Scope and Payment of Tax Chapter- 05
Where a registered person pays the amount of tax less than the tax due as indicated in his
return, the short paid amount of tax along with default surcharge shall be recovered from such
person by stopping removal of any goods from his business premises and through attachment of
his business bank accounts, without giving him a show cause notice. No penalty shall be
imposed unless a show cause notice is given to such person.- 2 Assessment giving effect to an order [U/S 11B]
1) Except where sub-section (2) applies, where, in consequence of, or to give effect to, any
finding or direction in any order made under Chapter-VIII by the Commissioner (Appeals),
Appellate Tribunal, High Court or Supreme Court an order of assessment of tax is to be
issued to any registered person, the Commissioner or an officer of Inland Revenue
empowered in this behalf shall issue the order within one year from the end of the financial
year in which the order of the Commissioner (Appeals), Appellate Tribunal, High Court or
Supreme Court, as the case may be, was served on the Commissioner or officer of Inland
Revenue.
2) Where, by an order made under Chapter-VIII by the Appellate Tribunal, High Court
or Supreme Court, an order of assessment is remanded wholly or partly and the
Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be,
is directed to pass a new order of assessment, the Commissioner or Commissioner
(Appeals) or officer of Inland Revenue, as the case may be, shall pass the new order within
one year from the end of the financial year in which the Commissioner or Commissioner
(Appeals) or officer of Inland Revenue, as the case may be, is served with the order:
Provided that limitation under this sub-section shall not apply, if an appeal or reference
has been preferred against the order passed by Appellate Tribunal or a High Court.
3 Power of tax authorities to modify orders, etc. [U/S 11C]
- Where a question of law has been decided by a High Court or the Appellate Tribunal in the
case of a registered person, on or after first day of July, 1990, the Commissioner or an officer
of Inland Revenue may, notwithstanding that he has preferred an appeal against the decision
of the High Court or made an application for reference against the order of the Appellate
Tribunal, as the case may be, follow the said decision in the case of the said taxpayer in so far
as it applies to said question of law arising in any assessment pending before the
Commissioner or an officer of Inland Revenue, until the decision of the High Court or of the
Appellate Tribunal is reversed or modified. - In case the decision of High Court or the Appellate Tribunal, referred to in sub-section (1), is
reversed or modified, the Commissioner or an officer of Inland Revenue may, notwithstanding
the expiry of period of limitation prescribed for making any assessment or order, within a period
of one year from the date of receipt of decision, modify the assessment or order in which the
said decision was applied so that it conforms to the final decision.
- Where a question of law has been decided by a High Court or the Appellate Tribunal in the
Exemption [U/S 13(1)]
Supply of goods or import of goods specified in the Sixth Schedule as specified by the Board
with the approval of the Federal Government, is exempt from tax as follows:
(a) the Federal Government may, whenever circumstances exist to take immediate action for
the purposes of national security, natural disaster, national food security in emergency
situations and implementation of bilateral and multilateral agreements, by notification in
the official Gazette, exempt any supplies made or imports, of any goods or class of goods
from the whole or any part of the tax chargeable under this Act, subject to the conditions
and limitations specified therein:
The exemption from tax may be allowed from any previous date specified in the notification.
Items specified in 6th Schedule are exempt from levy of tax however, where a person does
not desire to avail any tax exemption, he may, after voluntary registration, opt. to pay sales tax
as normal sales tax payer.