GOVERNMENT
OF PAKISTAN
REVENUE
DIVISION
Islamabad, the 6th April,
1999
SALES TAX
S.R.O.
458(I)/99.- In exercise of the powers conferred by section 71 of the Sales Tax
Act, 1990, the Federal Government is pleased to make the following special
procedure for the levy and collection of sales tax, namely:-
THE
SIMPLIFIED SALES TAX RULES, 1999
1. Short title, application and commencement.- (1) These rules may be called the Simplified
Sales Tax Rules, 1999.
(2) They shall apply to the manufacturers of
goods specified in the Schedule to these rules whose annual turnover is below
one million rupees except the manufacturers of goods who are already operating
under the Value Added Tax System:
Provided that nothing in this sub-section shall apply in respect of a
registered person who -
(i)
was
during the financial year 1998-99, and presently still is, a manufacturer of
any of the commodities specified in the Schedule;
(ii)
was working under any notified fixed tax scheme up to the 30th
June, 1998;
(iii)
has
fulfilled his fixed tax and simplified sales tax liabilities under the relevant
Notifications and rules;
(iv)
pays
arrears, if any, pertaining to the period either up to the 30th
June, 1999, or thereafter up to the 31st December, 2001;
(v)
is not
involved in any case of tax fraud; and
(vi)
is
registered and is regularly paying sales tax at the rate specified in
sub-section (1) of section 3 of the Sales Tax Act, 1990, since the 1st July,
2000, or the date of starting to operate under the VAT mode of sales tax,
whichever is earlier
(3) They shall come into force at once and,
unless repealed earlier, shall remain in force during the financial year
1998-99.
2.
Definitions.- (1) In these Rules, unless there is anything repugnant
in the subject or context,-
(a)
"Act" means the Sales Tax Act, 1990;
(b)
"Assistant Collector" means the Assistant
Collector or the Deputy Collector of Sales Tax within whose jurisdiction the
manufacturer's business is situated;
(c)
"Association" means the respective association of
manufacturers duly recognized by the Federal Government;
(d)
"Anjuman" means the All Pakistan Anjuman-e-Tajran;
(e)
"Board" means the Central Board of Revenue;
(f)
"Collector" means the Collector of Sales Tax
within whose jurisdiction the manufacturer's business is situated;
(g)
"Federation" means the Federation of Association
of Small Taxpayers, hereinafter called the FAST;
(h)
"Joint Survey Team" means the Joint Survey Team
constituted under these rules;
(i)
"manufacturer" means the manufacturer of goods
specified in the Schedule;
(j)
"Schedule" means the Schedule to these rules; and
(k)
"Superintendent" means the Superintendent of Sales
Tax within whose jurisdiction the manufacturer's business is situated.
(2) The words and expressions used, but not
defined herein shall have the meaning assigned to them in the Act.
3.
Guiding Principles for Simplified Sales Tax.- The
guiding principles for simplified sales tax are --
(i) the
manufacturers shall pay twenty-five per cent additional amount for the first
five months and fifty per cent additional amount for the remaining seven months
of the financial year 1998-99 as compared with the amount paid by them during
the financial year 1997-98;
(ii)
these manufacturers shall file monthly Sales Tax
return-cum-challans under the normal VAT mode;
(iii)
that the manufacturers already operating under normal VAT
system shall not be allowed to opt under these rules;
(iv)
the manufacturers already availing any concession or
remission or exemption of customs-duty or sales tax on the import of raw
materials under any notification (Possessing Form 'S' and/or Survey Certificate
from C.B.R.) shall not be allowed to opt under these rules;
(v)
that the manufacturers shall not be entitled to issue tax
invoices;
(vi)
that these manufacturers shall not be entitled to sell their
goods to Government Departments and to institutions deducting advance income
tax under section 50(4) of the Income Tax Ordinance, 1979 (XXXI of 1979) and
other institutions which are legally bound to make their purchases from
registered persons;
(vii) that the Anjuman shall be responsible to enlist 9011
manufacturing units which were paying sales tax during the financial year
1997-98;
(viii) that the Anjuman or FAST in co-ordination with the Department
shall further enlist about 9000 unregistered manufacturing units;
(ix) that the Anjuman or FAST shall nominate a team for each
Collectorate assisted by two officers to be nominated by the Sales Tax
Collectorate;
(x) that
it shall be the responsibility of the Anjuman or FAST to ensure the enrolment
of all these units (total about 18000 units) which the Sales Tax department and
ensure timely payment of sales tax dues;
(xi) that the estimated revenue from these units is approximately
seven hundred million rupees and the Anjuman and FAST shall be responsible for
collection of seven hundred million rupees by the 30th June, 1999, in
co-ordination of the Department;
(xii) that the manufacturer failing to discharge its revenue obligations
under this agreement shall be liable to proceedings under the Act for recovery
of the principal tax, additional tax, penalty and as the case may be, including
prosecution under relevant law. In case of failure the department may proceed
against such manufacturers under the law;
(xiii) that application of these rules shall be optional and a
manufacturer who wants to operate under the normal VAT regime shall be allowed
to do so;
(xiv) that
there shall be no audit of manufacturing units enrolled under these rules;
(xv) that declaration made under these rules shall not be used for
any other purpose especially for the Income Tax;
(xvi)
that there shall be no visit from the Sales Tax Collectorate
staff to the units to
which these rules apply; and
(xvii) that the liability of sales tax for new enrolled manufacturing
units shall be ascertained on the basis of tax rates as per the relevant
notifications issued for the year 1997-98 at indexed rates and additional tax
as agreed.
4.
Implementation.- In order to ensure effective implementation,
following steps shall be taken, namely:-
(i) The
Anjuman and the FAST shall provide a list of 9011 units claimed by the Anjuman
to have been operating during financial year 1997-98 and also shall provide
fresh list of about 9000 new units who are not paying Sales Tax in any form;
(ii) fresh Joint Surveys shall be conducted by the staff of the
Collectorates and nominated representatives of the Anjuman or FAST to unearth
the unregistered units for enrollment under these rules; and
(iii) the Joint-Survey Teams shall be responsible for timely
payment of sales tax and recovery of the arrears, outstanding against the units
enrolled under these rules.
SCHEDULE
[ See clauses (i) and (j) of rule 2 ]
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Sl. No. Name of commodity
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(1) (2)
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1. Nuts, bolts and screws.
2. Ceramc sanitary wares.
3. Brass water fittings.
4. Melamine crockery.
5. PVC pipes.
6. Aluminium utensils.
7. Press and offset printing.
8. Plastic goods.
9. RCC pipes.
10. Wire netting.
11. Sweetened supari.
12. Plastic bags.
13. Corrugated and solid board.
14. Marble tiles.
15. Agarbatti.
16. Plastic dori and nawar fita.
17. Brass sanitary fittings.
18. Sewing thread.
19. desert coolers.
20. Electric and gas appliances.
21. Washing machines.
22. Ceramic table and kitchenware.
23. Meal container.
24. Electric fans.
25. Paint and varnishes.
26. Embroidered goods.
27. Brick kilns.
28. Sweets and bakers.
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[No.1(6)-STR/98-PT]
RIAZ AKHTAR
Deputy Secretary
Amended vide SRO 393(I)/2001
dated 18.06.2001