Sales Tax - Output Flashcards
Sales:Registered
Sales:Un-registered ( Sec 3)
17%
3%
3% further tax shall not form output tax and added as botton line figure It is also applicable on zero rated supplies (Exported, mentioned in 5th Schedule, five export oriented sectors) However 2% shall not be applicable:
(a) in case of supply including by retailers to end consumer
(b) Supply of third schedule items
(c) Electricity and natural gas supplied to domestic/agriculture consumers
(d) Fertilizers
(e) Supply by steel melters, re-rollers and ship breakers under special procedure
(f) Zero rated supplies covered under fifth schedule
(d) Second hand and worn clothing
Zero rated supplies ( Sec 4, 5th Schedule)
Supply subject to sales tax @ 0% Whereas input tax paid is refunded
Goods exported, supply of stores and provisions for consumption on ship proceeding to destination abroad and goods mentioned in 5th Schedule are zero rated However following are not zero rated:
(a) Goods exported for reimportation
(b) Goods exported to countries restricted by FG eg supply of goods manufactured in export processing zone (EPZ) exported other than LC or advance payment or certain goods (cigars, dyes, chem, PVC, ball bearings) to Afghan by land or air route
Following supplies mentioned in 5th Schedule are zero rated:
(a) Goods exempted u/s 13 if exported by manufacturer
(b) Supply to diplomats, diplomatic missions, priviliged persons
(c) Supplies to duty free shops (Supplies from duty free shops is treated import)
(d) Supply of RM and goods for further manufacturing in export processing zone
(e) Supply of locally manufactured plant and machinery to manufacturers in Export processing zone (EPZ) subject to certain conditions
(f) Supply of locally manufactured plant and machinery to petroleum & gas exploration sector, their contractors,subcontractors as specified by Federal Govt
(g) RM, Components and sub components imported or purchased locally for use in manufacture of P & M chargeable to tax @ 0%
(h) Supply, repair and maintenace of ship and aircraft of greater than 15 LDT and 8000 Kg respectively, supply of equip and machinery for air navigation and to above ships and aircrafts Note: Supply to ships/aircrafts used for recreation or pleasure is not zero rated
(i) Supplies to exporter under duty tax and remission rules
(j) Petroleum crude oil
(k) imports or supplies made to Gawadar Special Economic Zone
(L) Bicycles, preparations suitable for infants or young children use put up for retail sale and any RM, P & M, components imported or purchased locally for manufacture of said goods subject to restrictions for claiming zero rating metioned in STSPR- Chp XIV)
Exempt supplies ( Sec 13, 6th Schedule) - Table I - Import
Import:
(a) Goods temporarily imported with a view to subsequent exportation
(b) Imported samples (Local sample are taxable)
(c) Goods produced in Pakistan exported and then reimported within one year of export
(d) Personal baggage imported by overseas Pakistani
(e) Import of replacement goods supplied free of charge in lieu of defective imported goods
(f) Goods imported by or donated to hospitals run by PG/FG and NPO
(g) P & M for setting up fruit processing unit in Gilgit Baltistan & industries in FATA
(h) RM for manufacture of pharmaceutical ingredients provided they are subject to custom duty not exceeding 11% under the Custom Act
(i) Solar torches, solar panel, Laptop computer, personal computers
(j) Goods received as donation/gift from a foreign government by Federal/Provincial Govt or any public sector organization upon cabinet recommendation
(k) Materials and equipments (plant, machinery, equipment, appliances and accessories) for construction and operation of Gwadar Port and development of free zone for Gwadar Port as imported by or supplied to China Overseas Ports Holding co and its operating companies
Exempt supplies ( Sec 13, 6th Schedule) - Table I - Supply
Supplies:
(a) Goods supplied to hospital run by FG or PG or charitable hospital of > 50 beds
(b) Edible oils and vegetable ghee including cooking oil on which Federal Excise Duty is charged by registered manufacturer or importer (Exemption not available to distributor,wholesaler,retailer)
(c) Goods/services purch by non-resident in trade fairs etc subject to reciprocity
(d) Construction material to Gawadar Export Processing Zone
(e) Supply made by businesses to be established in Gwadar Free Zone for 23 Years
(f) Pharmaceutical raw material and finished products
(g) Flavoured milk, cheese, Desi ghee, Butter, yogurt excluding that sold in retail packing under a brand name
(h) Solar torches, solar panel, Laptop computer, personal computers
Exempt supplies ( Sec 13, 6th Schedule) - Table II Local supply ONLY is exempt
(not imports)
Table II (Local supply is exempt)
(a) Supplies by cottage industry (Supply to Cott Ind is not exempt)
(b) RM & goods consumed inhouse for manufacture of goods subject to sales tax
(c) Supply of fixed assets against which input tax is not allowed
(d) Agriculture produce not subject to further process
(e) Food stuff for consumption in local flights and produced in-house for serving in messes for workers
(f) Raw cotton, crushed stone, bricks, poultery feed and supply by manufacturers of marble/granite having turnover of <rs> 8 Lac</rs>
Eight Schedule Goods specified in Eight Schedule are charged at reduced rate - Rate 10%
Rate 10%:
(a) Plant and machinery not manufactured locally and having no compatible local substitutes- Rate 10%
(b) Flavoured milk,Yogurt, Cheese, Butter, Desi ghee Milk and Cream if sold in retail packing under a brand name- Rate 10%
Multimedia projectors 10%
Fish feed 10%
Eight Schedule Goods specified in Eight Schedule are charged at reduced rate - Rate 10%
Rate 5%:
(a) Re-importation of foreign origin goods temporarily exported out of Pakistan
(b) plant and machinery and equip used in production of bio-diesel
(c) Raw cotton on import, waste paper, agriculture tractor, secondhand clothing (No further tax on 2nd hand closthing)
(d) Urea, set top boxes for gaining access to internet, tv broadcast transmitter
Eight Schedule Goods specified in Eight Schedule are charged at reduced rate - Rate 10%
Other:
White crystalline sugar- Rate 8%
Fertilzers: Fixed per bag (No Further Tax)
Specified machinery for poultry sector 7%
Seeding, planting and other equipments mentioned in Eight Schedule- Rate 7% (No input tax allowed)
Importer
Cellular Operator
Manufacturer
Sales tax on the import of SIM, Cellular mobile or Satellite phones is charged at fixed rate
In case of SIM fixed tax is collected by Cellular Mobile Operator at the time of sale
In case of Cellular Mobile tax is paid by importer at the time of import
Sales tax is paid by manufacturer in case of locally manufactured cellular mobile phones No adjustment of input tax is admissible to any purchaser of cellular mobile phone
Industrial Inputs
(1) Goods usable as industrial inputs:
Import:
(a) In house consumption by registered manufacturers of five zero rated sectors 0%
(b) Commercial imports 0% plus 0% value addition tax
(c) Commercial imports of fabric for use as industrial inputs 6% along with 2% value addition tax
Supply
(a) Supply to persons outside five zero rated sectors 17%
(b) Supplies to registered or unregistered persons of the five zero rated sector excluding supplies of finished fabric 0%
N-1: Cotton waste is outside purview of zero rating hence chargeable @ 17%
(c) Import by or supply to registered manufacturer whether or not of the five sectors, for manufacture of goods specified in Table I or Table II 0%
(d) Supply of finished fabric to manufacturer of five sectors as mentioned in (c) above 0%
(e) Supply of finished fabric to and by retailers, supplies of finished fabric to end consumers, other supplies of finished fabric 6%
(f) Supply of finished articles to un-registered persons 2% , other supplies (other than finished article) to un-registered person 1%
Toll Manufacturing
(2) Processed goods including fabrics (Toll Manufacturing)
Processed goods including fabrics, processing of goods owned by other persons by registered manufacturers of the five sectors 0%
Locally manufactured finished articles
(3) Locally manufactured finished articles of
(a) Textile and textile made ups including carpets
(b) leather and artificial leather
Supplies to any person including retail sales 6%
Imported Finished Goods
(4) Imported finished goods ready for use by general public
Import 17% + 2% value addition
Supply thereof 17%
Imported Machinery
(5) Machinery not manufactured locally if imported by textile industrial units registered with Ministry of textile 0%
Supply of furnace oil, diesel oil, coal oil to five sectors
Supply of furnace oil, diesel oil, coal oil to five sectors 0%
finished article to unregistered person
N-1 : Input tax paid on packing material of all sorts is inadmissible for five sectors
N-2: Supplies of finished article to unregistered person is chargeable @ 2%, and other supplies (other than finished article) to un-registered person @ 1% in all above 5 categories
Collection of excess tax (Sec-3B) - by mistake
Any excess output tax collected by mistake and the incidence of which has been passed on to the customer, shall be paid to Government and no claim of refund is admissible Burdon of proof that incidence of tax has not been passed to consumer shall be on the person collecting the tax
Joint and several liability of registered person (Sec-8A)
If a registered person receiving taxable supply from another registered person is in knowledge that tax payable in respect of supply would remain unpaid (burden of proof on tax department), he shall be jointly liable for such unpaid tax
Sale of taxable activity or transfer of ownership (Sec-49)
Sale to non-registererd person: In this case Possession of taxable goods by registered person shall be a taxable supply he shall be required to pay tax on the taxable goods held by him Tax unpaid is first charge on business assets to be recovered from tranferee in case of non-recoverability from registered person Supply to registered person as ongoing concern: In this case taxable goods shall be transferred to new owner through zero rated invoice and sale tax shall be paid by buyer subsequently on sale
