refund of ssles tax

GOVERNMENT OF PAKISTAN REVENUE DIVISION CENTRAL BOARD OF REVENUE
(SALES TAX WING)
C. No. 1(8)STT/2002.
Islamabad, the 11th September, 2002.

(1) The Chairman,
Pakistan Pharmaceutical Manufacturers Association,
Karachi. Fax:021-5675608

(2) The Chairman,
Pharma Bureau of Information & Statistics,
Plot No. 23, Sector 22, Korangi Industrial Area,
Karachi. Fax:021-5060360

SUBJECT: -

REFUND OF SALES TAX PAID ON DOMESTICALLY MANUFACTURED STOCKS OF MEDICINES HELD ON 22ND AUGUST, 2002.

I am directed to refer to the subject cited above and the meeting presided by Finance Minister on 06-09-2002 and to convey the following decisions:-
(i) The manufacturers may not deposit sales tax on medicines supplied during 1st to 22nd August, 2002;
(ii) The GST deposited by the manufacturers for the period with effect from 1st to 31st July, 2002, will be allowed as refund;
(iii) Refunds would be adjustable against income tax liability unless there is already some determined refund of income tax, in which case GST refund will be paid in cash;
(iv) PPMA and Pharma Bureau will make all out effort to ensure that the containers/packets/bottles etc. of medicines in the market will be defaced so far as entries relating to GST are concerned;
(v) Pharma Bureau, PPMA and PCDA will ensure that medicines supplied through their network of distributors, dealers and retailers, will be sold to buyers without any incidence of sales tax.;
(vi) The commercial importers of the medicines, imported between 01-07-2002 to 22-08-2002, shall also be entitled to the above refund package. However, fulfillment of their legal obligations, interalia, under corporate tax law would be a condition precedent for the subject refund/adjustment.

2. No manufacturer shall file refund claim directly to any Collector. In this regard, Pharma Bureau and PPMA shall collect the following information from their members, authenticate its accuracy and furnish to the Central Board of Revenue:-

Sl. No.

Name, Address & Sales Tax Registration No.

Tax payable for period 01.08.2002 to 23-08-2002

Amount of Sales Tax Paid for 1st to 31st July, 2002

If determined Income Tax Refund is due, Amount and Details

(1)

(2)

(3)

(4)

(5)

3. There is no need to furnish supporting documents to CBR which may be kept ready for scrutiny in due course.

( Muhammad Nasir ud Din Mehboob )
Chief (Sales Tax)

Copy for necessary action to: -
(1) The Director General, Large Taxpayers’ Unit, Karachi.
(2) The Collector, Collectorate of Sales Tax & Central Excise (East/West), Karachi/Faisalabad/Lahore/Gujranwala/Rawalpindi/ Peshawar.
(3) The Collector, Collectorate of Customs, Sales Tax & Central Excise, Quetta/Multan/Hyderabad.
(4) Mr. Ilyas Nainitalwala, Chairman, Pakistan Chemists & Druggists Association (PCDA), 1st Floor, H. J. Centre, Katchi Gali No. 2, Marriot Road, Karachi. He is requested to kindly furnish the following information in respect of commercial importers (members of PCDA):-

Sl. No.	Name, Address & Sales Tax Registration No.	Amount of Sales Tax Paid in August, 2002
(1)	(2)	(3)

Amount of Sales Tax Paid in July, 2002	If determined Income Tax Refund due, Amount and Details	Remarks (Please clarify, if operating under Section 143B of Income Tax Ordinance, 1979)
(4)	(5)	(6)