The Central Board of Revenue (CBR) may extend the date for provisions under SRO 922(I)/2005 enabling the five zero-rated sectors to claim input tax adjustment on stocks/inputs acquired beyond June 5, 2005 and subsequently used in the manufacture of goods to be exported up to December 31, 2005.
It is learnt that CBR is likely to issue another amendment in a few days following a meeting between CBR Chairman and textile industry at the Prime Minister Secretariat last week.
The CBR has in principle agreed to facilitate these industries for removing practical difficulties being faced by them. The export sector requested the Board that there was need of amendment in SRO.922(I)/2005 to avoid legal complications.
Five export-oriented industries, including textile products, leather items, carpets, sports goods and surgical instruments were allowed sales tax zero rating on the import of inputs/machinery used by them.
It was brought to the notice of Board that some of the units deliberately imported raw materials more than their actual requirement for claiming input tax adjustment on the basis of stocks.
Through SRO 922(I)/2005, the CBR bound the exporters to utilise stocks and ensure export within a specific time period.
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