ISLAMABAD (May 01 2003) : The Central Board of Revenue (CBR) has disqualified sales tax defaulters from duty-free import of raw material/ inputs under Duty and Tax Remission for Export (DTRE) Rules for utilising finished goods to be exported, says an order issued here on Wednesday.
CBR Member Export has given his concurrence to the sales tax authorities to go ahead with the said order to deny DTRE facility to defaulters of sales tax.
Now, any person who defaults in payment of accepted/adjudicated liability of sales tax would be denied DTRE approval/registration.
The CBR has conveyed the decision to all collectors of customs, sales tax and central excise through a sales tax ruling 9/2003.
The Collectorates of Sales Tax and Central Excise would shortly provide a list of such defaulters, along with the amount of tax due, to the concerned Collectorates of Customs.
The custom authorities would deny DTRE approval/registration to all exporters mentioned in the list compiled by sales tax officials.
The issue came to the limelight when CBR noted that in certain cases the Customs Collectorates sanctioned DTRE approval/registration to even those persons who were defaulters of sales tax.
In order to safeguard the revenue interest, it has been decided with the concurrence of Member (Exports) that DTRE approval would be denied by the Customs Collectorates to all such persons who have defaulted in payment of accepted/adjudicated liability of sales tax.
The text of order issued here on Wednesday:
It has been brought to the notice of the Board that in certain cases, the Customs Collectorates sanction DTRE approvals/registration to even those persons who are defaulters of sales tax dues.
In order to safeguard the revenue interest, it has been decided with the concurrence of Member (Exports) that DTRE approval shall be denied by the Customs Collectorates to all such persons who have defaulted in payment of accepted/adjudicated liability of sales tax.
In this respect, the Collectorates of Sales Tax and Central Excise shall provide a list of such defaulters-along with the amount of tax due-to the concerned Collectorates of Customs for information and further necessary action.
