FBR increases sales tax on steel products

[Naveed Yaseen]

By Sajid Chaudhry
ISLAMABAD: The Federal Board of Revenue (FBR) here on Saturday increased the sales tax from Rs 5960 per metric tonne to Rs 6306 per metric tonne on the sale of steel products from Steel melters to Steel re-rollers.

Similarly, the FBR authorities have also enlarged the scope of sales tax on stevedore and the authority has issued new definition of stevedore.

Sales tax increase: Before the amendment the rule 58-I relating to invoices and returns was as that Sales tax invoices shall be issued by steel melters to re-rollers showing sales tax amount of Rs 5526 per metric tonne.

Amendment states that in rule 58-I, in sub-rule (3), for the words “five thousand nine hundred sixty” the words “ six thousand three hundred and six” shall be substituted.

This amendment has increased the sales tax payable on per metric tonne of Rs 346 per metric tonne that would be shown in invoice to be issued by the steel melters to the steel re-rollers.

Stevedore: Federal Board of Revenue (FBR) has enlarged the scope of term stevedore under Sales tax regime and has also brought under sales tax net a person, company or commercial concern engaged in loading and unloading of cargo.

The previous definition of term stevedore was that it means a person engaged in loading and unloading of cargo, including bulk cargo, from ships in any manner and includes a person providing or rendering any other services related to or ancillary to the handling of or otherwise dealing with such or other similar cargo at port in any manner or style.

New amendment in the Sales Tax Special Procedure Rules define the term stevedore as a person, company or commercial concern engaged in loading and unloading of cargo, including bulk cargo, from ships, whether mechanically or otherwise, and whether or not licensed by the respective port authorities.

http://www.dailytimes.com.pk/default.asp...2008_pg5_4