(1) Cigarette manufacturers shall pay advance tax at the rate of three percent (3%) of the net sales price every month.

(2) The advance tax paid under sub-section (1) shall be adjusted against the quarterly instalments of advance tax payable under section 155.

(3) In this section, “net sales” shall mean A-B, where—

A = the gross sale; and

B = the value added tax and supplementary duty, if any, on the said gross sale.