ISLAMABAD: Federal Board of Revenue (FBR) has allowed zero-rated supply of diesel oil and coal to M/s Al Karam Towel Industries for one year in order to meet energy requirement at lower cost.
In a Sales Tax General Order (STGO) issued on Wednesday, the FBR allowed purchase of diesel oil and coal by M/s. Al Karam Towel Industries (Pvt) Limited as the goods on which sales tax shall be charged at the rate of zero percent for the period of 12 months from the date of issuance of the STGO i.e. November 07 subject to the condition that:
Monthly zero rated supply of diesel oil and coal shall not exceed the quantity of 16,000 liters by Pakistan State Oil and 21.91 metric tons by M/s Awan Trading Co. (Pvt) Limited.
The FBR said that the diesel oil and coal shall only be consumed in the manufacturer of goods specified in SRO 1125(I)/2011 dated December 31, 2011. Further, the boilers and generators for which diesel oil and coal have been purchased should be installed at the declared manufacturing premises of registered person.
The FBR directed Chief Commissioner Inland Revenue, Regional Tax Office (RTO) –III to monitor purchase and consumption of diesel oil and coal requiring the registered person to furnish monthly statement of zero rated purchases and consumption in order to verify / prevent misuse of zero rated facility.
