Sales Tax Exemption for Textile Products

SALES TAX EXEMPTION FOR TEXTILE PRODUCTS 46Notification No. S.R.O. 640(I)/89, dated 17th June, 1989.---In exercise of the powers conferred by and sub-section (1) and (2) of section 7 of the Sales Tax Act, 1951 (III of 1951), the Federal Government is pleased to exempt locally produced fabrics specified in column (2) of the Table below falling under heading Nos of the First Schedule to the Customs Act, 1969 (IV of 1969), as it was in force immediately before the 26th June, 1988, specified in column (3) of the Table from so much of the tax payable under the aforesaid Act as is in excess of the amount specified in column (4) of the Table subject to the conditions stated herein below:- the manufacturer takes out appropriate licence for the manufacture or processing of the fabrics; the manufacturer elects in writing within ten days either from the issue of his notification or from the commencement of production for the first time, whichever occurs later, to avail the exemption available under this notification. the option so exercised shall remain in force for a financial year and shall continue to remain in force for the next financial year unless revoked by the manufacturer ten days before the commencement of such financial year; and the manufacturer shall not claim refund or adjustment of sales tax under any of the provisions of the Sales Tax Act, 1951 (III of 1951). TABLE S.No | Fabrics | PCT Heading Numbers | Rate of Sales Tax (1) | (2) | (3) | (4) 1 | Woven fabrics of man-made fibre (continuous) subjected to the process of bleaching, dyeing, printing, shrink-proofing, tentering, heat-setting, crease resistant processing or any other process or any two or more of these processes | 51.04 | Re.0.25 per Sq Metr 2 | Woven fabrics of cotton subjected to the process of bleaching, mercerizing, dyeing, printing water proofing, shrink-proofing, organdie processing or any other process or any two or more of these processes | 55.09 | Re.0.25 per Sq Metr 3 | Woven fabrics of man-made fibre (discontinuous or waste), subjected to the process of bleaching, dyeing, printing, shrink proofing, tentering, heat-setting, crease resistant processing or any other process or any two or more of these processes | 56.07 | Re.0.25 per Sq Metr 46. Reported as PTCL, 1989 St. 859