MINISTRY OF FINANCE, REVENUE AND ECONOMIC AFFAIRS
(REVENUE DIVISION)
***
Islamabad, the 6th June, 2005.
NOTIFICATION
(CUSTOMS/SALES TAX)
S.R.O. 571(I)/2005. - In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 3 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the following amendments shall be made in its Notification S.R.O. 678(I)/2004, dated the 7th August, 2004, namely:-
In the aforesaid Notification, -
(1) in clause (3), after the word “equipment”, occurring for the second time, the words “provided such spares are” shall be inserted;
(2) in clause (4), after the brackets, word and figures “(IV of 1969)” the words, comma and figure “and the whole of sales tax leviable under the Sales Tax Act, 1990” shall be inserted;
(3) after clause (4), amended as aforesaid, the following new clause shall be added, namely:-
“(5). Two vehicles (Pajero/Toyota Land Cruiser etc), imported by Exploration and Production (E&P) Companies shall be exempt from whole of customs- duty while the 3rd and 4th vehicle shall be exempt from duty as is in excess of 10% and 25% respectively. Similarly one vehicle imported by Service Company shall be exempt from the whole of customs duty and their 2nd vehicle shall be exempt from duty as is in excess of 10% ad valorem; subject to the following conditions, namely:-
(a) Life of the vehicle shall be five years unless sooner it is damaged to the extent that it cannot be used; and
(b) for claiming replacement of any vehicle the vehicle required to be replaced shall be surrendered to the customs authority free of cost.”;
(iv) in condition (vii), under the caption “CONDITIONS WITH REFERENCE TO CLAUSES (1) AND (2), after the word “spares” the commas and words “, excluding those for current use,” shall be inserted;
(v) in condition (ii), under the caption CONDITIONS WITH REFERENCE TO CLAUSE (4), after the word “total” the word “anticipated” shall be inserted;
(vi) the condition (iii), under the caption CONDITIONS WITH REFERENCE TO CLAUSE (4), and the entry relating thereto shall be omitted;
(vii) in condition (iv), under the caption CONDITIONS WITH REFERENCE TO CLAUSE (4), for the words “a Customs Collectorate” the words “Karachi Custom House or Port Muhammad Bin Qasim or a port” shall be substituted;
(viii) for condition (vii), under the caption CONDITIONS WITH REFERENCE TO CLAUSE (4), the following shall be substituted, namely:-
“(vii) The manufacturer-cum-importer shall communicate to the concerned Collector of Customs in writing about the consumption of imported goods within one month of consumption. In case of non-consumption within a period of one year, extendable for another year by the concerned Collector, the importer shall pay the customs-duty and other taxes involved. The importer may however re-export the unconsumed portion during the validity period;”; and
(ix) for the condition (ix), under the caption CONDITIONS WITH REFERENCE TO CLAUSE (4), the following shall be substituted, namely:-
“(ix) The manufacturer-cum-importer of goods shall furnish a delivery note duly supported with a corresponding purchase order from any petroleum sector companies as prescribed in clauses (1) and (2) of this notification.
[C.No.1/21/Mach./2005].
(MUHAMMAD RAMZAN)
ADDITIONAL SECRETARY