Sales Tax Instructions

Sales Tax Instructions, 2009
sales tax. Another ingredient of yogurt raita i.e. zeera is also exempt from sales tax, being
unprocessed agricultural produce. It has been further observed that the so-called ―yogurt
raita‖ remains yogurt even after the mixing of salt and zeera. It does not loss its essential
character even after the mixing of these ingredients, which are added to improve the taste
of yogurt. It is therefore, clarified that the so-called yogurt raita is not chargeable to sales
tax.
[Issued by the C. B. R., Islamabad, under the signature of Mr. Abdur Rashid Bajwa,
Secretary (STB), addressed to the Collector of Sales Tax, Lahore. Copy of letter
PDICL/HO/96/261 dated 15 th December, 1996 reproduced is below:-
C. NO.PDICL/HO/96/261 DATED 15 TH DECEMBER, 1996
The Collector of Sales Tax,
Lahore.
RE: CLARIFICATION ABOUT SALES TAX BEING PAID ON YOGURT RAITA
Dear Sir,
In continuation of our letter No.PDICL/HO/96/257, dated 11-12-1996, we would like to
inform you that the company is also manufacturing YOGURT & YOGURT RAITA. As per SRO
479(I)/96, dated 13-6-1996 the following items of Dairy products are exempted form the Sales Tax
under the heading 04.03, sub heading 1000/9000 of the first schedule to the Customs Act, 1969
Chapter IV of 1969.
ITEMS
―Fresh and dried Milk, Yogurt, Butter, Whey, Cream and Cheese of all sorts, whether or
not packed for retail sales.‖
In this context, it is submitted that we are paying sales tax on YOGURT RAITA at the
standard rate under PROTEST. In our opinion there is no justification in the levy of sales tax on
YOGURT RAITA because in its preparation only a little/nominal quantity of Salt & Zeera is
included in the YOGURT, exemption of which is allowed under Chapter 4. Heading No.04.30,
sub-heading 9000.
In view the above explained position, we approach you with the request to please clarify
whether the payment of sales tax is applicable to YOGURT RIATA or not.
An early reply in the matter is solicited.
Thanking you.
Yours faithfully,
for PRIME DAIRIES ICE CREAM LIMITED
GENERAL MANAGER FINANCE
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