The Oil Marketing Companies (OMCs) would not be required to issue sales tax invoices for the petroleum products so shared between OMCs. According to the amendments made to the Sales Tax Rules, 2006 through a notification by the FBR, the Board has issued procedure for sharing of petroleum products by Oil Marketing Companies.
"No sales tax invoice shall be issued for the product so shared between OMCs, provided that the OMCs shall not be barred from adhering to an internal invoicing system for the purpose of stock sharing," rules said.
The oil marketing companies (OMCs) shall be entitled to share their products on loan-basis without payment of sales tax as stored at joint installation of the oil marketing companies (Jimco) at Mehmood Kot, District Gujrat, Punjab.
The sales tax invoice shall, however, be issued by an OMC when it makes further supply of such product obtained on loan-basis to another customer.
Each OMC, benefiting from stock sharing facility under this rule, shall maintain, or cause to be maintained, a separate register for recording movements of stocks under sharing arrangements between OMCs, which shall contain such information about credit and debit of the shared or returned stocks as is necessary to identify the movement of such stocks between the concerned OMCs.
The Terminal Operator of the facility shall certify the bona fides of all the credit and debit entries made in the stock sharing register by 10 of each month following the month to which the entries relate.
The stock sharing register, duly certified by the Terminal Operator as aforesaid, shall be produced to the RTO or LTU concerned as and when so required.
No adjustment, refund or remission of sales tax shall be allowed under any circumstances on account of variation or difference of the sales price of the exchanged or loaned stocks, the FBR added.
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