Amendments in the Sales Tax Special Procedure Rules, 2007
Certain amendments have been made in respect of following:
1. Special Procedure for payment of sales tax by retailers;
2. Special Procedure for collection and payment of sales tax on natural gas;
3. Special Procedure for payment of sales tax by steel melters, re-rollers and ship breakers; and
4. Special Procedure for payment of sales tax by wholesale-cum-retail outlets.
5- Special Procedure for the Goods Specified in S. No. 12 of the Fifth Schedule to the Act.
Gist of the amendments is as under:
1. Special Procedure for payment of sales tax by retailers;
Rules relating to retailers have been changed. Regime of turnover tax has been abolished. Retailers have been categorized in to two categories .
1- Retailers operating in A/conditioned malls or having debit/credit card machine or having annual electricity bill in excess of Rs. 600,000/- or national or international chain or wholesale-cum retailer engaged in import and supply.
2- Retailers other than the one mentioned above.
Retailers mentioned in category 1 will pay tax under normal regime and will pay sales tax @17% of their supplies with full adjustment of inputs. Rate of sales tax for the retailers dealing in goods under SRO 1125(I)/2011 will be the rate as applicable under the SRO.
Retailers mentioned in category 2 will pay sales tax with their electricity bill and no adjustment of input tax will be available to them. Such payment with electricity bill will be final discharge of retailers liability.
2. Special Procedure for collection and payment of sales tax on natural gas;
Proviso relating to nine percent tax on supplies to CNG stations has been omitted as the same had become redundant after certain changes made in the light of judgment of Supreme Court.
3. Special Procedure for payment of sales tax by steel melters, re-rollers and ship breakers; and
Value for the purposes of sales tax on import of billets has been reduced from US$550 per metric ton to US$ 514 per metric ton
4. Special Procedure for payment of sales tax by wholesale-cum-retail outlets.
Special procedure for wholesale-cum-retail outlets has been omitted except for its application and supplies to diplomats.
Supplies of these stores will also be liable to sales tax under Chapter II of the Rules.
Now extra tax @2% will also be charged on supplies of specified Goods (Home Appliances, Electronics etc.) to such stores.
5- Special Procedure for the Goods Specified in S. No. 12 of the Fifth Schedule to the Act.
Certain goods have been included in the Fifth Schedule which are liable to sales tax @zero% sales tax subject to fulfillment of conditions of Chapter XIV of the Special Procedure Rules. These conditions are promulgated under the amending SRO. These conditions were already mentioned in SRO 670(I)/2013 dated 18.07.2013 under the previous regime.