GOVERNMENT OF PAKISTAN
REVENUE DIVISION
CENTRAL BOARD OF REVENUE
(SALES TAX WING)
*****

C.No.3(12)ST-L&P/2002                                                                     Islamabad, the 27th February, 2003.


SALES TAX GENERAL ORDER NO.01/2003

Subject:- FORMAT OF BANK GUARANTEE TO BE FURNISHED BY COMMERCIAL EXPORTERS IN TERMS OF SRO 203(I)/2003 DATED 27.02.2003.


The Central Board of Revenue is pleased to prescribe the following format of bank guarantee to be furnished by commercial exporters in terms of SRO.203 (I)/2003 dated 27.02.2003, if they want to claim Sales Tax Refunds before the issuance of Bank Credit Advice (BCA) confirming remittance of sales proceeds of exported goods.

Format:- 

BANK GUARANTEE

Whereas the Collector of Sales Tax, has consented to release / sanction refund claim pertaining to the period ________, filed by ____(Commercial Exporter)__ on ___________, in respect of shipping bill (s) # ______________ dated ________, pending production of Bank Credit Advice (BCA) from the country to which goods have been exported or from the letter of credit opening bank and verification of payment of sales tax by suppliers, on furnishing a Bank Guarantee equivalent to the amount of input sales tax, Rs ( in figures) [Rupees (in words) ] involved against the purchases used in the manufacture of goods exported vide the said shipping bill (s).

Whereas we the _(Bank) ____ do hereby undertake to make payment of aforementioned amount of input sales tax, alongwith additional tax @ 2% per month and penalty @ 3% on demand to the Collector of Sales Tax, or any Officer authorized by him in this regard without objection or reservation or any reference to the above named commercial exporter, within seven days of the receipt of the demand notice.

In case we the ___ _(Bank) __ __ fail to make the payment within seven days of the said demand, the ___ _(Bank) ____ shall be liable to pay a compensation @ 20% per annum for the period from the expiry of the seventh day to the date when the actual payment is made to the Collector of Sales Tax, . The Guarantee shall remain valid till payment of whole of the amount demanded alongwith compensation as prescribed above or receipt of release orders issued by the Collector of Sales Tax, , whichever is earlier.

We the ___ _(Bank) _ ___ bind ourselves to pay, unconditionally, the amount of sales tax etc. mentioned above, in case no release order is received from Collector of Sales Tax, ________ , before the expiry of this Bank Guarantee on ________________.

For and on behalf of the __________( Bank)__ __.

Witnesses:
Name_________________________ Name________________________ 
NIC No._______________________ NIC No.______________________
Address _______________________ Address ______________________
Signature______________________ Signature _____________________ 

(Dr. KAMAL AZHAR MINHAS)
Secretary (Sales Tax Procedures)