ISLAMABAD (October 24 2003): To facilitate the textile sector, the Central Board of Revenue (CBR) has waived “further tax” on the supply of spun yarn to the unregistered units up to February 29, 2004.
The facility will be available to manufacturers-cum-suppliers, who are members of the All Pakistan Textile Mills Association (Aptma).
The CBR has issued Special Procedure for Manufactures-cum-Suppliers of Spun Yarn Rules 2003 through an SRO 998 (I)/2003 here on Thursday.
Previously, the CBR had given waiver of “further tax” to spun yarn suppliers from January 1-April 30, 2003, which was later extended up to September 1, 2003.
Under the new procedure, any registered person who opts to avail of the benefit of this notification but fails to provide requisite information would become ineligible to avail of the exemption of “further tax”.
Following is the text of the SRO 998 (I)/2003 issued here on Thursday: “In exercise of the powers conferred by Sub-section (1) of Section 71 of the Sales Tax Act, 1990, read with clause (a) of Sub-section (2) of Section 13 thereof, the Federal Government is pleased to make the following rules, namely:
1. Short title, application and commencement: (1) These rules may be called the Special Procedure for Manufacturers-cum-Suppliers of Spun Yarn Rules, 2003.
(2) They shall apply to such supply of spun yarn of all sorts by manufacturers-cum-suppliers of spun yarn who are members of the All Pakistan Textile Mills Association (hereinafter called as Aptma) and duly certified by Aptma.
(3) These rules shall be deemed to have come into force on September 1, 2003 and shall remain in force till February 29, 2004, and thereafter shall stand rescinded.
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) “Annexure” means the Annexure to these rules;
(c) “Manufacturers-cum-Suppliers of spun yarn” means a person registered as manufacturer of spun yarn under Section 14 of the Act and is a member of Aptma; and
(d) “Spun yarn” means yarn spun from cotton or other natural and man made materials or any blends thereof.
(2) The words and expressions used but not defined in these rules shall have the same meaning as are assigned to them under the Act.
3. Exemption: Supply of spun yarn by a manufacturer-cum-supplier of spun yarn shall be exempt from the levy of further tax under sub-section (1A) of Section 3 of the Act provided that
(a) The manufacturer-cum-supplier makes supplies of spun yarn against crossed cheque or any other banking instrument showing transfer of payment in the bank account of seller from the bank account of buyer and the information about the supplies made is furnished to the Collector of Sales Tax having jurisdiction over the manufacturer-cum-supplier, in the form, as set out in Annexure-A, by the 15th day of the following month;
(b) The supplies for which the information cannot be provided as required under clause (a) shall be deemed to have been made to an unregistered person for which there will be no levy of further tax if the information about such supplies is made to the Collector of Sales Tax having jurisdiction over the manufacturer-cum-supplier, in the form, as set out in Annexure-B, by the 15th day of the following month;
(c) The manufacturer-cum-supplier shall issue sales tax invoice in case of supplies as specified in clause (b) giving all the particulars of the buyer except the sales tax registration number;
(d) Any registered person who opts to avail of the benefit of this notification but fails to provide information as required in clauses (a) and (b) shall become ineligible to avail of the benefit thereunder.
4. Miscellaneous: All provisions of the rules made under the Act shall, in so far as these are not inconsistent with these rules, mutatis mutandis, apply to manufacturer-cum-supplier of spun yarn.
===================================================================================================================== Annexure-A [See rule 3(i)] ===================================================================================================================== S No Name Complete Registration Invoice Description Quantity Value Bank Buyers Delivery Remarks of address No No and of goods instrument account Note Rs buyer of buyer date with count with No No with No tele-Phone and date Bank and or Credit Branch date Note No and date --------------------------------------------------------------------------------------------------------------------- (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) ===================================================================================================================== Annexure-B [See rule 3(ii)] ===================================================================================================================== S.No Name Address Invoice Description Quantity Value Mode of Delivery Remarks of of No goods payment Note buyer buyer and date with count Credit No No and and date date --------------------------------------------------------------------------------------------------------------------- (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) =====================================================================================================================
