Sales Tax Instructions

Sales Tax Instructions, 2009
Act, 1990. This measure has been implemented through SRO 507(I)/91,
dated the 30 th May, 1991.
(c)
Since sales tax is charged on the aforesaid items at the manufacturing
stage the wholesalers / distributors will be entitled to seek adjustment of
input tax against their tax liability on the basis of the tax invoice.
4. Extention of sales tax to the sales made by the commercial
importers:
(a)
(b)
(c)
Sales tax net is being extended to the sales made by the commercial
importers in respect of 9 imported items viz. airconditioners, deep
freezers, TV sets, ceramic tiles, sanitaryware, carpet synthetic (machine
made), carpet woolen (machine made), foam and foam products and
paperboard.
The commercial importers engaged in the import and sales of the
aforesaid items may be identified and registered under Chapter-III, of the
Sales Tax (Amendment) Act, 1990.
Since these goods are charged to tax at the import stage, the commercial
importers will be entitled to seek adjustment of input tax against their
tax liability on their sales on the basis of the bill of entry.
5. Withdrawal of tax exemptions:
(a)
(b)
The general exemption Notification No. 599(I)/90, dated the 7 th June,
1990, has been superseded by SRO 505(I)/91, dated the 30 th May, 1991.
Two important points are to be noted: (a) except the 16 items (list
enclosed), no other exemption has been withdrawn. Similarly, no new
exemption has been granted. In case of any doubt or omission in the
Notifications a telex reference may be made to the Board without any
delay.
The persons engaged in the manufacture of the aforesaid items may
please be identified and action may be taken to register them under the
relevant provisions of the Sales Tax (Amendment) Act, 1990.
6. Increase in the rate of processed fabrics. —Tax rate applicable to
processed fabrics has been increased from Rs. 0.25 per sq. metre to Rs. 0.50 per sq.
metre. The processed fabrics will now be charged to Sales Tax at the rate of Rs. 0.50 per
sq. metre This budgetary measure has been implemented through SRO 508(I)/91, dated
the 30 th May, 1991.