Turnover Tax Rules, 1999

GOVERNMENT OF PAKISTAN REVENUE DIVISION CENTRAL BOARD OF REVENUE SALES TAX WING Islamabad, the 1st July, 1999 NOTIFICATION SALES TAX S.R.O. 804(I)/99.- In exercise of the powers conferred by section 50 of the Sales Tax Act, 1990, read with section 3A and 26 A thereof the Central Board of Revenue is pleased to make the following rules, namely:- 1. Short title, application and commencement.- (1) These Rules may be called Turnover Tax Rules, 1999. (2) These shall apply to the manufacturers or producers and retailers (including retailers who opt for turnover tax irrespective of amount of their total turnover) making taxable supplies whose total turnover does not exceed two and a half million rupees in case of manufacturers or producers and twenty million rupees in case of retailers in any period during the last twelve months: Provided that these rules shall not apply to -- (a) manufacturers or producers who are limited companies; (b) persons supplying taxable goods to persons deducting advance income tax under sub-section (4) of section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979); (c) persons claiming input tax credit or adjustment under the Sales Tax Act, 1990; and (d) persons supplying zero-rated goods. (3) These shall come into force on and from the first day of July, 1999. 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) "Annex" means an annex to these rules; (c) "enrolment application" means application for enrollment of turnover tax-payers in the form at Annex-A; (d) "enrolment certificate" means a certificate of enrollment as at Annex-B; (e) "Ordinance" means the Income Tax Ordinance, 1979 (XXXI of 1979); (f) "return" means turnover tax return-cum-payment challan as in form at Annex-C; (g) "taxable turnover " means the total value of all taxable supplies of goods other than goods taxable at the rate of zero per cent; and (h) "total turnover" means the total value of all supplies, whether taxable or otherwise. (2) All other term and expressions used but not defined herein shall have the same meaning as are assigned to them in the Act. 3. Enrolment of turnover taxpayer.-- (1) A manufacturer or producer and retailer making taxable supplies whose total turnover does not exceed two and a half million rupees and twenty million rupees (including those retailers who opt for turnover tax irrespective of their annual turnover), respectively, shall make an application for enrolment in the form Annex-A to the Collector having jurisdiction in the area where his business premises are located. (2) The Collector shall, having satisfied himself with the requisite information provided in the enrolment application, cause the applicant to be enrolled and issue the enrolment certificate in the form Annex-B accordingly. 4. Furnishing of returns and payment of turnover tax.- (1) A person required to pay turnover tax shall furnish the return in the form in Annex-C, in the prescribed manner and within the prescribed date to the office of Collector of Sales Tax having jurisdiction along with the original of the bank-receipted treasury challan as a proof of payment of the amount of turnover taxes due and National Tax Number (NTN) as indicated in columns (04) and (05) respectively, of the return. A copy of the return, along with a copy of the treasury challan, shall simultaneously be furnished by the enrolled person to his respective Commissioner of Income Tax. (2) Notwithstanding the provisions of sub-rule (1), a retailer required to pay turnover tax shall furnish the return as provided under sub-section (6) of section 26A of the Act in the form specified in Annex-C. 5. Record to be kept.- A person required to pay turnover tax shall keep the following records, namely:- (i) Record of purchases indicating description, quantity and value of goods purchased and the name and address of the seller; (ii) record of sales indicating description, quantity and value of goods sold, name and address of the buyer; and (iii) record of electricity bills, gas bills, telephone bills, rent-payment receipts and wage-payment receipts: Provided that a retailer required to pay turnover tax shall keep - (a) daily record of each purchase indicating description, quantity and value of goods purchased; (b) daily record of aggregate sales indicating value of goods sold; (c) monthly record of electricity bills, telephone bills, rent receipts, wage payment receipts, transport expenditure receipts and such other expenditures as relate to business activity; and (d) quarterly inventory records. 6. Repeal.- The Turnover Tax Rules, 1996, are hereby repealed. Annex-A [See section 2(1)(a)] T-1/V.2 GOVERNMENT OF PAKISTAN APPLICATION FOR ENROLMENT OF TURNOVER TAXPAYER (Under Sales Tax Act, 1990) ========================================================================================= 1. Name______________________________________________________________________________ 2. Business address____________________________________________________________________ 3. Phone _________________Fax ___________________________Telex/E-mail ___________________ 4. Date of commencement of business _____________________________________________________ 5. N.T.N.____________________________ 6. SALES TAX REGISTRATION NO. __________________________________________ (if any held presently/previously) ================================================================================== STATUS OF BUSINESS (Please tick appropriate box below) 1. Sole Proprietor 2. Partnership 3. Other (Please specify) ========================================================================================= BUSINESS TYPE Please Tick 1. Manufacturer/Producer 2. Retailer TOTAL TURNOVER Last year_________________________________ Rs. _______________________________________ ========================================================================================== DECLARATION I declared that the above particulars are true and correct. Signature of Authorised person with Office stamp Date (Name and designation) =================================================================================== FOR OFFICIAL USE (Bank official) Retail Tax Enrolment No. Checked by _______________________________________ Date of enrolment ____________________________ ================================================================================================================ ANNEX-B [See section 2(1)(d)] T-2/V.2 GOVERNMENT OF PAKISTAN COLLECTORATE OF SALES TAX___________________ __________________________________________________ CERTIFICATE OF ENROLMENT (Under Sales Tax Act, 1990) (01) NAME (02) ADDRESS |(03) N.T.N. (04) You have been enrolled as a turnover taxpayer under Sales Tax Act, 1990. This means that you must:-- (i) deposit Turnover Tax in the Treasury or Authorised bank and furnish the same alongwith tax return on quarterly basis i.e. Return for July to September, (or any part thereof) by 15th October and October to December, (or any part there of) by 15th January; and (ii) abide by the provisions of the Sales Tax Act, 1990. (05) Your Sales Tax Enrolment Number is: (06) This number must be shown in the tax return and quoted in all your correspondence with the Sales Tax Department. ---------------------------------------------------------- ASSISTANT COLLECTOR (SALES TAX) (Registration and Information Division) Annex - C [See rule 2(1)(f)] Form ST-7 GOVERNMENT OF PAKISTAN SALES TAX RETURN-CUM-PAYMENT CHALLAN FOR ENROLLED MANUFACTURERS & RETAILERS (01) Sales Tax Enrollment No. _______________________________________ (02) National Tax No. ______________________________________________ (03) Enrolled Person's name _________________________________________ (04) Enrolled Person's address _______________________________________ (05) Tax Period Month ________ Year __________ Please Tick as appropriate : _____ Monthly _______ Quarterly (06) | Taxable Sales for the period (07) | Other Sales for the period (08) | Total Purchases and Expenses (Including Cost of Utilities) (09) 2% TURNOVER TAX ON TAXABLE SALES Rs. ____________________ DECLARATION I declare that the entries in this return are true and correct. Name ___________________________________ Designation ______________________________ Signature ________________________________ Stamp ___________________________________ _____________ Date FOR BANK USE Sr. No. _________ Amount Received Rs. ____________________________________ Amount in words: _______________________________________ Bank Officer's Signature __________________________________ Stamp _________________________________________________ [ST-T-Pub/Call-2001, Dated 31-08-01] ( ASIM MAJID KHAN ) Secretary (Sales Tax) Amended vide SRO. 296(I)/2000 dated 31.05.2000 Amended vide SRO. 616(I)/2001 dated 31.08.2001 Amended vide SRO. 508(I)/2003 dated 07.06.2003