Changes in the Sales Tax Special Procedure Rules, 2007
Vide SRO 484(I)/2015 dated 30.06.2015, following amendments have been made in the Sales Tax Special Procedure Rules, 2007:
1- Chapter IX (Special Procedure for Processing of Refund Claims filed by the Persons Engaged in Making Zero-Rated Supply of Ginned Cotton) has been omitted being redundant.
2- Certain amendments have been made in Chapter XI (Special Procedure for Payment of Sales Tax by Steel-Melters, Re-Rollers and Ship Breakers) as follows:
(i) These rules have also been made applicable to importers of re-meltable iron and steel scrap compressor scrap and local suppliers of iron and re-meltable steel scrap.
(ii) Rate of sales tax has been increased from Rs. 7/- to Rs. 9/- per unit of electricity consumed.
(iii) Adjustable sales tax @ RS. 5,600/- per metric ton shall be levied and collected on import of re-meltable iron whereas non-adjustable sales tax @ Rs.5,600/- per ton will be collected on import of compressor scrap.
(iv) Local supplies of waste and scrap of compressors shall be exempt from payment of sales tax. Local supplies of re-meltable iron and steel scrap will also be subject to Rs. 5,600/- per metric ton.
| S.No. | Invoices issued by and for or to | Amount of sales tax to be mentioned on the invoices. |
| (1) | (2) | (3) |
| By steel melters or composite units of melting, re-rolling and MS cold drawing to registered re-rollers | Rs.8,047/-Per metric ton | |
| By steel re-rollers, using ingots or billets of steel melters or composite units of melting, re-rolling and MS cold drawing to registered persons | Rs.9,217/-Per metric ton | |
| By re-rollers, using billets of Pakistan Steel Mills or Peoples Steel Mills or Heavy Mechanical Complex or imported billets, to registered persons. | Rs.8092Per metric ton | |
| By re-rollers, using ship-plates and re-rollers scrap as raw material, to registered persons | Rs.9,170/-Per metric ton | |
| By re-rollers, to unregistered persons | Rs.1,170/-Per metic ton | |
| By persons supplying imported MS products to registered persons | Rs.8,526/-Per metric ton | |
| By persons supplying imported MS products, to unregistered persons | 1,170/-Per metric ton |
(v) Rate of sales tax for ship breakers has increased from Rs. 6,700/- to Rs. 8,000/- per metric ton.
(vi) Rate of sales tax for steel-melters and re-rollers operating on self generation through gas has been increased as under:
Sales tax payable = {HM3 x Rs. 2,138 – sales tax paid on gas bill}
(vii) Rate of sales tax for steel-melters and re-rollers operating on self generated electricity other than gas has been increased as under:
Sales tax payable = mill size (in inches) x Rs. 58,446/-.
(viii) The melters can now issue invoices to their buyers on the following revised rates:
(ix) The value of re-rollable scrap by ship breakers, for the purpose of levy of sales tax, has been increased from Rs.39,412/- to 47,059/- per metric ton.
3- Certain changes have been introduced in the Special Procedure for Payment of Sales Tax by Wholesaler-cum-Retail outlets (Chapter XII).
i) The wholesaler-cum-retailer operating under this Chapter shall issue a sales tax invoice for the goods subject to extra tax under Chapter XIII, if supplied to a registered person, for the purpose of claiming input tax adjustment by the buyer.
ii) The provisions of Section 73 of the Act shall not be applicable on such wholesale supplies.