ISLAMABAD, Aug 9: The government has deferred till August 31 the implementation of clause (b) of SRO507 restricting supply to un-registered persons and the provision of section 73 of the sales tax act 1990 at the persistent demand of business community.

Member sales tax, Ramzan Bhatti told Dawn on Saturday night that in the meantime the anomalies committee would take final decision on the scope of the SRO and the introduction of the new provision of section 73 in the Act.

He said the application of SRO 507 and provisions of amended section 73 would come into operation from September 1, 2003.

The first meeting of the anomalies committee constituted by the government to examine the anomalies arisen due to change in tariff and amendments in the various sections of Sales Tax Act and Income Tax was scheduled for August 12. Vice-President, FPCCI, Sheikh Maqbool Ahmed has been made member of the Anomaly Committee on the demand of the FPCCI.

Under the amended section 73, the 120 days limit was abolished and the payment of sales tax through banking channel was reduced from Rs50,000 to sales tax exceeding Rs3,750 on the transaction value of goods exceeding Rs25,000.

According to the sales tax circular letter issued on Saturday, which reads as “the government has decided to hold in abeyance the provisions of Section 73 of the Sales Tax Act, 1990 as substituted vide Finance Act, 2003 till 31st August, 2003. During this period the provisions of the aforesaid section, as existed prior to the substitution shall remain operative”.

According to another sales tax circular letter, which reads as “the operation of Clause (b) of SRO 507(I)/2003 dated June 7, 2003 has been deferred till 31st August, 2003 and the decision in respect of the SRO shall be taken by Anomalies Committee on the scope of the SRO in the light of the views given by FPCCI”.