Sales Tax Instructions

Sales Tax Instructions, 2009
Yes. In the case, he will not charge any output tax on the value addition on
imported goods or someone else‘s goods being sold by him as wholesaler. He will only
pass on the incidence of sales tax which had been paid on the goods when he acquired
them. Of course, he can charge profit on such a sale on which no sales tax is leviable at
present. In his tax return, he will not reflect the sale and purchase of these goods for the
reasons given at paragraph (4) above.
(Para 6 amended by leaflet issued by Central Board of Revenue vide leaflet No. 607/1/96,
June, 1996, ―More answer to common question‖.)
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C. B. R.‘s LEAFLET NO. 600/1/96, JUNE, 1996
CONCERNS OF FIXED TAXPAYERS
Now that the government has announced dis-continuation of fixed tax schemes with
effect from 30.06.1996 there are many questions about what would be the position of
such registered persons after 30.06.1996. Some of the major concerns are being
answered:-
1. Is there any fixed tax scheme, which will continue beyond 30.06.1996?
The only exception would be brick kilns who would remain under the fixed tax scheme
upto 30.06.1997. The fixed tax rates for brick kilns for 1996-97 will be announced soon.
2. Do the persons previously registered under fixed tax schemes need to
register again?
No. The previous registration number is valid even after discontinuation of fixed tax
schemes. In due course of time, a Registration Pack will be sent to all fixed taxpayers for
submission of fresh application for allocation of a new registration number. For the time
being you need not worry about that.
3. Is it obligatory for me to file a monthly return for the period 01.07.1996
onwards?
Yes. Being a registered person, your return has to be filed for the tax period of July, 1996
during the period 1 st to 20 th August, 1996 and so on every month.
4. What if I do not file my return?
There are penalties for non-filing of returns.
5. What if I should file my monthly return showing the same amount of sales
tax which was being previously paid by me as my monthly installment under the
fixed tax scheme?
The return has to be based on the correct declaration about the sales, during the relevant
tax period, the input tax and output tax etc. Once the return is correctly filled and
submitted, the taxable payable, if any, would depend on the sales and purchases as well
as the input and output tax during the tax period. You can have more information on this
from our leaflet, titled, Filling in Your Return-cum-Challan Form‖ .