Specific locally manufactured plant and machinery for the purpose of zero-rated supply to a manufact

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS & REVENUE REVENUE DIVISION ******** Islamabad, the 18tthJune, 2001. NOTIFICATION (SALES TAX) S.R.O. 397(I)/2001. - In exercise of the powers conferred by Serial No. 6 of the Fifth Schedule to the Sales Tax Act, 1990, the Federal Government is pleased to direct that the following locally manufactured plant and machinery for the purpose of zero-rated supply to a manufacturer in the Export Processing Zone, namely:- (i) Plant and machinery, operated by power of any description as is used for the manufacture or production of goods by that manufacturer; (ii) apparatus appliances and equipments specifically meant or adapted for use in conjunction with the machinery specified in clause (a) above; (iii) mechanical and electrical control and transmission gear, meant or adapted for use in conjunction with machinery specified in clause (i) above; and (iv) parts of machinery as specified in clauses (i), (ii) and (iii) above identifiable for use in, or with such machinery. 2. The facility of zero-rating shall be admissible on the plant and machinery specified in this notification subject to the following limitations, conditions and procedures, namely:- (i) the supplier of the machinery is registered under the Sales Tax Act, 1990; (ii) proper bill of export is filed showing sales tax registration number; (iii) the purchaser of the machinery is an established manufacturer located in the Export Processing Zone and holds a certificate from the Export Processing Zone Authority to that effect; (iv) the purchaser submits an indemnity bond in proper form to the satisfaction of the concerned Collector of Sales Tax that the machinery shall not be sold, transferred or otherwise moved out of the Export Processing Zone before a period of five years from the date of entry into the Zone without prior permission from the said Collector; (v) if the machinery is brought to tariff area of Pakistan, sales tax shall be charged on the value assessed on the bill of entry; and (vi) breach of any of the conditions specified in this notification shall attract legal action under the relevant provisions of the Sales Tax Act, 1990, besides recovery of the amount of sales tax along with additional tax and penalties involved. [C. No. 3(9)STL&P/2001] ( RIAZ AHMAD MALIK ) Additional Secretary