Tractor Makers Can Now Claim Subsidy Adjustment on Sales Tax
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The Federal Board of Revenue (FBR) has allowed manufacturers of tractors to claim adjustment of subsidy against sales tax on locally manufactured tractors from September 28, 2020, to June 30, 2021.
In this connection, the FBR has issued the Sales Tax Special Procedure for Adjustment of Subsidy Against Sales Tax on Locally Manufactured Tractors Rules, 2020 here on Monday.
The subsidy granted, shall be allowed to be adjusted by the manufacturers of the tractors namely M/s Millat Tractors Limited, Al-Ghazi Tractors Limited and Orient Tractors (Pvt.) Limited (specified manufacturers).
The rules revealed that the Ministry of National Food Security and Research shall apportion the amount of subsidy amongst the specified manufacturers so that the same does not be exceed the limit of Rs. 1.5 billion.
A Tractors Subsidy Cell shall be established by the IR-Operations Wing of Federal Board of Revenue for processing subsidy adjustment claims. The specified manufacturers shall sell the subsidized tractors only to the farmers and growers after obtaining a valid proof of landholding such as Agriculture Pass Book and copy of the record of rights of agricultural land duly verified from Provincial Land Revenue Authorities and shall not charge and collect the applicable amount of sales tax from such buyers.
The specified manufacturers of tractors shall submit data of supplies in the Annexure-C of the monthly return of the Sales Tax and Federal Excise by the 5th day of the month following the end of the tax period.
The specified manufacturers shall sell the subsidized tractors only to the farmers and growers after obtaining a valid proof of landholding such as Agriculture Pass Book and copy of the record of rights of agricultural land duly verified from Provincial Land Revenue Authorities and shall not charge and collect the applicable amount of sales tax from such buyers.
The whole value of the tractor’s applicable amount of the sales tax and amount of subsidy shall be mentioned on the sales tax invoice as specified under section 23 of the Sales Act issued by the specified manufacturers.
The whole value of the tractor’s applicable amount of the sales tax and amount of subsidy shall be mentioned on the sales tax invoice as specified under section 23 of the Sales Tax Act issued by the specified manufacturers, FBR added.
The Ministry of National Food Security and Research after examination of the adjustment claim shall forward its report to the Tractors Subsidy Cell of FBR within seven working days of submission of the Part-1 of the Annexure-A by the specified manufacturers, mentioning the amount of subsidy to which such manufacturers are entitled for the period.
The Government agencies shall not be eligible for subsidy under these rules, however. Agriculture Research Institutes may avail the same.
propakistani.pk
rThe Federal Board of Revenue (FBR) has allowed manufacturers of tractors to claim adjustment of subsidy against sales tax on locally manufactured tractors from September 28, 2020, to June 30, 2021.
In this connection, the FBR has issued the Sales Tax Special Procedure for Adjustment of Subsidy Against Sales Tax on Locally Manufactured Tractors Rules, 2020 here on Monday.
The subsidy granted, shall be allowed to be adjusted by the manufacturers of the tractors namely M/s Millat Tractors Limited, Al-Ghazi Tractors Limited and Orient Tractors (Pvt.) Limited (specified manufacturers).
The rules revealed that the Ministry of National Food Security and Research shall apportion the amount of subsidy amongst the specified manufacturers so that the same does not be exceed the limit of Rs. 1.5 billion.
A Tractors Subsidy Cell shall be established by the IR-Operations Wing of Federal Board of Revenue for processing subsidy adjustment claims. The specified manufacturers shall sell the subsidized tractors only to the farmers and growers after obtaining a valid proof of landholding such as Agriculture Pass Book and copy of the record of rights of agricultural land duly verified from Provincial Land Revenue Authorities and shall not charge and collect the applicable amount of sales tax from such buyers.
The specified manufacturers of tractors shall submit data of supplies in the Annexure-C of the monthly return of the Sales Tax and Federal Excise by the 5th day of the month following the end of the tax period.
The specified manufacturers shall sell the subsidized tractors only to the farmers and growers after obtaining a valid proof of landholding such as Agriculture Pass Book and copy of the record of rights of agricultural land duly verified from Provincial Land Revenue Authorities and shall not charge and collect the applicable amount of sales tax from such buyers.
The whole value of the tractor’s applicable amount of the sales tax and amount of subsidy shall be mentioned on the sales tax invoice as specified under section 23 of the Sales Act issued by the specified manufacturers.
The whole value of the tractor’s applicable amount of the sales tax and amount of subsidy shall be mentioned on the sales tax invoice as specified under section 23 of the Sales Tax Act issued by the specified manufacturers, FBR added.
The Ministry of National Food Security and Research after examination of the adjustment claim shall forward its report to the Tractors Subsidy Cell of FBR within seven working days of submission of the Part-1 of the Annexure-A by the specified manufacturers, mentioning the amount of subsidy to which such manufacturers are entitled for the period.
The Government agencies shall not be eligible for subsidy under these rules, however. Agriculture Research Institutes may avail the same.
Tractor Makers Can Now Claim Subsidy Adjustment on Sales Tax
The Federal Board of Revenue (FBR) has allowed manufacturers of tractors to claim adjustment of subsidy against sales tax on
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