ISLAMABAD, July 4: The Central Board of Revenue has issued new procedures to allow manufacturers’ utilization of the input tax credit in subsequent three tax periods. The new rules ‘Sales Tax (refund of excess input tax to manufacturers) Rules, 2005’ notified through a sales tax notification SRO666 released on Monday. A CBR official said that the new rules were drafted following the abolishing of the scheme of carrying forward excess amount of input tax to the next tax period in the budget 2005-06.
Moreover, the official said the new rules would also ensure that the taxpayers would not be subjected to refund related hassles due to abolishing of the carry forward scheme.
According to the official, the procedures did not envisage any authorization or approvals from the department nor did they require any additional information or documents from the claimant (manufacturer).
The rules should not apply in case of public sector electric power and gas companies irrespective of the nature and composition of their input tax, added the official.
