Introduction
Federal Board of Revenue has issued SRO 328(1)/2019 dated March 11, 2019
Commentary
Through the above mentioned SRO, the Revenue division under the power conferred by subsection (6) and (7) of section 3, sub section (4) of section 7, and clause (b) of subsection (1) of section 8 of the Sales Tax Act 1990, read with section 71 read thereof, has made following further amendments in the Sales Tax special procedure (withholding) Rules, 2007,
There is a typo error in the SRO identified below;
Amendment in clause (ii) of sub-rule (3) of rule 2 of Sales Tax special procedure (withholding) Rules 2007 has been wrongly mentioned as sub-rule 2, in sub rule (3) in clause (ii).
| Sr. No | Rule & Sub Rule | Clause / Paragraph | Previous | Amendment | |
| 1. | 1 (2) | Clause (e) | recipients of service of advertisement, who are registered for sales tax
[; and] |
The word “and” at the end shall be omitted | |
| 2. | 1 (2) | Clause (f) |
persons registered as exporters.] |
Full stop at the end, a semi-colon and word “;and” shall be substituted. | |
| 3. | 1 (2) | Clause (g) | New clause (g) has been added
Clause (g) registered person purchasing cane molasses.”; and |
||
| 4. | 2 (3) | Clause (ii) | A withholding agent, other than specified in clause (i), shall on purchase of taxable goods form persons liable to be registered but not actually registered under Chapter I of the Sales Tax Rules, 2006, deduct sales tax at the rate of one percent of the value of taxable supplies made to him from the payment due to the supplier and the amount of sales tax for the purpose of this rule shall be worked out on the basis of gross value of taxable supply:
Provided that the withholding agent shall not be entitled to reclaim or deduct the amount of tax withheld from such persons as input tax.]
|
“Provided that the registered persons purchasing cane molasses from such unregistered persons shall deduct sales tax at the rate applicable to the supplies of cane molasses from the payment due to the supplier and, unless otherwise provided in the contract of such supply, if any, the amount of sales tax shall be worked out on the basis of gross value of taxable supply:
Provided further that the withholding agent shall not be entitled to reclaim or deduct the amount of tax withheld from such person as input tax.” |
There is typo error in the SRO
Amendments is wrongly proposed in sub-rule 2, in sub-rule (3), clause (ii) of sales tax special procedure (withholding) Rules, 2007, whereas
the correct one is Rule 2 sub-rule (3) clause (ii) |
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