Sales Tax Instructions

Sales Tax Instructions, 2009
decision of such Court or Tribunal has to be honoured irrespective of the period
consumed in such litigation or any delay in the execution of such decision.
(M) FORMAT OF BANK GUARANTEE TO BE FURNISHED BY
COMMERCIAL EXPORTERS IN TERMS OF SRO 203(I)/2003, DATED 27.02.2003.
29. The Central Board of Revenue is pleased to prescribed the following
format of bank guarantee to be furnished by commercial exporters in terms of S.R.O.
203(I)/2003, dated the 27 th February, 2003 if they want to claim refund of sales tax before
issuance of the Bank Credit Advice (BCA) confirming remittance of sales tax proceeds of
their exported goods.
FORMAT OF BANK GURANTEE
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, along with 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 Guarantees shall
remain valid till payment of whole of the amount demanded along with compensation as
prescribed above or receipt of release order 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 _____________.
For and on behalf of the _____________ (Bank) _________________.
Witnesses:
Name _______________________
Name__________________________