Friday, 26 December 2014

RETAIL TAX RULES, 1998

RETAIL TAX RULES, 1998

Notification No. S.R.O. 1333(1)/97, dated 31st December, 1997.—In exercise of the powers conferred by section 3AA of the Sales Tax Act, 1990 read with section 26AA thereof, the Federal Government is pleased to specify the 1st February, 1998, to be the date for the charge, levy and payment of retail tax from the persons dealing in any one or more of the goods specified in sub‑rule (2) of rule 1 of the Retail Tax Rules, 1998, namely:‑‑


1. Short title, application and commencement.‑‑(1) These rules may be called the Retail Tax Rules, 1998.

(2) They shall apply to persons engaged in making taxable supplies as a retailer. wholesaler including a dealer or any other person dealing in any one or more of the following goods at any place in Pakistan and whose annual taxable turnover is not less than three hundred thousand rupees in any period during the last twelve months, namely:‑‑

(i)         Electronics and electrical goods and appliances and parts
            thereof as specified in Annex‑A;
(ii)        autoparts‑
(iii)       watches and parts thereof;
(iv)       tyres and tubes; and
(v)        sanitary wares or sanitary fittings.
(3)        They shall come into force on and from the first day of January,

2. Definitions:‑(1) In these rules unless there is anything repugnant in the subject or context—
(a)        "Act" means tire Sales Tax Act, 1990;
(b)        "Annex" means an annex appended to these rules;
(c)        "enrolment application" means application for enrolment as a
taxpayer for retail tax as shown at Annex‑B; .
(d)        "enrolment certificate means a certificate of enrolment for
retail tax in the forth specified in Annex‑C;
(e)        “Return” means retail tar‑ return‑cum‑payment challan as specified in Annex‑D;
(f)         "Implementation Committee" means the committee constituted under rule 8.

(2) All other words and expressions used but not defined in these rules shall have the same meaning as are assigned to them under the Act.

3. Enrolment of taxpayer of retail tax.—(1) A retailer, wholesaler including dealer or any other person who is liable to be enrolled for retail tax shall make an application for enrolment to the Collector having jurisdiction in` the area where his business premises are located:

(2) The Collector shall, having satisfied himself with the requisite information provided in the enrolment application, cause the applicant to be enrolled as taxpayer of retail tax and issue the enrolment certificate accordingly. 

4. Furnishing of returns; and payment of retail tax.‑A retailer, wholesaler including dealer or any other person enrolled under these rules shall deposit the return‑cum‑payment challan in a designated branch of the National Bank of Pakistan for the tax period as specified in section 26AA of the Act.

5. Records to be kept.‑‑(1) A retailer, wholesaler including dealer or ally other person required to file a return under rule 4 shall keep and maintain the following records, namely:‑‑

(a)        Record of purchases indicating description, quantity, value of goods purchased, amount of sales tax paid and the name and address of the seller;

(b)        record of sales indicating description, quantity, value of goods sold, amount of sales tax collected and the name and address of the buyer;

(c)        a cash memo book duly authenticated, on each leaf, by the appropriate officer of sales tax. having legibly printed on it the Sales Tax Enrolment Number of the retailer or wholesaler and the following details, namely:‑‑

(i)         A running serial number for a financial year;

(ii)        date:

(iii)       name and address of the retailer or wholesaler or any other enrolled person;

(iv)       description of goods sold;

(v)        number and quantity;

(vi)       rate;

(vii)      amount;,

(viii)      total:

(ix)       retail tax; and

(x)        grand total.

(2) A specimen cash memo is shown at Annex‑E.

6. Obligations of a taxpayer of retail tax.‑‑A retailer, wholesaler including dealer or any, other person required to be enrolled under these rules shall—

(a)                ­get himself enrolled as soon as he is required to do so under the Act;
(b)               file return as required under the Act;
(c)       display his enrolment certificate conspicuously at the place of his business;
(d)       charge retail tax at the rate of three per cent of sale value of his customers; and
(e)       issue cash‑memo to his customers irrespective of their demand whenever a sale exceeding fifty rupees takes place.

7. Option for normal sales tax regime instead of enrolment for retail tax.‑‑Any person who is required to be enrolled under these rules may opt for registration under section 18 of the .pct for the normal regime of sales tax.

8. Implementation Committees. ‑‑(l) There shall be set up one Implementation Committee in each Collectorate of Sales Tax to deal with the affairs of retail tax and the Committees shall draw members from amongst the representatives of the following, namely:‑‑

(a)        One representative of Anjuman‑e‑Tajran:

(b)        one representative of each Association of particular sector of goods:

(c)        one representative of local Chamber of Commerce and Industry: and

(d)        such officers of the respective Collectorates as the Collector may appoint.

(2) The meetings of these Implementation Committees shall be chaired by the Collector or Additional Collector of sales tax.

(3) The Implementation committees shall‑‑

(i)         assist in survey for the threshold of a retailer, wholesaler including dealer or any other person liable to enrolment with reference to enrolment for retail tax in the area of its jurisdiction;
(ii)        make recommendation in respect of determination of the turnover of a retailer or a wholesaler (including dealer) or any other person with reference to retail tax;

(iii)       extend full co‑operation to the sales tax department in collecting the due amount of tax correctly; and
(iv)       look into the complaints of taxpayers and problems of tax collection with regard to retail tax and suggest remedial measures for appropriate action under the law.
           


ANNEX‑A
[See rule 1(2)(i)]

ELECTRONICS AND ELECTRICAL GOODS AND APPLIANCES
AND PARTS THEREOF

1.         Airconditioners (all types).
2.         Audio and video laser disk players.
3.         Audio and video tapes (blank and recorded excluding those recorded with Quranic verses).
4.         Audio cassette players including amplifier sets, turntables, radio‑cum­ cassette players/recorders and walkman ( all types).
5.         Computer (Video) games.
6.         Deepfreezers (all types).
7.         Duplicating machines.   
8.         Electric bulbs, tubes and lamps.
9.         Electric cookers (all types).
10.       Electric dishwashers.
11.       Electric fans (all types).
12.       Electric heaters (all types).
13.       Electric irons.
14.       Electric room coolers (all types)
15.       Electric sewing machines.
16.       Electric shavers.
17.       Electric Typewriters.
18.       Electric watercoolers.
19.       Electro‑thermic appliances (coffee or tea makers, toasters, kettles, sandwitch makers etc.),
20.       Fascimile machines & teleprinters.
21.       Food grinders and mixers
22.       Fruit or vegetable juicers.
23.       Hair dryers, Massagers.
24        Loudspeakers and speaker sets (all types).
25.       Microwave ovens.
26.       Projectors.
27        Radios.
28.       Refrigerators (all types).
29.       Scanners.
30.       Telephone sets (including video phones and cordless sets).
31.       Television sets including VCRs and VCPs in one casing with common base
32.       TV & Video Cameras.
33.       Vacuum cleaners.
34.       VCR and VCP (including dish receivers).
35.       Washing Machines (all types).

ANNEX‑B

[See rule 2(c)]
Jan 98/STR‑1

GOVERNMENT OF PAKISTAN
RETAIL, TAX ENROLMENT FORM

(O1)     Name of Shop/Business____________________________________
(02)      Proprietor's name_________________________________________
(03)      National Identity Card No.



--


--






(04)      National Tax No. (NTN)


--


--








(05) Business address________________________________________
                                _________________________________________    
                                _________________________________________    
(06)      Telephone number(s) ____________________________________
(07)      Fax number (if any) ______________________________________

(08)      Major line of business (Commodity)__________________________ (Please specify the Item/Commodity in which to be enrolled as a retailer or wholesaler (including dealer). List of items are specified in sub‑Rule (2) of Rule 1 of the Retail Tax Rules.

(09)      Approximate value of stocks    _________________________
            (as on the day of enrolment)
DECLARATION

(10)      I declare that the above particulars are true and correct.

_______________________                                                 ____________
Proprietor's Signature                                                                          Date
 (with stamp)




(FOR OFFICIAL USE)


(11) Retail Tax Enrolment Number











(12) Date of enrolment



--


--


      Day            Month       Year

From.—Incharge Computer                  To.‑‑ Assistant Collector/Spudt.
Section. (with signature &                                (Registration & Information
Official Stamp)                                    Division)

The enrolment certificate is enclosed for signature.






ANNEX-C
[See rule 2(d)]
GOVERNMENT OF PAKISTAN
                           COLLECTORATE OF_________________
                       ______________________________________________
                                                                                                           T-2/V.I.

ENROLMENT CERTIFICATE

RETAIL TAX

(UNDER THE SALES TAX ACT, 1990)






(O1) NAME



(02) ADDRESS     

(03) You have been enrolled as a taxpayer of Retail Tax under Sales Act, 1990.

This means that you must:‑‑

(i)         deposit Retail Tax in the Authorized Bank and furnish the same along‑with tax return on quarterly basis; and

(ii)        a bide by the provisions of Sales Tax Act, 1990.













(04)      Your Retail Tax           
Enrolment Number is               

(05)      This number must be shown in the tax return and quoted in all your correspondence with the Sales Tax Office.

________________________
Assistant Collector (Sales Tax)
(Registration)



ANNEX‑D
[See rule 2(e)]
Dec. 97/STR‑2
GOVERNMENT OF PAKISTAN
RETAIL TAX RETURN‑CUM‑PAYMENT CHALLAN


(O1)     Retail Tax Enrolment Number                                       Tax Period





















               (02) From                    M‑ To


(03)      Name and Address








(04)      Sales:
Value (in Rs.)
Rate
Retail Tax payable.

3%


(05)      Purchases (taxable goods):
           
Value (in Rs.)
Sector of goods.



DECLARATION

(06)      I declare that the above particulars are true and correct
           
             ___________________                                  ___________________
                  Signature                                                               Date

PART‑II          Retail Tax Payment Challan                   (For Bank use only)

Sr.No.___________
(07)      Retail Tax (A/C head) 220000.
(08)      Amount received in figures____________________________
(09)      Amount received in words____________________________

            ____________                                    ______________
                        Date                                         Authorised Bank
                                    (with official stamp)





ANNEX‑E
[See rule 5(c)]


CASH MEMO

RTE NO. : RTE 00123456                                                                 Serial No. 007651

Nawab Din and Grand Sons
22‑The Mall, Lahore. Phone: 7235233

Buyer's Name & :______________________
Address               ______________________ 


S.No.   Description       Rate     Quantity/No.Amount

S.No
Description
Rate
Quantity/No.
Amount















Total


Retail Tax @ 3%

GRAND TOTAL




Note:‑‑ This specimen is only for elucidation of the essential elements of a          cash memo


[Issued by the Federal Government, under the signature of Mr. Sarfraz Ahmed Khan, Additional Secretary, vide Ex. Ord. Gaz. of Pak., 1997, Pt. II, P. 3442. File C. No. 3(30)STC/97‑pt.]



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