Supreme Court Decision Clarifies Input Tax Deduction Rules for Unusable Goods in Pakistan

• Pakistani Supreme Court issued decision in Case No. C.A.947/2002 regarding input tax deduction rules for unusable goods
• Cotton yarn manufacturer purchased bales of ginned cotton and claimed refund for overpaid input tax
• Tax Officer granted partial refund due to damage from fire
• Supreme Court granted deduction, stating taxpayer satisfied conditions under Section 7 of Sales Tax Act
• Taxpayer entitled to claim input tax adjustments for taxable supplies made or to be made, regardless of whether goods were used

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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