SUBJECT: FILING OF SEPARATE RETURNS BY REGISTERED PERSONS DEALING SIMULTANEOUSLY IN DIFFERENT BUSINESS ACTIVITIES.

A number of registered persons dealing simultaneously in different/ composite business activities have approached the Central Board of Revenue with the plea that since a number of special sales tax procedures are in vogue requiring registered persons to charge/deposit sales tax in various manners laid down in the relevant notifications and to declare their transactions in the sales tax returns prescribed therein, therefore, it is not possible for them to declare their transactions in a single sales tax return.

02. Considering the genuine hardship faced by such registered persons dealing simultaneously in different business activities defined under the Sales Tax Act, 1990 the Board in exercise of the powers conferred under section 55 of the Sales Tax Act, 1990 is pleased to allow such registered persons to file separate sales tax return for their each business activity as prescribed under the relevant notifications in addition to the normal sales tax return-cum-payment challan prescribed under notification SRO 533(I)/2005 dated: 06-06-2005, wherever applicable. However, input tax adjustment/ refund shall not be allowed to such persons to the extent barred under the relevant notification. As regards the refund/ adjustment of input tax incurred to the extent of the transactions which are not governed by any special procedure, the same shall continue to be dealt with under the relevant provisions of law. Furthermore, the Board is also pleased to allow the said registered persons who did not file their sales tax returns for the month of June and July 2005 in the manner prescribed above to revise their returns accordingly without any penalty or default surcharge.

(Wajid Ali)
Secretary (ST&FE-Budget)