CBR allows refund of sales tax to extent specified paid on import
By Ali Imran

ISLAMABAD—Central Board of Revenue (CBR) has allowed the refund of sales tax as input tax credit to the extent specified paid on theimport or local purchase of the raw materials and used in the production or manufacture and export of goods.
This decision has been taken in exercise of the powers conferred by the second proviso to sub-section (1) of section 10 of the Sales Tax Act, 1990, a CBR press release said here today. The refund of sales tax on inputs other than those specified in column (2) of Table I below, 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.
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 column (2) of Table I below, in monthly sales tax return, if used in the production or manufacture of electric fans exported;
The exporter shall file refund claim, within two hundred and ten 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 under this notification on monthly basis duly accompanied by the following documents, namely. (a) Input tax invoices or, as the case may be, goods declaration for imports in respect of which refund is being claimed; (b) Bank Credit Advice; (c) goods declaration for export (quadruplicate copy) indicating Mate Receipt number with date or airway bill or railway receipt or postal receipt besides the examination report endorsed on the reverse side thereof by the customs authorities; (d) copy of House and Master bill of lading and airway bill or, as the case may be, railway receipt in token of verification of the goods taken out of Pakistan; and (e) a monthly inventory-cum-production statement in the format as set out in the Annexure to this notification. This statement shall be verified on six-monthly basis through desk audit; (iii) the applicable export policy conditions and procedures shall be adhered to as usual; and (iv) the refund claim under this notification 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. The payment of admissible refund shall be made within the time prescribed under the said Rules.
The refund of sales tax authorized under this notification shall be admissible in respect of goods exported on or after the 1st November, 2006, only by the manufacturers-cum-exporters as specified in column (2) of Table II below, having sales tax registration numbers as specified in column (3) of the said Table:
The sanctioning officer shall ensure that the amount of refund already paid or input tax adjusted against purchases made in the period prior to the November, 1 2006, is deducted from the refund payable under this notification to ensure that the refund is not paid twice against the same inputs.