ISLAMABAD (April 19 2003) : The Central Board of Revenue (CBR) has notified procedure for making payment against any sort of supply by transferring landed property under section 73 of the Sales Tax Act, 1990.
The CBR has issued Sales Tax Ruling No 7/2003 here on Friday to implement the decision.
The business community had raised a question whether payment against any supply can partly be made by transferring landed property, and the said transfer of land could fulfil the requirement of transfer of payment from the business account of the buyer to the business account of the seller in terms of section 73 of the Sales Tax Act, 1990.
The CBR, after examining the case, issued ruling that the payment in kind by transferring landed property can be made. However, the business concerns are required to fulfil following conditions to avail the above-mentioned facility.
First, attested copy of Mutation Deed showing transfer of landed property between the two registered persons to be furnished.
Transfer of property must be duly reflected in the books of accounts with reference to sales tax invoice number and date.
Furthermore, the payment of sales tax due on such supply is made either by the buyer from his bank account to the bank account of the supplier or tax is deposited by supplier himself.
The balance/remaining amount, if any, even less than Rs 50,000 is transferred from the bank account of the buyer to the bank account of the seller through banking instrument, as mentioned in section 73 of the Act, the ruling says.