RELAXATION OF THE TIME PERIOD FOR DEPOSIT OF SALES TAX UNDER THE SPECIAL PROCEDURE FOR GINNING INDUSTRY RULES, 1996

RELAXATION OF THE TIME PERIOD FOR DEPOSIT OF SALES TAX UNDER THE SPECIAL PROCEDURE FOR GINNING INDUSTRY RULES, 1996 <!--[if gte mso 10]> RELAXATION OF THE TIME PERIOD FOR DEPOSIT OF SALES TAX UNDER THE SPECIAL PROCEDURE FOR GINNING INDUSTRY RULES, 1996 By Akhtar Javed, Advocate, Lahore In terms of Rule 6 of the Ginning Industry Rules, 1996 notified vide S.R.O. 1271(I)/96 dated 10-11-1996, spinning unit is required to remit the sales tax payable on ginned cotton purchased by him during the month to the ginner by the 10th day of the month following the month to which the tax invoice relates through a bank draft drawn and crossed in the name of Collector of Sales Tax. The ginner is required to deposit these drafts in the authorized branch of National Bank of Pakistan by 15th day of the month alongwith monthly sales tax return. 2. Because of Eid holidays in the first week of December, All Pakistan Textile Mills Association (APTMA) vide its Letter No. PZ/L&T/GST/02-617 dated 12-11-2002 had requested C.B.R. to allow extension in time period for remitting the demand drafts from 10th of December to 15th of December and the period for depositing of these drafts by the ginners from 15th of December to 20th of December. 3. In exercise of powers conferred under section 74 of the Act, C.B.R. vide its Letter C. No.3(56)STP/96 dated 30-11-2002 has been pleased to extend the time period for remitting the amount of sales tax through demand drafts by spinning units from 10th of December to 15th of December, 2002. The time period for depositing these demand drafts by the ginners has also been extended from 15th of December to 20th of December, 2002. The copy of C.B.R's. above referred letter dated 30-11-2002 has been endorsed to all the Collectors of Sales Tax and also to Mr. Salamat Ullah, Executive Vice-President, National Bank of Pakistan, Head Office: I. I. Chundrigarh Road, Karachi. 4. It is to point out that C.B.R. vide its above referred letter dated 30-11-2002 has relaxed the time period prescribed in rule (6) of the Special Procedure for Ginning Industry Rules, 1996 notified vide S.R.O. 1271(I)/96, dated 10-11-1996. (i) for remitting the amount of sales tax through demand drafts by spinning units; and (ii) for depositing the demand drafts by the ginners; but the time period for submitting the monthly sales tax returns in terms of section 26 of the Sales Tax Act, 1990 has not been extended. So the Spinning units will remit the demand drafts to the ginning units by 15th of December, 2002 and they will furnish their sales tax return on same day i.e. 15th of December, 2002. The drafts sent by the spinning units on 15th December, 2002 will be received by the ginning units after 15th December, 2002 and the ginner will deposit these drafts on 20th December, 2002 but the date of filing of return by the ginner has not been extended. While relaxing the dates mentioned in the Rules, C.B.R. authorities have omitted to relax the date of filing of monthly return which may cause hardship for the spinners and ginners.