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Revenue Board to bring more persons into general sales tax net

ISLAMABAD (January 23 2003) : To bring more persons into GST net, the Central Board of Revenue (CBR) has decided to compulsorily register individuals liable to be enrolled under the 'turnover tax' regime, says a sales tax ruling 2/2003 issued on Wednesday.

Now, the tax collectors have the authority to compulsorily register thousands of manufacturers, producers or retailers under the 'turnover tax' scheme where they were covered under the relevant slabs for registration.

In this regard, the CBR has issued instructions to all collectors of sales tax to enroll units/individuals, liable to be registered under the 'turnover tax' as per section 3A(4) read with section 19 of the Sales Tax Act, 1990.

According to the ruling, a question had been raised whether persons who are required to be enrolled under sales tax laws can be compulsorily enrolled in terms of section 3A(4) read with section 19 of the sales tax act.

The analogy is based on the reasoning that persons who are required to be registered under the Sales Tax Act skip registration be compulsorily registered under section 19.

The CBR, after consulting relevant experts, notified that turnover tax is charged, levied and paid in terms of the provisions of section 3A of the Sales Tax Act, 1990 read with sub-section (7) of section 8 and notifications issued thereunder.

Sub-section (4) of section 3A envisages that all provisions of the Sales Tax Act, 1990 shall apply to the charge, payment, collection and enforcement of the turnover tax, as if it were sales tax under section 3.

The word 'enforcement' has been specifically used in section 3A(4) of the Sales Tax Act, 1990.

Hence persons liable to be enrolled under the turnover tax regime can be compulsorily enrolled in terms of section 3A(4) read with section 19 of the Sales Tax Act, 1990, the ruling added.

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