ISLAMABAD: Federal Board of Revenue (FBR) has allowed sales tax zero-rated purchases of petroleum products and coal to M/s Kohinoor Mills Limited – a leading textile unit – for the in-house consumption and for manufacturing purpose.
The company has been allowed the zero-rated purchase of 290 metric tons furnace oil and 2,256 liters of diesel oil from M/s. Pak Arab Refinery Limited and 1,258 metric tons of coal from M/s Agro Trade (Pvt) Limited.
The above mentioned quantity has been allowed on monthly basis and zero-rate purchases are allowed for a period of twelve months.
The FBR, however, said the boilers and generators for which furnace oil, diesel oil and coal have been purchased shall be installed at the declared manufacturing premises of the registered person.
The FBR directed the chief commission, Large Taxpayers Unit (LTU) Lahore to monitor purchase and consumption of furnace oil, 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.
