The Central Board of Revenue (CBR) has issued sales tax procedure for the manufacturers-cum-suppliers of spun yarn desirous of availing of "further tax" exemption on the supply of spun yarn to the unregistered people.
The CBR on Thursday issued "Special Procedure for Manufacturers-cum-Suppliers of Spun Yarn Rules, 2004" through an SRO 166 (I)/2004.
The amnesty of further tax exemption for textile sector will remain in force till June 30, 2004.
Sources told Business Recorder that a number of other sectors have also approached the CBR for availing of exemption of "further tax", which would not be extended to them.
Recently, Pakistan Knitwear and Sweater Association contested that members of All Pakistan Textile Mills Association (Aptma) were allowed further tax amnesty on the sale of yarn in violation of Section 73 of the Sales Tax Act, 1990, but all other value-added sectors were denied this facility.
They demanded amnesty subject to the same conditions as were applicable to the Aptma members.
The tax officials said that the textile sector has not properly followed the spun yarn exemption procedure in the past, therefore, it was not practicable to give this concession to other sectors.
According to the procedure, the manufacturer-cum-supplier makes supplies of spun yarn against cross cheque or any other banking instrument showing transfer of payment in the bank account of seller from the bank account of buyer and the information about the supplies made is furnished to the collector of sales tax by the 15th day of the following month.
The supplies for which the information cannot be provided as required would be deemed to have been made to an unregistered person for which there will be no levy of further tax if the information about such supplies is made to the collector of sales tax.
The manufacturer-cum-supplier would issue sales tax invoice in case of supplies giving all the particulars of the buyer except the sales tax registration number and any registered person who opts to avail of the benefit of this notification but fails to provide information as required would become ineligible to avail of the benefit thereunder.

Copyright Business Recorder, 2004


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