Sales Tax Instructions

Sales Tax Instructions, 2009
(3) Output tax is payable on taxable supplies. The sales tax paid on taxable
goods at the import will become input tax for importer, who in turn will
offset the same against the output tax to be paid on his taxable supplies.
It is this output tax paid by the importer, which will subsequently
become input tax for the registered person purchasing such goods from
importer.
(4) The modalities of retail tax will be notified in the due course when it will
be levied.
(5) On withdrawal of exemption from supplies by importers w.e.f. 13 th June,
1997, it is now mandatory for the importers engaged in making taxable
supplies of goods other than consumer goods and consumer durables to
get registered, under section 14 of the Sales Tax Act, 1990. Those who
will not register shall have to pay a fixed tax of 3% of the value of goods,
over and above the standard rate of 12.5% at the time of import.
However, for importer making taxable supplies of Mild Steel products
and their raw materials, the registration is compulsory.
(6) Every registered person is required to file the monthly return on or before
the due date i.e. 20 th of a month following the month to which the tax
period relates.
3. Further clarifications are as under:-
(a)
(b)
(c)
Difference between retailers and wholesaler is available in the definition
given in Sales Tax Act, 1990. Copies of relevant portions are enclosed.
Now that the tax invoice is required to be issued for output tax (and not
the replacement invoice), the reference to B/E is no more a requirement.
Payment of output sales tax as well as the maintenance of records
prescribed under the law is mandatory by a registered person. The audit
will however, be based on the documents like B/E Invoices, sales tax
register and output register. Resort to other records will be made only
after the written permission of Additional Collector and that too in those
cases only where there are reasonable grounds to believe that a tax
evasion or tax fraud is involved.
[Issued by the C. B. R., Islamabad, under the signature of Mr. Ahad Nawaz, Secretary
(STP), addressed to the Company Secretary, First Imrooz Modaraba, Karachi.] Copy of their letter
dated 28 th June, 1997 is reproduced below:-
C. NO. NIL DATED 28 TH JUNE, 1997
The Chief, Sales Tax,
Central Board of Revenue, Islamabad.