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Sales tax registration: wrongly served notices to be withdrawn

ISLAMABAD (February 11 2003) : The Central Board of Revenue (CBR) has decided to withdraw sales tax registration notices issued to those commercial exporters who were not bound to register under the Sales Tax Act, 1990, official sources told Business Recorder on Monday.

The notices were wrongly served to all commercial exporters following a sales tax ruling in December, 2002.
<br> The CBR, while explaining the application of the directive to the regional authorities, clarified that all commercial exporters including exporters of hand-knotted carpets, who do not want to avail the facility of zero-rating on the export of taxable goods may be de-registered.

The collectorates would now process all such cases on the request of exporters, provided no sales tax arrears are outstanding against them and all formalities required under the Sales Tax Act, 1990 have been fulfilled.

The notices issued to such commercial exporters should be withdrawn if no local production or supplies were made by these exporters, the CBR added.

CBR in December 2002, issued a directive to collectors that commercial exporters not interested in availing zero-rating facility on the export of taxable goods are not required to get registered with the department.

The commercial exporters enjoying facility of zero-rating under section 4 of the Sales Tax Act, 1990, read with section 10 thereof, can apply for voluntary registration under section 18, only if they want to take refund on exported goods as per Sales Tax Refund Rules 2002 notified vide SR0 575(I)/2002.

However, commercial exporters not willing to avail this facility should not be compelled to get registered, the CBR maintained.

After this clarification, the commercial exporters already registered with the department were facing some problems pertaining to de-registration.

The CBR has notified to the field formations to withdraw notices issued to exporters who do not intended to avail zero-rating facility on the export of taxable goods.

These de-registration cases be processed on priority basis, the directive said.

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