Two companies of Lahore have been allowed to pay sales tax at the rate of 15 percent instead of prescribed 20 percent on the manufacture-cum-supply of acrylic sheets during June 16 2003 to June 12, 2004. The Central Board of Revenue (CBR) has decided not to recover short-levied sales tax from two industries of Lahore under the provisions of Sales Tax Act, 1990. The CBR has issued SRO 104(I)/2005 and SRO 105(I)/2005 on Thursday.

According to details, the department made cases against Wazirabad Poly Industries (Pvt) Ltd, Lahore and Lucky Plastic Industries (Pvt) Ltd, Lahore on the ground that the registered units have paid 15 percent sales tax instead of 20 percent on manufacture and supply of acrylic sheets falling under Pakistan Customs Tariff (PCT) Heading Numbers 3920.5100 and 3920.5900.

The supply of acrylic sheets was chargeable to sales tax at the rate of 20 percent under SRO 389(I)/2001. However, the CBR, inadvertently and as a general practice charged sales tax at the rate of 15 percent instead of prescribed rate of 20 percent from all the registered manufacturers of acrylic sheets during June 16 2003 to June 12, 2004.

Now, in exercise of section 65 of the Sales Tax Act, 1990, the department has directed that the tax short levied during this period shall not be required to be paid by these two units.

Copyright Business Recorder, 2005