Sales Tax Instructions

Sales Tax Instructions, 2009
order to calculate quantity of inputs
involved so as to estimate duty/taxes
free allowance under rule 297(4). It
may also be mentioned that maximum
export production and consequently
quantity of inputs can only be
ascertained from shipping bills and
not from ‗E‘ forms.
9. Rules 297(I) bounds the exporter to
provide list of goods along with
description, quantity & value of input
goods. The exporters are of that view
that they cannot provide exact
description and details of input goods
at the time of approval as the input
like chemical and dyes, accessories
may run into hundreds and keep on
varying. In this situation, the exporters
request that a general description such
as ―chemicals‖ should be given at the
time of approval under general PCT
headings.
10. Remission from Sales Tax on
input goods may be extended under
rule 297 B even without approval of
software by CBR.
11. Whether or not locally
manufactured, inputs otherwise liable
to sales tax acquired under DTRE
rules against zero-rated invoices can
be returned in terms of Debit-Credit
Note and Destruction of Goods Rules,
1996 read with section 9 of the Sales
Tax Act, 1990.
12. Whether the utilization period of
18 months enhanced from 12 months
by amending rule 298 of DTRE
The exporters may not be allowed to
provide general or vague description
like chemicals dyes & accessories.
They should be asked to provide
complete, exact and correct
description and quantity of all inputs.
They do have an option to request for
any subsequent amendment subject to
approval by the Collector. In this
regard, CBR vide its letter C. No. 4(8)
TEPI/2001 dated 07.04.2003 (copy
enclosed) has, however, already
advised the Collectorates to accept
variations (tolerance) up to 10%.
CBR is pleased to agree with such
interim arrangement provided that
information about purchase, import,
sales and export of goods is furnished
by the applicant in the formats given
in Annexes ‗A‘ ‗B‘ and ‗C‘ of CBR‘s
letter C. No . 4(8) DTRE/2003 (Part)
dated 11.10.2003 (copy enclosed) and
records are subsequently transposed to
the computerized format and are so
maintained whenever the software is
prescribed by CBR
Zero-rated supply being a taxable
supply and zero-rated invoice being a
tax invoice and the supplier being a
registered person (besides the direct
exporter being also a registered
person), the provision of section 9 of
the Sales Tax Act, 1990 read with the
rules issued there under shall ipso
facto apply.
The Collectors may examine such
genuine hardship cases and send their
specific recommendation for CBR‘s