ISLAMABAD, Aug 13: The Central Board of Revenue (CBR) has notified a new format of sale tax return-cum-payment challan for wholesalers and distributors dealing in the third schedule items of the sales tax act. The new form was notified through a sales tax notification issued here on Saturday by amending the sales tax rules 2005.

According to the notification, if a wholesaler or distributor also dealing in the items other than those mentioned in the third schedule, he is required to file separate return — one in respect of third schedule items and the other under normal regime for the items not mentioned in the third schedule.

The notification reads as: “notwithstanding anything in sub-rule (1), a registered person operating, whether exclusively or otherwise, as dealer, distributor or wholesaler of the goods mentioned in the third schedule to the act, shall file the return in triplicate in the format set out at annex A in respect of such goods, and in case of another goods, if any, he shall file a separate return for those goods, in the form mentioned in sub-rule (1) and in rule 18, after the existing annex, the new annex shall be added.”

Meanwhile, The Central Board of Revenue (CBR) has issued new rules to allow dealers, distributors and wholesalers to use their excess input for adjustment against output tax liability in three succeeding tax period.

The rules “the sales tax refund of excess input tax to the dealers, distributors and wholesalers, 2005” were notified through a sales tax notification 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 would be allowed the adjustment facility.

As regards the issue concerning stocks procured by the wholesalers and distributors prior to June 30, 2005, the CBR has already allowed the registered persons dealing in supply of goods brought into the third schedule in the budget 2005-06 to exhaust such unsold stocks without printing retail price subject to the condition that sales tax is charged/paid on the basis of retail price at which the goods are to be sold to the general body of consumers.

The wholesalers, distributors might be accordingly advised to pay the differential amount of sales tax — the difference between the amount of sales tax paid on the value at which goods were procured and the sales tax payable on retail price at which the goods are to be ultimately sold to the general body of consumers, while making supply of such unsold stocks.

According to the rules, only such input goods shall be taken into account for the purpose of availing refund under these rules, which have been acquired on payment of sales tax during the relevant tax period.

The bona fides of the claim shall be determined on the basis of summary statement of purchase and sale invoices filed by the dealer, distributor or wholesaler in terms of notification SRO525 issued on June 6, 2005.

The detail rules are available at CBR websites:www.cbr.gov.pk.