Special Procedure for Payment of Sales Tax on Sugar (Purchase by TCP) Rules, 2003

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS AND REVENUE (REVENUE DIVISION) ***** Islamabad, the 25th November, 2003 NOTIFICATION (SALES TAX) S.R.O. 1072(I)/2003.---In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, read with sub-section (2) of section 6 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 Payment of Sales Tax on Sugar (Purchase by Trading Corporation of Pakistan) Rules, 2003. (2) These rules shall apply to the extent of supply of two hundred thousand metric tons of sugar sold by the registered manufacturers of sugar to the Trading Corporation of Pakistan (TCP) for further supply/export thereof. (3) They shall come into force at once. 2. Definitions.- (1) In these rules, unless there is anything repugnant in the subject or context,-- (a) “TCP” means Trading Corporation of Pakistan; and (b) “mill” means the registered manufacturer of sugar from whom sugar is purchased by TCP as buffer stock. (2) The words and expressions used, but not defined herein, shall have the same meaning as assigned to them in the Act. 3. Manner of payment of tax.- (1) Upon successful grant of tender for purchase of sugar, TCP will only pay the value of supply of sugar to the mills excluding the amount of sales tax against a ‘Commercial Invoice’ issued by the mills. (2) At the time of removal of sugar from the mill premises, the mill will issue a sales tax invoice in favour of TCP who will accordingly pay to the mill the amount of sales tax due on the quantity being removed from the mill. (3) In the event of removal of sugar by TCP for export purposes, the mill will issue a zero rated tax invoice, against which no sales tax shall be payable. 4. Relevant tax period.- The mill will show the value of sugar sold to the TCP and the tax chargeable thereon in the monthly tax return as well as in its supply register relating to the tax period in which the sales tax invoice has been issued by the mill in favour of TCP. 5. Monthly statement by TCP.- The TCP shall submit a monthly statement to the Central Board of Revenue as well as to the Collectorate of Sales Tax concerned in the format set out at Annex-A. ANNEX-A [See rule 5 ] S. No | Name of sugar mill | Total Qty purchased (kgs) | Total value (excl s. tax) (Rs) | Sugar exported | Sugar supplied in local market | Sales tax involved (Rs) | Date of payment of Qty (kgs) | Value (Rs) | Qty (kgs) | Value (Rs) | Price/Value (Rs) | Sales tax (Rs) 1. __________________________________________________________________________________________________________ [C. No. 4/57-STB/97] ( Shahid Ahmad ) Additional Secretary