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Sales Tax Instructions

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<strong>Sales</strong> <strong>Tax</strong> <strong>Instructions</strong>, 2009<br />

2. Items from which sales tax exemption has been withdrawn. --A list of items<br />

containing heading numbers of the First Schedule to the Customs Act, 1969 is enclosed.<br />

The list, which is not complete in all respects, has been prepared in order to facilitate the<br />

staff and the public. For correct legal position, the relevant Notifications may be<br />

consulted.<br />

3. General Exemption Notification No. SRO 599(I)/90, dated the 7th June,<br />

1990. -- Hitherto, locally produced goods specified in Notification No. SRO 566(I)/89,<br />

dated the 3rd June, 1989 were exempt from payment of sales tax. The S.R.O. has been<br />

superseded by SRO 599(I)/90, dated the 7th June, 1990, which is based on the<br />

Harmonized System. This aspect may be borne is mind before determining the taxability<br />

or otherwise of any item.<br />

4. Machinery SRO 600(I)/90, dated the 7th June, 1990. -- This SRO has been<br />

issued in suppression of SRO 697(I)/77, dated the 4th August, 1977. the definition of<br />

machinery has remained unchanged, while the discrepancies have been removed, and the<br />

headings specified therein are now based on the Harmonized System. Due care may,<br />

therefore, been taken while determining the taxability or otherwise of any machinery<br />

item.<br />

5. Conditional Exemptions under SRO 598(I)/90, dated the 7th June, 1990. --<br />

The earlier conditional SRO 565(I)/89, dated 3rd June, 1989 has been superceded by<br />

SRO 598(I)/90, dated 7th June, 1990. In addition to the exemptions granted under the<br />

superceded Notification also contains certain exemptions, which were previously<br />

available under SRO 566(I)/89, dated the 3rd June, 1989.<br />

6. <strong>Sales</strong> tax on processed fabrics. -- The exemption of sales tax on processed<br />

fabrics in excess of Rs.0.25 per sq. meter continues. However, suitable amendments have<br />

been made in Notification numbers S.R.O.640(I)/89, dated the 17th June, 1989, SRO<br />

642(I), dated the 17th June, 1989 and SRO 643(I)/89, dated the 17th June, 1989 only to<br />

the extent of substituting the CCCN headings by the Harmonized System headings.<br />

7. Furniture. -- Exemption of sales tax is available to the workshops, retailers and<br />

showrooms in excess of the amounts specified in the Table of SRO 641(I)/89. This<br />

exemption limit has been revised and necessary amendment in respect thereof, has been<br />

made in the aforesaid Notification. For further details SRO 596(I)/90, dated the 7th June,<br />

1990 may be referred.<br />

8. Changes in the First Schedule to the Central Excises and Salt Act, 1944. --<br />

Rates of central excise duty on certain items specified in the First Schedule to the Central<br />

Excises and Salt Act, 1944 and exemptions available to some of the items have been<br />

rationalized. As a result, assessable value of such items for the purposes of levy of sales<br />

tax might change. This aspect may be kept in view and the field staff may be advised<br />

accordingly. For exact details, budget documents relating to central excise may be<br />

carefully perused.

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