Sales Tax Instructions

Sales Tax Instructions, 2009
Presently, there are no fixed sales tax schemes except for brick kilns and
processed fabrics. Sales tax from steel re-rolling mills shall, therefore, be collected under
the normal GST regime. The manufacturers shall accordingly pay the tax at the statutory
rate, maintain records, issue tax invoices, and file monthly refunds as per the provisions
of the Sales tax Act, 1990. They 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 been decided, in consultation with the Pakistan Steel Re-rolling
Mill‘s Association, that in order to curb evasion, the net bare minimum benchmark for
counter checking the performance of a manufacturer will be as under:-
(a) Automatic re-rolling
Mill.
(b) Non-automatic rerolling
Mill.
150 units of electricity for
production of one ton of MS
Products etc.
200 units of electricity for
production of one ton of MS
Products 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 tax
credits/adjustment etc., so that no manufacturer pays tax below the said minimum mark.
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 at least two nominees from the Pakistan Steel Rerolling
Mills 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
interests 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-Re-rolling Mills Association for each of the concerned Collectorates are
enclosed.
5. The above minimum benchmark shall not remain after 30-6-1998.
6. Please acknowledge receipt of this letter.
[Issued by the C. B. R., Islamabad, under the signature of Mr. Abdur Rashid Bajwa,
Secretary (STB), addressed to the Collector, ST, Karachi (East/West)/ Lahore/ Gujranwala/
Faisalabad/ Rawalpindi/ Quetta (at Hub) and the Additional Collector of Sales Tax, Hyderabad/
Multan/ Peshawar.]
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C. NO.1(5)GST.I/91(VOL.II) DATED 1 ST NOVEMBER, 1997