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What is extra tax and what is the procedure for collection of extra tax and what is the status of extra tax?
1) What is Extra Tax?
A tax in addition to standard rate of 16% which is charged by the Federal Government is called extra tax.
2) Who may charge Extra Tax?
The Federal Government is authorized to impose extra amount of tax.
3) On what person extra amount of tax is levied?
Extra amount of tax is levied on such goods or on such persons as prescribed by the FBR.
4) Rate of Extra Tax:
It may be charged upto 16% of the value of good prescribed by the FBR.
5) Mode, manner and time of extra tax collection:
Extra tax is collected in the mode, manner and time prescribed by the FBR.
6) Status of Extra Tax:
Extra tax is not adjustable against input tax.
7) Current rate of Extra Tax:
Currently, the Federal Government has levied the extra tax @1% of the value of furnace oil which is imported into Pakistan.
8) Imposition of conditions & limitations:
The Federal Government may impose certain conditions & limitations in respect of extra tax collection.
Zero rated supply [2(48)]
Zero rated supply means a supply which is charged to tax at the rate of zero percent (0%) u/s 4 of the sales tax Act1990.
2) Zero-rated goods:
Following goods are charged to tax @ zero percent.
i) Goods exported, or the goods specified in the Fifth Schedule;
ii) Goods specified in the Fifth Schedule
iii) Supply of stores and provisions for consumption aboard a conveyance proceeding to a destination outside Pakistan; and
iv) Such other goods as the Federal Government may specify.
3) The goods which shall not be treated as zero rated supply:
i) The Supply of goods which are exported but have been or intended to be re-imported in Pakistan; or
ii) The supply of goods which have been entered for export u/s 131 of the Customs Act, 1969 but are not exported; or
iii) The goods which have been exported to a country specified by the Federal Government.