20000203

CBR advice to Aptpma about gas, power connections

RECORDER REPORT

ISLAMABAD: To avoid complications in the claim of input tax, the Central Board of Revenue has directed All Pakistan Textile Processing Mills Association (Aptpma) to get the names of gas and electricity consumers converted in the names of registered tax payers before March 31, 2000, it was learnt on Wednesday.

The CBR has told the Association that until the change of name to the name of registered taxpayer, no input claim will be admissible. However, after the change of name, the question of admissibility of input for the tax period will be favourably considered by CBR when the true invoice-based VAT system was adhered but the consumer's name for gas or electricity had not been in the registered taxpayer's name, provided the change of name, before March 31, 2000, or within such extended period as may be agreed by CBR, is effected.

As regards the utility bills, Wapda, KESC, SNGPL, SSGC and the concerned ministries have already been requested to allow change of consumer's name through a simplified and lenient scheme. The Association may also approach the said organisations, the CBR said.

In a communication to G R Arshad, Aptpma Chairman, the CBR has said that this procedure is subject to a general written declaration by Aptpma that its member mills will show the correct value of supplies in each case. The Association should monitor its members to a reasonable extent. This declaration should be forwarded to the CBR immediately.

The CBR has further explained that regarding assessment of vendor's charges in terms of Sales Tax General Order No 1 of June 17, 1998, Aptpma members should avail of the same in terms of the said order. However, invoices would need to be issued as per Section 23 of the Sales Tax Act, 1990.

The CBR has clarified that the registered number of buyer cannot be given in case of supplies to non-registered persons.

In the letter to Aptpma chairman referred to Sales Tax General Order No 9/99 of September 22, 1999, regarding audit and valuation, the CBR has further said that Sales Tax General Order No. 9 of 1999 states that audit of the registered unit in routine shall be conducted only once in financial year. Nevertheless, the CBR will favourably consider any difficulties experienced regarding audit. As regards "value" it has to conform to the definition given in Section 2 (46) of the Sales Tax Act, 1990.

It may be mentioned that earlier CBR had written a letter to the Association regarding sales tax on textile processing units. However, after discussions with Aptpma, the Board has revised the said letter and substituted a few paras with the new once. The Board has sent these new amendments to all its collectorates of sales tax on February 2, 2000.