Filing of Monthly Return Rules, 1996
In exercise of the powers conferred by section 50 of the Sales Tax Act, 1990, read with Section 26 thereof, the Central Board of Revenue is pleased to make the following rules, namely:
1. Short title, application and commencement:-
(1) These Rules may be called Filing of Monthly Return Rules, 1996.
(2) These shall apply to all registered persons who are required to file tax return under section 26 of the Sales Tax Act, 1990.
(3) These shall come into force on and from the first day of July, 1996.
In these Rules, unless there is anything repugnant, to the subject or context,–
(i) “Act” means the Sales Tax Act, 1990;
(ii) “Agreement” means the agreement executed between the Central Board of Revenue and the Bank for the purpose of payment of tax and submission of tax returns;
(iii) “Bank” means the designated branches of National Bank of Pakistan;
(iv) “Return” means the sales tax return-cum-payment challan in the form as at Annex-A; and
(v) “Nil return” means the return indicating that no sales tax is payable by the registered person in respect of the tax period to which the tax return relates.
3. All other terms and expression used but not defined in these rules shall have the same meanings as are assigned to them under the Act.
4. Filing of Return : —
(1) Every registered person shall file the return, in triplicate, in accordance with the instructions printed on its reserve in the Bank located in the jurisdiction of the Collectorate where he is registered
(2) The registered person shall deposit the amount of sales tax indicated as “sales tax payable” in the return at the time of filing of return in the Bank.
(3) In case no amount of sales tax is payable by the registered person, he shall file Nil return in the Bank without depositing any amount.
(4) Without prejudice to the other entries or requirement of filing of returns and deposit of sales tax payable, every month by the due date, the ship breakers will not show any amount in any return in the columns relating to “sales tax paid in respect of “PURCHASES OR IMPORTS” unless.-
(i) the installment of import related sales tax due is actually deposited:
(ii) the return relates to the tax period, in which the aforesaid installment of import related sales tax due, is deposited; and
(iii) the amount shown in the column “Sales Tax paid” is the same as is actually deposited in that tax period.
5. Receipt of return of the Bank : —
(1) The Bank official shall ensure that the participants entered in all the three copies of the return are identical and that the amount deposited by the registered person tallies with the amount indicated as “sales tax payable” in the return and shall thereafter sign and stamp the return it indicating the date of payment of tax and submission of tax return.
(2) The Bank shall forward the original copy of the return to the Collectorate and the duplicate shall be delivered to the registered person as a receipt of payment of sales tax and filing of return and the third copy shall be retained by the Bank for its record.
(3) In case of payment, through cheque, pay order or bank draft, the Bank will receive the return in triplicate along with the instrument of payment for the amount of tax payable indicated in the return and issue a provisional acknowledgement receipt to the registered person.
(4) On clearance of the instrument, the bank official shall stamp the return indicating the date on which payment is received by the bank and where the payments are received through pay order or bank draft, the bank shall affix two stamps on the return indicating the date on which the pay order or bank draft was received for clearing and the date on which the pay order of bank draft was received for clearing and the date on which the pay order or bank draft was cleared for payment by transfer.
(5) The date of payment, in case of payment through cash or cheque, shall be treated as the date on which the payment is received by the bank. In case of payment through pay order or bank draft, the date on which the payment order or bank draft is tendered at the bank counter shall be treated as the date of payment and where the pay order or bank draft, so tendered at the bank counter, is not cleared on it, first presentation for bank clearing, the registered person shall, without prejudice any other action, be liable to additional tax and penalties under the Act..
6. Payment of Service Charges to the Bank : —
(1) The Bank shall charge ten rupees per return (including Nil payment returns) as service charges from the Collectorates having jurisdiction in the area where the bank branches are located.
(2) For the purpose of claiming service charges referred to in sub-rule (1),the Manager of the main branch of the bank shall submit the claim to the Assistant Collector, Assessment and Processing Division of the concerned Collectorate in the first week of the following month supported by a statement indicating date, number of returns received, number of return submitted to the Collectorate, amount of sales tax collected and amount of sales tax deposited in the State Bank of Pakistan.
(3) The Assistant Collector, Assessment and Processing Division shall verify, the statement submitted under sub-rule (2) from the Accounts Section of the, Collectorate and from his own record and where the claim is in order and the Assistant Collector is satisfied that the Bank has fulfilled its responsibility under clauses (iv), (vi) a and b of the Agreement, he shall sanction the claim and issue cheque within a week from the date of submission of the claim. Provided that in case of delay by the Collectorate, it shall pay a penalty @ 15% per annum for the amount late sanctioned.
(4) If the Bank fails to fulfil the conditions specified in clause (iv), clause (vi), a or b of the Agreement, the Assistant Collector shall deduct the amount of penalty leviable thereunder on the Bank at the rate of 15% per annum against the amount late deposited in the State Bank of Pakistan from the service charges admissible to the Bank.
(5) If the returns are not submitted to the Collectorate within forty-eight hours of the receipt of returns in the designated branches of the Bank, the service charges in respect of the returns submitted late shall also be deducted and the remaining amount, if any, shall be sanctioned by the Assistant Collector and cheque thereof will be issued to the Bank.
(6) For deduction of any, amount under sub-rule (4), the Assistant Collector shall intimate the Bank the reasons thereof within seven days of deduction.
(7) Where it is not clear whether deduction should be made, the Assistant Collector shall require the Bank clarification before taking a decision.
(8) All public holidays and the number of days the Collectorate is prevented from functioning due to the factors beyond its control shall be excluded while calculating delay in sanctioning the claim for service charges.
(9) Where the Assistant Collector requires any clarification from the Bank, the time taken by the Bank for this purpose shall be excluded from the time specified for sanctioning the service charges claim