Sales Tax Instructions

Sales Tax Instructions, 2009
(10) The provision of section 36 of the Sales Tax Act, 1990, have been
substituted with the following:-
(1) A show cause notice may be given within ten years for the
recovery of tax not levied or short levied or erroneously refunded on
account of collusion or deliberate act.
(2) In case of inadvertence, error or misconstruction, a notice
to the person liable to pay any amount on that account shall be served
within three years of the relevant date.
(3) The appropriate officer, after considering the representation shall
determine the amount of tax which shall be paid by the person
concerned.
(4) The relevant date means the time of payment of tax or charge
under section 6 and where the tax or charge has been erroneously
refunded, the date of its refund.
(11) In sub-section (3) of section 37 of the Sales Tax Act, 1990, for the figure
―223‖ the figure ―228‖ has been substituted which is the relevant section of
Pakistan Penal Code.
(12) A new section 37-A has been added after section 37 of the Sales Tax
Act, 1990, to empower the officer of sales tax duly authorized under the Act to
arrest any person who evades sales tax. All the arrests made under the Act or the
rules made thereunder shall be carried out in accordance with the relevant
provisions of the Code of Criminal Procedure of 1898 (V of 1898). It also
provides that a person who evades tax shall be punishable with imprisonment
which may extend to five years or with fine or both. This new section also
authorizes Collector of Sales Tax either before or after the institution of
proceedings to compound such offence.
(13) A new section 40-A has been added after section 40 of the Sales Tax
Act, 1990, to-
(1) Empower Assistant Collector to initiate search after preparing a
statement of the grounds of his belief that goods, documents or things for
which a search is to be made under the relevant provisions of law are
likely to be removed before the formalities for search are completed.
(2) A copy of the grounds to make a search shall be left at the
premises so searched or shall be delivered to the occupier of that place.
(3) No suit or prosecution or legal proceedings shall be
instituted except with the previous sanction of the Federal Government
against any officer in respect of anything done or purporting to be done in
exercise of the powers conferred by sub-section (1) of sub-section (2)
above.