Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.1(16)STR/98. Pt. DATED 12 TH APRIL, 1999
SUBJECT:-
SALES TAX ON GOODS BY SMALL SWEETMEAT (MITHAEE)
MERCHANTS AND BAKERS.
I am directed to refer to the Federal Government‘s Notifctaion No. S. R. O.
458(I)/99, dated 06.04.1999 and to state that in terms of the Schedule to this notification
the simplified Sales Tax Rules, 1999 are applicable to the small suppliers of sweetmeats
(MITHAEE) and Bakery products as well.
2. All the sweetmeat manufacturers and Bakers having:-
(i)
(ii)
(iii)
(iv)
A turnover of less than rupees one million per annum;
having gas connections;
not using any other type of energy (e.g. wood, coal, cylinder gas, etc.) for
manufacture; and
operating not more than one shop/branch, may be given an option to pay
presumptive turnover tax equal to 25% of their gas bills for a month
under the simplified Sales Tax Procedure scheme in lieu of the turnover
tax payable under section 3A of the Sales Tax Act, 1990. However, in
case, they are already enrolled as turnover taxpayers under section 3A of
the Sales Tax Act, 1990 or qualify to be enrolled thereunder they will
continue to avail of the status of an enrolled person. In other words, it
will be an option to be exercised by such persons i.e. whether to pay
turnover tax @ 2% of their value of supplies as an enrolled person or pay
an amount equal to 25% of the Sui gas charges. However, it may be
ensured that the turnover tax @ 2% under section 3A of the Act is not
less than 25% of the Sui Gas Bill. The manufacturers of sweetmeats
(mithaee) and bakery products whose annual turnover exceeds rupees
one million will not be allowed to avail the benefits of the simplified
Sales Tax Rules, 1999.
3. In any case the arrears of tax for the year 1998-99 (whether on the basis
of gas bills consumption from June, 1998 or for the turnover from June, 1998) should be
recovered by 30.04.1999 positively. The defaulters may be explained the benefits of
amnesty under SRO 461(I)/99, dated 09.04.1999. the local representatives of All Pakistan
Anjuman-e-Tajran and the Sweetmeat (Mithaee) manufacturers and Baker‘s Association
or individual manufacturers of mithaee & bakery products may be approached and it
must be ensured that no business operating in the jurisdiction of the Collectorate is left
without recovery of the tax either @ 2% turnover tax or at 25% of the monthly Sui Gas
charges from the persons engaged in making supplies with a turnover not exceeding
rupees one million per annum.
4. A survey may be got conducted urgently and the mithaee & bakery
manufacturers of turnover category may be informed of this facility and also those of
SRO 461(I)/99, dated 09.04.1999.
5. A report on the subject be submitted to the Board by 01.05.1999 giving
names and addresses of Sweetmeat Merchants and Bakers from whom Sales Tax has
been recovered in the manner elaborated above.