Exemption from Sales Tax on Certain Goods As Are Produced or Manufactured by a Cottage Industry

EXEMPTION FROM SALES TAX ON CERTAIN GOODS AS ARE PRODUCED OR MANUFACTURED BY A COTTAGE INDUSTRY 32Notification No. S.R.O. 564(I)/89, dated 3rd June, 1989.---In exercise of the powers conferred by sub-section (1) and (2) of section 7 of the Sales Tax Act, 1951 (III of 1951), and in supersession of its Notification No. S.R.O. 665(I)/81, dated 25th June, 1981, the Federal Government is pleased to exempt such of goods specified in clause (a) of sub-section (1) of section 3 of said Act, as are produced or manufactured by a cottage industry, except those specified in the table below:- Explanation.--In this notification. (1). "cottage industry" means an enterprise (not being owned by a joint stock company) which fulfils the following conditions, namely:-- it is basically an enterprise in which the owner combines in himself the functions of the investor and the labourer; the capital employed therein does not exceed one hundred thousand rupees (except in the case of manufacturers of auto-parts, where the capital employed does not exceed five hundred thousand rupees) at any time during the year; the number of worker employed therein on a single shift basis does not, including the owner, the members of his family, relations, dependents or others, whether they work whole time or part time and whether for or without any wages, remuneration or compensation in cash or othereise, exceed fifteen at any time during the year; and the owner thereof does not own any other cottage industry or any other enterprise and where he does so, either wholly or in part, the capital employed at any time during the year in all such industries an enterprises, if any, taken together does not exceed one hundred thousand rupees; and (2) "capital employed" means every type of capital whether invested in fixed or current assets, including capital but investment in business premises shall not be considered while computing the amount of capital employed: Provided that, if any property like plant, machinery, furniture or fixture is not owned by the manufacturer, the market value of such property shall be deemed to be apart of the capital employed. TABLE S.No. | Description of goods 1 | Gas apparatus and appliances 2 | Sanitary wares 3 | Foam and foam products 4 | Washing machines 5 | Spring mattresses 6 | Marble tiles 7 | Flush doors 8 | P.V.C Pipes 9 | Plastic bags, including knitted, woven or crochetted bags, and those made of fabrics of synthetic plastic materials but excluding those made of tubular plastic packing films of polyethelene resins and granules. 10 | Beverages falling under item No.02.01 of the First Schedule to the Central Excises and Salt Act, 1944 (I of 1944) 32. Reported as PTCL, 1989 St. 560