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Three categories not to get sales tax and additional tax exemption

ISLAMABAD (June 24 2003) : The Central Board of Revenue (CBR) would not extend sales tax/additional tax exemption under SRO 500(I)/2003, issued in budget, to three categories of persons, says an order issued to collectorates of sales tax here on Monday.

The benefit of the said notification would not be applicable to those persons against whom the cases have already been made or contravention report or audit observation had been issued for any short levied/short paid amount or tax evasion /tax fraud.

Under SRO 500(I)/2003 of June 7, 2003 exemption from payment of sales tax has been granted to persons/class of persons subject to the conditions mentioned therein.

Persons registered or enrolled before July 1, 2000 would be exempted from whole of the amount of sales tax and additional tax payable on supplies made prior to July 1, 2000; persons registered or enrolled during July 1, 2000 to May 31, 2003 would be exempted from sales tax and additional tax payable on supplies made prior to July 1, 2000 and the amount in excess of two percent of the turnover declared with the income tax authorities for supplies made after July 1, 2000; persons who apply for registration or enrolment during June 1, 2003 to August 31, 2003 would be exempted from sales tax and additional tax payable on supplies made prior to July 1, 2002 and in excess of two percent of the turnover declared or to be declared with income tax authorities for the year 2002-2003 and persons registered or enrolled during July 1, 2000 to May 31, 2003 and remained partially compliant would be exempted from sales tax/additional tax prior to the date of registration, and tax in excess of two percent on their turnover declared with the income tax authorities for the period in which they remained non-compliant.

The CBR on Monday issued a directive to all collectors pertaining to admissibility of sales tax amnesty as per notification.

It is clarified that SRO 500(I)/2003 is voluntary in nature and requires payment of sales tax at the rate of 2 percent of the turnover declared with income tax authorities by categories of the persons mentioned therein to avail its benefit.

It also grants amnesty from audit as well as certain amount of sales tax to those persons who avail it.

The CBR further informed tax collectors that the persons against whom the cases have already been made out or contravention report or audit observation had been issued for any short levied/short paid amount or tax evasion/tax fraud, are not entitled for exemption from payment of sales tax under the said SRO.

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