ISLAMABAD (June 04 2004): The Central Board of Revenue (CBR) has given exemption of past sales tax liabilities, ie, prior to July 1, 2003 to jewellers who want to avail of amnesty scheme under SRO 246 (I)/2004.
Tax authorities on Thursday conveyed the decision to the All Pakistan Sarafa Association, Sindh that jewellers who are registered as retailers could avail of benefit of SRO 246 (I)/2004 of May 5, 2004. However, they have to fulfil the conditions laid down in the notification.
The association has been informed by the CBR that the jewellers who intend to avail of amnesty under SRO 246 (I)/2004 would also be exempted from audit after fulfilment of conditions of the SRO. Moreover, the benefit of the SRO 246 (I)/2004 is also available to the retailers against whom a case was registered and is pending in adjudication or appeal.
Under the scheme to encourage registration of retailers (SRO 246 (I)/2004), those who apply for sales tax registration/enrolment up to June 30, 2004 would be exempted from all the sales tax liabilities for the period prior to July 1, 2003.
Retailers will only pay tax at the rate of 2 percent of the turnover declared with the Income Tax Department on supplies made after July 1, 2003 to the date of registration. Moreover, no audit would be conducted for the period of exemption.
The tax relief package announced for the retailers would help them in regularising past transactions and become tax compliant in future.
The notification also gives substantial relief to those retailers, who had earlier secured registration. Under the SRO, the retailers have been divided into different categories for availing of tax relief.
The CBR has also informed the collectors of sales tax to give amnesty (SRO 246 (I)/2004) to the jewellers registered as retailers. Jewellers registered as retailer may avail of the benefit of notification, including exemption from audit, provided they fulfil the conditions of the notification and discharge their liabilities thereunder by June 20, 2004.
The CBR had withdrawn contravention cases against wrongly registered jewellers having annual turnover below Rs 1 million. If any jeweller with low threshold have been wrongly registered, the association should immediately approach the concerned collector of sales tax for rectification.