Exemtion of Input Tax paid by Recognized manufacturers of Agricultural Tractors.

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE & REVENUE (REVENUE DIVISION) ******** Islamabad, the 2nd August, 2010. NOTIFICATION (SALES TAX) S.R.O. 706 (I)/2010.- 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 the input tax on agricultural tractors falling under heading No. 8701.9020 of the First Schedule to the Customs Act., 1969, (IV of 1969) subject to the following conditions, namely:- (a) This exemption of input tax paid by a recognized manufacturer of agricultural tractor registered under the Sales Tax Act, 1990 shall be allowed only by way of refund to the said manufacturer; (b) The registered manufacturer of agricultural tractor shall file prescribed monthly sales tax return for the exempt output and shall also claim, on that return the refund of input tax paid by him as is exempted under this notification; (c) Input tax shall not be claimed on goods specified under the Federal Government’s Notification No. S.R.O. 490 (I)/2004, dated the 12th June, 2004; and (d) The manufacturers shall sell the agricultural tractors against proper tax invoice with zero sales tax at a price agreed with the Federal Government: Provided that the expression “at a price agreed with the Federal Government” shall be deemed to have been omitted with effect from the 28th April, 2007. 2. The refund of the input tax shall be allowed within thirty days of the filing of return in the manner prescribed in Chapter V of the Sales Tax Rules, 2005 up to 12th September, 2005, read with section 3B of the Sales Tax Act, 1990, and thereafter in the manner prescribed under Refund Claims of Recognized Agricultural Tractor Manufacturers Rules, 2005, read with section 3B thereof. 3. This notification shall take effect from 6th June, 2005. [C. No.3(3)/ST-L&P/2010] (Mehmood Alam) Additional Secretary