Government of Pakistan

(Revenue Division)

Central Board of Revenue

[Sales Tax & Federal Excise Wing]

*****

Islamabad, the 26^th May, 2006

NOTIFICATION

(SALES TAX)

S.R.O. 488(I)/2006.— In exercise of the powers conferred by section 50 of the Sales Tax Act, 1990, read with sub-section (2) of section 8, sections 10 and 21, clause (c) of sub-section (1) of section 22, section 26 thereof the Central Board of Revenue is pleased to make the following rules, namely:–

 1.         Short title, application and commencement.–  (1) These Rules may be called the Refund of Sales Tax (On Export Of Specified Goods) Rules, 2006.

(2).      They shall be applicable to registered persons engaged in the export of

            (a)       textile and textile articles;

            (b)       leather and articles thereof;

            (c)        carpets;

            (d)       surgical goods; and

            (e)       sports goods.

            (3)       They shall come into force at once.

2.         Establishment of centralized refund processing cell.– (1) Centralized refund processing cells shall be located at Sales Tax House, Karachi and Sales Tax House, Lahore to process the refund claims under these rules.

            (2)       Refund processing cell located at Karachi shall process the refund claims relating to Collectorate of Sales Tax (Enforcement), Karachi, Collectorate of Sales Tax and Federal Excise, Hyderabad and Quetta while the unit located at Lahore shall process the refund claims relating to Collectorates of Sales Tax and Federal Excise, Lahore, Faisalabad, Gujranwala, Rawalpindi, Peshawar and Multan.

            (3)       Each centralized refund cell shall consist of an Additional Collector and such other officers as may be nominated by the concerned Collectors of Sales Tax.

            (4)       The refund processing cells shall report the progress of processing of refund claims to the Board.

3.         Scrutiny and audit of refund claims.– (1) The refund claims shall be audited by the Chartered Accountant firm designated by the Board.

            (2)       The audit firm shall verify the payment of sales tax claimed by claimant as refund as provided by section 73 and fulfillment of other conditions laid down in Chapter V of the Sales Tax Rules, 2005. The audit be conducted where the claimant is registered.

            (3)       The findings of audit shall be communicated to the officer in charge of centralized refund unit within thirty days of commencement of audit.

(4)       The cost of audit done by the audit firm which shall not exceed two percent of the amount of claim shall be borne by the refund claimants.

            (5)       The refund claims of exporters who fail to produce the record for audit shall be rejected after issuance of show cause notice by the appropriate officers of concerned Collectorates.

(6)       The refund sanctioning officers shall decide the refund claims within one week after audit and verification by the designated Chartered Accountants firm.

[C. No. 3(1)ST-L&P/2004]

(Wajid Ali)

Secretary (ST&FE-Budget)