Sales Tax Instructions

Sales Tax Instructions, 2009
(xv)
(xvi)
As a facilitation measure the condition of deposit of 15% of the principal amount
of tax for filing of appeal has been done away with (effective from 1 st July,
2006).
Rules relating to sales tax payment on vehicles have been amended to exclude
the requirement of payment of sales tax on old, used and second hand vehicles
keeping in view the problems faced by the public in direct person-to-person
transfers without the involvement of a dealer.
III.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
SIMPLIFICATION MEASURES
In a major simplification and facilitation move, 76 operative notifications of
Sales Tax and Federal Excise have been merged into 21 notifications. This will
facilitate the taxpayers by making available all the legal provision relating to a
specific issue in a single notification.
To reduce the cost of doing business and to promote tax compliance, a combined
monthly return has been prescribed for Sales tax & Federal Excise. The return
has been simplified and columns for adjustment advice details have been
provided therein. The requirement of monthly return for commercial importers
has been done away with and they have been given the facility to file returns on
quarterly basis (effective from 1stJuly 2006).
The Registration Rules have been amended vide SRO 555(I)/2006 to minimize
the role of Local Registration Office and the applicants for fresh registration can
apply directly to the Centralized Registration Office which will expedite the
registration process. The applicants will have option to file the applications
electronically through internet (effective from 1 st July 2006).
The facility of electronic filing of return is being extended to all registered
persons. However, it will be optional for registered persons other than corporate
sector to file the return electronically (effective from 1 st July, 2006).
The refund rules have been amended with a view to simplify them. The scope of
the rules has been enhanced to person making local zero rated supplies, persons
exporting goods the local supply of which is exempt and also the persons who are
not able to adjust excess input tax as allowed under an adjustment advice in three
months (effective from 1 st July 2006).
The new concept of e-intermediaries has been introduced in the Act whereby
authorized e-intermediaries shall file e-returns on behalf of other registered
persons under their digital signatures. This will facilitate the taxpayers who lack
facilities or know-how of electronic filing. A detailed procedure regarding
appointment and responsibilities of e-intermediaries is being issued (effective
from 1 st July 2006).