ISLAMABAD (October 08 2003): As the exemption of 'further tax' on supply of spun yarn expired on September 1, 2003, the Central Board of Revenue (CBR) has launched a countrywide exercise to analyse the impact and implications of exemption.
Sources told Business Recorder here on Tuesday that CBR would not give any further extension in exemption of 'further tax' to the manufacturer-cum-suppliers of spun yarn till such time as the collectorates give comprehensive reports on the compliance by the textile industry.
Under the expired 'Special Procedure for Manufacturers-cum-Suppliers of Spun Yarn Rules, 2003', the supply of spun yarn by a manufacturer-cum-supplier was exempted from 'further tax' under sub-section (1A) of section 3 of the Sales Tax Act, 1990.
The CBR has already warned the manufacturers that any registered person who opts to avail the benefit of rules, but fails to provide information, would become ineligible to avail exemption of further tax.
The CBR would examine whether the manufacturer-cum-suppliers have made 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 was timely furnished to the Collector of Sales Tax.
Moreover, the CBR would collect data from collectorates whether the manufacturer-cum-suppliers have issued sales tax invoice and submitted particulars of the buyer except the sales tax registration number.
The CBR would also ascertain whether the manufacturer-cum suppliers have submitted information pertaining to supplies made after July 1, 2001.
