Sales Tax Instructions

Sales Tax Instructions, 2009
(ii)
(iii)
(iv)
(v)
(vi)
has also been made in sub-section (1) of section 7 of the Act, whereby a
registered person shall be entitled to deduct input tax payable by him on
accrual basis. Section 22 of the Act has been amended to require a
registered person to maintain record of the banking instruments under
section 73.
SRO. 507(I)/2003, dated 7th June, 2003 has been superseded vide SRO.
488(I)/2004, dated 12th June, 2004 to prohibit supply of filter rods for
cigarettes (PCT 5502.0090) to the unregistered persons, in addition to
the earlier goods: polypropylene granules (tape yarn grade - PCT
3902.1000), and other items listed in the superseded notification.
The Notification SRO. 508(I)/2004, dated 12th June, 2004 issued by the
Board in exercise of the powers conferred under the newly inserted subsection
(5) of section 26 of the Act, requires the persons manufacturing,
supplying and exporting textile goods to furnish a monthly summary
statement of all their purchases & sales made during a tax period.
Collectors are required to ensure that the requisite information is
received from all concerned regularly and that it is used to monitor
proper payment of tax from these sectors. In case of failure to provide
this information, input tax will be disallowed and the defaulting
concerns will be liable to penalty by virtue of new provisions inserted in
section 8 and section 33 of the Act respectively.
Another Notification, SRO. 509(I)/2004, dated l2th June, 2004, has been
issued requiring all commercial importers of polypropylene granules
(tape-yarn grade) to furnish information on a monthly basis in the
prescribed format. Concerned Collectors are advised to analyse the data
provided by the registered persons for correct payment of tax.
Comprehensive rules for collection and payment of tax from the service
sector have been issued in Chapter XI of the Sales Tax Special
Procedures Rules, 2004 [SRO. 484(I)/2004, dated 12th June, 2004], to
regulate activity of service providers. These Rules encompass all the
requisite details and parameters regarding chargeability and payment of
sales tax from the service providers brought under the tax net through
respective Ordinances. All the earlier rulings, clarifications and
instructions issued on the subject shall stand withdrawn. Collectors are
required to ensure that the provisions of these rules are complied with &
followed by the service providers.
Different Rules and Special Procedures notified from time to time have
been updated and consolidated as the Sales Tax Special Procedures
Rules, 2004 and the Sales Tax Rules, 2004 [SRO. Nos. 484(I)/2004 and
485(I)/2004, both dated 12th June, 2004]. The Sales Tax Rules, 2004
shall come into effect from the 1st July, 2004, except its Chapter V
(Refund), which shall come into effect on the date to be notified later by
the Board. The Sales Tax Special Procedures Rules, 2004 shall also
come into effect on the 1st July, 2004, but its Chapter VII (Special