The Federal Board of Revenue (FBR) has issued a list of 714 goods and services on which input tax adjustment shall not be allowed to five leading export-oriented industries i.e textile, leather, carpets, surgical, and sports.
The FBR has released the negative list to check fraudulent sales tax refunds being claimed by some unscrupulous exporters of these sectors.
The list issued by the FBR on Thursday revealed that the input tax adjustment shall not be allowed to the manufacturers of five leading export sectors on goods that are not related to their business activity. The negative list of such unrelated goods has been given in the sales tax order issued by the FBR on Thursday.
The negative list showed many goods like regulating or controlling instruments and apparatus automatic type, wrist-watches, instrument panel clocks, pianos including automatic pianos, harpsichords, and other keyboard stringed instruments, musical instruments string, military weapons other than revolvers, pistols and arms, pharmaceutical goods, fertilizers animal or vegetable, oils essential, cosmetic and toilet preparations beauty, make-up and skin care preparations, hair preparations, re-meltable scrap, iron and non-alloy steel ingots/bala, iron or non-alloy steel bars and rods, stainless steel flat-rolled products, furniture medical, surgical, dental or veterinary, lamps, light fittings including searchlights, spotlights and parts thereof.
The list also included services provided or rendered by persons authorized to transact business on behalf of others, services provided or rendered in the matter of sale, purchase, or hire, and services provided or rendered by property developers or promoters for the development of purchased or leased land for conversion into residential or commercial plots, construction of residential or commercial units, services provided or rendered by persons engaged in contractual execution of work or furnishing supplies, services provided or rendered for personal care by beauty parlors, beauty clinics, slimming clinics or centers and others, services provided or rendered by laundries and dry cleaners, telecommunication Services, and other services.
