Download 1996 Sales Tax Regulations for Pakistani Cotton Ginners: Special Procedure and more Cheat Sheet Law in PDF only on Docsity! GOVERNMENT OF PAKISTAN CENTRAL BOARD OF REVENUE SALES TAX WING Islamabad, the 10th November, 1996 NOTIFICATION (SALES TAX) S.R.O. 1271(1)/96.- In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, read with sub-section (3A) of section 3 and the first and second provisos to section 45 thereof, the Federal Government is pleased to make the following rules, namely:-- 1. Short title, application and commencement.-- (1) These Rules may be called Special Procedure for Ginning Industry Rules, 1996. (2) These shall apply to the cotton ginners and ginning factories. (3) They shall come into force at once. 2. Definitions.-- for the purpose of these Rules,-- (a) "Act" means the Sales Tax Act, 1990; (b) "ginning" means the manufacture of ginned cotton; (c) "ginning unit" means any manufacturing unit engaged in ginning; and (d) "ginner" means a person who is engaged in the manufacture and supply of ginned cotton. 3. Registration.-- (1) Aginner shall apply for registration in the form specified in the Central Board of Revenue's Notification No. SRO. 550(1)/96, dated the first July, 1996, to the Collector of Sales Tax having jurisdiction in the area where the ginning unit is situated. (2) Where a ginner is running more than one ginning unit or a composite unit dealing in ginning and spinning together or is engaged in any other taxable activity, whether the ginning and other taxable activity are carried out in the same premises or not, such ginner shall apply for registration separately in accordance with sub-rule (1) for each ginning unit and separately for other taxable activity. . (3) The application for registration shall be processed and if the application contains necessary particulars a certificate of registration indicating the registration number assigned to the applicant shall be issued. 4. Tax rate.-- All supplies by a ginner shall be charged to tax at the rates specified in the Act: Provided that where any such supply is subsequently exported, it shall be zero-rated in accordance with the provisions of section 10 of the Act. 5. Tax invoice.-- The ginner shall issue a tax invoice on the supply of taxable goods under section 23 of the Act indicating the value of taxable supply and the amount of tax due on such supply. 6. Payment of tax.- (1) The ginner shall deliver ginned cotton through a delivery note or gate pass to the registered spinning unit or to the registered exporter. The delivery notice or gate pass shall be serially numbered document and shall indicate the quantity of the cotton sold and the name of the buyer alongwith his sales tax registration number, builty number and date and registration number of the vehicle on which the ginned cotton is being carried. The spinning unit or the exporter, after receipt of ginned cotton in his premises, shall settle the terms, if any, about quantity and value of the ginned cotton with the ginner within six (06 days) days of the date of the despatch of ginned cotton from the ginning unit. The changes in quantity or value shall be indicated on the reverse side of the copies of the delivery note or gate pass issued by the ginning unit. The ginning unit shall then issue the prescribe sales tax invoice for the quantity and value of the ginned cotton agreed between the ginner and the spinning unit or the exporter. The tax invoice shall be issued of the date on which the ginned cotton was despatched against the delivery note or gate pass within seven days (07 days) of the date thereof and shall bear a cross reference of the delivery note or gate pass. The Spinning unit or Exporter shall remit amount of sales tax payable on cotton purchased by him during the month to the ginner by the 10th day of the month following the month to which the tax invoice relate, through a Bank Draft drawn and crossed in the name of the respective Collector Sales Tax. The Ginner shall issue a proper receipt for the draft received by him from the spinner or exporter. The Ginner shall deposit these drafts in the authorized branch of National Bank of Pakistan by the 15th day of that month and submit to Collector Sales Tax details of cotton sold by him during a month and amounts of sales tax deposited by him in the format given below by the 20th day of that month:-
