An SRO 344(I)/2020 has been issued by the FBR for the purpose of making an amendment in the SRO 1190(I)/2019 dated October 02, 2019.
Input adjustment of 95% had been allowed against output tax by the FBR.
Through SRO 1190(I)/2019, making an amendment in Section 8B of the Sales Tax Act 1990, a fresh list of Sectors that were allowed for input adjustment was issued by the FBR.
Input adjustment and refunds were allowed to the following sectors:
- Fertilizers manufacturers.
- Distributors.
- Pakistan Steel, Bin Qasim, Karachi.
- Oil marketing companies and petroleum refineries.
- Telecommunication services.
- Persons registered in electrical energy sector.
- Persons making zero-rated supplies, including exports, provided that the value of such supplies exceeds 50 percent of the value of all taxable supplies in a tax period.
- Registered persons other than manufacturers, making supplies of items covered under the Third Schedule to the Sales tax Act, 1990, on which sales tax has been paid by the manufacturer or importer on retail price, provided that value of such supplies exceeds 80 percent of the value of all taxable supplies in a tax period
- Gas distribution companies.
- Commercial importers where value of import subject to 3 percent value addition as prescribed in Twelfth Schedule to the Act exceeds 50 percent of value of all taxable purchases, including imports, in a tax period.