1. FINANCE ACT 2009
CHANGES IN SALES TAX ACT,
1990
Presented By
Syed Muhammad Ijaz, FCA, LL.B.

2. SYNOPSIS OF AMENDMENTS
Section 8B amended to allow refund to registered person beside adjustment
that was already allowed u/s 8B(2)
Section 11 being changed to reduce the time of extension in passing the order
from 120 to 60 days. However, for calculation of such 60 days adjournments
by petitioner, stays, ADR proceeding be excluded and such exclusion shall
not in any case exceed 30 days
Amendments in section 36 (for recovery of tax not levied or short levied)
made similar to section 11
Amendments in section 45B (Appeal to Collector of Appeals) made similar
to section 11
Section 34 changed to incorporate Kibor plus three percent for calculation of
additional tax. Kibor also defined u/s 2 clause 14A. Compensation for
delayed refund u/s 67 is also linked with Kibor

3. Section 38 amended to allow only board to give authority to
officers to access the record, previously this was with collector as
well
Section 47 amended to give reference to section 194-A, B and C
of the customs Act for making reference to High Court.
Subsections 3,4,5,6,7,8 and 9 being redundant now are omitted
Section 47A changed to extend the time of ADR’s
recommendation from 60 to 90 days
If the Committee fails to give recommendation the board can dissolve the
committee and constitute a new committee that shall decide in further 90
days. Still no recommendation the matter then be taken to appropriate
level for resolution
If recommendation is received within time by the board then board shall
within 45 days decide the matter previously there was no such limit

4. Section 33 subsection 12 amended to include default
(i.e. obstruction to officers) of section 40B (posting of
officers at premises by the board)
AMENDMENTS IN 6TH SCHEDULE TABLE 1
Onions and shallots
Grains Dry whole and split
Seeds for sowing
Beans and others
News print in Rolls or sheets
Tractors, bulldozers and combined harvesters
Table 2
Seeds
Onions and Shallots

5. SROs AND CIRCULARS
SRO 509(I)/2007 Goods charged to tax at zero rate (import and supply). Clause 2
amended through SRO 471(1)/2009 to exclude monofilament, sun shedding, fishing
nets of nylon and others, polyethylene or nylon ropes and tire cord fabrics under
respective headings (w.e.f June 14, 2009 )
SRO 549(i)/2008 Goods charged to tax at zero rate amended through SRO
472(I)/2009 to restrict zero rating of plant and machinery to items not specified in
annexure to the said SRO w.e.f June 14, 2009.
SRO 549(i)/2008 Goods charged to tax at zero rate further amended through SRO
625(I)/2009.
SRO 551(I)/2008 amended via SRO 473(I)/2009 to include cinematographic film
exposed in Sales tax exempt goods. W.e.f June 14, 2009
SRO 542(I)/2008 changed via SRO 476(I)/2009 to reduce amount of sales tax on
import or supply of per hand set of cellular phone from 500 Rs. To 250 Rs. (w.e.f July
1, 2009)
SRO 1007(I)/2005 amended via SRO 477(I)/2009 to include lysine monohydro
sulphate in exempted poultry feed and meal w.e.f June 14, 2009
Circular 2 of 2009 to grant amnesty in revision of returns incases where discrepancy
notices are issued – Amnesty ends on 31st july, 2009

6. SRO 603(I)/2009 AMENDMEND
IN WITHHOLDING RULES
Definition changed to include LTUs taxpayers and expand
withholding agents scope
All purchases by LTUs taxpayers from unregistered persons are
effected
Registered person are required to withhold tax from payments
made at the applicable rates
Tax so withheld is adjustable by registered persons subject to
section 7, 8, 8b and 73
Legal Lacuna
What about persons exempt from tax under any SRO or 6th schedule
What about supplies that are exempt under SRO or 6th schedule
What about application of section 7 that allows input only if invoice is
available in present cases since the purchase is from unregistered who
cannot issue invoice u/s 23 which virtually means input disallowance.