Sales Tax Instructions

(v)
(vi)
Sales Tax Instructions, 2009
services provided by shipping agents, including Non-Vessel Operating
Cargo Carriers (NVOCC), slot-carriers, international freight forwarders
and consolidators, have been subjected to central excise duty to be
collected in VAT-mode. The Central Excise Notification SRO.
617(I)/2000, dated 2nd September, 2000 has been amended accordingly.
Since it is a new levy, Collectors are advised to provide proper guidance
the taxpayers and to ensure proper levy and collection of sales tax from
these sectors in accordance with the procedures prescribed in the Central
Excise Rules, 1944.
Import and supply of vegetable ghee and cooking oil have been
conditionally exempted from payment of sales tax by inserting a new
entry at serial No. 6A of the Sixth Schedule to the Sales Tax Act, 1990.
Import and supply of vegetable ghee and cooking oil will now be
subjected to central excise duty, which shall be collected in the manner
as if it were a tax collected under section 3 of the Act. Necessary
amendments have also been made in the Central Excises Act, 1944.
Collectors are advised to closely monitor the payment of central excise
duty in VAT-mode, especially in the sectors or areas which were
previously non-compliant on the plea of non-extension of the Sales Tax
Act, 1990 to such areas.
With regard to presumptive assessment (i.e. determination of minimum
tax liability in respect of non-filers), software has already been
developed and provided to the Collectorates. A task force headed by the
Deputy/Assistant Collector of the Assessment and Processing Division
shall be established in each Collectorate, which shall actively pursue the
cases and ensure timely follow-up for maximum recovery of sales tax
from non-filers. Collectors shall monitor progress in this regard and send
a monthly report to the Board. Targets in this regard will be assigned to
the Collectorates shortly.
B. RELIEF MEASURES:
(i)
(ii)
Import and supply of plant, machinery and equipment has been zerorated
vide SRO. 500(I)/2004, dated 12th June, 2004. The requirement of
indemnity bonds and installation certificates has also been dispensed
with. Zero-rating on import of such plant, machinery and equipment is
subject to the conditions specified in the respective customs
notifications, while no condition is attached to local supply. However,
maintenance or consumable spares imported/procured subsequently do
not fall in the ambit of this relief.
The supply of ginned cotton has been zero-rated under SRO.
500(I)/2004, dated 12th June, 2004, subject to the supplier's observing
the procedure laid down in Chapter VII of the Sales Tax Special
Procedures Rules, 2004 [SRO. 484(I)/2004, dated 12th June, 2004].
Collectors are advised to ensure that ginners and other suppliers of