Cenral Board of Revenue is pleased to make the following rule

GOVERNMENT OF PAKISTAN (REVENUE DIVISION) CENTRAL BOARD OF REVENUE **** Islamabad, the 13th August, 2005 NOTIFICATION (SALES TAX) S.R.O. No. 813 (I)/2005.-- In exercise of the powers conferred by section 50 of the Sales Tax Act, 1990, read with the provisos to sub-section (1) of section 10 thereof, the Central Board of Revenue is pleased to make the following rules, namely:- THE SALES TAX (REFUND OF EXCESS INPUT TAX TO THE DEALERS, DISTRIBUTORS AND WHOLESALERS) RULES, 2005. 1. Short title, application and commencement.--(1) These rules may be called the Sales Tax (Refund of Excess Input Tax to the Dealers, Distributors and Wholesalers) Rules, 2005. (2) They shall apply to such registered persons who meet the criteria of ‘dealers, distributors and wholesalers’ as defined under these rules. (3) They shall come into force at once. 2. Definitions.-- In these rules, unless there is anything repugnant in the subject or context,- (a) “Act” means the Sales Tax Act, 1990; (b) “adjustment advice” means the automated advice generated by the computer system in the format set out in Annex ‘A’ to these rules, authorizing the registered dealer, distributor or wholesaler to utilize the admissible amount specified therein for adjustment against his future output tax liabilities; (c) “adjustment note” means the intimation given by the dealer, distributor or wholesaler, in the form set out in Annex ‘B’ to these rules, to the Collector about his intention to utilize the amount of excess input tax against his output tax liabilities during the three tax periods subsequent to the tax period to which the monthly return containing declaration of such excess inputs relate. The adjustment note shall be serially numbered on financial yearly basis with dates mentioned therein; (d) “Collector” means the Collector of Sales Tax having jurisdiction; (e) “dealer” means such registered person who is operating, whether exclusively or otherwise as dealer of the goods mentioned in the Third Schedule to the Act; (f) “distributor” means such registered person who is operating, whether exclusively or otherwise as distributor of the goods mentioned in the Third Schedule to the Act; (g) “excess input tax” means input tax not utilized on account of adjustment against output tax for the tax period in respect of which a return-cum-payment challan has been filed; (h) “refund” means the refund of excess input tax claimed in column (8) of the sales tax return-cum-payment challan filed under rule 15 of CHAPTER II of the Sales Tax Rules, 2005; (i) “summary” means summary statement of purchase invoices and sales invoices furnished under Notification No. S.R.O. 525(I)/2005, dated the 6th June, 2005; and (j) “wholesaler” means such registered person who is operating, whether exclusively or otherwise as wholesaler of the goods mentioned in the Third Schedule to the Act. 3. Scope of claim.--Only such input goods shall be taken into account for the purpose of availing refund under these rules which have been acquired on payment of sales tax during the relevant tax period. 4. Summary of invoices.-- The bona fides of the claim shall be determined on the basis of summary statement of purchase and sale invoices filed by the dealer, distributor or wholesaler in terms of Notification No. S.R.O. 525(I)/2005, dated the 6th June, 2005. 5. Adjustment note and adjustment advice.-- (1) The dealer, distributor or wholesaler shall at the time of furnishing summary of purchase and sale invoices, intimate the Collector that he intends to utilize the amount claimed in refund for the purpose of adjustment against his output tax liabilities during the three tax periods subsequent to the tax period to which the relevant monthly return relates. (2) The dealer, distributor or wholesaler shall mention in the adjustment note about the closing inventory in respect of each item he is dealing in as well as the location where such unconsumed stocks are kept. (3) The dealer, distributor or wholesaler shall certify in the adjustment note that he has fulfilled the conditions of section 73 of the Act. 6. Automated scrutiny of claims. -- The Collectorate shall maintain separate database of each dealer, distributor or wholesaler wherein every adjustment note shall be entered along with summary of invoices so as to ensure that the amount claimed in refund is adjusted against output tax liabilities within the time specified in the note and the computer will generate an adjustment advice which shall be conveyed to the registered person within ten days. The adjustment advice shall be treated as an authorization of refund of the specified amount and the concerned dealer, distributor or wholesaler shall be entitled to utilize the admissible amount as specified in the advice for adjustment against his future output tax liabilities as provided under these rules. 7. Manner of adjustment.-- The reference number and the date of adjustment note and particulars of the relevant adjustment advice shall be mentioned by the dealer, distributor or wholesaler on the monthly return on which adjustment of excess amount of input tax is made. 8. Miscellaneous.-- (1) The Collector or any officer duly authorized by him in this behalf may refuse adjustment of any amount claimed by a registered dealer, distributor or wholesaler: Provided that no claim for adjustment of any amount under these rules shall be refused unless a show cause notice and an opportunity of being heard has been given to the concerned dealer, distributor or wholesaler. (2) The Collector or any officer duly authorized by him in this behalf may order for verification of stocks prior to allowing adjustment of any amount claimed by a registered dealer, distributor or wholesaler. (3) Pending adjudication or decision of the case, the Collector or any officer duly authorized by him in this behalf may direct the registered dealer, distributor or wholesaler not to utilize the claimed amount or any such amount in such manner and subject to such conditions as may be specified by the Collector, or as the case may be, by such officer. ANNEX-A GOVERNMENT OF PAKISTAN ADJUSTMENT ADVICE Serial No. ______________ Date:_________________ 1. Sales Tax Registration No. ___________________ 2. National Tax No. ___________________________ 3. Name ____________________________________ 4. Address __________________________________ 5. Adjustment Note No.& Date ________________________ 6. Tax Period ___________________________________ 7. Amount of Excess input tax allowed to be adjusted (in Rs.) _______________ Name / Designation_______________________________ ANNEX-B GOVERNMENT OF PAKISTAN ADJUSTMENT NOTE (Under SRO. (I)/2005 dated .08.2005) Serial No. ______________ Date:_________________ Tax period _____________________________ (1) ST Registration No. _________________________ (2). National Tax No. ___________________________ (3) Name & Address ____________________________________________________________________________ (4) Details of input tax:- (Value in Pak rupees) Item description | Opening inventory | Purchases made during the tax period | Supplies made during the tax period | Closing inventory | Location where unconsumed stocks are kept Qty | Value | Qty | Value | Qty | Value | Qty | Value 1. 2. 3. 4. 5. 6. Note: The value shall be the sales tax paid value. [FOR FURTHER DETAILS, SEE THE REVERSE SIDE] (a) Amount of tax involved on opening inventory (if any) Rs. ___________________ (b) Total sales tax paid on local purchases & imports Rs. __________________ (c) Sales Tax paid on utilities Rs. __________________________ Total input sales tax Rs. __________________________ (5) Output tax Rs.__________________________ (6) Excess input tax to be adjusted (4 -5) Rs. _____________________ Certificate: it is certified that the provisions of section 73 of the Sales Tax Act, 1990 have been fulfilled. Name_______________________ Signature __________________ NIC No. ____________________ Stamp _____________________ Designation __________________ [C. No. 3(1)ST L&P/2005] (Dr. Muhammad Zubair) Secretary (ST & FE-Budget)