ZERO RATING OF SALES TAX ON SUGAR PURCHASED AND EXPORTED BY TRADING CORPORATION OF PAKISTAN

ZERO RATING OF SALES TAX ON SUGAR PURCHASED AND EXPORTED BY TRADING CORPORATION OF PAKISTAN <!--[if gte mso 10]> ZERO RATING OF SALES TAX ON SUGAR PURCHASED AND EXPORTED BY TRADING CORPORATION OF PAKISTAN By Mr. Javed Akhtar, Advocate, Lahore In order to resolve the crisis of sugar industry, the Government had decided that a quantity of 7000 MT of sugar from the mills will be purchased by Trading Corporation of Pakistan for subsequent export. In exercise of power conferred by clause (c) of section 4 of the Sales Tax Act, 1990, vide S.R.O.___(I)/2004 dated 28-1-2004, Federal Government has been pleased to specify that 7000 MT of sugar purchased and exported by Trading Corporation of Pakistan shall be charged to tax @ zero per cent subject to following conditions: (a) The Trading Corporation of Pakistan (TCP) shall maintain the record of purchases and supplies including tax invoices, commercial invoices, inventory record, shipping bills, Form-L issued by State Bank of Pakistan duly signed by the authorized bank and customs authorities and export proceeds realization certificate issued by the local bank. (b) The Trading Corporation of Pakistan (TCP) shall pay sales tax if some part or portion of the sugar is sold or supplied by it locally or some part or portion of sugar is damaged, destroyed, stolen etc; and (c) The Trading Corporation of Pakistan (TCP) shall observe all the provisions of the Sales Tax Act, 1990. 2. In terms of the aforesaid notification, the concession of tax authorized by the said notification shall be admissible in respect of 7000 MT of sugar exported on or before 30-6-2004.