Sales Tax Instructions

Sales Tax Instructions, 2009
2. This issue with the approval of the Federal Government.
[Issued by the C. B. R., Islamabad, under the signature of Mr. Nisar Muhammad
secretary (STT) addressed to Furniture Makers ‗Association Gujrat, with reference to their letter
No. nil, dated nil.]
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C. NO. 2(26) STP/97 DATED 27 TH JUNE, 1998
SUBJECT:-
CHARGEABILTY OF SALES TAX ON LIMESTONE/CLAY
USED IN THE MANUFACTURE OF CEMENT
I am directed to refer to your letter dated 24 th June, 1998, on the above subject
and to say that sales tax on cement was exempted by an amendment in the Sixth Schedule
to the Sales Tax Act, 1990 through the Finance Act, 1997. However, the raw material
packing materials/inputs of cement have neither been exempt nor are covered by S. No
41 of the sixth schedule to the said Act. Moreover, tax credit for the inputs is also not
available in the terms of section 8(1)(a) of the Sales Tax Act, 1990, if the said input are
used for any purpose, other than for taxable supplies.
2. Your attention is also invited to the notification No SRO 575(I)/98, dated
12.06.1998 is also allowing exemption from additional tax and penalties in case you pay
the dues of principle amount of sales tax before 30.06.1998 to the satisfaction of the
Collector of Sales tax.
[Issued by the C. B. R., Islamabad, under the signature of Mr. Akhtar Ali secretary (STP)
address to Mr. Mohammad Amin Dadabhoy Managing Director Dadabhoy Cement Industry Ltd.
5 th Floor, Maqbool Commercial Complex, Block 7-8, JCHS, Shahrah-e-Faisal,, Karachi with
reference to his letter No. Nil, dated 24 th June, 1998] Copy of letter reproduced below:-
C. NO. NIL DATED 24 TH JUNE, 1998
The Member (Sales Tax),
Central Board of Revenue,
Islamabad.
SUBJECT:
CHARGEABILTY OF SALES TAX ON LIMESTONE/CLAY USED IN THE
MANUFACTURE OF CEMENT
Your kind attention is drawn toward the captioned subject wherein a demand to pay the Sales Tax
has been raised by the Sales Tax Department Hyderabad vide their letter 1-ST/Misc.-Corres/98
dated 21.06.1998 and C.No.IPA/AC/Misc. /97-98/7171, dated 20.05.1998 (Copies attached).
Since, the exemption of Cement under Sr. No.41 of Sixth Schedule of the Sales Tax Act, 1990 dated
13.06.1997, nothing was originated from Sales Tax debarment in this regard and from 20.05.98
vide their letter mentioned above they are demanding Sales Tax on limestone and clay used in the
manufacture of Cement.
In this connection you are requested to confirm the chargeability of same at your earliest before
30.06.1998 and if chargeability arises the period from which liability of Sales Tax under section 65