Sales Tax Instructions

Sales Tax Instructions, 2009
6. Notice of demand. -- (1) The Assistant Collector having jurisdiction shall deliver, to a
manufacturer, in the month of March, 1992, for the period from October, 1991 to June, 1992
during the financial year 1991-92, and in the month o July for the subsequent years, a notice of
demand for the amount of sales tax payable for the financial year and the amount of monthly
installment:
Provided that for the financial year 1991-92, the amount of total sales tax payable shall
be for the period from October, 1991 to June, 1992.
(2) The demand notice required to be issued by the Assistant Collector under subrule
(1) shall be based on the declaration in rule 4, duly verified from the survey report of the
Joint Survey Committee read with Proviso to rule 5.
7. Manner of payment of sales tax. -- (1) The manufacturer shall deposit in the Government
treasury the monthly fixed amount of sales tax, payable by him, by the 20 th day of the month
following the month to which it release and shall produce a signed copy of the treasury challan
under which payment has been made to the Assistant Collector of Sales Tax, having jurisdiction,
by the 22 nd day of that following month.
(2) The manufacturer shall furnish to the Collector by the 15 th of March 1992, for
the financial year 1991-92, and by the 5 th day of July of each subsequent year, an irrecoverable
and revolving bank guarantee from a scheduled bank or an insurance guarantee, from one of the
insurance companies as may be approved by the Board, equal to the monthly fixed amount of sales
tax, which he is liable to pay, plus 5 percent as additional tax. In the event of the manufacturer‘s
failing to pay the monthly fixed amount of sales tax, by the due date, the bank or as the case may
be, the insurance company shall pay, on demand, the amount due plus additional sales tax as
aforesaid:
Provided that fixed amount of Sales Tax for the period from 1 st October, 1991 to 31 st January,
1992 shall be deposited by the manufacturer in monthly installment not exceeding twelve as the
Collector may fix.
(3) (i) Notwithstanding the provisions of sub-rules (1) and (2), a manufacturer may
opt to pay the monthly fixed amount of sales tax, within the month to which it relates, in three
installments in the following manner:-
Each installment, so payable shall be not less than one third of the fixed amount of sales tax paid
in the month proceeding the month to which it relates;
(ii) The first installment shall be paid by the 11 th day of month on which it relates
and the second and third installments shall be paid by the 21 st day and the last working day of
month respectively; and
(iii) the amount of the third installment shall be equal to the balance of the monthly
amount of fixed tax due for the month.
8. Payment of sales tax by a new manufacturer. -- The manufacturer, who commences
production of re-rolled mild steel products during the course of a financial year for the first time,
shall make a declaration in writing to the Assistant Collector at least ten days before the
commencement of production in the manner specified in rule 4 and shall be liable to pay the fixed
amount of sales tax from the month during which the commences production.
9. Dismantling and removing of mill. -- If, during the course of a financial year, a
manufacturer dismantles and removes from the factory one or more of the re-rolling mills,
installed in his factory, he shall be liable to pay the monthly fixed amount of sales tax for the
month in which the dismantling and removal of the mills has taken place subject to verification by
the Joint Survey Committee referred to in rule-4.