The Central Board of Revenue (CBR) has decided to compulsorily register all those with the sales tax department to whom supplies of spun yarn were made under the ''Special Procedure for Manufacturers-cum-Suppliers of Spun Yarn Rules - 2004'' and recover due amount of sales tax from these unregistered persons under the Sales Tax Act, 1990.
Expanding the scope of registration drive, the CBR is also mulling to register those persons as well those who are buyers of yarn from unregistered persons.
Sources told Business Recorder here on Sunday that CBR would take immediate action on the basis of data submitted by the collectors of sales tax under the spun yarn procedure.
The CBR has issued instructions to all collectors of sales tax that although each set of rules permits conditional exemption from ''further tax'', prescribed statements should be submitted to the collectors mentioning details of unregistered persons to whom supplies of yarn were made.
It seems that no action has been taken so far by the collectorates to register such persons and recover sales tax on the value-addition.
It has directed collectors to immediately compile and consolidate lists of unregistered persons to whom supplies were made by the All Pakistan Textile Mills Association (Aptma) members under the ''Spun Yarn Rules'' along with quantum of purchases made by them.
Secondly, the CBR said that collectors should forthwith register these persons under the sections of Sales Tax Act, 1990, and recover due sales tax from such persons and ascertain further that buyers of such persons are also registered for sales tax recovery.
The collectors should also submit the progress of the registration drive and recovery of sales tax from them, it added.
The amnesty of further tax exemption for the textile sector will remain in force till June 30, 2004.
Comments
Comments are closed for this article.