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GOVERNMENT
OF
MINISTRY OF FINANCE, ECONOMIC AFFAIRS,
STATISTICS & REVENUE
(REVENUE DIVISION)
********
NOTIFICATION
(SALES TAX)
S.R.O. 484(I)/2004.¾ In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, read with clause (9) of section 2, sections 3, 3AA and 4, sub-section (2) of section 6, section 7A, clause (b) of sub-section (1) of section 8, clause (a) of sub-section (2) of section 13, sections 26AA and 34A, and the first and second provisos to section 45 thereof, the Federal Government is pleased to make the following rules, namely:—
THE SALES TAX SPECIAL PROCEDURES RULES,
2004
1. Short title, application and commencement.¾(1) These rules may be called the Sales Tax Special Procedures Rules, 2004.
(2) They shall apply to such persons as are specified in the respective Chapter.
(3) These shall come into force on and from
CHAPTER I
SPECIAL PROCEDURE FOR
FILING OF NIL RETURNS
2. Application.—The provisions of this Chapter shall apply to every registered person who files a nil return for any tax period.
3. Definitions.—(1) In this Chapter, unless there is anything repugnant in the subject or context,—
(a) “Act” means the Sales Tax Act, 1990;
(b) “Computer Section” means Computer Section of the Collectorate;
(c) “Collectorate” means the office of the Collector having jurisdiction;
(d) “nil return” means a return indicating that no sales tax is payable by the registered person in respect of the tax period to which the return relates, and includes a null return and a return where carry-forward or refund is claimed;
(e) “Nil Return Receipt Counter” means a counter set up in the Collectorate for the purpose of receiving nil returns; and
(f) “null return” means a return which indicates that no transaction was made by the registered person during the tax period and no amount of tax is to be paid, refunded or carried forward.
(2) The words and expressions used, but not defined herein, shall have the same meaning as assigned to them in the Act.
4. Setting up of Nil Return Receipt Counters.—(1) The Collector of Sales Tax may set up one or more Nil Return Receipt Counters, in such offices of the Collectorate as he may deem necessary, to receive nil returns from registered persons which come under the jurisdiction of that Collectorate.
(2) The Collector of Sales Tax shall ensure that the location and timings of the Nil Return Receipt Counters are publicized in newspapers and displayed at a prominent place in the Collectorate.
5. Filing of nil returns in the Collectorate.—Every registered person intending to file a nil return under section 26 of the Act may, in lieu of filing a nil return under Chapter II of the Sales Tax Rules, 2004, file the nil return, in duplicate, in the form as set out in the Annexure to this Chapter, not later than the due date, at a Nil Return Receipt Counter in the Collectorate where he is registered.
6. Receipt of Nil Returns by the Collectorate.—(1) Before receiving a nil return at the Nil Return Receipt Counter, it shall be ensured by the person receiving the nil return that all the particulars entered in both of the copies of the nil return are identical and shall thereafter sign and stamp both copies of the nil return indicating the date of submission of the nil return.
(2) The person receiving a nil return shall immediately forward the original copy of the nil return to the Computer Section and give the duplicate copy thereof, duly signed, stamped and indicating the date of submission, to the registered person as a receipt of filing of the return.
7. Computer feeding.—All nil returns received in the Computer Section will be entered into the computer without delay, provided that priority shall be given to feeding of returns of refund claimants.
CHAPTER II
SPECIAL PROCEDURE FOR PAYMENT OF SALES TAX
BY COMMERCIAL IMPORTERS ON VALUE ADDITION
8. Application.—The provisions of this Chapter shall apply to persons registered exclusively as commercial importers under the Act.
9.
Definitions.¾(1) In this Chapter, unless there is
anything repugnant in the subject or context,—
(a) “Act” means the Sales Tax Act, 1990;
(b) “Annex” means an Annex to this Chapter;
(c) “challan” means the payment challan specified in Annex ‘A’ to this Chapter;
(d) “commercial importer” means a person registered as a commercial importer under the Act;
(e) “assessed import value” means the value of imported goods determined under section 25 or 25B of the Customs Act, 1969 (IV of 1969), including the amount of customs duties and central excise duty, if any, levied thereon;
(f) “return” means the return-cum-payment challan specified in Annex ‘B’ to this Chapter;
(g) “statement” means the summary statement in the form specified in Annex ‘C’ to this Chapter;
(h) “value addition” means the difference between the assessed import value and the value of supply for which the goods, in the same state, are supplied, expressed as a percentage over the assessed import value, and calculated in the manner specified in rule 10; and
(i) “year” means a period of twelve continuous months.
(2) The words and expressions used but not defined herein shall have the same meaning as assigned to them in the Act.
10. Payment of Sales Tax on value addition.—(1) A commercial importer shall pay sales tax on supplies of imported goods, at the rate specified in sub-section (1) of section 3 of the Act, on a value addition of not less than fourteen per cent, through a challan in triplicate, at the same time as making payment of customs duty and sales tax in the bill of entry for such imported goods, calculated as shown in the Example.
Provided that in case the value addition of such commercial importer during any period in the preceding year was higher than fourteen per cent, he shall pay sales tax on supplies of imported goods on such higher value addition, in the manner specified in this sub-rule.
EXAMPLE
|
(a) |
Value of imported goods determined under section 25 or 25B of the Customs Act, 1969 |
= Rs. 100.00 |
|
(b) |
Customs duty ( @20% ) |
= Rs. 20.00 |
|
(c) |
Assessed import value ( = a + b ) |
= Rs. 120.00 |
|
(d) |
Sales tax ( @15% ) payable on bill of entry |
= Rs. 18.00 |
|
(e) |
Value of supplies, with value addition of 14% [ = c + ( c x 14 ¸100) ] |
= Rs. 136.80 |
|
(f) |
Value addition on which sales tax is payable ( = e – c ) |
= Rs. 16.80 |
|
(g) |
Sales tax on value addition ( = f x 15 ¸100 ) (payable on treasury challan) |
= Rs. 2.52 |
(2) The Bank shall send the original copy of the challan to the Collector of Sales Tax having jurisdiction, retain the duplicate copy for its record, and return the triplicate copy to the commercial importer, duly signed and stamped as acknowledgment of payment of the amount indicated.
11. Invoices and records.¾ A commercial importer shall issue a tax invoice for every supply made by him in the manner prescribed in section 23 of the Act and shall maintain records as prescribed under the Act.
12. Filing of Return.¾ A commercial importer shall file sales tax return for a tax period in the form prescribed in Annex ‘B’.
13. Statement of value addition.¾A commercial importer shall furnish to the Collector, by the 15th day of the month following the completion of every year of working under these rules, a statement in the form at Annex ’C’, after payment of the balance amount of tax, if any, payable on value addition for the year, calculated in manner specified in the statement.
14. Exemption from audit.¾A commercial importer who pays sales tax on value addition basis as prescribed under these rules for a year shall not be subjected to any audit for that year, and detailed audit shall be conducted of a commercial importer who pays sales tax in any manner other than prescribed in these rules.
Annex ‘A’
[See rule 10(1)]
CHALLAN FOR PAYMENT OF SALES TAX ON
VALUE ADDITION BY A COMMERCIAL IMPORTER
Sales Tax Registration No.:__________________________________________
Name:___________________________________________________________
Bill of Entry/Goods Declaration No. and date:____________________________
IGM No. and date:__________________________________________________
Index No.:________________________________________________________
Assessed import value
(value for sales tax purposes): Rs. ____________________________________
Sales tax paid on bill of entry: Rs. _____________________________________
Value addition (minimum 14%): Rs. ____________________________________
Sales tax payable on value addition, and deposited in bank:
Rs.______________________________________________________________
Signature:__________________________________
Name:_____________________________________
NIC No.:____________________________________
Date:______________________________________
FOR BANK USE:
S.
No. ________________
Received an amount of Rs.:__________________________________________
In words: Rupees:__________________________________________________
(Head of account:
‘020000-Sales Tax’)
Bank officer’s signature:_____________________________________________
Date:____________________________________________________________
Bank stamp:______________________________________________________
Annex ‘C’
[See rule 13]
STATEMENT OF VALUE ADDITION
OF A COMMERCIAL IMPORTER
Sales Tax Registration No.:__________________________________________
Name:___________________________________________________________
Address:_________________________________________________________
Telephone No.:______________________ Fax:__________________________
For the year from ______________(month/year) to ____________ (month/year)
1. Opening stock Rs. _______________________
2. Total imports during the year Rs. _______________________
3. Total purchases during the year Rs. _______________________
4. Closing stock Rs. _______________________
5. Total sales during the year Rs. _______________________
6. Cost of sales ( = 1 + 2 + 3 – 4 ) Rs. _______________________
7. Value addition ( = 5 - 6) / 6 ) x 100 ) Rs. _______________________
8. Tax payable on value addition
( = 7 x 0.14 x 0.15 ) Rs. _______________________
9.
10. Tax payable ( = 8 – 9 ) Rs. _______________________
11. Balance amount paid vide challan No. and date _____________________
Signature:__________________________________
Name:_____________________________________
Designation:_________________________________
NIC Card No.:_______________________________
Date:______________________________________
CHAPTER III
SPECIAL PROCEDURE FOR PAYMENT
OF RETAIL TAX
15. Application.—The provisions of this Chapter shall apply to persons registered exclusively as retailers under the Act.
16. Definitions.—(1) In this Chapter, unless there is anything repugnant in the subject or context,—
(a) “Act” means the Sales Tax Act, 1990;
(b) “Annex” means an Annex appended to these rules;
(c) “application” means application for registration as a taxpayer for retail tax as specified in Form S.T.-1 annexed to Chapter I of the Sales Tax Rules, 2004;
(d) “return” means retail tax return-cum-payment challan as specified in Annex ‘A’; and
(e) “value addition” means difference between the value of supply for which the goods are acquired and the value of supply for which the goods are supplied, where for a particular tax period –
(i) the value of supply for which the goods are supplied shall be the sum of the values of all the sales made by the retailer during the tax period; and
(ii) the value of supply for which the goods are acquired shall be the sum of the values indicated in all the invoices, bills, vouchers, cash payment slips and cash memos of goods purchased by the retailer in the tax period.
(2) All other terms and expressions used but not defined herein shall have the same meaning as assigned to them in the Act.
17. Registration of retailer.—(1) Every person liable to be registered as a retailer shall, if not already registered, make an application for registration to the Collector having jurisdiction in the area where his business premises are located, in the manner prescribed in Chapter I of the Sales Tax Rules, 2004.
(2) In case a retailer operates different branches, divisions or retail outlets at more than one place, he shall apply for registration to the Collector having jurisdiction over the place where the head office is located.
(3) The Collector shall, having satisfied himself with the requisite information provided in the application for registration, register the applicant as retailer and issue registration certificate accordingly.
18.
Furnishing
of returns and payment of retail tax.—(1) A retailer shall deposit the
return for a tax period in a designated branch of the National Bank of
19. Determination of sales tax liability.—Supplies made during a tax period by a retailer shall be charged to tax at the rate specified under sub-section (1) of section 3 of the Act on the basis of the value addition:
Provided that the value addition, in percentage terms, shall not be less than fifteen per cent of the total value of purchases made during the said tax period.
20. Record keeping and invoicing.—(1) A retailer shall issue cash memo for each supply in the form as set out at Annex ‘B’ and shall maintain the following records, namely:—
(a) record of purchases indicating description, quantity and value of goods purchased and the name and address of the seller; and
(b) record of sales indicating description, quantity and value of goods sold.
21. Audit.—(1) Audit of the records for verification of minimum value addition and correct payment of sales tax on monthly basis shall be conducted once in a year.
(2) Notwithstanding the provisions of sub-rule (1), a retailer who declares a minimum increase of six per cent in his total sales in a year over the sales declared in the preceding year, shall not be subjected to routine audit.
(3) Notwithstanding the provisions of sub-rule (2), if the Collector has reasons to believe that the retailer has committed a tax fraud or violated any of the provisions of these rules, he may order for audit of the retailer.
ANNEX ‘B’
[See rule 20(1)]
CASH MEMO / INVOICE
Serial No._______
Sales Tax Registration No._______________
M/s.
…….(Sellers’ Name)……
(……Seller’s’ Address……)
Tel:
Fax:
Buyer’s Name & :________________________________________________
Address ________________________________________________
________________________________________________
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S.No. |
Description |
Unit Price |
Quantity / No./ Weight / Volume |
Amount |
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TOTAL |
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Signature of authorized person
CHAPTER IV
SPECIAL PROCEDURE FOR PAYMENT
OF SALES TAX BY JEWELLERS
22. Application.—The provisions of this Chapter shall apply to the jewellers, goldsmiths and other persons engaged in the manufacture or supply of jewellery whether on ownership basis or on labour or service charges basis, and to persons engaged in the supply of ready-made jewellery.
23. Definitions.—(1) In this Chapter, unless there is anything repugnant in the subject or context,—
(a) ”Act” means the Sales Tax Act, 1990;
(b) “Annex” means an Annex to this Chapter;
(c) “jeweller” means any person engaged in the supply of jewellery as a manufacturer, wholesaler or retailer, but does not include a zargar;
(d) “jewellery” includes ornaments and articles of adornment made of gold, silver, precious and semi-precious metals, precious or semi-precious stones, gems or any other such materials;
(e) “manufacture” means the process of making of jewellery or the carrying out of any process in the making or in connection with making of jewellery and includes repair of jewellery; and
(f) “zargar” means any person who is engaged in the making of jewellery or carrying out any related process on labour charge basis and is not involved in the sale of jewellery to ordinary consumers.
(2) All other expressions and words used but not defined in this Chapter shall have the same meanings as are assigned to them under the Act.
24. Registration.—(1) Every jeweller engaged in the business of manufacturing or supplying jewellery shall, if not already registered, apply to the Collector of Sales Tax having jurisdiction for registration under section 14 of the Act read with Chapter 1 of the Sales Tax Rules, 2004.
(2) The exemption available to manufacturers and retailers having annual turnover less than that specified in item No. 42 of the Sixth Schedule to the Act, shall be available to jewellers.
(3) A zargar shall not be required to be registered if he is not engaged in the sale of jewellery to ordinary consumers.
25. Exemption.—In respect of his output tax liabilities, a registered jeweller shall be entitled to exemption equal to the amount of sales tax as is in excess of sales tax chargeable on the difference between sale price of jewellery, excluding amount of sales tax, and the value of exempt gold or silver used therein provided that,—
(a) such difference is in no case less than ten per cent of the sale price excluding the amount of tax; and
(b) the labour charges incurred in the making of the jewellery and the price of precious or semi-precious stones and gems, if used, is included in the sale price for the purpose of assessment of tax.
26. Payment of tax.—(1) A jeweller shall pay sales tax at the rate specified in sub-section (1) of section 3 of the Act on the following basis, namely:-
(i) in case of a jeweller working on labour (making) charges basis, on the amount of labour (making) charges received by him:
Example.— A jeweller receives material from a customer for manufacturing jewellery, on which he charges ten thousand rupees as labour (making) charges. Sales tax payable on this amount shall be Rs. 10,000 x 15/100 = Rs. 1500; and
(ii) in case a jeweller making or supplying jewellery wholly or partly from exempt unworked gold or silver purchased or owned by him, sales tax shall be paid on the differential amount determined in accordance with the provisions of rule 25.
Example.— A jeweller purchases exempt unworked gold for eight thousand rupees and after manufacturing jewellery sells the same at value of ten thousand rupees. Difference between sale value and value of exempt gold used is Rs. 10,000 – Rs. 8,000 = Rs. 2,000. Sales tax shall be payable on this differential amount, i.e., Rs. 2000 x 15/100 = Rs. 300.
(2) A registered jeweller shall not be entitled to take adjustment of any input tax or claim any refund of sales tax.
27. Invoices and returns.—(1) A registered jeweller shall issue in English or in Urdu language tax invoices in the form as set out at Annex ‘A’.
(2) A registered jeweller shall file monthly returns in the form as set out in Annex ‘B’.
28. Record keeping.— A registered jeweller shall keep the following record, namely:—
(a) register in the form as set out in Annex ‘C’ to this Chapter in English or in Urdu language;
(b) copies of sales tax invoices issued under sub-rule (1) of rule 27;
(c) electricity bills, telephone bills, rent receipts, wage payment receipts and proof, if any, of all such other expenditures as relate to business activity;
(d) copies of monthly returns filed in the Bank; and
(e) purchase invoices, purchase memos or receipts in any form, if any, received on purchase of raw materials and other inputs.
29. Audit.—Audit of a person registered under this Chapter shall be conducted in usual manner under the Act, but the auditors shall not require the registered jewellers to furnish any document or record other than the ones specified in this Chapter.
30. Responsibility of Jewellers’ Association.—The concerned Jewellers Association or Trade Body shall be responsible to ensure that all its member jewellers having turnover above the threshold for exemption are registered, and the concerned office bearer shall be personally responsible if, at any later stage, it is found that the turnover of any jeweller certified by him as less than the aforesaid threshold was actually above such threshold.