The Federal Board of Revenue (FBR) on Tuesday announced that 3 percent value addition tax (VAT) would not be applicable on the registered service providers importing goods for their in-house business use or for furtherance of their taxable activity and not intended further supply. The FBR has amended Sales Tax Special Procedure Rules, 2007 through an SRO.367(I)/2013 issued here on Tuesday.
Through this amendment, the said category of registered service providers importing goods for their in-house business use would not be subjected to 3 percent value addition tax. This major relief has been provided to importers having in-house business facilities as per law, sources added.
Following is the text of the notification issued here on Tuesday: SRO.367(I)/2013:- In exercise of the powers conferred by sub-section (1) of section 71 of the Sales Tax Act, 1990, read with clauses (9) and (46) of section 2, section 3 and 4, section (2) of section 6, sub-sections (3) and (4) of section 7, section 7A, clause (b) of sub-section (1) of section 8, clause (a) of sub-section (2) of section 13, sub-sections (2A) and (3) of section 22, proviso to sub-section (1), sub-section (3) and (4) of sections 23 and 60 thereof, the Federal Government is pleased to direct that the following further amendments shall be made in the Sales Tax Special Procedure Rules, 2007, namely: In the aforesaid Rules, in rule 58-B, in sub-rule (1), in the proviso; In clause (i) ,the word "and", at the end, shall be omitted;
In clause (ii), for the full stop at the end, the semicolon and word ",a shall be substituted; and After clause (ii), the following new clause shall be added, namely:- "(iii) registered service providers importing goods for their in-house business use or for furtherance of their taxable activity and not intended further supply".