Sales Tax Instructions

Sales Tax Instructions, 2009
VAT mode. This notification, therefore, addresses the difficulties of such taxpayers in the
weaving sector for the period upto 30.6.1998.
5. S.R.O. 395(I)/2001, dated 18.06.2001:- The overwhelming bulk of
weaving and sizing sector remained completely outside the tax net till recently. The
recent compliance to GST requirements by such units was on the basis of verbal
assurances from the government to forgo their liabilities for the past. This notification has
been issued to take care of difficulties of such weaving and sizing units etc.
6. Guidelines:- In other to ensure that these notifications are not
misinterpreted or the relief admissible thereunder is not misused by any person, the
Collectorates are directed to follow the following instructions:-
i) The said notifications need to be understood in the right perspective.
They are not amnesty schemes but conditional relief notifications
covering precisely defined categories of taxpayers. They address the
technical objections faced by affected units due to transition from fixed
tax system to VAT mode. The determining factor is that such taxpayers
steadfastly remained registered and (generally) continued to comply,
albeit in a flawed manner;
ii)
iii)
iv)
None of these notifications is meant for such taxpayers who, merely to
avoid or evade their emerging tax obligations, surrendered their sales tax
registrations or became consistent non-filers or they started afresh under
some other registration number or simply skipped out of the system.
Benefit of these notifications is also not admissible to those taxpayers
who were guilty of tax fraud (not merely departmental allegation of tax
fraud but legally substantiated or sustainable tax fraud);
These notifications are only for alleviation of difficulties of those who
seek redress with clean hands. In each of these notifications, waiver or
exemption covers only the period upto the start of compliance to the
VAT mode and not even for one day thereafter;
Each of the notifications contains certain conditions which need to be
fulfilled by a person before availing the benefit thereof. The Collectors of
Sales Tax are required to issue formal orders for grant of relief under
these notifications. The Collectors may however, nominate any
Additional Collector under their jurisdiction to work on their behalf in
this regard;