FBR issued has clarification in response to queries raised for the continuation of application of Serial No 1 and 3 of Part II of the First Schedule as well as section 235B of the Income Tax Ordinance, 2001, after abolition of SRO 1125(I)/2011 relating to zero rated sectors and SRO 480(1)/2007 specifying Sales Tax Procedures Rules, 2007 for steel melter and composite units. The clarification also includes the Legal Opinion from Ministry of Law and Justice for the above referred matter.
The clarification is self-explanatory, however, the crux matter can be summarized as follows:
- Reduced rate under section 148 provided to Manufacturers and Commercial Importers as specified in the Part II of the First Schedule would remain available to eligible persons despite rescission of SRO 1125 of 2011.
- Provisions of section 235-B will remain available to steel melters and composite units registered for the purposes Sales Tax Special Procedure as on June 29, 2019.
- Concession granted under clause 45(A) of Part IV of Second Schedule will remain available for eligible persons.
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