EXPLANATORY NOTES FOR SRO 862(I)/2008
Federal Board of Revenue has issued Notification (Sales Tax) / S.R.O. 862 (1)/2008 dated 20th August, 2008 which amends the Sales Tax Special Procedures Rules, 2007, with following objectives:
(i) To remove references to income tax in the Chapter relating to retailers. These references were redundant as income tax rates had already been omitted through budgetary measures.
(ii) To provide that commercial importers shall not be entitled to refund of sales tax paid at import stage in case of excess of input tax over output tax.
(iii) To prescribe new amounts of sales tax to be mentioned on invoices issued by registered persons in steel sector. The new amounts are based on rate of 16% whereas old rates were based on 15%.
(iv) To provide option to steel sector units to operate in VAT mode and prescribe conditions for the same.