The Federal Board of Revenue (FBR) has issued procedure for payment of sales tax by steel melters and re-rolling mills in cases where the sales tax has not been mentioned on the electricity bills. The board has amended Sales Tax Special Procedure Rules, 2007 through an SRO. 952(I)/2007 issued on Wednesday.
According to the amendment, in case the due amount of sales tax is not mentioned in the electricity bill issued to any steel melter or re-roller or composite unit of melting and re-rolling, the unit shall deposit the due amount of tax for the relevant tax period at the rate of Rs 4.75 per unit of electricity consumed, excluding the amount of sales tax already paid on the electricity bill related to the said tax period through his monthly sales tax return.
It is important to mention that steel melter, steel re-roller, and composite unit of steel melting and re-rolling will have to pay sales tax at the rate of Rs 4.75 per unit of electricity consumed for the production of steel billets, ingots, and mild steel (MS) products.
Through another amendment, the board has also revised procedure pertaining to the sales tax invoices issued by steel melters to re-rollers. The persons supplying imported MS products to downstream industry ie the industry using steel products as raw materials for value-addition purposes shall issue invoices showing sales tax of Rs 5,460 per metric tonne.
For supplies of imported MS products made to buyers other than downstream industry, sales tax amount of Rs 617 per metric tonne shall be shown in the invoices.
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