Sales Tax Instructions

Sales Tax Instructions, 2009
In view of the aforesaid definition of the time of supply we understand that in case we have
received 100% advance against sale of vehicle no differential is required to be paid on any
subsequent increase in this Sales Tax rate.
We request you to kindly confirm our above understanding as soon as possible.
Thanking you,
Yours faithfully,
For Indus Motors Company Limited.
M. Naeemuddin Malik, S. Manager Finance.
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C.NO. 3(22) STP/98 DATED 28 TH DECEMBER, 1998
SUBJECT:-
VOLUNTARY REGISTRATION UNDER SECTION 18 OF THE
SALES TAX ACT, 1990-LEVY OF 1% FURTHER TAX UNDER
SECTOIN 3(1A) THEREOF.
Ever since the imposition of 1% further tax under section 3(1A) of the Sales Tax
Act, 1990, units, not otherwise liable to registration, started submitting-applications for
voluntary registration under section 18 thereof to save themselves from the levy of 1%
further tax.
2. Section 18(1) prescribes for voluntary registration of the option of a
person who makes or intends to make taxable supplies but is not to be registered. The
requirement for registration is given in section 14. ―Taxable supply‖ is defined in section
2(41) as ―other than a supply of goods which is exempt under section 13‖.
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3. A question has arisen whether: --
(a)
(b)
(c)
Person making supply of goods exempt under section 13 are entitled to
voluntary registration under section 18(1); and
On such voluntary registration, they have to fulfill all duties and
responsibilities (e.g. filing of returns, etc.) as is assigned to a ―registered
person‖ under the Act and also to avail of the benefits (e.g. non-payment
of 1% further tax, input tax credit, etc.) as is available to a ―registered
person‖ under the Act; and
On such voluntary registration, their supplies (if otherwise exempt under
section (3) become liable to sales tax and the exemption stand negated.
4. CBR is of the following views on the aforesaid issues, ad-seriatum: --