Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.4/85-STB/97 DATED 18 TH SEPTEMBER, 1997
SUBJECT:- COLLECTION OF SALES TAX FROM STEEL MELTERS
Sales tax from the steel melters sector shall continue to be collected under the
normal GST regime and there is no fixed tax scheme for the sector. The manufacturers
shall accordingly pay the tax at the statutory rate, maintain records, issue tax invoices,
and file monthly returns as per the provisions of the Sales Tax Act, 1990. The
manufacturers will thus be entitled to the facilities of input tax credits / adjustments and
refunds of sales tax as admissible under section 7 and 10 of the Sales Tax Act, 1990.
2. It has further been decided, in consultation with the Pakistan Steel
Melter‘s Association, that in order to curb evasion the net minimum benchmark for
counter checking the performance of a manufacturer will be 1550 units of electricity for
production of one ton of ingots and billets etc. Although the actual tax liability is to be
determined in terms of section 7 of the Sales Tax Act, 1990, but this will be the net
minimum tax liability excluding the input credits/adjustments etc., so that no
manufacturer pays tax below the said minimum benchmark. As regards the input of
scarp, wastage beyond 15% will not be admissible. All the manufacturers will be subject
to audit and other verifications mandatory under the Sales Tax Act,
1990/rules/instructions etc.
3. It has further been decided that vigilance Committees shall be constituted
at the Collectorate‘s level comprising atleast two nominees from the Pakistan Steel
Melters Association and representatives of the Collectorate, to be chaired by the
Collector and in his absence by the Additional Collector. The Vigilance Committees will
advise and help the Collector for compliance of the above arrangements with a view to
ensuring collection of all sums due to the Government as well as safeguarding the interest
of law-abiding taxpayers. The Collector would devise the details about the time and
manner etc. of the working of the Vigilance Committee in Consultation with the members
of the committee.
4. Names of the nominees for vigilance committees as proposed by
Pakistan Steel Melters Association for each of the concerned Collectorates are enclosed.
5. Please acknowledge receipt of this letter.
[Amended vide C. No. 4/93 -STB/97, dated 21.10.97 and C. No. 4/93 -STB /97, dated 27.1.98]
[Issued by the C. B. R., Islamabad, under the signature of Mr. Abdul Rashid Bajwa,
Secretary (STM), addressed to the Collector of Sales Tax, (East/West) Karachi, Lahore,
Rawalpindi, Faisalabad, Gujranwala, Quetta (at Hub) & Assistant Collector of Sales Tax,
Hyderabad, Multan & Peshawar.] Copy of the Chairman, Pakistan Steel Melter‘s Association,
Lahore with reference to his letter dated 16-9-1997.
NAMES OF THE NOMINEES FOR VIGILANCE COMMITTEES PROPOSED BY
PAKISTAN STEEL MELTERS ASSOCIATION