Input tax adjustments Allowed

 The Federal Board of Revenue (FBR) has allowed 100 per cent input tax adjustments of sales tax to eight sectors.

A sales tax notification, SRO1190 of 2019, issued on Thursday, said the restriction of 90pc of output tax would not apply to persons registered in electrical energy sector, oil marketing companies and petroleum refineries and fertiliser manufacturers.

The restrictions will also not apply to persons making zero rated supplies, including exports if value of such supplies exceeds 50pc of the value of all taxable supplies in a tax period.

Further, the gas distribution companies, telecommunication services and Pakistan Steel Bin Qasim Karachi will also be exempt from the restrictions.

Source: FBR, Dawn


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