- GOVERNMENT OF PAKISTAN
CENTRAL BOARD OF REVENUE
SALES TAX WING
- ***
- Islamabad,
the 10th November, 1996
- NOTIFICATION
(SALES TAX)
-
-
S.R.O. 1271(I)/96.-
In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, read with sub-section (3A) of section 3
and the first and second provisos
to section 45
thereof, the Federal Government is pleased to make the following rules, namely:--
1. Short title, application and commencement.--
(1) These Rules may be called Special Procedure for Ginning Industry Rules, 1996.
(2) These shall apply to the cotton ginners and ginning factories.
(3) They shall come into force at once.
2. Definitions.--
for the purpose of these Rules,--
(a) "Act" means the Sales Tax Act, 1990;
(b) "ginning" means the manufacture of ginned cotton;
(c) "ginning unit" means any manufacturing unit engaged in ginning; and
(d) "ginner" means a person who is engaged in the manufacture and supply of ginned cotton.
3. Registration.--
- (1) A
ginner shall apply for registration in the form specified in the Central
Board of Revenue's
-
Notification No. SRO. 550(I)/96, dated the
first July, 1996, to the Collector of Sales Tax having
-
jurisdiction in the area where the ginning unit is situated.
- (2) Where a
ginner is running more than one ginning unit or a composite unit dealing in
ginning and spinning
-
together or is engaged in any other taxable activity, whether the ginning
and other taxable activity are
-
carried out in the same premises or not, such ginner shall apply for
registration separately in accordance
-
with sub-rule (1) for each ginning unit and separately for other taxable
activity.
- .
(3) The
application for registration shall be processed and if the application
contains necessary particulars a
certificate of registration indicating the registration number assigned to
the applicant shall be issued.
4. Tax rate.--
All supplies by a ginner shall be charged to tax at the rates specified in the Act:
- Provided that where any such supply is subsequently exported, it shall be zero-rated in accordance with
- the provisions of section 10 of the Act.
5. Tax invoice.--
- The ginner shall issue a tax
invoice on the supply of taxable goods under section 23 of the Act
indicating the
- value of taxable supply and
the amount of tax due on such supply.
6. Payment of tax.-
(1) The ginner shall deliver ginned cotton through a delivery note or gate pass to the registered spinning unit or
to the registered exporter. The delivery notice or gate pass shall be serially numbered document and shall
indicate the quantity of the cotton sold and the name of the buyer alongwith his sales tax registration
number, builty number and date and registration number of the vehicle on which the ginned cotton is being
carried. The spinning unit or the exporter, after receipt of ginned cotton in his premises, shall settle the
terms, if any, about quantity and value of the ginned cotton with the ginner within six (06 days) days of the
date
of the despatch of ginned cotton from the ginning unit. The changes in quantity or value shall be
indicated on the reverse side of the copies of the delivery note or gate pass issued by the ginning unit. The
ginning unit shall then issue the prescribe sales tax invoice for the quantity and value of the ginned cotton
agreed between the ginner and the spinning unit or the exporter. The tax invoice shall be issued of the
date on which the ginned cotton was despatched
against the delivery note or gate pass within seven days
(07 days) of the date thereof and shall bear a cross reference of the delivery
note or gate pass. The
Spinning unit or Exporter shall remit amount of sales tax payable on cotton
purchased by him during the
month to the ginner by the 10th day of the month following the month to which
the tax invoice relate,
through a Bank Draft drawn and crossed in the name of the respective Collector
Sales Tax. The Ginner
shall issue a proper receipt for the draft received by him from the spinner or
exporter. The Ginner shall
deposit these drafts in the authorized branch of National Bank of Pakistan by
the 15th day of that month
and submit to Collector Sales Tax details of cotton sold by him during a month
and amounts of sales tax
deposited by him in the format given below by the 20th day of that month:-
Name
and Address of Ginner ______________________________________
Registration No. _______________________________________________
Month _______________________________________________________
|
Name of Buyer with Location and Registration No. |
Tax Invoice No. and Date |
Quantity of Cotton Sold |
Value |
Sales Tax Payable |
Sales Tax Paid through Draft No. and Date |
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
- (2) If the
ginning unit delivers or dispatches any cotton to any spinning unit or exporter
without issuing the
-
delivery note or gate pass or if he fails to issue the tax invoice within
seven days (07 days) from the date
-
of the respective delivery note or gate pass, he shall be liable to penalty
under section 33 of the Act
-
besides being liable to pay the tax.
- (3)
If the spinning unit or exporter of ginned cotton fails to remit sales tax
payable on ginned cotton purchased
- by
him by the due date specified in sub-rule (1), besides any other action
which may be taken against him
-
under the Act, he shall not be entitled to claim adjustment or Refund of
input tax in respect of such
-
purchase unless he pays the amount of additional Tax or penalties chargeable
on such late remittance
-
under section33 and 34 of the Act, through deposit in the designated bank
branch or deduction from the
-
adjustable or refundable amount.
(4) If the spinning unit or the exporter furnished bank draft for the amount of
sales tax due to the ginner by the
date specified in sub-rule (1) and the ginner
fails to deposit the same within the due date specified therein,
then the
spinning unit or exporter shall be entitled to claim adjustment or penalties
under section 33 and
34 besides other penal action under other provisions of the
Act.
(5)
If the spinning unit or the exporter fails to furnish bank draft for the
amount of sales tax payable on the
ginned cotton purchased by him from a ginner by the due date specified in
sub-rule (1), or claims
adjustment or refund of input tax in contravention of sub-rule (3), besides
any other action which may be
taken against him, the Collector of Sales Tax may issue an order directing
all ginners not to deliver
or supply ginned cotton to such spinning unit or exporter without receiving
prior payment of sales tax
from the buyer. If a ginning unit, after receipt of such order makes
delivery or supply of ginned cotton
to such spinning unit or exporter without prior payment of the amount of
sales tax involved, besides any
other action which may be taken against him, such ginner shall be liable to
pay sales tax, additional tax
and penalty thereof, if any, on such supply.
(6)
A person aggrieved by an order of a Collector under sub-rule (5) may file a
representation to the Central
Board of Revenue.
(7)
Cases involving non-payment or short payment of sales tax by a ginner, a
spinning unit or an exporter on
supplies of
ginned cotton made under the provisions of these rules shall be adjudicated
by the officer
having jurisdiction in the area where the contravention case is made
7. Notice to be given by ginner.--
-
Further a ginner shall, at the time
of commencement of ginning activity and at the closure of ginning activity,
-
inform the concerned Collector of Sales Tax on day earlier than the
commencement of ginning activity or, as the
-
case may be on the day following the cessation of ginning.
8. * * *
9. Records.--
A ginner shall maintain the records specified in the Act and the rules made
thereunder.
Amended vide SRO.481(I)/98, dated
21.05.1998