Input Tax Adjustment (SRO#283)

[olympia]

If our Output is Rs 100 in which Rs 30 are for zero rated sector(like Textile, Leather etc.) & Rs 70 are for taxable supplies.
My question is should we adjust our 100% input tax against this output or should we adjust input with the proportionate of output tax?

[wasim akram]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by olympia</i>
<br />If our Output is Rs 100 in which Rs 30 are for zero rated sector(like Textile, Leather etc.) & Rs 70 are for taxable supplies.
My question is should we adjust our 100% input tax against this output or should we adjust input with the proportionate of output tax?

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In my opinion
It has been clarified in paragraph (ii) of CNo.1(140)C/RGST/2011/46619 - R dated 11-04-2011. Which read as " ....and other sector specific used inputs not cover under SRO 283 shall be admissible only to the extent propotionate to the zero rated supplies....."

wasim

[Information Consultant]

agreed with wasim as per draft my understanding is also same important thing is that to carefully understand the implementation date as per my understaning strats from april 01 refer clause vii subclause c .pls comment

[Sayub]

If I am not getting your question wrong, you are asking about Apportionment of Input Tax?.



<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by olympia</i>
<br />If our Output is Rs 100 in which Rs 30 are for zero rated sector(like Textile, Leather etc.) & Rs 70 are for taxable supplies.
My question is should we adjust our 100% input tax against this output or should we adjust input with the proportionate of output tax?

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

[olympia]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by wasim akram</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by olympia</i>
<br />If our Output is Rs 100 in which Rs 30 are for zero rated sector(like Textile, Leather etc.) & Rs 70 are for taxable supplies.
My question is should we adjust our 100% input tax against this output or should we adjust input with the proportionate of output tax?

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
In my opinion
It has been clarified in paragraph (ii) of CNo.1(140)C/RGST/2011/46619 - R dated 11-04-2011. Which read as " ....and other sector specific used inputs not cover under SRO 283 shall be admissible only to the extent propotionate to the zero rated supplies....."

wasim

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

five export sctors are required to adjust their input tax in porportionate with their output tax.
"Other sectors who made supplies to these sectors may claim 100% input against their output" am i right?

[Information Consultant]

Agar aik carton manufacturing companay apni supply Gul Ahmed or English buiscuit manufacturer ko daita hay to Gul ahmed zero rate sector may ata hay or EBM ko taxable supply hogi quiestin yay hay kay carton manufacturer jo raw material purchase karay ga (correguated paper ) wo bhi zero rate may ata hay to uska input to zero hoga laikin output EBM say jo charge karay ga wo payable hoga or EBM uski input adjustment lay ga .Yay scenerio sahi hay ya is may koi issue hay .Pls comments

[wasim akram]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Information Consultant</i>
<br />Agar aik carton manufacturing companay apni supply Gul Ahmed or English buiscuit manufacturer ko daita hay to Gul ahmed zero rate sector may ata hay or EBM ko taxable supply hogi quiestin yay hay kay carton manufacturer jo raw material purchase karay ga (correguated paper ) wo bhi zero rate may ata hay to uska input to zero hoga laikin output EBM say jo charge karay ga wo payable hoga or EBM uski input adjustment lay ga .Yay scenerio sahi hay ya is may koi issue hay .Pls comments
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Rightly understood and said need no comment..........

[Sayub]

In this case, Supply of Corrugated Paper is made to industry other than 5 defined in the SRO, therefore it should be taxable.

So, Input will not be "Zero" but taxable @ relevant rate of say 17%.

Abovesaid input will be claimed as refund in the case of Gul Ahmed and adjusted in the case of EBM.




<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Information Consultant</i>
<br />Agar aik carton manufacturing companay apni supply Gul Ahmed or English buiscuit manufacturer ko daita hay to Gul ahmed zero rate sector may ata hay or EBM ko taxable supply hogi quiestin yay hay kay carton manufacturer jo raw material purchase karay ga (correguated paper ) wo bhi zero rate may ata hay to uska input to zero hoga laikin output EBM say jo charge karay ga wo payable hoga or EBM uski input adjustment lay ga .Yay scenerio sahi hay ya is may koi issue hay .Pls comments
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[wasim akram]

Dear Admin.

Please merge all discussion regarding sro 283 under one topic.

[bashi]

Kindly answer

I am registered as a wholesaler Let Say I Purchase Fabric from Lawrencepur Should i have to pay any kind of tax in regard with SRO 283?

Now I will stich this fabric and supply Trousers, Shirts & Jackets & supply this to Army & Navy now should i charge 4% to navy/army as they are un-registered?

[wasim akram]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by bashi</i>
<br />Kindly answer

I am registered as a wholesaler Let Say I Purchase Fabric from Lawrencepur Should i have to pay any kind of tax in regard with SRO 283?

Now I will stich this fabric and supply Trousers, Shirts & Jackets & supply this to Army & Navy now should i charge 4% to navy/army as they are un-registered?
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1- GST on Supply of Lawrancepur will be zero.
2- If Army and Navy has no registration and do not show valid exemption certificate or reference from prevailing relevent law then would be charged @ 4%.

[bashi]

Thanks Wasim Bahi

Also this 4% will not adjusted with my inputs ? as per SRO 283

And what about 3.4% which army & navy will withheld is that adjustable?

[olympia]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by bashi</i>
<br />Thanks Wasim Bahi

Also this 4% will not adjusted with my inputs ? as per SRO 283

And what about 3.4% which army & navy will withheld is that adjustable?
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g as per SRO 283 4% sales tax is not adjustable but withholding tax is adjustable in this case (WHT @3.5% + 15% flood surcharge tax instead of 3.4%)

[olympia]

another amendment in SRO # 283

http//www.fbr.gov.pk/dotnet/customs/admin/sroFiles/Sales%20Tax/2011/2011sro314.pdf

[olympia]

SRO # 323(I)2011 another amendment in SRO # 283


http//www.fbr.gov.pk/dotnet/customs/admin/sroFiles/Sales%20Tax/2011/2011sro323.pdf