SALES TAX RULES, SALES TAX RULES, 20062006

MOHAMMAD SHOAIBMOHAMMAD SHOAIB

JULY 29, 2006JULY 29, 2006

SALES TAX RULES,, 2006SALES TAX RULES,, 2006

REGISTRATION AND DE-REGISTRATIONREGISTRATION AND DE-REGISTRATION FILING OF RETURNSFILING OF RETURNS CREDIT AND DEBIT NOTE AND CREDIT AND DEBIT NOTE AND

DESTRUCTION OF GOODSDESTRUCTION OF GOODS APPORTIONMENT OF INPUT TAXAPPORTIONMENT OF INPUT TAX REFUNDREFUND ALTERNATIVE DISPUTE RESOLUTIONALTERNATIVE DISPUTE RESOLUTION OTHERSOTHERS

REGISTRATION AND DE-REGISTRATION AND DE-REGISTRATIONREGISTRATION

Requirements for registrationRequirements for registration Procedure for registration and Procedure for registration and

changes in particularschanges in particulars Transfer for registrationTransfer for registration De-registrationDe-registration Blacklisting and suspension of Blacklisting and suspension of

registrationregistration

REQUIREMENT FOR REQUIREMENT FOR REGISTRATIONREGISTRATION

Manufacturer or retailers whose annual Manufacturer or retailers whose annual turnover from taxable supplies, made in turnover from taxable supplies, made in any tax period during the last twelve any tax period during the last twelve months exceeds five million rupees;months exceeds five million rupees;

importer;importer; wholesaler (including dealer) and wholesaler (including dealer) and

distributor; anddistributor; and person required, under any other Federal person required, under any other Federal

law or Provincial law, to be registered for law or Provincial law, to be registered for the purpose of any duty or tax collected or the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be paid as if it were a levy of sales tax to be collected under the Act;collected under the Act;

DE-REGISTRAIONDE-REGISTRAION

Basis of de-registrationBasis of de-registration ProcedureProcedure

• ApplicationApplication• De-registration auditDe-registration audit• Final returnFinal return• De-registrationDe-registration

BLACKLISTING AND SUSPENSION BLACKLISTING AND SUSPENSION OF REGISTRATIONOF REGISTRATION

Suspension, enquiry and blacklistingSuspension, enquiry and blacklisting Position of invoices issued by unit Position of invoices issued by unit

under:under:• SuspensionSuspension• BlacklistingBlacklisting

FILING OF RETURNSFILING OF RETURNS

Filing manually:Filing manually:• FilingFiling• Acknowledgement by banksAcknowledgement by banks

Filing electronicallyFiling electronically

CREDIT AND DEBIT NOTE AND CREDIT AND DEBIT NOTE AND Cancellation DESTRUCTION OF Cancellation DESTRUCTION OF

GOODSGOODS of supplyof supply Change in value of supplyChange in value of supply Adjustment of input tax and output Adjustment of input tax and output

taxtax Destruction of goodsDestruction of goods

APPORTIONMENT OF INPUT APPORTIONMENT OF INPUT TAXTAX

Not applicable in respect of input tax paid either Not applicable in respect of input tax paid either for wholly taxable or for wholly exempt supply.for wholly taxable or for wholly exempt supply.

These rules are applicable for input tax paid for These rules are applicable for input tax paid for both taxable as well as exempt supply, as per both taxable as well as exempt supply, as per following formula:following formula:

Residual input tax credit = Residual input tax credit = Value of taxable supplies Value of taxable supplies x Residual x Residualon taxable supplies on taxable supplies (Value of taxable + (Value of taxable + input tax input input tax input

taxtax exempt supplies) exempt supplies)

MMonthly apportionment as per formula is onthly apportionment as per formula is provisional, which is subject t0 final adjustment provisional, which is subject t0 final adjustment on annual basis.on annual basis.

REFUNDREFUND

Application of rulesApplication of rules Filing of refund claimFiling of refund claim Scrutiny and processing of normal refund claimsScrutiny and processing of normal refund claims Sanction and payment of refundSanction and payment of refund Scrutiny and processing of refund claims filed by Scrutiny and processing of refund claims filed by

manufacturer of specified goodsmanufacturer of specified goods Scrutiny and processing of refund claims filed by Scrutiny and processing of refund claims filed by

commercial exportercommercial exporter Extent of payment of refund claimExtent of payment of refund claim Refund of excess input tax beyond 3 monthsRefund of excess input tax beyond 3 months Supportive documentsSupportive documents

ALTERNATIVE DISPUTE ALTERNATIVE DISPUTE RESOLUTIONRESOLUTION

Application for ADRApplication for ADR Constitution of committee for ADRConstitution of committee for ADR Working of CommitteeWorking of Committee Recommendation of and re-Recommendation of and re-

consideration by committeeconsideration by committee Decision of BoardDecision of Board

OTHERSOTHERS SPECIAL AUDITSPECIAL AUDIT TAXPAYER’S AUTHORIZED TAXPAYER’S AUTHORIZED

REPRESENTATIVESREPRESENTATIVES ZERO-RATING OF SUPPLIES AGAINST ZERO-RATING OF SUPPLIES AGAINST

INTERNATIONAL TENDER FOR AFGHAN INTERNATIONAL TENDER FOR AFGHAN REFUGEESREFUGEES

SUPPLY OF ZERO-RATED GOODS TO SUPPLY OF ZERO-RATED GOODS TO DIPLOMATS, DIPLOMATIC MISSIONS, DIPLOMATS, DIPLOMATIC MISSIONS, PRIVILEGED PERSONS AND PRIVILEGED PRIVILEGED PERSONS AND PRIVILEGED ORGANISATIONSORGANISATIONS

RECOVERYRECOVERY