The Federal Board of Revenue (FBR) has asked the Economic Affairs Division (EAD) to directly approach the concerned Chief Commissioner Inland Revenue to obtain sales tax exemption authorisations on goods imported or supplied under grants-in-aid agreements for entitled organisation or agency.
The FBR has issued Sales Tax General Order (STGO) 130 of 2016 here Friday on the processing of applications of exemption under Sr.No 48 of Table-1 of Sixth Schedule of the Sales Tax Act, 1990. The FBR has said under Serial No 48 of Table-1 of the Sixth Schedule to the Sales Tax Act, 1990, exemption is available to the following:
"Sr. 48 Goods imported or supplied under grants-in-aid for which a specific consent has been obtained from the Board; supplies and imports under agreements signed by the Government of Pakistan before the 30th June, 1996, provided the agreements contained the provision/or exemption of tax at the time of signing of agreement.", the FBR added.
In order to streamline the issues pertaining to grant of exemption to goods imported or supplied under grants-in-aid, procedure for issuance of "Authorisation for Exempt Supply" has been prescribed under Chapter VIII-A of the Sales Tax Rules, 2006 inserted through SRO 494(1)/2015 dated 30th June, 2015 which inter alia stipulates that the entitled organisation or agency desirous of making exempt imports or taking exempt supplies from a registered person shall make application to the officer of Inland Revenue having jurisdiction, accompanied with documents detailed in the Rules, the FBR said.
Therefore, in exercise of powers conferred under section 55 to the Sales Tax Act, 1990, the FBR has directed all Chief Commissioners of Inland Revenue to nominate one dedicated officer in every RTO/LTU, not below the rank of an Assistant Commissioner IR/Deputy Commissioner IR, as a focal person to dispose of such applications received from Economic Affairs Division (EAD) pertaining to entitled organisations/agencies falling under the jurisdiction of respective RTO/ LTU. After satisfying that the intended purchases by the organisation or agency are bona-fide and qualify for exemption under the subject-referred provision of law, the designated focal person may issue an "Authorisation for Exempt Supply". All such applications must be disposed of within 15 days of receipt thereof in the RTO/LTU.
Through the Sales Tax General Order, Economic Affairs Division is also requested that bona-fide applications, complete in all respects, in respect of organisations or agencies, from now onwards may be sent directly to the Chief Commissioner Inland Revenue (RTO/LTU) having jurisdiction supplies" under grants-in-aid, the FBR added.
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