December 05, 2006	Tuesday	Ziqa'ad 13, 1427

ISLAMABAD, Dec 4: The Central Board of Revenue (CBR) has notified refund of sales tax on import and local purchase of raw materials used in the manufacturing of various brands of electric fans for export.

The new rates were issued through a sales tax notification SRO1211 of 2006 by amending the sales tax act. The refund of sales tax would be allowed in respect of goods exported on or after November 1, 2006, only by the manufacturers-cum-exporters.

The notification said on raw materials used in manufacturing of ceiling fan, the extent of sales tax refund will be 6.46pc of the f.o.b. value; on pedestal fan 5.12pc; on exhaust fan (plastic body) 4.74pc; on bracket fan 4.11pc.The refund of sales tax on inputs other than those specified in the notification, if due, shall be allowed, in the same manner as provided in Chapter V of the Sales Tax Rules, 2006, on the basis of excess input tax over and above output tax as mentioned in the monthly return to be filed under section 26 of the act.

Provided that the manufacturer-cum-exporter claiming refund under this notification shall not be entitled to claim adjustment or refund of input tax paid on items specified in monthly sales tax return, if used in the production or manufacture of electric fans exported.

The exporter shall file refund claim, within 210 days of exportation or of the publication of this notification whichever is later, to the concerned Collector of Sales Tax for the payment of refund.

The refund claim shall be processed through manual scrutiny of purchase invoices and other documents and in the same manner, as far as applicable, as prescribed under Chapter V of the Sales Tax Rules, 2006.