ISLAMABAD: Federal Board of Revenue (FBR) has allowed zero-rating of sales tax on purchase of 8,312 liters of diesel oil and 775 metric tons of coal on monthly basis to a Lahore-based textile company.
In a notification issued on Wednesday, the FBR allowed M/s Aruj Industries Limited to purchase diesel oil and coal at zero-rated sales tax for a period of 12 months.
The FBR allowed the facility with following conditions:
- Monthly zero-rated supply of diesel oil and coal shall not exceed the allowed limit.
- The diesel oil and coal shall only be consumed in the manufacture of goods specified in notification No. SRO 1125(I)/2011 dated December 31, 2011.
- The boilers and generators for which diesel oil and coal have been purchased shall be installed at the declared manufacturing premises of registered person.
The FBR allowed following companies to supply diesel and coal at zero rated sales tax to the company:
- New One Oil Traders
- Diamond Petroleum
- Star Oil Enterprises
- Bilal Iqbal (Pvt.) Limited
- Awan Trading Co (Pvt.) Ltd.
- Agro Trade (Pvt) Ltd.
- Protocol Sydergies (Pvt.) Ltd.
The FBR directed Chief Commissioner Inland Revenue, Corporate Regional Tax Office, Lahore 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.
