C.B.R. EXTENDS THE SUSPENSION OF OPERATION OF SECTION 73 OF THE SALES TAX ACT, 1990 TILL 31ST JANUARY, 2004

C <!--[if gte mso 10]> C.B.R. EXTENDS THE SUSPENSION OF OPERATION OF SECTION 73 OF THE SALES TAX ACT, 1990 TILL 31ST JANUARY, 2004 By By Mr. Akhtar Javed, Advocate, Lahore Keeping in view, the demand of various bodies including FPCCI and APTMA, C.B.R. had suspended the operation of section 73 of the Act till 31st August, 2003. Through its Letter C.No. 3(36)STP/99-Pt-I dated 9-8-2003, C.B.R. had communicated that during the period, the provisions of section 73 as existed prior to the substitution shall remain operative. C.B.R's. authorities are making attempts to redraft sections 7 and 73 of the Act in consultation with all stake holders including FPCCI, SITE Association, APTMA etc. However in the meantime, the suspension of section 73 of the Act was extended till 30th September, 2003. 2. Draft of sections 7 and 73 had been circulated to various trade bodies for their comments and were enclosed with our earlier letter dated 29-9-2003. In the meantime, the suspension of operation of section 73 was extended up to 31st December, 2003. However, Tax Managers have failed to reach any decision and vide its Letter C.No. 3(36)STP/99(Pt-A) dated 29-12-2003, C.B.R. has extended the suspension of section 73 till 31-1-2004. 3. Taxpayers are advised to file their returns for the month of January, 2004 in the same pattern on which they had been filing the returns prior to substitution of section 73. The adjustment of input tax on purchases made during the month of January, 2004 can be claimed on the strength of invoices issued during the relevant month irrespective of the fact whether or not the payment of the amount of sales tax has been made by the buyer to the supplier. However, it has to be kept in mind that the payment of the whole amount of invoice will have to be transferred through any of the prescribed mode showing transfer of payment .from the business bank account of the buyer to that of the supplier within 120 days of the issuance of tax invoice.