Sales Tax Instructions

Sales Tax Instructions, 2009
(19) Amendment of Section 71 – powers to make special procedures. – Section
71 has been amended to:
(a)
(b)
empower the Federal Government to prescribe any alternate
procedure for collection of the turnover tax of section 3A; and
remove all doubts and ambiguities about the Trade Enrolment
Certificate (TEC) schemes practiced until 1998-99. Provisions of
section 71(3) of the Act may be cited in all cases of disputes,
adjudication, appeals and litigations in his regard for resolution/
decision of such cases.
(20) Income Tax Provisions for Sales Tax Payers:
(a)
(b)
(c)
(d)
A new section 59-E has been inserted in the Income Tax
Ordinance, 1979, under which the CBR has been empowered to
make a scheme for payment of a fixed or minimum tax by the
retailers who are registered under section 3AA of the
Sales Tax Act, 1990.
A new section 80-E has been inserted in the Income Tax
Ordinance, 1979, under which the turnover tax payers enrolled
under section 3A of the Sales Tax Act, 1990 have been given an
option to pay income tax equal to 1% of their turnover declared
in their turnover tax returns. This would be treated as final
discharge of tax liability under Income Tax Ordinance and the
Tax payer will not be required to file the return of total income
under section 55 of the Ordinance. However, where this 1% tax
is less than the tax paid/payable on the last assessed income, the
taxpayers will be required to pay the differential amount of tax.
Section 143-B of the Income Tax Ordinance, 1979, has been
amended and the turnover taxpayers enrolled un- der section 3A
of the Sales Tax Act, 1990 are not required to file income tax
return and can, instead, file a brief statement under section 143-B
of the Income Tax Ordinance, 1979.
The clause (24) of Part IV of the Second Schedule has been so
amended that no action will be taken under income tax law prior
to assessment year 2000-2002 on account of suppression or nondeclaration
of sales detected on the basis of sales tax return filed
by the person registered under Sales Tax Act. The year 1999-
2000, used in paragraph 3 of the Sales Tax General Order No.
4/99, may be amended to read as 2001-2002 accordingly.
(21) Common Tax Identifier (CTI).—The provisions of section 20 of the
Finance Act, 1999 may be carefully studied. Further instructions in this
regard shall be issued by Tax Policy Wing of CBR or the Computer
Section of the Sales Tax Wing of CBR.
B. New Exemptions