MINISTRY OF FINANCE, ECONOMIC AFFAIRS,
STATISTICS AND REVENUE
(REVENUE DIVISION)
(SALES TAX)
S.R.O. 342(I)/2002. In exercise of the powers conferred by serial
No. 6 of the Fifth Schedule to the Sales Tax Act, 1990, the Federal Government
is pleased to specify that zero-rating of sales tax shall be available only to
supplies of locally manufactured plant and machinery to petroleum and gas sector
Exploration and Production Companies, including OGDC, their contractors and
sub-contractors, subject to the following conditions, namely:
(i)
zero-rating shall be allowed only in respect of such plant and machinery
as is specifically recommended by the relevant Regulatory Authority as defined
in Annexure-VI to the Petroleum Policy, 1994 in view of their project
requirements;
(ii)
such companies shall at the time of purchase of plant and machinery,
furnish to the Collector of Sales Tax an indemnity bond in the form at Annex-I
and produce installation certificate within two years of the purchase of such
plant and machinery in the form at Annex-II;
(iii)
these companies shall be entitled to shift such plant and machinery from
one project to another project site as authorized by the Regulatory Authority;
and
(iv) sales tax shall be payable in case such plant and machinery is sold to any unregistered person before the expiry of seven years of the purchase.”
ANNEX-I
[See
para (ii)]
INDEMNITY
BOND
THIS
DEED OF INDEMNITY is made on the ______ date of __________BETWEEN Messrs.
_________________________________having sales tax registration No.__________
thereinafter called “the purchaser” which means and includes their
successors, administrators, executors and assignees) of the one part, AND the
President of Pakistan through the Collector of Sales Tax___________(hereinafter
called the “Collector of the Sales Tax”, of the other part.
WHEREAS the Federal Government, by its decision contained in Notification
No. S.R.O. 342(I)/2002, dated the 15th June, 2002 and subject to the
conditions specified in the said Notification, has been pleased to direct that
such machinery shall be charged to sales tax at the rate of zero-percent, in
accordance with the said Notification.
NOW,
THEREFORE, in consideration of the supply of the machinery without payment of
sales tax, the purchasers bind themselves to pay on demand to the Government of
Pakistan the sum of Rs.________________ being the sales tax leviable on the
machinery at standard rate, along with additional tax under section 34 of the
Sales Tax Act, 1990, if the purchaser fails—
(i)
to produce an installation certificate from Assistant Collector of Sales
Tax of respective jurisdiction within two year from the date of the purchase of
the machinery, to the effect that the machinery has been installed; and
(ii)
to produce such other evidence as the Collector of Sales Tax may require
to satisfy himself that the plant or machinery has been installed in accordance
with the conditions of the said Notification.
The purchasers further agree and bind themselves that the amount covered
by this Bond shall be recovered as arrears of sales tax under section 48 of the
Sales Tax Act, 1990.
This Bond shall be cancelled and returned when the aforesaid certificate
has been produced and the Collector of Sales Tax is satisfied that the purchaser
have fulfilled all the conditions of this Bond in the said Notification.
________________________
Managing
Director
(Name and permanent address)
Collector of Sales Tax or his
authorized officer
(On
behalf of President)
Witness_________________________________________________________________
(Signature, name, designation and
full address)
Witness_________________________________________________________________
(Signature, name, designation and
full address)
Note.—The
bond shall be written on appropriate non-judicial stamp paper and shall be
witnessed by a Government servant in BS-16 or above, an Oath Commissioner, a
Notary Public or an officer of a Scheduled Bank.
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ANNEX-II
[See
para (ii)]
INSTALLATION
CERTIFICATE
File
No.________________
Dated:______________
Certificate
No.______________
(Progressive
S.No. starting from 1st January every year)
I ________________________________(name of Assistant Collector of Sales Tax), am satisfied that the machinery purchased by Messrs. _____________________________ having sales tax registration No. _______________________under the provision of Notification No. S.R.O. 342(I)/2002, dated the 15th June, 2002 vide Sales Tax invoice No.____________ dated___________ issued by M/s._______________________ having sales tax registration No._____________________ has been installed at the following location: _____________________________________________________________________________.
Assistant Collector of Sales Tax.
_________________________________________________________________________________
[C.No.1/4-STB/2002]
(FALAK SHER)
Additional Secretary