Sales Tax Instructions

Sales Tax Instructions, 2009
provided for companies to obtain input tax adjustment beyond 90% at the
end of their financial year by submitting a certificate from their auditors.
For other taxpayers, the mechanism shall be notified later on. The system
of adjustment advices is being done away with.
(iii)
(iv)
To facilitate the large taxpayers SRO 465(I)/2007 dated 09.06.2007 has
been issued notifying Processing of Refund Claims of Large Taxpayers
Rules, 2007. The large taxpayers registered in LTUs may obtain their
refunds within three days of submission of a revolving bank guarantee.
The following Special Procedures have been abolished:-
(1) Iron and steel
(2) Commercial importers
(3) Stevedores
(4) Biscuits and confectionery
(5) Ship breakers
(6) Customs agents
(v)
(vi)
(vii)
(viii)
(ix)
The above sectors shall be required to pay sales tax on actual value
addition as per standard sales tax system of input tax adjustment. The
Collectors are directed to supervise the switchover to the new system and
to ensure better monitoring of these sectors.
A simplified scheme for retailers has been notified is Sales Tax Special
Procedure whereby the retailers shall not be required to file sales tax
return and shall discharge their sales tax liabilities at reduced rates
mentioned in the said procedure through income tax return on annual
basis.
Refund of sales tax under section 10 shall only be paid on zero-rated
supplies and exports. Refund shall not be admissible on supplies made to
unregistered persons.
The period of record retention in sales tax and federal excise is being
enhanced from three years to five years.
With the abolition of a number of Special Procedures, a single monthly
sales tax return is being notified shortly to be filed in August, 2007. Sale/
purchase summary is being made an annexure of return.
To check unregistered manufacturing, the registration threshold for
manufacturing has been linked with their utility bill in addition to
turnover of Rs.5 million by amending section 2 and Sixth Schedule of
the Act.