6. Payment of Tax.
(1) The ginner shall deliver ginned cotton through a delivery note or gate pass to the registered spinning unit or to the registered exporter. The delivery note or gate pass shall be serially numbered document and shall indicate the
quantity of the cotton sold and the name of the buyer along with quantity of the cotton sold and the name of the buyer along with his sales tax registration number, builty number and date and registration number of the vehicle on which the ginned cotton is being carried. The spinning unit or the exporter, after receipt of ginned cotton in his premises, shall settle the terms, if any, about quantity and value of the ginned cotton with the ginner within six (6) days of the date of the dispatch
of ginned cotton from the ginning unit. The changes in quantity or value shall be indicated on the reverse side of the copies of the delivery note of the gate pass issued by the ginning unit. The ginning unit shall then issue the prescribed sales tax invoice for the quantity and value of the ginned cotton agreed between the ginner and the spinning unit or the exporter. The tax invoice shall be issued of the date on which the ginned cotton was dispatched against the delivery note or gate-pass
within seven days (07 days) of the date thereof and shall bear a cross reference of the delivery note or gate pass. The spinning unit or exporter shall remit amount of sales tax payable on cotton purchase by him during the month to which the tax invoice relates through a Bank Draft drawn and crossed in the name of the respective collector sales tax. The Ginner shall issue a proper receipt for the draft received by him from the spinner or exporter. The Ginner shall deposit these drafts in the
authorized branch of National Bank of Pakistan by the 15th day of that month and submit to Collector Sales tax details of cotton sold by him during a month and amounts of sales tax deposited by him in the format given below by the 20th day of that month:
Name and Address of The Ginner ____________________________________
Registration Number. __________________________________
Month __________________________________________________________
________________________________________________________________
Name of Buyer with Tax Invoice No. Quantity of
Location and And Date Cotton Sold
Registration No.
_______________________________________________________________
(1) (2) (3)
------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Value Sales Tax Payable Sales Tax Paid through Draft #
and Date
------------------------------------------------------------------------------------------------------------
(4) (5) (6)
(2) If the ginning unit delivers or dispatches
any cotton to any spinning unit or exporter without issuing the delivery note or gate pass or if he fails to issue the tax invoice within seven (07) days from the date of the respective delivery note or gate pass, he shall be liable to penalty under section 33 of the Act besides being liable to pay the tax.
(3) If the spinning unit or exporter fails to
remit the sales tax payable on ginned cotton purchased by him or the due date specified in sub-rule (1), besides any other action which may be taken against him under the Act, he shall not be entitled to claim adjustment or refund of input tax in respect of such purchase unless he pays the amount of additional tax or penalties chargeable on such late remittance under section 33 and 34 of the Act, through deposit in the designated bank branch or deduction from the adjustable or refundable
amount. (4) If the spinning unit or the exporter furnishes bank draft for the amount of sales tax due to the ginner by the due date specified in the sub-rule (1) and the ginner by the due date same within the due date specified therein, then the spinning unit or exporter shall be entitled to claim adjustment or refund and penalties under sections 33 and
34 besides other penal action under other provisions of the Act. 7. Notice to be given by ginner. Further a ginner shall at the time of commencement of ginning activity and at the closure of ginning activity, inform the
concerned Collector of Sales Tax on day earlier than the commencement of ginning activity or, as the case may be on the day following the cessation of ginning. 8. Submission of tax return. ___________________________________________________ 9. Records.
The Ginner shall maintain the records specified in the Act and rules made there under. {F. No. 3 (35) STP/96.}
--------------------------------------------------------------------
{Note: The following amendments were made vide SRO 398(I)/2001, dated 18th June, 2001:
In rule 6,-
(a) Sub-rule (3) was substituted; and
(b) After sub-rule (3) substituted as aforesaid, a new sub-rule (4) was added.} | 
