SRO 1012(I) 2011

SRO 283(I)/2011 dated 1st April, 2011, relating to five export oriented sectors has been replaced with SRO 1012(I)/2011 dated 4th November, 2011. Certain changes have been introduced through new notification in zero rated sectors which are as under:-

i) Zero-rating of Maize Starch has been withdrawn.

ii) Benefit of this notification has been extended on import of Wood-
pulp, if the same is imported by manufacturers of viscose staple
fibre for use in the manufacturing of viscose staple fibre.

iii)Certain PCT headings of textile sector are now excluded from the
Purview of this notification i.e. 5407.2000, 5608.1100, 5608.1900
and 5608.9000.

iv)Exemption/zero-rating of sales tax on import and local purchase of
shoe adhesive by manufacturers of leather or sports goods has been
subjected to the restriction that the same will be acquired for their
own use.

v) Exemption/Zero-rating of Sales tax will no more be available to
importers other than manufacturers of these five sectors.

vi) Uniform reduced rate of 5% sales tax has been introduced instead
of 4% and 6%. Furthermore input tax paid on reduced rate shall
be fully adjustable against output tax on further supplies either at
reduced rate or zero-rate.

vii) Rate of reduced sales tax will be applicable from first manufacturing stage onwards.

viii) It has been clarified that retailers of these sectors shall only pay 5% sales tax on their sales after adjusting input tax paid @5% and their sales will not be liable to Turnover tax under Special Procedure Rules.

ix) Supplies of finished products of these sectors/specified goods to end
consumers shall be chargeable to reduced rate of 5%.

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