EUS EXECUTIVE UPDATING SERVICE Updating Acts, Ordinances, Statutory Rules & Orders (SROs.) etc.

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1 EUS EXECUTIVE UPDATING SERVICE Updating Acts, Ordinances, Statutory Rules & Orders (SROs.) etc. III-H 11/21 NAZIMABAD P. O. BOX 2140 KARACHI Ph: (92-21) (NTN: ) For EUS Clients Use Only EUS UPDATE IRON & STEEL SALES TAX SPECIAL PROCEDURE FOR PAYMENT OF SALES TAX CONTENTS (22 Pages/ ) 1. SPECIAL PROCEDURE FOR PAYMENT OF SALES TAX BY STEEL MELTER, RE-ROLLERS AND SHIP BREAKERS 2. USEFUL REFERENCES Customs Regulatory Duty Export & Repayment of ST Export Processing Zones Proceedings under Section 11A Sales 22%/19.5% Value of Supply WHT Exemption ** * **

2 2 1. SPECIAL PROCEDURE FOR PAYMENT OF SALES TAX BY STEEL MELTER, RE-ROLLERS AND SHIP BREAKERS CHAPTER XI OF SALES TAX SPECIAL PROCEDURES RULES, 2007 Extracted from SRO. 678 (I)/2007 dated [Gaz. P-II(I)/p ], effective from [Amendment in Sales Tax Special Procedures Rules, 2007/SRO. 480 (I)/2007 dated ] Applicable from July 01, 2007 For all steel melting, steel re-rolling, ship breaking units and to Pakistan Steel Mills and Peoples Steel Mills, wherever applicable C O N T E N T S 58F 58G 58H 58Ha 58I 58J 58K 58L 58M 58MA 58MB Application Registration Payment of tax Steel melters and re-rollers operating on self-generation basis Invoices and returns Records Values of steel products (Table) Responsibility of All Pakistan Steel Melters and All Pakistan Steel Re-rollers Associations Monitoring Committee Option to pay sales tax on ad valorem basis Treatment for composite units ** * **

3 3 CHAPTER XI SPECIAL PROCEDURE FOR PAYMENT OF SALES TAX BY STEEL-MELTERS, RE-ROLLERS AND SHIP BREAKERS 58F. Application. The provisions of this Chapter shall apply to all steel melting, steel re-rolling, ship breaking units and to Pakistan Steel Mills 1 [, Heavy Mechanical Complex] and Peoples Steel Mills, wherever applicable. 58G. Registration. Every steel-melter, steel re-roller and ship breaker, if not already registered, shall obtain registration in the manner prescribed in Chapter I of the Sales Tax Rules, 2 [2006]. 58H. Payment of tax. (1) Every steel-melter, steel re-roller and composite unit of steel melting and re-rolling (having a single electricity meter), shall pay sales tax at the rate of 3 [six rupees] per unit of electricity consumed for the production of steel billets, ingots and mild steel (MS) products which will be considered as their final discharge of sales tax liability. (2) Payment of tax by steel melters, re-rollers and composite units of melting and re-rolling shall be made through electricity bills alongwith electricity charges 4 [:] 5 [Provided that in case the due amount of sales tax mentioned in subrule (1) is not mentioned in the electricity bill issued to any steel melter or re-roller or composite unit of melting and re-rolling, the said melter or reroller or composite unit shall deposit the due amount of tax for the relevant tax period at the rate of four rupees and seventy five paisas per unit of 1. HEAVY MECHANICAL COMPLEX In rule 58F, the comma and words, Heavy Mechanical Complex inserted after the word Mills, occurring for the first time vide SRO. 408 (I)/2008 dated [Gaz./p. 1141]. 2. REGISTRATION Substituted for the figure 2007 w.e.f vide Budgetary SRO. 525 (I)/2008 dated PAYMENT OF TAX Substituted for the word four rupees and seventy five paisas w.e.f vide Budgetary SRO. 525 (I)/2008 dated PROVISO A colon substituted for the full-stop vide SRO. 952 (I)/ ELECTRICITY BILL Proviso, in rule 58H(2), added vide SRO. 952 (I)/ [Gaz. P-II(I)/p. 3766].

4 4 electricity consumed excluding the amount of sales tax already paid on the electricity bill related to the tax period through his monthly sales tax return.] (3) In case of default in payment of sales tax by the due date mentioned on the electricity bill, besides other legal action by the concerned Sales Tax Collectorate, the concerned electric supply company shall disconnect the electricity connection of the unit. (4) Ship breakers shall pay sales tax at the rate of 6 [four thousand 7 [eight hundred and forty-eight] ] rupees per metric tonne of re-rollable scrap supplied by them. The quantity of re-rollable scrap shall constitute 70.5% of the total LDT of the ship imported for breaking. The shipbreakers shall clear their sales tax liabilities in respect of ships weighing up to ten thousand LDT within four months, while in case of ships weighing more than ten thousand LDT, within eight months from the date of filing of Goods Declaration. The sales tax liability shall be discharged by the shipbreaker either on completion of clearance of goods obtained from breaking of vessel or within the maximum time period allowed as aforesaid, whichever is earlier: (5) Pakistan Steel Mills, Karachi 8 [, Heavy Mechanical Complex, Taxila] and Peoples Steel Mills, Karachi shall pay sales tax on their products under sub-section (1) of section 3 of the Sales Tax Act, 1990 read with section 7 and section 8B of the Act. (6) Steel melters and re-rollers, except Pakistan Steel Mills 9 [, Heavy Mechanical Complex] and Peoples Steel Mills, paying sales tax on fixed rates through electricity bills shall not be entitled to any input tax adjustment. 6. PAYMENT OF TAX Substituted for the word thirty five hundred w.e.f vide Budgetary SRO. 525 (I)/2008 dated PAYMENT OF TAX Substituted for the word five hundred and forty-five w.e.f vide SRO. 862 (I)/2008 dated [Gaz. P-II(I)/p. 2890]. 8. HEAVY MECHANICAL COMPLEX, TAXILA In rule 58H(5), the commas and words, Heavy Mechanical Complex, Taxila inserted after the word Karachi, occurring for the first time, vide SRO. 408 (I)/2008 dated HEAVY MECHANICAL COMPLEX In rule 58H(6), the comma and words, Heavy Mechanical Complex inserted after the word Mills, occurring for the first time vide SRO. 408 (I)/2008 dated

5 5 10 [However, the steel melters and re-rollers paying sales tax on fixed rates through electricity bills shall be entitled to claim adjustment or refund of the sales tax paid on local procurement of plant, machinery and equipment.] 11 [58Ha. Steel melters and re-rollers operating on self-generation basis. (1) Steel melters producing electricity with the help of gas 10. LOCAL PROCUREMENT OF MACHINERY ETC. In rule 58H(6), the above-mentioned sentence added after the full-stop at the end vide SRO. 01 (I)/2012 dated [C.No. 3(5)ST-L&P/2007 (Pt) signed by the Additional Secretary, Mr. Shahid Hussain Asad]. 11. OPERATING ON SELF-GENERATION BASIS Rule 58Ha inserted vide SRO (I)/2007 dated [Gaz. P-II(I)/p. 3892]. Earlier such provision was streamlined vide Sales Tax General Order No. 5 of 2007 dated [C. No. 3/13-STB/98 duly signed by the Secretary (ST& FE-Budget), Mr. Wajid Ali], to read as follows: PAYMENT OF SALES TAX BY STEEL MELTERS AND RE-ROLLING MILLS OPERATING ON SELF-GENERATION BASIS To streamline the collection of sales tax from the steel melters and rerollers operating on self-generation basis, the following mechanism is hereby prescribed in consultation with All Pakistan Steel Melters Association and The Pakistan Steel Re-Rolling Mills Association and after the survey of units operating on self-generation basis: (i) Steel melters producing electricity with the help of gas generators shall calculate their sales tax liability on the basis of the gas bill for the relevant tax period as per the following formula: Sales tax payable through sales tax return = HM 3 x 1562 (sales tax paid on gas bill). (ii) Re-rolling mills operating on self-generated electricity shall discharge their tax liability in the following manner: Monthly sales tax payable through sales tax return = mill size (No. of inches) x 30,850 The registered person shall deduct sales tax paid on diesel consumed from the payable amount as above provided the taxpayer holds valid sales tax invoice. Example: Mill size = 6 inches Sales tax payable per month = 6 x sales tax paid on diesel consumed

6 6 generators shall discharge their sales tax liability on the basis of the gas bill for the relevant month as per the following formula: Sales tax payable = HM 3 (or hundred cubic meter) x Rs. 12 [1392] (sales tax paid on gas bill). (2) Re-rolling mills operating on self-generated electricity shall discharge their tax liability on monthly basis, in the following manner: Sales tax payable = mill size (in inches) x Rs. 13 [38,964]: Provided that the registered person shall deduct sales tax paid on diesel consumed from the payable amount as above provided the taxpayer holds valid sales tax invoice: Provided further that if a re-rolling mill operating on self-generation basis remains closed for 7 or more days consecutively during a tax period, the registered person shall inform through telephone or fax to the respective Collector of Sales Tax and the representative of the Association prior to the closure of the mill. A survey report shall accordingly be prepaid by the monitoring committee comprising of one or more sales tax officer (s) nominated by the concerned Collector of Sales Tax and representatives of Pakistan Steel Re-Rolling Mills Association and the tax liability of the said mill shall be determined on the basis of above formula for the number of days the mill remains in operation during the month.] 02. In case a rolling mill operating on self-generation basis remains closed for 7 or more days consecutively during a tax period, the registered person shall inform on telephone/fax to the respective Collector of Sales Tax and the representative of the Association prior to the closure of the mill. A survey report shall accordingly be prepared by the monitoring committee comprising of the sales tax officer(s) nominated by the concerned Collector of Sales Tax and representatives of Pakistan Steel Re-Rolling Mills Association and the tax liability of the said mill shall be determined on the basis of above formula for the number of days the mill remains in operation during the month. 12. SELF-GENERATION Substituted for the figure 1972 vide SRO. 198 (I)/2010 dated Earlier the figure 1972 was substituted for the figure 1562 w.e.f vide Budgetary SRO. 525 (I)/2008 dated SELF-GENERATION Substituted for the figure 30,850 w.e.f vide Budgetary SRO. 525 (I)/2008 dated

7 7 14 [58I. Invoices and returns. (1) Sales tax invoices shall be issued by steel melters to re-rollers showing sales tax amount of five thousand five hundred and twenty-six rupees per metric ton. (2) For supplies to registered persons, sales tax invoices shall be issued by steel re-rollers using ingots or billets of steel melters showing sales tax amount of 15 [six thousand three hundred and six] rupees per metric ton. (3) Re-rollers using billets of Pakistan Steel Mills or Heavy Mechanical Complex or Peoples Steel Mills or imported billets shall issue sales tax invoices to downstream industry showing sales tax of seven thousand three hundred and eight rupees per metric ton. (4) Re-rollers using ship-plates and re-rollable scrap as raw material shall issue sales tax invoices to registered persons showing sales tax of five thousand six hundred and twenty-eight rupees per metric ton. (5) For buyers other than registered persons, steel re-rollers shall issue invoices showing sales tax of seven hundred eighty rupees per metric ton. (6) Persons supplying imported MS products to registered persons shall issue invoices showing sales tax of seven thousand three hundred and eight rupees per metric ton. For supplies of imported MS products made to buyers other than registered persons, sales tax amount of seven hundred and eighty rupees per metric ton shall be shown in the invoices. (7) Every steel-melter and steel re-roller paying sales tax under these rules shall submit a copy of electricity bill showing payment of tax due duly authenticated by the concerned Association along with a copy of sales tax return to the Collector having jurisdiction. 14. INVOICES AND RETURNS Rule 58I substituted w.e.f vide SRO. 862 (I)/2008 dated , and before substitution aforesaid rule provided to read as under EUS Enclosure here in the end. 15. INVOICES AND RETURNS Substituted for the words five thousand nine hundred and sixty vide SRO. 332 (I)/2012 dated Earlier aforesaid amendment was made thru Para (2) of SRO (I)/2008 dated [Gaz. P-II/p. 4038], which provided that in rule 58 I, in subrule (3), for the words five thousand nine hundred sixty the words six thousand three hundred and six shall be substituted. Such words are available in sub-rule (2) instead of sub-rule (3).

8 8 (8) The due date for filing of return shall be the 28th day of the month following the tax period to which the electricity bill relates.] 58J. Records. Every steel-melter, re-roller and ship breaker shall be required to maintain records specified under section 22 of the Act. 58K. Values of steel products. The items specified in column (2) of the Table below shall be assessed for the purpose of sales tax on the values fixed in column (4) thereof: TABLE S. Description HS Code Value No. (1) (2) (3) (4) 1. Billets supplied by Pakistan Respective Rs. 17 [40,800]/- Steel Mills 16 [, Heavy heading PMT Mechanical Complex] and Peoples Steel Mills 18 [2. Imported billets Respective US$ 440 PMT] 16. VALUES OF STEEL PRODUCTS The comma and words inserted after the word Mills, occurring for the first time vide SRO. 408 (I)/2008 dated VALUES OF STEEL PRODUCTS Substituted for the figure 32,300 w.e.f vide Budgetary SRO. 525 (I)/2008 dated VALUES OF STEEL PRODUCTS In rule 58K, in Table, against S. No. 2, for the entries relating to columns (2), (3) & (4) the above-mentioned substituted vide SRO (I)/2009 dated [Gaz./p. 4607]. Earlier, following S. Nos. 2 & 3 were omitted vide SRO. 371 (I)/2009 dated [Gaz./p. 1283]: 2. Imported billets -do- US$ * [600] PMT 3. Imported re-rollable scrap US$ * [480] PMT * The figure 600 for 500 against S. No. 2, and figure 480 for 400 against S. No. 3 was earlier substituted w.e.f vide Budgetary SRO. 525 (I)/2008 dated Through aforesaid omission, the sales tax on the import of billet and re-rollable scrap would have reduced by some Rs. 2,000-3,000 per tonne, as the FBR has abolished fixed dollar values of above-referred imported goods for the collection of 16% sales tax, in order to provide cheapest raw material to the country's steel

9 heading 19 [3. ] 4. Re-rollable scrap supplied by ship breakers 21 [5] 9 -do- Rs. 20 [30,300]/- PMT 58L. Responsibility of All Pakistan Steel Melters and All Pakistan Steel Re-rollers Associations. The All Pakistan Steel Melters Association and All Pakistan Steel Re-rollers Association shall be responsible to ensure that the steel melters and re-rollers pay sales tax in the manner specified in these rules, and in case of non-compliance, the Association shall actively assist the concerned Collectorate for enforcement and recovery of sales tax due along with default surcharge calculated thereon, besides any other proceedings that may be initiated against the defaulting steel-melter or steel re-roller under the Act. All Pakistan Steel Melters Association and All Pakistan Steel Re-rolling Mills Association shall be authorized to authenticate the paid electricity bills of steel melters and steel re-rollers paying sales tax under these rules. The Associations shall be responsible to maintain unit-wise record of sales tax paid by all steel-melters and re-rollers on monthly basis. Every case of default in payment of sales tax shall be reported by the President of the concerned Association to the concerned Collector of Sales Tax or any other officer nominated by the Board within seven days after the due date for payment of electricity bill. industry. The prices of billet and re-rollable scrap have declined sharply in the world market since August, Now 16% sales tax would be imposed on the declared values, which would be mentioned in the letter of credit by the importer. 19. VALUES OF STEEL PRODUCTS Following S. Nos. 2 & 3 were omitted vide SRO. 371 (I)/2009 dated [Gaz./p. 1283]: 2. Imported billets -do- US$ 600 PMT 3. Imported re-rollable scrap US$ 480 PMT 20. VALUES OF STEEL PRODUCTS Substituted for the figure 24,000 w.e.f vide Budgetary SRO. 525 (I)/2008 dated VALUES OF STEEL PRODUCTS Following S. No. 5 omitted w.e.f vide SRO. 862 (I)/2008 dated : 5. Ingots and billets supplied by other steel melters. Respect heading Rs. [34,535]/- PMT In column (4) the figure 34,535 was earlier substituted for the figure 27,335 w.e.f vide Budgetary SRO. 525 (I)/2008 dated

10 10 58M. Monitoring Committee. A monitoring committee comprising of officers of Sales Tax, representatives of concerned Associations and any other person as may be nominated by the Board shall be constituted through a General Order to monitor the collection of sales tax under these rules on monthly basis. 22 [58MA. Option to pay sales tax on ad valorem basis. (1) The steel melters and re-rollers may opt to pay sales tax on ad valorem basis at the rate specified in sub-section (1) of section 3 of the Act after deduction of input tax paid on their inputs subject to limits and conditions as specified under the Act or notifications issued thereunder. Such melters and re-rollers shall discharge their liability in the manner as indicated below, namely: (a) (b) such registered persons opting to pay sales tax under this rule shall inform the Collector having jurisdiction and the option so exercised shall remain in force till the end of the financial year; the Collector shall coordinate with the electricity distribution companies to ensure that sales tax amount at the rate specified in sub-rule (1) of rule 58H is not included in the electricity bills of those registered persons who opt to pay sales tax under this rule; 23 [(c)] 24 [(d)] 22. OPTION TO PAY ST ON AD VAL. BASIS New rule 58MA inserted w.e.f vide SRO. 862 (I)/2008 dated ELECTRICITY CONSUMPTION Following clause (c) [alongwith clause (d) & sub-rule (2)] omitted vide SRO. 346 (I)/2010 dated [C.No. 3(5)ST-L&P/2007 signed by the Additional Secretary, Mr. Mehmood Alam- Gaz./p. 1128]: (c) the production subject to sales tax liability shall be determined at one metric ton of billets or ingots per 800 KWH of electricity consumed for steel melters and at one metric ton of mild steel products per 130 KWH of electricity consumed for steel rerollers; 24. ST ON PRODUCTION Following clause (d) [alongwith clause (c) & subrule (2)] omitted vide SRO. 346 (I)/2010 dated : (d) such registered persons shall pay sales tax on the production as determined as above at minimum value of forty-seven thousand

11 11 (e) steel melters and re-rollers operating under this rule shall be entitled to input tax credit subject to limitations provided in sections 7, 8, 8B and 73 of the Act and other applicable provisions, provided the input goods are meant for taxable supplies. 25 [(2)]] 26 [58MB. Treatment for composite units. Steel melters and rerollers who also supply products other than billets, ingots and re-rolled MS products shall follow standard sales tax procedure. The fixed taxes and values prescribed under this Chapter shall not be applicable to supplies of such registered persons.] ** * ** rupees per metric ton of billets or ingots or at minimum value of fifty-four thousand rupees per metric ton of re-rolled mild steel products, as the case may be; and 25. AUDIT Following sub-rule (2) [alongwith clauses (c) & (d) of sub-rule (1)] omitted vide SRO. 346 (I)/ : (2) The records maintained by registered persons opting to pay sales tax under this rule shall be subjected to audit every year. 26. TREATMENT FOR COMPOSITE UNITS New rule 58MB inserted w.e.f vide SRO. 862 (I)/2008 dated

12 12 2. USEFUL REFERENCES Customs Regulatory Duty Export & Repayment of ST Export Processing Zones Proceedings under Section 11A Sales 22%/19.5% Value of Supply WHT Exemption Customs Regulatory Duty Updated version of CRD on export of specified Ferrous & Non- Ferrous Waste & Scrap, and on Bars, Rods, Ingots, Slabs & Billets made thereof [SRO. 482 (I)/2007 dated duly rescinded w.e.f vide budgetary SRO. 495 (I)/2009 dated ] and subsequent notifications read under EUS Update Customs CRD & ACD. Export & Repayment of Sales Tax Repayment-cum-Drawback Specified ingots or billets (Rs. 4,100/PMT), and specified mild steel re-rolled products (Rs. 4,717/5,460/PMT) repayment admissibility notified subject to specified conditions w.e.f vide SRO. 308 (I)/2008 dated Read as EUS Enclosure here. Export Processing Zones M/s Al-Tuwairqi Steel Mills, Karachi, 100% of the production export to tariff areas in Pakistan read under EUS Update Customs Rules. Proceedings under Section 11A [Read with following CBR letter C. No. 3/13-STB/98 dated signed by the Secretary (ST& FE-Budget) Mr. Wajid Ali]: PROCEEDINGS UNDER SECTION 11A OF THE SALES TAX ACT, 1990 AGAINST DEFAULTING UNITS OF STEEL SECTOR-INSTRUCTIONS REGARDING I am directed to refer to the subject cited above and to direct that payment of sales tax for the tax period July, 2007 from steel melters and re-rolling units under S.R.O 678 (I)/2007 dated on the basis of electricity consumption should be mentioned in consultation with the respective Associations and units which fail to produce

13 13 payment proof by 28 th August, 2007 may be proceeded against under section 11A of the Sales Tax Act, 1990 by stopping removal of any goods from their business premises and through attachment of their business bank accounts. Collectors are also directed to make necessary arrangements for effective implementation of above directive. A detailed report in this regard should reach the Board before close of office on Sales 22%/19.5% 70 descriptions subjected to charge, levy and pay sales 22%, and 9 descriptions of iron & 19.5% of value of goods imported/supplied, notified under section 3(2)(b) vide SRO. 644 (I)/2007 dated Updated version of said notification read under EUS Update Sales Tax Rates. Value of Supply Relevant references available under EUS Update Value of Supply. WHT Exemption The FBR has rejected issuance of WHT exemption certificate on the supply of iron & steel products used as raw materials in the finished products such as auto parts by local manufactures, and issued instructions to the DGs of LTUs & RTOs to accurately interpret following clause (46A) of Part-IV of the Second Schedule of the Income Tax Ordinance 2001 and section 153 of the Ordinance, as said clause is restricted to the manufacturer of "iron and steel products" and not to all products in which iron and steel has been used as raw material such as auto parts. The refusal of exemption certificate by the department on this basis has been confirmed by the Sindh High Court in CP No 1666/2008 decided on Under section 153(6), the tax deducted shall be a final tax on the income of a resident person arising from the transaction (as published during third week of April, 2009): (46A) The provisions of sub-section (6) of section 153 shall not apply to any payment received by a manufacturer of iron and steel products relating to sale of goods manufactured by him. For updated situations refer EUS Update Income Tax Exemptions.

14 14 ** * **

15 15 EUS Enclosure-I To EUS Update Sales Tax (Iron & Steel) STEEL PRODUCTS EXPORT (Sales Tax Repayment-cum-Drawback Rates) SRO. 308 (I)/2008 dated In exercise of the powers conferred by section 61 of the Sales Tax Act, 1990, the Federal Board of Revenue is pleased to allow repayment of sales tax paid on steel products under Chapter XI of the Sales Tax Special Procedures Rules, 2007, to the registered persons on the export from Pakistan of steel products as specified in column (2) of the Table below, at the rates mentioned against each in column (3) of the said Table subject to the conditions specified in paragraph [TABLE S. No. Description Repayment-cum-Drawback rate (1) (2) (3) (4) For export made against invoices issued upto the 30th For export made against invoices issued from the 27. RATES UPTO Table substituted for the following by SRO. 317 (I)/2010 dated [C.No.1(37)STT/03-Pt signed by the Second Secretary Tariff (ST&FE), Mr. Fahad Ali Chaudhary/Gaz/p. 927]: S. No. TABLE Description Repaymentcum-drawback rate (1) (2) (3) 1. Ingots or billets other than imported or of Pakistan Steel Mills or of Peoples Steel Mills Rs. 4,100 per metric ton 2. Mild steel re-rolled products manufactured from ingots and billets other than imported or of Pakistan Steel Mills or of Peoples Steel Mills 3. Mild steel re-rolled products manufactured from imported billets or billets of Pakistan Steel Mills or Peoples Steel Mills Rs. 4,717 per metric ton Rs. 5,460 per metric ton

16 16 of June, st July, Ingots or billets other than imported or of Pakistan Steel Mills or Peoples Steel Mills 2 Mild steel re-rolled products manufactured from ingots and billets other than imported or Pakistan Steel Mills or of People Steel Mills 3 Mild steel re-rolled products manufactured from imported billets or billets of Pakistan Steel Mills or People Steel Mills Rs. 4,100 per metric ton Rs. 4,717 per metric ton Rs. 5,460 per metric ton Rs. 5,526 per metric ton Rs. 28 [6306] per metric ton Rs. 7,308 per metric ton] 2. The repayment under this notification shall be admissible subject to the fulfilment of the following conditions, namely: (i) (ii) (iii) (iv) the sales tax liability in respect of exported goods has been discharged to the extent as prescribed under rules 58H and 58Ha of the Sales Tax Special Procedures Rules, 2007; the exporter shall file claim for repayment of sales tax to the concerned Collector of Sales Tax and Federal Excise for the repayment on monthly basis, as and if due, within a period of six months after the end of the tax period in which the goods were exported; commercial exporters shall be entitled to the repayment of sales tax provided they make direct procurements from the registered persons who are subject to sales tax under aforesaid rules 58H and 58Ha. the claimant shall submit duplicate goods declarations (in original) for export along with the claim for repayment. In addition, he shall also furnish goods declarations (in original) for import and original purchase invoices where the claim relates to serial number 3 of the Table above or where the claim has been filed by commercial exporter. One set of photocopies of aforesaid original documents shall also be submitted. The original supportive documents shall be 28. MILD STEEL RE-ROLLED PRODUCTS Substituted for the figure 5960 by SRO. 333 (I)/2012 dated w.e.f

17 17 returned to the claimant after tallying with the photocopies by the officer-in-charge or any officer authorized by the Collector in this behalf, who will record the following endorsement under the full signatures and official stamp of the said officer, namely: Zero-rating has been claimed on this Goods declaration/invoice. (v) (vi) the exporters shall be required to furnish a monthly inventorycum-production statement to the concerned Collector in the format as set out in Annex duly supported by copies of goods declarations and purchase invoices. The statement shall be verified by the Collectorate on quarterly basis through desk audit; and the provisions of Export Policy and procedures shall apply to repayment under this notification. 3. The Collectorates shall process the repayment claim in the same manner as prescribed under Chapter V of the Sales Tax Rules, 2006, as far as applicable, and shall issue sanction order within a period of thirty days of the receipt of claim along with all requisite documents. 4. This notification shall be deemed to have taken effect on the 1st day of July, Annex [See paragraph 2(v)] MONTHLY INVENTORY-CUM-PRODUCTION STATEMENT Name of registered person Registration No. NTN Month S. No. Description Opening stock of finished goods Quantity Quantity Supplied Closing produced/ Obtained during the month Local Export stock

18 18 Certified that the tax of Rs. has been paid under rule 58H/58Ha of the Sales Tax Special Procedures Rules, 2007, in the above said month (Copy of paid bill/challan enclosed). Signature Name Designation NIC No. Date [C.No. 1(37)STT/03] (Abdul Hameed Memon) Secretary (ST-L&P) ** * **

19 19 EUS Enclosure-II To EUS Update Sales Tax (Iron & Steel) INVOICES AND RETURNS RULE 58I BEFORE SUBSTITUTION BY SRO. 862 (I)/2008 DATED : 58I. Invoices and returns. (1) Sales tax invoices shall be issued by steel melters to re-rollers showing sales tax amount of 29 [five thousand one hundred and eighty] rupees per metric tonne. (2) For 30 [registered persons], sales tax invoices shall be issued by steel re-rollers using ingots/billets of steel melters showing sales tax amount of 31 [five thousand nine hundred and sixty] rupees per metric tonne. (3) Re-rollers using billets of Pakistan Steel Mills 32 [, Heavy Mechanical Complex] 33 [or Peoples Steel Mills] or imported billets shall issue sales tax invoices to 34 [registered persons] showing sales tax of 35 [six thousand and nine hundred] rupees per metric tonne. 29. INVOICES AND RETURNS Substituted for the word forty one hundred w.e.f vide Budgetary SRO. 525 (I)/2008 dated INVOICES AND RETURNS Substituted for the words etc. downstream steel industry (the industry using steel products as raw materials for value addition purposes) w.e.f vide Budgetary SRO. 525 (I)/2008 dated INVOICES AND RETURNS Substituted for the word forty seven hundred and seventeen w.e.f vide Budgetary SRO. 525 (I)/2008 dated HEAVY MECHANICAL COMPLEX In rule 58I(3), the comma and words, Heavy Mechanical Complex inserted after the word Mills, occurring for the first time vide SRO. 408 (I)/2008 dated PEOPLES STEEL MILLS The words ins. vide SRO. 952 (I)/ INVOICES AND RETURNS Substituted for the words downstream industry w.e.f vide Budgetary SRO. 525 (I)/2008 dated INVOICES AND RETURNS Substituted for the word fifty four hundred and sixty w.e.f vide Budgetary SRO. 525 (I)/2008 dated

20 20 36 [(3a) Re-rollers using ship-plates and re-rollable scrap as raw material shall issue sales tax invoices to registered persons showing sales tax of five thousand three hundred and twenty-five rupees per metric tonne.] (4) For buyers other than 37 [registered persons], steel re-rollers shall issue invoices showing sales tax of 38 [seven hundred and eighty] rupees per metric tonne. (5) Sales tax invoices in respect of supplies of billets shall be issued by Pakistan Steel Mills 39 [, Heavy Mechanical Complex] and Peoples Steel Mills showing sales tax amount of 40 [six thousand one hundred and twenty] rupees per metric tonne. 41 [(6) Persons supplying imported MS products to 42 [registered persons] shall issue invoices showing sales tax of 43 [six thousand and nine hundred] rupees per metric tonne. For supplies of imported MS products 36. INVOICES AND RETURNS Sub-rule (3a) inserted w.e.f vide Budgetary SRO. 525 (I)/2008 dated INVOICES AND RETURNS Substituted for the words downstream industry w.e.f vide Budgetary SRO. 525 (I)/2008 dated INVOICES AND RETURNS Substituted for the word six hundred seventeen w.e.f vide Budgetary SRO. 525 (I)/2008 dated INVOICES AND RETURNS Inserted after the word Mills, occurring for the first time vide SRO. 408 (I)/2008 dated INVOICES AND RETURNS Substituted for the word forty eight hundred and forty five w.e.f vide Budgetary SRO. 525 (I)/2008 dated INVOICES AND RETURNS Rule 58I(6) substituted for the following vide SRO. 952 (I)/ : (6) Persons supplying imported MS products shall issue invoices showing sales tax of fifty four hundred and sixty rupees per metric tonne. 42. INVOICES AND RETURNS Substituted for the words etc. downstream steel industry (i.e. the industry using steel products as raw materials for value addition purposes) w.e.f vide Budgetary SRO. 525 (I)/2008 dated INVOICES AND RETURNS Substituted for the word fifty four hundred and sixty w.e.f vide Budgetary SRO. 525 (I)/2008 dated

21 21 made to buyers other than 44 [registered persons], sales tax amount of 45 [seven hundred and eighty] rupees per metric tonne shall be shown in the invoices.] (7) Ship breakers shall issue invoices of re-rollable scrap supplied by them showing sales tax of 46 [four thousand five hundred and forty-five] rupees per metric tonne. The remeltable scrap supplied by ship breakers shall be zero-rated. (8) Every steel-melter and steel re-roller paying sales tax under these rules shall submit a copy of electricity bill duly authenticated by the concerned Association along with sales tax return in the format set out at annex-1. (9) The due date for filing of return shall be the 28th day of the month following the tax period to which the electricity bill relates. ** * ** 44. INVOICES AND RETURNS Substituted for the words downstream industry w.e.f vide Budgetary SRO. 525 (I)/2008 dated INVOICES AND RETURNS Substituted for the word six hundred and seventeen w.e.f vide Budgetary SRO. 525 (I)/2008 dated INVOICES AND RETURNS Substituted for the word thirty six hundred w.e.f vide Budgetary SRO. 525 (I)/2008 dated

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