GOVERNMENT OF PAKISTAN

CENTRAL BOARD OF REVENUE

(REVENUE DIVISION)

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C. No. 3(3)ST-L&P/2004                                                                                      Islamabad, the 20^th April, 2004.

 

 

SALES TAX GENERAL ORDER NO. 1/2004

 

Subject:   CONDONATION OF TIME LIMIT UNDER SECTION 74 OF THE SALES TAX ACT, 1990. 

 

                A large number of applications are being received in the Board for condonation, under section 74 of the Sales Tax Act, 1990, of the delay in transfer of payment through banking channels beyond the prescribed time limit of 120 days as required under section 73 of the Act. Processing of these applications has led to unnecessary involvement of the Board in operational matters besides creating hardship for taxpayers.

 

2.            In order to mitigate the hardship of taxpayers, the Board, in exercise of powers conferred by section 74 of the Sales Tax Act, 1990, is pleased to condone the delay in payment in terms of section 73  beyond the prescribed period of 120 days, subject to the following conditions:

 

                (i)   the payment has been verifiably transferred through banking channels from the business account of

                      the buyer to the business account of the seller as specified in section 73 of the Sales Tax Act,

                      1990;

 

                (ii)   the invoice relating to the transaction contains the full and correct name, address and registration

                       number of both the supplier and the buyer besides other particulars specified in section 23 of the

                       Act;

 

                (iii)  the amount of tax involved has been paid;

 

                (iv)   the transaction does not involve any closed, de-registered or blacklisted/suspended registration

                       person;

 

                (v)   no case of tax fraud has been made out against the buyer or the seller; and

 

                (vi)   in case the delay is more than 60 days (beyond the prescribed period of 120 days specified in

                        section 73), the Collector of Sales Tax concerned is satisfied that the delay is genuine and due to

                        circumstances beyond the control of the applicant.

 

3.            By means of this order, all cases of delay of upto 60 days stand condoned automatically, provided the conditions at (i) to (v) above are fulfilled, and the taxpayers do not have to approach any sales tax official for prior verification/certification.  Such verification will be done at the time of audit. However, in case of delay beyond 60 days (which should be rare in case of genuine business transactions), the condonation will operate only when the Collector, after examining the case, is satisfied that the delay was genuine and due to circumstances beyond the control of the applicant.

 

 

 

(DR. ASHFAQ AHMED TUNIO)

Secretary (ST-L&P)