VAT & SD Act 2012
Section 2 Clause 103 - Decreasing Adjustment
(as updated till Finance Ordinance 2025)
1[ “decreasing adjustment” means any following decreasing adjustments, namely:-
(a) a decreasing adjustment of the amount paid as Advance Tax;
(b) a decreasing adjustment of withholding tax against supply made by supplier;
(c) a decreasing adjustment applicable as a result of annual re-calculation or audit;
(d) a decreasing adjustment for issuance of credit note;
2[(e) ***]
(f) a decreasing adjustment in case of decrease in VAT rate;
(g) a decreasing adjustment for carrying forward negative net amount from previous tax period;
(h) a decreasing adjustment for VAT overpaid in previous tax period; 3[***]
4[(hh) a decreasing adjustment after being incorporated; or ]
(i) any other decreasing adjustment as may be prescribed. ]
1 Clause (103) was substituted by section 54(12) of the Finance Act, 2020 (Act No. 09 of 2020) with effect from 01 July 2020.
2 Clause (13)(e) was omitted by section 35(d) of the Finance Act, 2021 (Act No. 11 of 2021) with effect from 01 July 2021.
3 The word “or” is repealed by section 2(j) of the Finance Ordinance, 2025 (Ordinance No. 28 of 2025) with effect from 01 July, 2025.
4 Sub-section (hh) was inserted by section 2(j) of the Finance Ordinance, 2025 (Ordinance No. 28 of 2025) with effect from 01 July, 2025.
Disclaimer: This is the authentic English text of The Value Added Tax and Supplementary Duty Act 2012, as published under SRO No. 440-Law/2025/326-Mushak dated 05 November 2025. In the event of any inconsistency or conflict between the content on this website and the official Government publications or gazette notifications relating to laws, rules, regulations or SROs, the official Government publications and notifications shall prevail.