Explanatory Notes of SRO 329(I)/2008
The Notification has been issued to facilitate solvent extracting units whereby they will be able to adjust 100% input tax paid on their purchases. As per section 8B of the Sales Tax Act, 1990, a taxpayer can adjust 90% of input tax paid on his purchases against his output tax. As the value addition in solvent extraction units is not high enough such a provision was resulting into refunds. To save solvent extraction units from cash flow problems, they have been allowed to adjust 100% input tax paid on their purchases.
Second Secretary (ST-Budget)