Under a special procedure, commercial importers will be exempted from audit of payment of sales tax. Through amendment in the Special Procedure Rules 2007 on Saturday, the Federal Board of Revenue (FBR) has issued special procedure for payment of sales tax by commercial importers.
According to the rules, commercial importers would cover persons who are not registered as manufacturers and who import goods for subsequent supply to other persons in the same state. The commercial importers covered under the said definition have to fulfil the conditions of the special procedure.
Under the procedure, commercial importers shall pay sales tax only at import stage in the manner as prescribed under a notification issued by the federal government. In case of supply of locally purchased goods, other than the goods in respect of which value-addition is already fixed through a separate notification, if made by a commercial importer, sales tax shall be paid at the rate specified under specified provisions of the Sales Tax Act.
The sales tax leviable, as aforesaid, shall be paid by the commercial importer in the same manner and at the same time as if it were a duty of customs payable under the Customs Act, 1969.
The sales tax so charged shall be recorded on the Goods Declaration against the respective heads of accounts. A commercial importer shall issue a serially numbered tax invoice for each supply, as required under section 23 of the Act and shall maintain such records as are prescribed, provided that the tax charged through invoices shall not exceed the amount of sales tax paid by the commercial importer at import stage.
Upon payment of sales tax as prescribed under these rules at import stage, the commercial importer shall be exempt from payment of sales tax on further supply of imported goods in expect of which he has paid sales tax at import stage and there upon shall be exempt from the requirements of audit.
Exemption from payment of sales tax and audit shall not be available if the collector of sales tax is satisfied that a commercial importer has issued invoices showing amount of sales tax in excess of that actually paid at import stage.
For filing of return, the rules have specified that the commercial importers shall file sales tax return on quarterly basis in the manner prescribed in Chapter II of the Sales Tax Rules, 2006.
The tax return for the quarter ending on September 30 shall be filed by October15; return for the quarter ending on December 31 shall be filed by January 15; sales tax return for the quarter ending on March 31 shall be filed by the 15th day of April and sales tax return for the quarter ending on June 30 shall be filed by the 15th day of July.
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