Giving concession to commercial importers, the Central Board of Revenue (CBR) has allowed payment of sales tax by commercial importers on the basis of 10 percent value-addition for the consignments imported between during July 1 and 8, 2004.
The CBR on Wednesday issued instructions to all collectors of sales tax that the benefit of SRO 592(I)/2004 of July 8, 2004 could also be availed by commercial importers who imported their consignments between July 1 and 8, 2004.
Official sources also confirmed to Business Recorder that the consignments imported between July 1 and 8, 2004 and yet not cleared would be entitled to concession under SRO.592(I)/2004. Sales tax on these uncleared consignments would be calculated on the basis of 10 percent value-addition as per special procedure.
However, registered persons would not be entitled to claim refund of sales tax deposited on the basis of higher value-addition. Similarly, the consignments already cleared by the importers would not be entitled to the said concession.
Under SRO.592(I)/2004, the CBR has revised special procedure for payment of sales tax by commercial importers on the basis of value addition of 10 percent instead 14 percent as notified in budget.
However, a number of presentations were received in the Board seeking benefit of "special procedure for sales tax payment on value addition" pertaining to bills of entry filed prior to issuance SRO.592(I)/2004.
To facilitate the commercial importers, the CBR has issued a directive to regional collectors of sales tax that payment of sales tax is allowed under Chapter-II of SRO.484(I)/2004 pertaining to consignments cleared during July 1-8, 2004.
The CBR has informed collectors that the clarification would not entitle any registered persons to seek refund in case the amount already deposited was on the basis of higher value-addition.
Under the previous scheme, the commercial importers who pay sales tax on minimum value-addition of 14 percent were not subject to routine audit. However, the CBR amended the notification to reduce value addition from 14 to 10 percent. Under the amendment, commercial importers showing 10 percent value-addition shall not be liable to audit.
Now, the CBR has given further concession to the importers to claim the benefit of Chapter-II of SRO.484 on already imported consignments as well.