The Central Board of Revenue (CBR) has announced that sales tax at the rate of zero percent will be applicable on the ''''ginning waste''''. The CBR has amended SRO.500(I)/2004 through an SRO.910(I)/2004 issued on Thursday.
Official sources told Business Recorder that the sales tax auditors were framing wrong cases against the industry on the plea that ''''ginning waste'''' is not exempted from sales tax. This waste is of no use for anyone, and subsequently, destroyed whereas the auditors were framing cases against the registered persons for depositing sales tax on the ''''ginning waste'''', they added.
Now, the CBR will apply zero-rate of sales tax on the ''''ginning waste'''' to end this practice of demanding tax by the auditors.
The following is the text of the notification issued on Thursday:
In exercise of the powers conferred by clause (c) of section 4 of the Sales Tax Act, 1990, the federal government is pleased to direct that the following further amendment shall be made in its notification SRO.500(I)/2004 of June 12, 2004, namely:
In the aforesaid notification, in the Table, after S. No 8 in column (1) and the entries relating thereto, in columns (2), (3) and (4), the following new serial number and the entries relating thereto shall be added, namely:-"9. Ginning Waste Respective Heading nil".
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