Sales Tax SRO 283(1) 2011 dated 01-04-2011

[wasim akram]

With reference to SRO 283 i want to know about-
1- Will withholding agent keep record ( know how about his business) of unregistered buyer to proove that i have make sales to unregistered person ( At reduced rate of GST) doing business in the given sectors.
2- When registered person make sales to un registered person and pay reduced rate of GST. Assume Registered persion has paid input tax. Now RP has paid twice at the time of buying i.e input tax and at the time of selling i.e 6% or 4%. My question is will RP selling goods to URP and paying 6% or 4% be eligible to get refund of Input tax and so on.


SRO 283 is a very very burning topic now a days. VAlueable comments from partners of this forum and detail discussion is hoped.

[Sayub]

No,the SRO specifically restricts (in miscellaneous section) refund of tax @ 4% or 6% whichever is applicable.

<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 />With reference to SRO 283 i want to know about-
1- Will withholding agent keep record ( know how about his business) of unregistered buyer to proove that i have make sales to unregistered person ( At reduced rate of GST) doing business in the given sectors.
2- When registered person make sales to un registered person and pay reduced rate of GST. Assume Registered persion has paid input tax. Now RP has paid twice at the time of buying i.e input tax and at the time of selling i.e 6% or 4%. My question is will RP selling goods to URP and paying 6% or 4% be eligible to get refund of Input tax and so on.


SRO 283 is a very very burning topic now a days. VAlueable comments from partners of this forum and detail discussion is hoped.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

[wasim akram]

I don't mean refund of payment of 4% or 6%. Suppose A RP purchased 3 items to manufacture an item. out of three, he paid GST on 1 say @ 17% Rs.100. He made supplies to URP of Textile industry and paid GST @ 6%. Undoubtedly He can't claim or adjust GST paid on Supplies @ 6%. What will happen with GST paid as input i.e. Rs.100 which is receiveable / adjustable / refundable in the books of accounts. If it is gone / finish with 6% then manufacturere has to add Rs.100 in cost and supposed to be taxable @6% also. Is it an admissible expense or what. ???????????

[Information Consultant]

As per clarification of SRO 283 point no 2 " No refund shall be made available ____________ if any " shows that if 6 % or 4 % tax charge by a party ( output tax) is less than input amnt then the diff amnt will be claim , in case of reverse scenerio where output is greater then input no refund will be allowed and no payment will be due , Still this reply needs comments of honourable member of forum

[Anfal Shabbir]

Dear Members

I am submitting herewith the practical example of point 2 of clarification of SRO 283

PARTICULARS VALUE TAX
sales to RP 1000 0
sales to URP 1000 40


PURCHASE 588 100

NOW WE WILL COMPUTE ADMISSIBLE INPUT
100/2000 X 1000

ADMISSIBLE INPUT IS 50/-

NOW WE ADJUST RS.50/- AS INPUT TAX AND CLAIM RS.10 AS REFUND, THE INADMISSIBLE INPUT TAX RS.50 WILL BE ADDED IN THE COST OF SALES TO URP

I HOPE THAT THE ABOVE EXAMPLE WILL CLARIFY THE POINT

BEST REGARDS

ANFAL SHABBIR

[azeem10]

For sales tax guidance u can visit http//www.pakcustoms.org/sales_tax_guide/index.htm