All Pakistan Textile Mills Association's (Aptma) Chairman, Waqar Monnoo has welcomed the issuance of SRO, withdrawing three percent sales tax from manufacturers of spun yarn.
Talking to Business Recorder here, he said, he was thankful to the Central Board of Revenue (CBR) and Additional Secretary Shahid Ahmad for agreeing to the demands raised by the Aptma.
He said the Aptma had been playing a positive role towards the strengthening of the country's economy and promotion of the exports.
He said that the Aptma members had displayed highest honesty in paying their taxes and in the documentation of economy, and the present decision of the CBR was a testimony to these characteristics and an appreciation of the co-operation extended by the Aptma in promoting tax culture and good governance.
According to the details, the Aptma had made a detailed case on the issue of exemption of manufacturers-cum-suppliers of spun yarn from the levy of further tax, which was thoroughly discussed by the Aptma delegation with Shahid Ahmad.
The notification (sales tax) rules, issued on March 18 would be called the Special Procedure for Manufacturers-cum-Suppliers of Spun Yarn Rules, 2004 and should apply to such manufacturers-cum-suppliers of all sorts of spun yarn, who were members of the Aptma.
These rules, which came into force on March 1, would remain in force till June 30.
The rules had defined the "manufacturers-cum-suppliers of spun yarn" means a person registered as manufacturer of spun yarn under Section 14 of the Sales Tax Act 1990 and was a member of Aptma. While, "spun yarn" means yarn spun from cotton or other natural or man made materials or any blends thereof.
The exemption would stand, provided:
-- The manufacturer-cum-supplier made supply of spun yarn against crossed cheque or any other banking instrument showing transfer of payment in the bank account of seller from the buyer's bank account and the information about the supplies made, was furnished to the Collector of Sales Tax having jurisdiction over the manufacturer-cum-supplier in the form, as set out in annexure-A, by the 15th day of following month.
-- The supplies, for which the information couldn't be provided as required under clause (a), should be deemed to have been made to an unregistered person, for which there would be no levy of further tax. If the information about such supplies was made to the Collector of Sales Tax, having jurisdiction over the manufacturer-cum-supplier, in the form as set out in annexure-B, by the 15th day of the following month.
-- The manufacturer-cum-supplier should issue sales tax invoice in case of supplies as specified in clause (b) giving all the particulars of the buyer except the sales tax registration number.
(a) Any registered person who opted to avail the benefit under the provisions of these rules but failed to provide information as specified in clauses (a) and (b) should become ineligible to avail benefit thereunder.

Copyright Business Recorder, 2004


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