ایف بی آر کی پریس ریلیز

SRO 408(I)/2008 EXPLAINED

SRO 408(I)/2008 dated 29.04.2008 amends the Chapter X of Sales Tax Special Procedures Rules, 2007, which prescribes the procedure for payment of sales tax by steel melters and re-rollers. This chapter requires that sales tax from steel melters and re-rollers shall be collected on the basis of electricity consumption at Rs. 4.75/ KWH.

However, Pakistan Steel Mills and Peoples Steel Mills have been excluded from purview of payment on the basis of electricity consumption and have to pay sales tax in normal VAT mode. Similar exclusion was requested by M/s. Heavy Mechanical Complex (HMC) who also intend to supply ingots and billets besides other products manufactured by them.

Since, the tax at Rs. 4.75/KWH is meant for units exclusively manufacturing ingots, billets and other long re-rolled products, therefore, SRO 408(I)/2008 amends the rules to provide similar exclusion for HMC as is available to Pakistan Steel Mills and Peoples Steel Mills.