| |
|
 |
| For business information, annual reports, laws, ordinances, regulations and articles. |
|
|
|
030524
SALES TAX INSTRUCTIONS/
RULING NO.13/2003
GOVERNMENT OF PAKISTAN
CENTRAL BOARD OF REVENUE
REVENUE DIVISION
(SALES TAX WING)
C. No. 1(34)STR/99.
Dated: 24-05-2003.
To:
The Collector,
Collectorate of Sales Tax & Central Excise,
Lahore/ Rawalpindi/Gujranwala/ Peshawar/Karachi (East/West).
The Collector,
Collectorate of Customs, Sales Tax & Central Excise,
Multan/Hyderabad/Quetta.
The Collector,
Collectorate of Sales Tax, Faisalabad.
The Collector,
Large Tax Payers Unit,
Karachi.
SUBJECT:- CLARIFICATION REGARDING ADMISSIBILITY OF INPUT
TAX ADJUSTMENT ON ELECTRICITY CONSUMED
BY RESTAURANTS.
I am directed to refer to the subject cited above and to say that a question
has been raised whether restaurants which are registered under the Sales Tax
Act, 1990 and are paying 15% sales tax on taxable supplies of food items can
claim input tax adjustment on electricity consumed by them for preparation or
supplying of food items in the service areas.
2.
The matter has been examined in the Central Board of Revenue. The Board is of
the view that restaurants can claim input tax adjustment on electricity consumed
by them in the service areas in terms of Rule 3(7) of the Special Procedure
for Supply of Food Rules, 1999. This would however be subject to adherence to
the provisions of sections 7 and 8 of the Sales Tax Act, 1990 read with Rule
7(2) of the Special Procedure for Collection and Payment of Sales Tax (Electric
Power) Rules, 2000. However, no input adjustment of electricity bill for the
area used as childrens’ park etc not subjected to sales tax would be available.
Thus, restaurants providing services of childrens’ park or fun fair and other
activities not subject to sales tax have to claim electricity bill input adjustment
as per provisions of Apportionment of Input Tax Rules, 1996 issued vide notification
No. SRO 698(I)/96 dated 22-08-1996.
(Pervez Esbhani)
Secretary (STR&S)
|
|
|
|
|
|
| Home | About Us | Contact | Information Resources |