Special Procedure for Manufacturers-cum-Suppliers of Spun Yarn Rules, 2003

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS & REVENUE REVENUE DIVISION ******** Islamabad, the 4th June, 2003. NOTIFICATION (SALES TAX) S.R.O. 469 (I)/2003.- In exercise of the powers conferred by sub-section (1) of section 71 of the Sales Tax Act, 1990, read with clause (a) of sub-section (2) of section 13 thereof, the Federal Government is pleased to make the following rules namely:- 1. Short title and application- (1) These rules may be called the Special Procedure for Manufacturers- cum-Suppliers of Spun Yarn Rules, 2003. (2) They shall apply to such supply of spun yarn of all sorts by manufacturers-cum-suppliers of spun yarn who are members of the All Pakistan Textile Mills Association (hereinafter called as APTMA) and duly certified by APTMA. 2. Definitions.- (1) In these rules, unless there is anything repugnant in the subject or context,- (a) "Act" means the Sales Tax Act, 1990; (b) "Annexure" means the Annexure to these rules; (c) "manufacturers-cum-suppliers of spun yarn" means a person registered as manufacturer of spun yarn under section 14 of the Act, and who is a member of APTMA; and (d) "spun yarn" means yarn spun from cotton or other natural and man made materials or any blends thereof. (2) The words and expressions used but not defined in these rules shall have the meaning assigned to them under the Act. 3. Exemption.- Supply of spun yarn by a manufacturer-cum-supplier of spun yarn shall be exempt from the levy of further tax under sub-section (1A) of section 3 of the Act provided that,- (i) the manufacturer-cum-supplier makes supplies of spun yarn against crossed cheque or any other banking instrument showing transfer of payment in the bank account of seller from the bank account of buyer and the information about the supplies made is furnished to the Collector of Sales Tax having jurisdiction over the manufacturer-cum-supplier, All Pakistan Textile Manufacturers’ Association and the Central Board Revenue in the form as set out in Annexure-A (hard copy alongwith soft copy in Excel format) by the 15th day of the following month; (ii) the supplies for which the information cannot be provided as required under clause (i) above shall be deemed to have been made to an unregistered person for which there will be no levy of further tax if the information about such supplies is made to the Collector of Sales Tax having jurisdiction over the manufacturer-cum-supplier, All Pakistan Textile Manufacturers’ Association and the Central Board Revenue in the form as set out in Annexure-B (hard copy alongwith soft copy in Excel format) by the 15th day of the following month; (iii) the manufacturer-cum-supplier shall issue sales tax invoice in case of supplies as specified in clause (ii) above giving all the particulars of the buyer except the sales tax registration number; (iv) the manufacturer-cum-supplier supplies the information in respect of supplies made after the 1st July, 2001, but prior to the issuance of these rules without receipt of sale proceeds through a banking instrument showing transfer of the payment from the bank account of the buyer to the bank account of the supplier of spun yarn in the form as set out in Annexure-C (hard copy alongwith soft copy in Excel format) provided that such information from the 1st July, 2001 to the 30th June, 2002, shall be supplied up to the 31st August, 2003, and information for the 1st July, 2002 to the 30th June, 2003, to be supplied by the 31st July, 2003; (v) the Federal Government or the Central Board of Revenue shall neither initiate any adverse action for non-compliance of section 73 of the Act nor charge or recover the amount of further tax on supplies prior to the issuance of these rules, provided that besides the information required to be furnished under clause (iv) above, no contravention report has already been initiated against the manufacturers-cum-suppliers for non- payment of further tax by issuing flying invoices; and (vi) any registered person who opts to avail the benefit of this Notification but fails to provide information as required in clauses (i) and (ii) above shall become ineligible to avail benefit under this Notification. 4. Miscellaneous. All provisions of the Act and the rules made thereunder, insofar as these are not inconsistent with these rules shall, mutatis mutandis, apply to manufacturer-cum-supplier of spun yarn. 5. These rules shall come into force on the 1st May, 2003 and shall remain in force till the 31st August, 2003. Annexure-A [See rule 3(i)] S.No | Name of buyer. | Complete address of buyer with tele- phone No. | Regist- ration No. | Invoice No. and date. | Descript- ion of goods with count. | Quantity | Value | Bank instru- ment with No. and date or credit No. and date. | Buyer's account No. with Bank Branch. | Delivery Note No. and date. | Remarks. (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) Annexure-B [See rule 3(ii)] S. No. | Name of buyer | Address of buyer | Invoice No. and date. | Descript- ion of goods with count. | Quantity | Value. | Mode of payment or credit Note No. and date. | Delivery Note No. with date. | Remarks. (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) Annexure-C [See rule 3(iv)] S. No | Name of buyer. | Address of buyer | Regist- ration No. if avail- able. | Invoice No. and date. | Descript- ion of goods with count. | Quantity | Value | Mode of payment or credit Note No and date. | Buyers account No. with Bank Branch. (where applicable). | Delivery Note No. and date. | Remarks. (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) ________________________________________________________________ [3(20)ST-L&P/2002] ( Naseer Ahmad ) Additional Secretary