REFUND OF INPUT SALES TAX TO EXPORTERS UNDER SECTION 66 OF THE SALES TAX ACT, 1990

REFUND OF INPUT SALES TAX TO EXPORTERS UNDER SECTION 66 OF THE SALES TAX ACT, 1990 <!--[if gte mso 10]> REFUND OF INPUT SALES TAX TO EXPORTERS UNDER SECTION 66 OF THE SALES TAX ACT, 1990 By Akhtar Javed, Advocate, Lahore Subsection (2) of section 10 of the Sales Tax Act, 1990 entitles the exporters to claim refund of input tax incurred in connection with zero rated supplies. A question had arisen whether or not "extorters who do not have an local sale and thus have no sales tax liabilities can claim refund under section 66 of the Sales Tax Act, 1990." 2. Messrs Pakistan Leather Garments Manufacturers and Exporters Association, Karachi vide its Letter No. PLGA-105/2002 dated 19-10-2002 referred the matter to C.B.R. for a categorical clarification. 3. Matter has been examined in C.B.R. and the Board vide its Letter C.No. 3(31)STM/2002 dated 7-11-2002 has been pleased to clarify that: "such exporters would be allowed refund under section 66 of the Sales Tax Act, 1990 subject to the condition that the applicant's refund claim is audited first and he is registered only as an exporter."