| |
|
 |
| For business information, annual reports, laws, ordinances, regulations and articles. |
|
|
|
*******
Islamabad, the 10th September, 2004.
SRO. 776 (I)/2004.—
In exercise of the powers conferred by section 71 of the Sales Tax Act,
1990, read with clause (33) of section 2 thereof, the Federal Government is
pleased to make the following rules, namely:-
1.
Short title, application and commencement. —
(1)
These rules may be called the Special Procedure for Collection and
Payment of Sales Tax from the Oil Marketing Companies (Sharing of Product)
Rules, 2004.
(2)
These rules shall apply for the collection and payment of sales tax from
the oil marketing companies against sharing of product at the joint installation
(JIMCO), located at Mehmood Kot, District Gujrat.
(3)
These rules shall come into force at once.
2.
Definitions. — (1)
In these Rules, unless there is anything repugnant in the subject or
context,-
(a) “Act” means the Sales Tax Act, 1990;
(b)
“consumers” means the registered as well as unregistered buyers except
the above named OMCs to whom the product is supplied from JIMCO on sharing or
loan basis;
(c) “JIMCO” means joint installation of the oil marketing companies at Mehmood Kot, District Gujrat;
(d) “OMC or OMCs” means the oil marketing companies viz. Shell Pakistan Limited, Caltex Oil (Pakistan) Limited and Pakistan State Oil (PSO);
(e) “product” means all taxable petroleum products whether imported or otherwise, which are stored at JIMCO, Mehmood Kot, District Gujrat, by or on behalf of OMCs;
(f) “product sharing” means acquiring of a product by one OMC from another OMC on loan basis, without payment of price under an arrangement of returning the product of the same description by the former to the latter, within such time as may be agreed between them; and
(g)
“Terminal Operator” means the company or person managing the affairs of
joint installation (JIMCO) at Mehmood Kot, district Gujrat.
(2)
All other words and expressions used, but not defined herein, shall have
the same meanings as are assigned to them in the Act.
3.
Sharing of Product. —
(1) The OMCs shall be
entitled to share their products without payment of sales tax at JIMCO.
(2)
No sales tax invoice shall be issued for the product shared between OMCs,
provided that the OMCs shall not be barred from adhering to an internal
invoicing system for the purpose of stock sharing.
(3)
The OMC which has borrowed the product from another OMC shall return the
product of the same description within the time agreed between them.
4.
Register for stock sharing. — (1) Each OMC, benefiting from stock sharing
facility under these rules, shall maintain, or cause to be maintained, a
separate register for recording movements of stocks under sharing arrangements
between OMCs.
(2)
The stock sharing register, maintained under sub-rule (1), shall contain
such information about credit and debit of the shared or returned stocks as is
necessary to identify the movement of such stocks between the concerned
OMCs.
(3)
The Terminal Operator shall certify the bona fides of all
the credit and debit entries made in the stock sharing register by
10th of the each month following the month to which the entries
relate.
(4)
The stock sharing register, duly certified by the Terminal Operator as
aforesaid, shall be produced to the Sales Tax Department, as and when required
for inspection, audit or any other authorized purpose.
5.
Tax liability.—
(1)
The OMC which has given a product to another OMC on stock sharing basis,
shall be entitled to avail input tax adjustment, as provided under the Act and
the rules made thereunder.
(2)
The OMC, which has taken a product from another OMC, shall pay sales tax
on its supply or sale to the buyer or consumer without claiming any input tax
adjustment thereon.
(3)
The OMC, to whom a product taken on stock sharing basis is returned,
shall pay sales tax on its supply or sale to the buyer or consumer and input tax
adjustment thereon shall be admissible, if not already availed.
6.
Miscellaneous. —
(1) The stock of a product moved for exchange under these rules shall not
be required to be declared on the sales tax return unless finally supplied or
sold on payment of sales tax.
(2)
The OMC, which has taken any stock of a product on sharing basis under
these rules, shall not normally charge the price, over and above the price which
would have been fetched by such stock had it been supplied or sold by the
lending OMC.
(3)
No adjustment, refund or remission of sales tax shall be allowed under
any circumstances on account of variation or difference of the sale price of the
exchanged stocks.
(4)
Audit of the records of OMCs for verification of the correct payment of
sales tax on monthly basis shall be conducted once in a year.
[C. No. 1(30)STR/2000]
|
|
|
|
|
|
| Home | About Us | Contact | Information Resources |