Sales Tax Instructions

Sales Tax Instructions, 2009
(x)
(xi)
(xii)
(xiii)
(xiv)
and 26A and all other references to turnover tax in the Act.
Simultaneously, the threshold for exemption for both manufacturers as
well as retailers has been fixed at Rs. 5 million per annum.
Consequently, retailers and manufacturers having annual turnover less
than five million rupees shall not be subjected to sales tax. Collectors are
advised to process the cases for deregistration of all such persons
expeditiously. For this purpose a task force shall be established in each
Collectorate, which will be responsible to process all the applications for
deregistration and accomplish the task within one month, and a
compliance report may be furnished to the Board.
Because of the changes mentioned at serial numbers (vi), (vii) and (viii),
the format of sales tax return-cum-payment challan has also been
amended. Collectors are advised to educate the taxpayers about the new
sales tax return forms.
To ensure compliance from the retail sector, registered retailers with a
turnover of more than
Rs. 5 million per annum, have been allowed to pay sales tax on the basis
of 15% value addition. This scheme shall take effect from 1st July,
2004. The procedure prescribed for retailers in Chapter III of the Sales
Tax Special Procedures Rules, 2004 [SRO. 484(I)/2004, dated 12th
June, 2004] provides for simplified record-keeping requirements, and
the requirements for audit have also been relaxed. The Collectors are
directed to monitor and ensure that the retailers make the requisite value
addition. It is further desired to furnish monthly report to the Board
regarding the number of retailers registered and operating under this
scheme and the amount of tax paid by them.
Previously, registered persons were not entitled to claim input
adjustment against the purchase of certain goods vide SRO. 578(I)/98,
dated 12th June, 1998. Input tax adjustment has now been allowed
against all purchases made by a registered persons except vehicles, food,
beverages, garments, gifts and give-aways, etc.. by superceding the
aforesaid notification through SRO. 490(I)/2004, dated 12th June, 2004.
The term 'Stock-in-trade' has also been defined to avoid disputes in this
regard.
The period after which persons other than exporters may claim refund of
carry forward amount has been reduced from 12 months to 6 months
through an amendment made in section 10 of the Sales Tax Act, 1990
read with SRO. 510(I)/2004, dated 12th June, 2004. The Collectors are
directed to ensure prompt payment of any refund, which may accrue on
this account.
The activation charges for cellular telephone activation or energization
have been reduced from Rs. 2000/- per connection to Rs. 1000/- per
connection, through an amendment in SRO. 390(I)/2001, dated 18th
June, 2001 vide Notification SRO. 499(I)/2004, dated 12th June, 2004.