GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE, ECONOMIC AFFAIRS,

STATISTICS AND REVENUE

(REVENUE DIVISION)

***

Islamabad, the 6th June, 2005.

 

NOTIFICATION

(SALES TAX)

 

S.R.O.  531(I)/2005. — In exercise of the powers conferred by clause (c) of section 4 of the Sales Tax Act, 1990, the Federal Government is pleased to notify that the raw materials, components, sub-components and parts, as are purchased locally from authorized vendors by a recognized manufacturer of tractors, falling under the PCT heading No. 8701.9020, for use in the manufacturing of such tractors, shall be charged to sales tax at the rate of zero per cent subject to the following conditions, namely:—

 

(a)        the manufacturer shall sell tractors against a proper zero-rate sales tax invoice without charging any sales tax; at a price agreed with the Federal Government; and

 

 

(b)        the vendors shall be entitled to input tax adjustment, or as the case may be, refund in respect of zero-rated supply of the components, sub-components and parts supplied to recognized manufacturers of tractors.

 

2.         The electricity and gas consumed in the plant where tractors are manufactured shall also be zero-rated for the purposes of sales tax levy.

 

[C. No. 1/33-STB/2005]

 

 

 

 (Shahid Ahmad)

Additional Secretary