ISLAMABAD (January 03 2004): As textile sector has not been able to fulfil conditions to avail exemption of 'further tax' on the supply of spun yarn, the Central Board of Revenue (CBR) has decided not to extend amnesty of 'further tax' exemption to any other value-added sector.
The amnesty of further tax exemption for textile sector will remain in force till February 29, 2004.
Official sources told Business Recorder here on Friday that the exemption of 'further tax' granted under the Special Procedure for Spun Yarn has not been properly availed by the textile sector.
Extension of this special dispensation to other sectors is, therefore, not supported.
Pakistan Knitwear and Sweater Association contested that All Pakistan Textile Mills Association (Aptma) members were allowed amnesty of 'further tax' on sale of yarn in violation of section 73 of the Sales Tax Act, 1990, but all other value-added sectors were denied this facility.
They demanded amnesty, subject to the same conditions as were applicable to Aptma members, the association added.
The CBR, after examining the case, decided that as suppliers of spun yarn have not availed the facility properly, therefore, it is not practicable to give this concession to other sectors.
The authorities have taken this decision in consultation with collectors of sales tax.
The exemption of 'further tax' on the supply of spun yarn was subject to the condition that the manufacturer-cum-supplier makes supplies 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 concerned Collector of Sales Tax.
Moreover, any registered person who opts to avail the benefit of this notification but fails to provide information as required shall become ineligible to avail benefit.
Suppliers of spun yarn were also bound to fulfil other conditions specified in the notification.
