Sales Tax Flashcards
due date of furnishing of a return
15 th day of the month following the end of the tax period
List of persons on which further tax of 3% is not charged
(1) Electricity energy supplied to domestic and agricultural consumers
(2) natural gas supplied to domestic consumers and CNG stations
(3) motor oil, diesel oil, jet fuel, kerosene oil and fuel oil
(4) goods sold by the retailers to end consumers
(5) supply of goods directly to end customers including food, beverages, fertilisers and vehicles
(6) items listed in third schedule
(7) second hand worn clothing and worn articles falling under PCT heading 6309.0000
(8) fertiliser
(9) supplies by steel-melters, re-rollers and ship breakers operating
(10) supplies covered under 5th schedule
(11) supplies made to government, semi-government and statutory regulatory bodies
(12) supply of white crystalline sugar
Third schedule items
(1) Fruit juices and vegetables juices
(2) detergent. (3) toothpaste
(4) shaving cream
(5) perfumery and cosmetics
(6) ice cream (7) tea
(8) aerated waters or beverages
(9) syrups and squashes (10) cigarettes
(11) toilet soap (12) shampoo
(13) milky drinks (14) powder drinks
(15) toilet paper and tissue paper
(16) spices sold in retail packing bearing brand name and trademarks
(17) cement sold in retail packing
(18) shoe polish and shoe cream
(19) mineral/ bottled water
(20) other household and specified items
Who is liable to be registered
1) a manufacturer who is not running a cottage industry
2) a retailer who is liable to pay sales tax excluding such retailer required to pay sales tax through his electricity bill
3) an importer
4) an exporter who intends to obtain sales tax refund against his zero-rated supplies
5) a wholesaler, dealer or distributor
6) a person who is required under any other federal law or provincial law to be registered for the purpose of any duty or tax collected or paid if it were a levy of sales tax to be collected under the act
Reasons for deregistration
1) ceases to carry on his business
2) supplies have become exempt from tax
3) transfers or sells his business
4) merger with another person
5) failure to file tax return for six consecutive months
Suspension
Where a commissioner having jurisdiction is satisfied that a registered person has insured fake invoices, evaded tax or committed tax fraud, registration of such person may be suspended by the commissioner through the system without prior notice, pending further inquiry
Basis for suspension
1) non-availability of the registered person at the given address
2) refusal to allow access to business premises or refusal to furnish records to an authorised inland revenue officer
3) abnormal tax profile, such as taking excessive input tax adjustments, continuous carry-forwards or sudden increase in turnover
4) making substantial purchases from or making supplies to other blacklisted or suspended person
5) non-filling of sales tax returns
6) on recommendation of a commissioner of any other jurisdiction
7) any other reason to be specified by the commissioner
Debit/credit notes against output tax
Amendments in invoice
1) cancellation of supply
2) return of goods
3) a change in the nature of supply
4) change in the value of the supply
5) some such event the amount shown in the tax invoice or return needs to be modified
Cancellation or return of supply- debit note shall indicate
1) Quantity being returned/cancelled
2) Value of supply shown in tax invoice
3) Related sales tax paid on
4) name and registration number of the recipient
5) name and registration number of the supplier
6) number and date of the original sales tax invoice
7) the reason of issuance pf the debit note
8) signature and seal of the authorised person issuing the note
In case made unregistered person, the supplier shall issue a credit note with same particulars as above
Change in value pf supply or amount of sales tax
Increased- supplier - debit note
Decreased- supplier- credit note
1) name and registration number of the supplier
2) name and registration number of the recipient
3) number and date of the original sales tax invoice
4) original value and sales tax as in original invoice
5) the revised value and sales tax
6) the difference of value and sales tax adjustable
7) the reason for revision of value
8) signature and seal of the authorised person issuing the note
Destruction of goods
- grounds : unfit for consumption
-permission: collector of sales tax having jurisdiction
-supervision: inland revenue officer of sale tax not below the rank of assistant collector
Input tax : inadmissible
Not entitled to deduct input tax unless
1) tax invoice in his name, bearing his registration number
2) in case of imports, goods declaration duly cleared by the customs
3) purchased in auction, a treasury challan in his name + bearing his registration number
4) supplier declares the supplies in his return or pays the due tax as shown in this return
Input tax inadmissible
1) not used or not to be used for the manufacture or production of taxable goods/supplies
2) on which extra amount of tax is payble
3) board with approbation pf federal government may by notification in the official gazette specify
4) sales tax has not been deposited in the government treasury by the respective supplier
5) fake invoices
6) RP fails to provide info relating to his imports, purchases, sales
7) discrepancy is indicated by CREST or input of which is not verifiable in supply chain
8) not related to taxable supplies
9) acquired for personal consumption
10) used in immovable property
11) vehicles falling in first schedule of custom act
12) adjustment is barred under respective provincial sales tax law
13) agricultural machinery or equipment
14) not declared by supplier or tax paid
15) import of scrap of compressors
16) attributable to supplies made to unregistered person
Residual input tax credit on taxable supplies tax formula
(Value of taxable supplies divide by value of taxable + exempt supplies) multiply by residual input tax
Sum is received in cash and partly in kind then transaction would be allow for input tax credit subject to conditions;
1) goods received in kind represent taxable goods
2) goods received are reflected in records
3) the balance amount even less than Rs50,000 is received through crossed banking instrument
