of admissible refund shall be made within the time prescribed under the said Rules. TABLE I S. No. | Raw materials | Goods manufactured and exported | Extent of Sales Tax refund (1) | (2) | (3) | (4) 1 | Aluminum & Aluminum products, Electrical Steel Sheet, Copper Rod, and Plastic and Plastic products. | Ceiling Fan | 6.46% of FOB Value 2 | Aluminum & Aluminum products, Electrical Steel Sheet, Copper Rod, and Plastic and Plastic products. | Pedestal Fan | 5.12% of FOB Value 3 | Aluminum & Aluminum products, Electrical Steel Sheet, Copper Rod, and Plastic and Plastic products. | Exhaust Fan (Plastic body) | 4.74% of FOB Value 4 | Aluminum & Aluminum products, Electrical Steel Sheet, Copper Rod, and Plastic and Plastic products. | Bracket Fan | 4.11% of FOB Value 2. The refund of sales tax authorized under this notification shall be admissible in respect of goods exported on or after the 1st November, 2006, only by the manufacturers-cum-exporters as specified in column (2) of Table II below, having sales tax registration numbers as specified in column (3) of the said Table: Provided that the sanctioning officer shall ensure that the amount of refund already paid or input tax adjusted against purchases made in the period prior to the 1st November, 2006, is deducted from the refund payable under this notification to ensure that the refund is not paid twice against the same inputs. Table II S.No. | Manufacturer-cum-exporter | Sales Tax registration number (1) | (2) | (3) 1. | M/s. Wahid Industries (Pvt) Ltd, (Pak Fan) | 0910854401619 2. | M/s. General Fan Company (Pvt) Ltd. | 0910854401873 3. | M/s. Rafiq Engineering Industries (Pvt) Ltd. | 0910854401791 4. | M/s. Yunas Metal Works (Pvt) Ltd. | 0910841413564 5. | M/s. Metro Hi Tech (Pvt) Ltd. | 0910841413491 6. | M/s. Adnan Industries. | 0902841411828 7. | M/s. Amin Industrial Corporation. | 0910841415964 8. | M/s. Beeta Industries. | 0903841453073 9. | M/s. Super Asia Muhammad Din Sons (Pvt) Ltd. | 0904841401664 10. | M/s. S.G.S. Electrical Company. | 0910841413646 Annex [See clause (ii) (e) of first paragraph] MONTHLY INVENTORY-cum-PRODUCTION STATEMENT Name of registered person Registration No. Month Input materials (as specified in column (2) of Table I) S. No. | Description of raw material | Unit of Measurement | Opening balance | Procurement during the month | Total available Quantity | Value | Quantity | Value | Quantity | Value (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) The raw material consumed in production | Closing stock of raw material Fans to be exported | Fans to be supplied locally | Quantity | Value Quantity | Value | Quantity | Value (10) | (11) | (12) | (13) | (14) | (15) Production (Separate statements for fans meant for export and local supplies) Unit of measurement ___________ S. No. | Description | Opening stock of finished goods | Quantity produced during the month | Quantity supplied | Closing stock (1) | (2) | (3) | (4) | (5) | (6) | (7) Signature Name Designation NIC No. Date [C. No. 3(10)ST-L&P/06] (Abdul Hameed Memon) Secretary (ST-L&P)