Sales Tax Instructions

Sales Tax Instructions, 2009
6. Sections ―e‖ and ―f‖ are
imported portions of Appendix-1
which is the declaration of the
applicant and are about the brief
production process used in the
conversion of input goods into
output goods and the input
output ratios respectively.
Clause 3(d) of para 45 of CGO
12/2002 requires the AC to take
note of the relationship between
the estimated input to output
ratios declared in section ‗f‘ and
to verify their consistency in
relation with the production
process given in section ‗e‘
including wastage element. The
DSAO vide para 3(a) of letter
No.DSAO/MISC/140/2001/1776
dated 03.04.03 clarified that the
element of wastage (which
implicitly means input output
ratio) is an anticipated one and is
to be verified at the time of
audit.
CBR has already issued
instructions on the issue vide
CBR‘s C. No. 4(8) TEPI/2001
dated 07.04.2003 read with C. No.
4(8) DTRE/2001 (Pt) dated
30.12.2003. These are briefly
reiterated as follows:
Fluctuations in declaration upto
10% are acceptable.
DSAO will finally ascertain the
accuracy of the declared inputoutput
ratios/wastages on the basis
of DTRE audit.
DSAO/IOCO will regularly
circulate the already determined
input-output ratios/wastages to all
Collectorates for use in the
processing of DTRE applications.
In case of exportable, where inputoutput
ratios /wastages have
already been determined by
DSAO/IOCO, the DTRE applicants
will be required to base their
declarations on the same.
The concerned Assistant/Deputy
Collector should match the
declarations with the already
available data and exercise due care
before recommending the case for
grant of DTRE approval.