Sales Tax Instructions

Sales Tax Instructions, 2009
19. Amendment has been proposed in section 6 of the Act whereby
provisions of section 31A of the Customs Act would be applicable mutatis mutandis for
the purposes of sales tax on imported goods.
20 Amendment has been proposed in section 10 of the Act whereby input
adjustments would be carried forward by registered manufacturers, importers,
wholesalers and retailers to the next tax period, except in case of export refund. Export
refund claims should be processed and sanctioned expeditiously in a manner that genuine
and bona fide exporters and their claims are facilitated but the bogus, non-genuine,
fraudulent and in-admissible claims are discouraged and claimants thereof are adequately
punished. For achieving this objective, audit may be strengthened and made effective and
the profiting of exporters may also be done.
21. It is proposed to substitute section 21 of the Act. New section provides
for detailed and simplified procedure for de-registration of registered persons.
Collectorates should not keep dormant registrations with them any more. Registration of
persons who have not filed returns for six consecutive months should be de-registered in
terms of the new section 21(4).
22. Amendment has been proposed in section 60 of the Act whereby Federal
Government through a notification could allow delivery of taxable goods without
payment of sales tax to registered manufacturers-cum-exporters and registered
commercial exporters. Necessary notification specifying the items and laying down a
procedure, will be issued separately to provide incentives for exports.
23. A new section 32A has been proposed for inclusion in the Sales Tax Act,
where Chartered Accountants and Cost & Management Accountants could be assigned
audit work.
24. A new section 72 has been proposed for addition in the Act whereby all
officers of sales tax and other persons employed in the execution of the Act will observe
and follow, except in quasi-judicial matters, the orders issued by the Board.
25. Definition of ―retail price‖ has been proposed to exclude element of
―Octroi‖ from the definition to bring it at par with the corresponding definition in the
Central Excises Act, 1944. Simultaneously, the Third Schedule to the Act is proposed to
be amended (w.e.f. 01.07.1998) for levy of sales tax on the basis of ―value of supply‖
rather than that on the basis of ―retail price‖ on aerated waters, beverages, syrup,
fruit/vegetable juices and squashes shall be assessed on the basis of retail price.
26. Levy of sales tax on ―sugar‖ shall continue at 12.5% under the Sales Tax
Act, 1990 (the new sixth schedule thereof).
IV
GENERAL
27 The instructions contained in this letter are merely illustrative in nature
and are not exhaustive ones. All relevant provisions of the Finance Bill and the