ISLAMABAD (May 13 2004): The Central Board of Revenue (CBR) is reviewing 'further tax' exemption on the supply of spun yarn to the unregistered persons from new financial year.
The CBR last March issued 'Special Procedure for Manufacturers-cum-Suppliers of Spun Yarn Rules, 2004' through SRO. 166(I)/2004. The amnesty of further tax exemption for textile sector will remain intact till June 30, 2004.
Concerned officials told Business Recorder here on Wednesday that the CBR could continue 'further tax' exemption on the supply of spun yarn provided textile units submit the requisite data to the collectorates of sales tax on regular basis.
The theme of the rules was to avail exemption on the basis of data to the submitted to the collectorates.
Sources said that the textile sector has also raised issue of compulsory registration of all those persons with the sales tax department to whom supplies of spun yarn were made.
They opined that the CBR has the authority to take action on the basis of data submitted by the collectors of sales tax under the spun yarn procedure. Each set of rules permits conditional exemption from 'further tax'. The prescribed statements have to be submitted to the collectors mentioning details of unregistered persons to whom supplies of yarn were made.
Expanding the scope of registration drive, the CBR is also mulling to register those persons as well as those who are buyers of yarn from unregistered persons.
The CBR would take immediate action on the basis of data submitted by the collectors of sales tax under the spun yarn procedure.
It seems that no action has been taken so far by the collectorates to register such persons and recover sales tax on the value-addition.
It has directed collectors to immediately compile and consolidate lists of unregistered persons to whom supplies were made by the All Pakistan Textile Mills Association (Aptma) members under the 'Spun Yarn Rules' along with quantum of purchases made by them.