Salex tax at import stage

[safdar]

There is a clarification i request.

I am a commercial importer, if i import a product valued at Rs. 100. The custom duty is 25% on it, Income tax 5%, Flood tax 2%, FED 1%, Sales Tax 19%.

Now my product cost becomes ((((100*1.25)*1.05)*1.02)*1.2)=160.65

Now I want to sell my product without value addition, directly to customer.

Question is that now 160.65 with become my cost? I keep my margin of Rs.20

Will I charge customer RS.180.65 +17%sales tax?

Is flood tax imposed? are there any other taxes on import other than these?
Please help.

[alialiali]

INPUT SALES TAX ON RS. 125 @17% RS.21.25
VALUE ADDED SALES TAX @2% RS. 2.50
TOTAL INPUT SALES TAX RS.21.25+2.50 = TOTAL RS.23.75

SALES TAX INVOICE FOR CUSTOMER
RS. 139.70 @17% RS.23.75 TOTAL RS.163.45

OUTPUT SALES TAX RS.23.75
LESS INPUT SALES TAX RS.23.75

SALES TAX PAYABLE NIL

THIS IS THE MINIMUM VALUE ADDITION

[LapTop]

Mery hisab say ap k item ki calculation kuch is tarhan ho gi..
Item 100 rupees ka hay
Is par custom duty 25% k hisab say 25 rupy ho gi.
FED 1 % k hisab say 1 rupya
Sales tax 17% k hisab say 21.25 (sales tax value or CD ko add kar k nikalyn gay)
Add sales tax 2% k hisab say 2.5 (Add sales tax value or CD ko add kar k nikalyn gay)
Income tax 5% k hisab say 7.43 ( income tax, sales tax, value or CD ko add kar k nikalyn gay)


Ap k item ki cost 126 rupy ho gi (value + CD + FED)
Sales tax ka amount input sales tax k ladger may chala jaye ga 23.75
Income tax , Advance income tax k ladger may chala jaye ga 7.43 (jo tax income par diya jata hay na to wo ap ka expance hota hay or na hi wo cost may shamil ho sakta hay)

Ab ap apny Item may 20 rupey add karyn gay apna profit margin to item ki sale value 146 ho jaye gi is par 17% k hisab say sales tax charge ho ga 24.82 jo k ap ka output sales tax ho ga.

Output tax may say input tax less karny say aap ki sales tax liability nikal aaye gil.
24.82 – 23.75 = 1.07

[Anfal Shabbir]

laptop ki calculation sahi hai, agar payable se bachna hai to profit kam kar lain

Anfal

[safdar]

Thank You guys & spacially laptop. I want to confirm another thing. In my items that i import, Some have sales tax and some are exempted.

The question is that when i am selling these items together locally after import, will I charge 17% sales tax on all items or on those items that had sales tax on import. In other words, will i have to charge sales tax locally selling, onthose items that were sales tax exempted ehrn imported?

[alialiali]

VALUE FOR SALES TAX = IMPORT VALUE + CUSTOMDUTY
SALES = PURCHASE + PROFIT
AT THE TIME OF IMPORT GOV. RECIEVED SALES TAX ON PURCHASE 17%
& 2% SALES TAX AS ESTIMATED SALES TAX ON VALUE ADDITION (PROFIT)
IT MEANS THAT YOU ALREADY PAID INPUT SALES TAX ON PURCHASE (17%) & 2% SALES TAX ON YOUR PROFIT
SO THAT NO NEED TO PAY SALES TAX AT THE TIME OF SALES OF GOODS IF YOUR
OUTPUT SALES TAX EQUAL TO 17% + 2% VALUE ADDED TAX PAID AT THE TIME OF IMPORT.

SALES TAX BREAKUP PAID TO GOV.

SALES TAX ON PURCHASE RS. 125 @17% RS.21.25

VALUE ADDED SALES TAX @2% RS. 2.50
TOTAL INPUT SALES TAX RS.21.25+2.50 = TOTAL RS.23.75

CALCULATION FOR SALES PRICE.
INPUT SALES TAX 23.75 DIVIDED BY 17 MULTIPLY BY 100 = SALES VALUE
23.75/17*100= RS.139.70
YOU CAN ISSUE INVOICE TO CUSTOMMER ARE AS FOLLOWS

SALES TAX INVOICE FOR CUSTOMER
RS. 139.70 @17% RS.23.75 TOTAL RS.163.45

OUTPUT SALES TAX RS.23.75
LESS INPUT SALES TAX RS.23.75

SALES TAX PAYABLE NIL

THIS IS THE MINIMUM VALUE ADDITION

IF YOUR INVOICE MORE THAN RS.139.70 YOUR ARE LIABLE TO PAY MORE SALES TAX

[LapTop]

ISSUES RELATING TO COMMERCIAL IMPORTERS

http//www.cbr.gov.pk/newst/STGOs/2007/2007SGO3.pdf

[Anfal Shabbir]

laptop aap ne jo circular quote kya hai wo suppress ho chuka hai through sro 862 dated 20-08-2008

so plz dont follow the said circular

Regards

Anfal

[LapTop]

anfal bhai,,,

SRO 862 may mujhay to aysa kuch nazar nahi aa raha jo ap nay kaha,, plz thora detail may batayen.

[LapTop]

IK bat or , may nay to link diya hay upper wo circular nahi hay wo sales tax general order hay,,

Jis tarhan kisi SRO ko kisi SRO k zarye Supersede ya Rescind kiya jata hay isi tarhan General Order ko General order k zaryea hi Supersede ya Rescind kiya ja sakta hay SRO say nahi,

Wo general Order abhi tak valid hay ik amendment 2009 may aai hay us ka link bhi day raha hon. Agar ye General order 2008 may supersede ho chuyka hota to 2009 may amendment nahi aati.

http//www.cbr.gov.pk/newst/STGOs/2009/2009SGO17.pdf

[Anfal Shabbir]

Dear Laptop

2007 STGO main rule 58 c ki illustration di hui hai aur ye rule hi change hogaya hai through sro 862 dated 2008, is liye ab is ki illustration bekar hai

is STGO main rule 58c se related portion applicable nahi baqi valid hai, i hope it will remove the confusion


Regards
Anfal

[LapTop]

Before Amendment

58C. Value Addition Tax not to be refunded.-- (1) In no case, the refund of excess input tax over output tax, which is attributable to value addition tax, shall be refunded to a registered person.
(2) The registered person shall be entitled to file refund claim of excess carried forward input tax for a period as provided in section 10 or in a notification issued by the Board after deducting the amount attributable to value addition tax (i.e. sum of amounts paid during the claim period and brought forward to claim period). Such deducted amount shall be carried forward to subsequent tax period.

After Amendment

58C. Tax not to be refunded.-- (1) In no case, the refund of excess input tax over output tax, which is attributable to tax paid at import stage, shall be refunded to a registered person.
(2) The registered person, if also dealing in goods other than imported goods, shall be entitled to file refund claim of excess carried forward input tax for a period as provided in section 10 or in a notification issued thereunder by the Board after deducting the amount attributable to the tax paid at import stage i.e. sum of amounts paid during the claim period and brought forward to claim period. Such deducted amount may be carried forward to subsequent tax period.

Mery hisab say amendment k bad section 58C ki asal roh may koi farak nahi aaya bas kuch alfaz ka radobadal hay section ki asal roh barkarar hay.

Section 58C may registered person say murad importer hay,

Jabky General Order may jo para diya gya hay us may registered buyer k hawaly say calculation di gai hay.

“(v) Under rule 58C of the Sales Tax Special Procedures Rules, 2007, the registered buyers of goods from the commercial importers shall not be entitled to adjust sales tax in excess of the amount shown on such invoices”

Mera kahna ye hay k kisi bhi SRO ya General Order ko isi tarhan nahi chor diya jata k us ka 1 para valid ho or dosra na ho, ya to wo pora SRO supersede ho ga ya rescind ya phir amendment aaye gi us may.

Jis tarhan SALES TAX GENERAL ORDER NO. 03/2007 may say 1 line omit karny k liye SALES TAX GENERAL ORDER NO 17/2009 aya usi tarhan clause (v) ko bhi omit karny k liye General order ka aan zarori hay nahi to wo valid hi rahay gi kanon ki nazar may.

[safdar]

Thanks guys for your great help. One last question. Can you tell me the exact working of how the CD,ST,IT,FED and other taxes are calulated at import stage and that are they paid seperately or collectively?

Its ther any material that i can read to understand this process of calculation?

[Anfal Shabbir]

DEAR LAPTOP

RULE BEFORE AMENDMENT

58C.INVOICES AND RECORDS - A COMMERCIAL IMPORTER SHALL ISSUE SERIALLY NUMBERED TAX INVOICE FOR EACH SUPPLY AS REQUIRED UNDER SECTION 23 OF THE ACT AND SHALL MAINTAIN SUCH RECORDS AS PRESCRIBED UNDER SECTION 22 OF THE SAID ACT
PROVIDED THAT TAX CHARGED THROUGH INVOICES SHALL NOT EXCEED THE AMOUNT OF SALES TAX PAID BY THE COMMERCIAL IMPORTER AT IMPORT STAGE

STGO 2007 MAIN JO ILLUSTRATION DEE HUI HAI WO IS PROVISO KA EXPLAINATION HAI

MAIN NE UPER JO RULE LIKHA HAI WO AMEND HUA HAI THROGH SRO 525 2008 JO AAP NE BHI LIKHA HAI

MAIN NE BY MISTAKE SRO 862 2008 LIKHA HAI ASAL SRO 525 2008 HAI JIS KE THROUGH RULE 58C CHANGE HUA HAI

AMENDMENT THROUGH SRO 525

58C. Value Addition Tax not to be refunded.-- (1) In no case, the refund of excess input tax over output tax, which is attributable to value addition tax, shall be refunded to a registered person.
(2) The registered person shall be entitled to file refund claim of excess carried forward input tax for a period as provided in section 10 or in a notification issued by the Board after deducting the amount attributable to value addition tax (i.e. sum of amounts paid during the claim period and brought forward to claim period). Such deducted amount shall be carried forward to subsequent tax period.

IS MAIN US PROVISO
PROVIDED THAT TAX CHARGED THROUGH INVOICES SHALL NOT EXCEED THE AMOUNT OF SALES TAX PAID BY THE COMMERCIAL IMPORTER AT IMPORT STAGE
KO DELETE KAR DYA HAI

I HOPE THAT IT WILL CLARIFY THE MATTER

ANFAL

[LapTop]

Anfal bhi mujhay ap ki baat many may koi aytraz nahi, par us k liye ap koi reference dayn General Order ka jis k tahat clause (V) omit hoi ho.