KARACHI (February 29 2004): The provisions of Section 73 of Sales Tax Act 1990 will remain in abeyance till June 30, according to an announcement by the Central Board of Revenue on Saturday.
During this period the provisions of the Act as existed prior to the substitution vide Finance Bill 2003 shall remain operative.
FPCCI had, from the beginning of the introduction of section 73, been requesting the finance minister that its operations be suspended, as it affected the business community at large, till the decision on the matter requiring suitable amendments is taken.
The substituted version of section 73 had enhanced the difficulties of the registered persons. Some of the irritants included: doing away of time limitation of 120 days, input sales tax cannot be claimed unless the transfers of payment has taken effect from the specified bank account of the buyer to the specified bank account of the seller.
The interpretation of the substituted section was not clear and everybody was interpreting it according to his wisdom, said engineer M A Jabber, Vice President, FPCCI.
He said that FPCCI had proposed new version of section 73 after due deliberations and interaction with members of business community.