FBR notifies sales tax rate, and payment procedure on cottonseed oil

KARACHI: The Federal Board of Revenue (FBR) has notified special procedure for sales tax on cottonseed oil expelled by oil expelling mills and composite units of ginning and expelling.

FBR on Tuesday issued SRO 253(I)/2019 fixing sales tax at Rs8.0/40 kilogram of cottonseed for the period starting from July 01, 2019. Similarly, sales tax of Rs7.0/40kg of cottonseed for the period of starting July 01, 2018 and ending on June 30, 2018 (both days inclusive).

The FBR said that the notified sales tax rates would be collected under the special procedure. It said that all cotton gingers, if not already registered or required to be registered, shell obtain sales tax registration for the purpose of these rules.

The amount of sales tax so charged and collected by the cotton gingers shell be declared in the monthly returns and shall be deposited as such without any input tax adjustment. The suppliers of cottonseed shell mention sales tax charged separately on the sales tax invoice to be issued by them.

The oil expelling units using the cottonseed on which sales tax has been charged and collected in the aforesaid manner shall be exempt from payment of sales tax on the supplies of oil cake produced from such cottonseed.

The gingers shell submit a certificate to the commissioner having jurisdiction by the 15th day of the month following the tax period for the quantity of cottonseed supplied to the growers for sowing purpose.

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