AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,941 Increased By 63.6 (0.92%)
BR30 22,802 Increased By 233 (1.03%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

ISLAMABAD: The documented steel industry and edible oil sector are reviewing list of 778 items on which input tax adjustment has been disallowed to determine any item that needs to be excluded from the Sales Tax General Order (STGO) 12 of 2022.

Both the sectors welcomed the Federal Board of Revenue’s decision of issuing a list of 778 items on which manufacturers of oil and ghee and steel melters/re-rolling mills cannot claim input tax adjustment in their monthly sales tax return.

The list of these items had been specified in the STGO 12 of 2022.

Responding to the said STGO, the documented steel sector informed that it has been repeatedly requested to the FBR to disallow input tax adjustment on items which are not used in the business activities of the steel sector.

The FBR has rightly issued the list of items on which the adjustment has been disallowed.

The input tax adjustments for manufacturers of steel melters and re-rollers shall not be allowed with specific HS codes as provided in STGO. The items on which input tax is not allowed for steel sector are mentioned in Annexure-II of the STGO, they added.

The FBR has decided that the input tax adjustment shall not be allowed to the manufacturers of oil and ghee and steel melters and re-rollers on the goods which are not related to their business activity.

The list of such goods attached as Annexure-I for manufacturers of oil and ghee and as Annexure-11 for steel melters and re-rollers on the basis of PCT heading on which input tax credit shall not be admissible under the law.

Although, all these PCT headings have been identified after due diligence, yet any hardship caused may be brought to the notice of the Commissioner concerned.

On Saturday, Tariq Ullah Sufi, chairman Pakistan Vanaspati Manufacturers Association (PVMA) communicated to its members to scrutinise the items annexed with STGO 12 to find out any item, which is consumed in manufacturing of edible oil/finished goods and its input is disallowed vide STGO referred above w.r.t Sec 8B of Sales Tax Act 1990. In case, any anomaly is found, same can be mentioned here for presentation to the FBR.

From April 1, 2022, the manufacturers of oil and ghee would not be entitled to claim input tax adjustment on 348 items. However, the steel melters and re-rollers would not be able to claim input tax adjustment on 430 items.

Similarly, Section 8(1)(f) and (i) of the Act provide that the tax credit shall not be admissible on the goods or services not related to the taxable supplies made by the taxpayer. This essentially being a self-assessment based system warrants high standards of responsibility and integrity on part of the UST filers.

Copyright Business Recorder, 2022

Comments

Comments are closed.