The Southern Regional Committee (SRC) of Institute of Chartered Accountants of Pakistan (ICAP) organised a seminar on "Zero rating and taxation at reduced rates under SRO 283(1)/2011" here at ICAP auditorium, which was addressed by Adnan Mufti FCA, Partner - Shekha & Mufti, Chartered Accountants.
Speaking on the occasion, Adnan Mufti made a detailed presentation of new sales tax regime envisaging conditional zero rating and taxation at reduced rates. In his presentation he emphasised upon spirit of new zero rated regime and legal issues emanating out there from for manufacturers, commercial importers and taxpayers holding multiple registration status. He highlighted various aspects of the SRO, which he said were not only anomalous, vague but also contradictory to the provisions of Sales Tax Act 1990. Mufti was of the opinion that SRO was drafted keeping in view textile manufacturers in mind and thus does not cater business practicalities faced by other business segments of export oriented industries. He spoke at length over the 'consumption' criteria put in place in SRO 283 and termed it as a biggest obstacle in arm's length transactions, which may also lead to severe litigation between business community and tax department. Besides he also criticised over and incorrect emphasis on Active taxpayers List.
During the Q&A session participants tabled several business and industry issues and also highlighted few international issues in the SRO. The seminar was largely attended by members of ICAP & ICMAP, legal fraternity and representatives of business trade & industry.-PR
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