Sales Tax Instructions

(ii)
Sales Tax Instructions, 2009
period June, 2005, to be filed by 15th July, 2005. Collectors of Sales Tax and
Excise will be responsible for regular monitoring of stocks of the goods
being subjected to zero-rate of sales tax, as well as the amount of carry
forward on the same. For this purpose, a Monitoring Cell will be established
in each Collectorate, headed by an officer not below the rank of a Deputy
Collector/Assistant Collector, whose name shall be communicated to the
Secretary, Sales Tax (Tariff) within two days of the Budget announcement.
The Collectors shall take all due precautions, including cross-matching of
invoices relating to carry forward amount through the STARR/STREAM, so
as to ensure that the amount of sales tax shown as carry forward by the
registered parsons has actually been paid as per the law; and that the claim is
in order and commensurate with the declarations already made in the
previous monthly returns.
All raw materials, components, sub-components and parts used in the
manufacturing of plant, machinery and equipment, which are chargeable to
sales tax @ zero per cent, have been zero-rated for the purposes of levy of
sales tax. Likewise, all raw materials, components, sub-components and parts
used in the manufacturing of tractors have been zero-rated. By virtue of the
said zero-rating, no manufacturer of capital goods or tractors shall be entitled
to claim refund of tax claimed to be paid on procurement/import of such
parts, components, etc.
(iii) Single stage sales tax at the rate of 3% of the declared turnover, has been
levied on retail sale of textile fabrics & made-ups, articles of apparel
including ready-made garments/fashion-wear, articles of leather including
footwear, carpets, surgical and sports goods. No facility of input tax
adjustment is allowed and the single stage tax shall also absolve the retailers
of non-corporate sector from income tax liability. A simplified procedure has
also been notified vide SRO. 539(I)/2005, dated 06-06-2005 for the purposes
of collection of sales tax from retail outlets of aforesaid items with an annual
turnover of more than five million rupees, w.e.f. 1st July, 2005. The
Collectors are advised to immediately have the commercial localities
scrutinized to determine the potential registrants. The concerned
Commissioners of Income Tax, in whose jurisdiction such retail-level
businesses are being assessed, should also be contacted to obtain lists of all
such outlets which should be then intimated of this new levy through
appropriately worded communication. A focal person shall be appointed in
the Collectorate who shall monitor progress and report compliance to the
Board on a fortnightly basis. Secretary, Sales Tax (Tariff) has been appointed
focal person in the Board with whom all the correspondence in this regard
shall be made. The Collectors should ensure that all such exercise is
completed well before this provision comes into effect i.e. 1st July, 2005.
(iv)
With a view to enable the defaulting taxpayers to liquidate their arrear
liability, one time waiver of additional tax and penalty has been granted vide
Notification SRO 520(I)/2005 dated 06.06.2005, if they voluntarily deposit