58h

THE SALES TAX SPECIAL PROCEDURES RULES, 2007

1[58H. Payment of tax.-

(1) Every steel-melter, steel re-roller 2[, composite unit of melting, re-rolling and MS

cold drawing] and composite unit of steel melting and re-rolling (having a single

electricity meter), 3[excluding units operated by sugar mills or other persons using

self-generated electricity] shall pay sales tax at the rate of 4[seven] rupees per

unit of electricity consumed for the production of steel billets, ingots and mild

steel (MS) products excluding stainless steel, which will be considered as their

final discharge of sales tax liability:

5[Provided that the rates of sales tax on the basis of electricity consumption

prescribed in sub-rules (1) and (2) shall only be applicable to units consuming

electric power supplied by public sector electricity distribution companies.]

(2) Payment of tax by steel melters, re-rollers 6[, composite unit of melting, re-rolling

and MS cold drawing] and composite units of melting and re-rolling shall be

made through electricity bills alongwith electricity charges:

1 Rule 58H substituted by SRO # 592(I)/2012 dated June 01, 2012.

[58H. Payment of tax.- (1) Every steel-melter, steel re-roller and composite unit of steel melting and re-rolling (having a single electricity meter),

shall pay sales tax at the rate of six rupees per unit of electricity consumed for the production of steel billets, ingots and mild steel (MS) products which will be considered as their final discharge of sales tax liability.

(2) Payment of tax by steel melters, re-rollers and composite units of melting and re-rolling shall be made through electricity bills alongwith electricity charges: Provided that in case the due amount of sales tax mentioned in sub-rule (1) is not mentioned in the electricity bill issued to any steel melter or re-roller or composite unit of melting and re-rolling, the said melter or re-roller or composite unit shall deposit the due amount of tax for the relevant tax period at the rate of six rupees per unit of electricity consumed excluding the amount of sales tax already paid on the electricity bill related to the said tax period through his monthly sales tax return.

(3) In case of default in payment of sales tax by the due date mentioned on the electricity bill, besides other legal action by the concerned Sales Tax Collectorate, the concerned electric supply company shall disconnect the electricity connection of the unit.

(4) Ship breakers shall pay sales tax at the rate of four thousand five hundred and forty five rupees per metric tonne of re-rollable scrap supplied by them. The quantity of re-rollable scrap shall constitute 70.5% of the total LDT of the ship imported for breaking. The ship-breakers shall clear their sales tax liabilities in respect of ships weighing up to ten thousand LDT within four months, while in case of ships weighing more than ten thousand LDT, within eight months from the date of filing of Goods Declaration. The sales tax liability shall be discharged by the ship-breaker either on completion of clearance of goods obtained from breaking of vessel or within the maximum time period allowed as aforesaid, whichever is earlier:

(5) Pakistan Steel Mills, Karachi, Heavy Mechanical Complex, Taxila and Peoples Steel Mills, Karachi shall pay sales tax on their products under sub-section (1) of section 3 of the Sales Tax Act, 1990 read with section 7 and section 8B of the Act.

(6) Steel melters and re-rollers, except Pakistan Steel Mills, Heavy Mechanical Complex and Peoples Steel Mills, paying sales tax on fixed rates through electricity bills shall not be entitled to any input tax adjustment. However, the steel melters and re-rollers paying sales tax on fixed rates through electricity bills shall be entitled to claim adjustment or refund of the sales tax paid on local procurement of plant, machinery and equipment.]

2 Words etc inserted by SRO # 243(I)/2013 dated March 26, 2013.

3 Words etc inserted by SRO # 421(I)/2014 dated: June 04, 2014.

4 Substituted for “four” by SRO # 421(I)/2014 dated June 04, 2014 earlier it was substituted by SRO

1486(I)/2012 dated December 24, 2012. Earlier it was changed by Notification # 801(I)/2012 dated June 30, 2012.

5 Proviso inserted by SRO # 421(I)/2014 dated: June 04, 2014.



Provided that in case the due amount of sales tax mentioned in sub-rule (1) is not

mentioned in the electricity bill issued to any steel melter or re-roller 1[, composite

unit of melting, re-rolling and MS cold drawing] or composite unit of melting and

re-rolling, the said melter or re-roller 2[, composite unit of melting, re-rolling and

MS cold drawing] or composite unit shall deposit the due amount of tax for the

relevant tax period at the rate of 3[four] rupees per unit of electricity consumed

excluding the amount of sales tax already paid on the electricity bill related to the

said tax period through his monthly sales tax return4[:

Provided further that adjustable Sales Tax @ 5[Rs. 5,600 per metric ton] shall be

collected on import of remeltable iron and steel scrap6[, which amount may be

adjusted against sales tax charged through electricity bill, in the manner as may

be prescribed by the Board through a general order].]

(3) In case of default in payment of sales tax by the due date mentioned on the

electricity bill, besides other legal action by the concerned RTO or LTU, the

concerned electric supply company shall disconnect the electricity connection of

the unit 7[and further, it shall be deemed that the person has opted out of this

special procedure and sales tax shall become payable under sub-section (1) of

section 3 of the Act].

8[(3A) The Commissioner of Inland Revenue may, if he considers it expedient in the

interest of revenue, collect sales tax directly from steel-melters and re-rollers at

the rates prescribed in sub-rule (1) or sub-rule (2), as the case may be. In case of

such direct collection of sales tax, the Commissioner shall issue adjustment

certificate to the electricity distribution company, which shall adjust the amount of

sales tax so paid in the electricity bills of the registered person.]

9(4) Ship breakers shall pay sales tax at the rate of 1[six thousand and seven

hundred] rupees per metric ton of re-rollable scrap supplied by them at the time



3 Substituted for “seven” by Notification # 1486(I)/2012 dated December 24, 2012. Earlier it was changed

by Notification # 801(I)/2012 dated June 30, 2012. 4 Substituted for full stop and new proviso added by Notification # SRO 1486(I)/2012 December 24, 2012.

5 Substituted for “5% on the value of imported goods as determined under clause (d) of sub-section (46) of

section 2 of the Sales Tax Act, 1990 or Rs.1600 PMT whichever is higher” by SRO # 421(I)/2014 dated June 04, 2014.

6 Words etc inserted by SRO # 421(I)/2014 dated June 04, 2014.

7 Words etc inserted by SRO # 421(I)/2014 dated June 04, 2014.

8 Sub-rule (3A) inserted by SRO # 421(I)/2014 dated June 04, 2014.

9 Sub-rule (4) substituted by SRO # 243(I)/2013 dated March 26, 2013.

(4) Ship breakers shall pay sales tax at the rate of 9[five thousand eight hundred and sixty-two] rupees per metric ton of re-rollable scrap supplied by them. The quantity of re-rollable scrap shall constitute 70.5% of the total LDT of the ship imported for breaking. The ship-breakers shall clear their sales tax liabilities in respect of ships weighing upto ten thousand LDT within four


of import. The quantity of re-rollable scrap shall constitute 70.5 % of the total LDT

of the ship imported for breaking.

2[(5) The Customs Collectorate shall clear the goods declaration of ship for breaking

on payment of sales tax along with other Government dues.]

(6) Pakistan Steel Mills, Karachi, Heavy Mechanical Complex, Taxila and Peoples

Steel Mills, Karachi shall pay sales tax on their products under sub-section (1) of

section 3 of the Act read with section 7 and section 8B thereof.

(7) Steel melters and re-rollers, except Pakistan Steel Mills, Heavy Mechanical Complex and Peoples Steel Mills, paying sales tax on fixed rates through electricity bills shall not be entitled to any input tax adjustment 3[except as provided in second proviso to sub-rule(2)].

months, while in case of ships weighing more than ten thousand LDT, within eight months from the date of filing of goods declaration. The sales tax liability shall be discharged by the ship-breaker either on completion of clearance of goods obtained from breaking of vessel or within the maximum time period allowed as aforesaid, whichever is earlier. The ship breakers shall submit post dated cheques equivalent to the amount of sales tax calculated on the basis of LDT of the ships to the concerned RTO or LTU as per following table:

Ships weighing upto 10,000 LDT Four post dated cheques, each of amount equal to one- fourth of the total sales tax payable.

Ships weighing over 10,000 LDT Eight post dated cheques, each of amount equal to one- eighth of the total sales tax payable.

1 Substituted for “five thousand eight hundred and sixty-two” by SRO # 421(I)/2014 dated June 04, 2014.

2 Sub-rule (5) substituted by SRO # 243(I)/2013 dated March 26, 2013.

[(5) The Customs Collectorate shall clear the goods declaration of ship for breaking on the basis of certificate from the RTO or LTU that the post dated cheques as aforesaid have been submitted. These post dated cheques shall be returned by the RTO or LTU on payment of sales tax by the ship breakers with the return. In case of default in payment of sales tax with the return, the post dated cheques shall be encashed by the RTO or LTU.]

3 Words etc inserted by SRO # 1486(I)/2012 dated December 24, 2012.

58h

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