ISLAMABAD: The Federal Board of Revenue has considerably enhanced fixed capacity rates of sales tax and federal excise duty charged on beverages on the basis of annual production capacity of the unit.
The FBR Through revised Federal Excise Duty and Sales Tax on Production Capacity (Aerated Waters) Rules, 2013, the new rates per filling valve or spout payable by each category of factory manufacturing aerated water shall be revised, which shall be payable in instalments in such a manner that the first instalment under the revised rates shall be due on March 15, 2014.
The rates has been increased from Rs4,700,000 filling valve or spout to Rs7,500,000 per filling value or spout for factories having only foreign origin filling machines or a mix of foreign and local origin filling machines, whether used for manufacturing foreign or local brands. The rates have been enhanced from Rs3,760,000 filling valve or spout to Rs6,000,000 per filling valve or spout factories exclusively having local origin filling machines, whether used for manufacturing foreign or local brands. The rates has been increased from Rs1,175,0000 filling valve or spout to Rs2,000,000 per filling valve or spout for factories where the total number of filling valves or spouts installed are less than 40.
As per rules, no adjustment or deduction shall be allowed in excess of 72 percent of the gross amount payable for the month, as determined. The excess unadjusted amount may be carried forward to the subsequent month, subject to the condition that no refund on account of unadjusted duty shall be admissible. “Provided that the total adjustment of duty and sale tax in a month shall not be allowed in excess of seventy two percent of the gross amount payable as determined. The excess unadjusted amount may be carried forward to the subsequent month, subject to the condition that no refund on account of unadjusted duty and taxes shall be admissible.
An amendment made to SRO 490(I)/2004 through an SRO(I)/2014 said that the goods on which adjustment or deduction of duty and sales tax is claimed under sub-rule (1) of rule 6 of the Federal Excise Duty and Sales Tax on Production Capacity (Aerated Water) Rules, 2013 in excess of 72 percent of the gross amount payable in the month as determined under rule 4 read with rule 5 of the said Rules. The excess unadjusted amount may be carried forward to the subsequent month, subject to the condition that no refund on account of unadjusted duty and taxes shall be admissible, notification added.
