CBR amends format of ''adjustment note''

The Central Board of Revenue (CBR) has revised the format of ''adjustment note'' to be filled by the dealers, distributors and wholesalers for obtaining necessary information about the transactions being carried out by them.
The CBR has amended "sales tax refund of excess input tax to the dealers, distributors and wholesalers rules, 2005", through an SRO.1038(I)/2005 issued on Saturday.
Through this rules, the dealers, distributors and wholesalers dealing in items other than those mentioned in the third schedule to the Sales Tax Act, 1990 were allowed the adjustment facility. "Adjustment note" means the intimation given by the dealer, distributor or wholesaler to the collector about his intention to utilise the amount of excess input tax against his output tax liabilities during the three tax periods subsequent to the tax period to which the monthly return containing declaration of such excess inputs relate. The adjustment note shall be serially numbered on financial yearly basis with dates mentioned therein.
Under the new ''adjustment note'', the dealers, distributors and wholesalers have to submit the details about the ''input tax'', including purchases, supplies, closing inventory, storage location of un-consumed stocks, sales tax paid on utilities. The details of output tax included excess input tax to be adjusted. A certificate has to be attached that provisions of section 73 of the Sales Tax Act, 1990 has been fulfilled by the dealer, wholesaler or distributor concerned.
The revised format also included details about the purchases during a tax period and supplies in a tax period.
According to the rules, the collectorate shall maintain separate database of each dealer, distributor or wholesaler wherein every adjustment note shall be entered along with summary of invoices so as to ensure that the amount claimed in refund is adjusted against output tax liabilities within the time specified in the note and the computer will generate an adjustment advice which shall be conveyed to the registered person within 10 days.
The adjustment advice shall be treated as an authorisation of refund of the specified amount and the dealer, distributor or wholesaler concerned shall be entitled to utilise the admissible amount as specified in the advice for adjustment against his future output tax liabilities as provided under these rules.
FOLLOWING IS THE TEXT OF THE NOTIFICATION ISSUED ON SATURDAY:
SRO. 1038(I)/2005.- In exercise of the powers conferred by section 50 of the Sales Tax Act, 1990 read with the proviso to sub-section (1) of section 10 thereof, the Central Board of Revenue is pleased to direct that the following amendment shall be made in the Sales Tax (Refund of Excess Input Tax to the Dealers, Distributors and Wholesalers) Rules, 2005, namely, In the aforesaid Rules, for Annex B, the following shall be substituted, namely:-