GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE, ECONOMIC AFFAIRS,

STATISTICS AND REVENUE

(REVENUE DIVISION)

*****

Islamabad, the 18^th June, 2001.

NOTIFICATION

(SALES TAX)

S.R.O. 398(I)/2001.¾ In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendments shall be made in the Special Procedure for Ginning Industry Rules, 1996, namely:-

In the aforesaid Rules, in rule 6,-

(a) for sub-rule (3), the following shall be substituted, namely:-

“(3) If the spinning unit or exporter fails to remit the 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 sections 33 and 34 of the Act, through deposit in the designated bank branch or deduction from the adjustable or refundable amount.” ; and

(b) after sub-rule (3) substituted as aforesaid, the following new sub-rule shall be added, namely:-

“(4) If the spinning unit or the exporter furnishes bank draft for the amount of sales tax due to the ginner by the due 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 refund of sales tax but the ginner shall be liable to pay additional tax and penalties under sections 33 and 34 besides other penal action under other provisions of the Act.”.

[C. No. 3(9)STL&P/2001]

(RIAZ AHMAD MALIK)

Additional Secretary