Sales Tax Instructions

Sales Tax Instructions, 2009
(2) In clause (a) of sub-section (2) of section 3 of the Sales Tax Act, 1990,
after the words ―at such‖ the words ―higher or lower‖ has been added. This
amendment is of classificatory nature because at present section 3 (2) (a)
empowers the Federal Government to charge tax at any rate that may be specified
in the notification to be issued. It also seeks to add in sub-sections (4) and (5)
after the words ―Central Board of Revenue‖ the words ―or the Collector‖. This
will empower the Collector to fix sales tax with the prior approval of the Federal
Government.
(3) A new section 3B has been added after section 3 of the Sales Tax Act,
1990 to provide in sub-section (1) that a person who has collected or collects any
tax or charge which is not payable under the Act and the incidence of which has
been passed on to the customer, shall pay the amount so collected to the Federal
Government and no claim for refund in respect of such amount will be
admissible. In sub-section (2) of the said section it has been provided that any
amount payable to the Federal Government under sub-section (1) shall be
deemed to be an arrear of tax or charge payable under the Act and shall be
recoverable accordingly. In sub-section (3) of the said section the burden of proof
that the incidence has or has not been passed on to the consumer shall be on the
person collecting the tax.
(4) A new clause (iv) has been added to sub-section (2) of section 7 of the
Sales Tax Act, 1990, to allow deduction of input tax from output tax on the basis
of invoice issued by a registered person making exempt supply.
(5) A new proviso has been added after the second proviso of section 10 of
the Sales Tax Act, 1990, to enable the tax payers to get adjustment of sales tax
charged on plant and machinery, spare parts of plant and machinery and the
machine tools acquired after Ist July, 1994 in 25 monthly installments.
(6) A new proviso to section 11 of the Sales Tax Act, 1990, has been added
to require Sales Tax Officer to hear the taxpayer before any order is passed to
enhance his tax liability.
(7) A proviso to section 15 of the Sales Tax Act, 1990, has been added to
require a new business concern to apply for registrations to the Collector of Sales
Tax before he makes any taxable supply.
(8) In sub-section (1) of section 33 of the Sales Tax Act, 1990, for the words
of ―five thousand rupees‖ the words ―which may extend to one thousand rupees
per day for such failure but shall not be less than five hundred rupees per day‖
has been substituted. In sub section (2) of section 33 a penalty of Rs. 25000/- or
the amount of tax due for the month preceding the month in which the offence
has been committed, whichever is higher, has been prescribed.
(9) In sub-section (1) of section 35 of the Sales Tax Act, 1990, the words ―or
a wholesaler‖ after the word ―manufacturer‖ has been added thereby requiring
him like the manufacturer to issue transport permit for any taxable supply made
by him.