Sales Tax Rules, 2006

CHAPTER-XVIII

MISCELLANEOUS PROVISIONS

Sales Tax Rules, 2006 CHAPTER-XVIII MISCELLANEOUS PROVISIONS From: 2025-01-01 - To: 0000-00-00 164. Making of zero-rated supplies to a duty-free shop.- (1) A duty free shop (DFS), duly licensed by the Customs authorities, and entitled to receive zero-rated supplies under serial No. 3 of the Fifth Schedule to the Act, for the purpose of making supplies to the passengers in terms of Customs baggage rules, may observe the following procedure for making zero-rated purchases:- a. The DFS shall get itself registered under the Act, furnish monthly returns and maintain records as stipulated under the Act. b. The DFS will apply to the respective Commissioner Inland Revenue for grant of authorization for taking sales tax free delivery of the goods intended to be purchased from a specified registered manufacturer. In the application DFS will exactly specify the description and quantity of goods besides particulars including sales tax registration number of the manufacturer-cum- supplier. Only such goods shall be included in the application as DFS intends to sell against duty free allowances under different baggage concessions. c. At the time of filling application under (a) above, DFS will furnish an indemnity bond in a proper form to the effect that in case goods intended to be purchased free of sales tax are used for the purpose other than the purpose of supplying the same against duty free allowance under different baggage concessions, DFS shall pay the amount of sales tax invoiced in such goods besides additional tax payable under section 34 of Sales Tax Act, 1990. Original indemnity bond shall be retained under safe custody in the concerned RTO or LTU and two attested photocopies of the accepted indemnity bond shall be given to DFS and DFS shall give one copy to the concerned manufacturer. d. on the basis of authorization given by the Commissioner Inland Revenue, after acceptance of the indemnity bond furnished by DFS as aforesaid, the manufacturer shall deliver the goods against a zero-rated invoice issued in the name of DFS and quote the reference number and date of authorization issued by the Commissioner Inland Revenue. The zero-rated invoice shall show the value…