Sales Tax Instructions

Sales Tax Instructions, 2009
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SALES TAX GENERAL ORDER NO.1/2003.
C.No.3(12)ST-L&P/2002 DATED 27 TH FEBRUARY, 2003
SUBJECT:- FORMAT OF BANK GUARANTEE TO BE FURNISHED BY
COMMERCIAL EXPORTERS IN TERMS OF SRO 203(I)/2003
DATED 27.02.2003.
The Central Board of Revenue is pleased to prescribe the following format of
bank guarantee to be furnished by commercial exporters in terms of SRO.203 (I)/2003
dated 27.02.2003, if they want to claim Sales Tax Refunds before the issuance of Bank
Credit Advice (BCA) confirming remittance of sales proceeds of exported goods.
[Rescinded vide STGO No.3 of 2004 dated 12 th June, 2004]
Format:
BANK GUARANTEE
Whereas the Collector of Sales Tax, has consented to release / sanction refund claim
pertaining to the period ________, filed by ____(Commercial Exporter)__ on
___________, in respect of shipping bill (s) # ______________ dated ________, pending
production of Bank Credit Advice (BCA) from the country to which goods have been
exported or from the letter of credit opening bank and verification of payment of sales tax
by suppliers, on furnishing a Bank Guarantee equivalent to the amount of input sales tax,
Rs ( in figures) [Rupees (in words) ] involved against the purchases used in the
manufacture of goods exported vide the said shipping bill (s).
Whereas we the _(Bank) ____ do hereby undertake to make payment of aforementioned
amount of input sales tax, alongwith additional tax @ 2% per month and penalty @ 3%
on demand to the Collector of Sales Tax, or any Officer authorized by him in this regard
without objection or reservation or any reference to the above named commercial
exporter, within seven days of the receipt of the demand notice.
In case we the ___ _(Bank) __ __ fail to make the payment within seven days of the said
demand, the ___ _(Bank) ____ shall be liable to pay a compensation @ 20% per annum
for the period from the expiry of the seventh day to the date when the actual payment is
made to the Collector of Sales Tax. The Guarantee shall remain valid till payment of
whole of the amount demanded alongwith compensation as prescribed above or receipt of
release orders issued by the Collector of Sales Tax, whichever is earlier.
We the ____(Bank) _____ bind ourselves to pay, unconditionally, the amount of sales
tax etc. mentioned above, in case no release order is received from Collector of Sales
Tax, ________ , before the expiry of this Bank Guarantee on ________________.