December 3, 2002	Tuesday	Ramazan 27,1423

ISLAMABAD, Dec 2: The Central Board of Revenue (CBR) has notified conditions and procedures for refunding General Sales Tax (GST) to manufacturers and importers paid on medicines in July 2002.

The CBR has amended the SRO555 issued on Aug 23, 2002 by another notification issued on Monday saying that registered manufacturers and importers of the medicines should not deposit sales tax on supplies made during the period August 1 to 23.

According to the conditions laid down for refund, each person, whether importer or local manufacturer-cum-supplier, individually as well as through Pakistan Pharmaceutical Manufacturers Association (PPMA) and pharma bureau, would be responsible for defacing the amount or component of sales tax printed on the containers, packing, packets or bottles of such medicines and medicaments already supplied for sale in the market.

PPMA and pharma bureau as well as each person claiming refund would be responsible that all medicines supplied through their distributors, dealers and retailers were sold to the buyers without passing any incidence of sale tax to such buyers.

Payment of refund of sales tax to importers would be subject to the fulfilment of their legal obligations under corporate law. Refund would also be admissible even in cases where a taxpayer was not a member of any association like PPMA and pharma bureau.

No refund of sales tax would be claimed or paid on goods which were still liable to sales tax. The provisions of section 3B of the sales tax act would not be invoked while processing, sanctioning and paying refund under this notification and the admissible amount of refund of sales tax may be adjusted against any outstanding liability or demand of income tax unless there was already determined refund of income tax for adjustment against any outstanding liability or demand of income tax or the person claiming sales tax refund was not liable to pay income tax under the income tax ordinance 2001, in which case refund would be processed and sanctioned by the concerned collectorate of sales tax or as the case may be by the Large Taxpayers Unit.

The persons seeking refund of sales tax paid for the month of July 2002 would file their refund claim through their concerned association to CBR or directly in case they were not member of any such association.

On receipt of refund claims, CBR after necessary scrutiny, transmit the same to the concerned collector of sales tax or to that of LTU, who would ascertain the amount of admissible refund. It would be then referred to the Regional Commissioners of Income Tax or director general, LTU, Karachi for adjustment of the amount of sales tax refund against the income tax liability or demand if there was no demand it would be processed as early as possible.