Sales Tax Instructions

Sales Tax Instructions, 2009
A) of the Sales Tax Act, 1990, 1% further tax shall not be charged from such
Government and Defence Departments whose income is not liable to tax under the
Income Tax Ordinance. However, it shall be mandatory that supplies of taxable goods to
these departments are registered with the sales tax department and such supplier must
issue a proper tax invoice for all his supplies.
[Issued by the CBR, Islamabad under the signature of Mr. Akhtar Ali, Secretary (STP)
addressed to Rauf Textile & Printing Mills (Pvt) Ltd., Karachi. Copy endorsed to all the
Collectors of Sales Tax/Secretary (ST.Edu).]
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SALES TAX GENERAL ORDER NO.2/1998 DATED 29 TH JUNE, 1998
SUBJECT:-
INPUT TAX PAID ON GOODS PURCHASED BY A PERSON
BEFORE REGISTRATION.
A question has arisen as to whether or not input tax paid on goods acquired by a
person before registration under section 14 or section 18 of the Sales Tax Act, 1990, as
the case may be, shall be adjustable against his output tax liability (i.e. against his taxable
supplies after registration).
2. It is hereby clarified that up to 30.6.1997, input tax credit in such a
situation, was available under [*section 59 of the Sales Tax Act, 1990], provided the
goods were purchased from a registered person against an invoice issued by the CBR,
Islamabad under section 23 of the Act during a period of thirty days before making an
application for registration under section 15. This period in case of a manufacturer
importing goods in his own name was 90 days. However, section 59 was omitted vide the
Finance Act, 1997. Therefore, w.e.f. 1st July, 1997, input tax credit of stocks acquired
before registration is not available to a person obtaining registration subsequently. This
has already been clarified in paragraph 2(ii) of the Budget-Day Instructions issued by the
CBR, Islamabad under Board's letter C.No.4/ STB/97 dated 13.06.1997.
[*Substituted by words ―to persons registered under section 14 of the Act‖ vide Sales Tax
General Order No. 6/98 dated 31.08.1998 and rescinded vide STGO No.3 of 2004 dt 12 th June,
2004.]
[Issued by the C.B.R., Islamabad, under the signature of Mr. Akhtar Ali Secretory (STP),
vide File No. 2(24)STP/95.]
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C. NO. 3(62) STP/97 (PT.I.) DATED 29 TH JUNE, 1998
SUBJECT:-
SALES TAX REGISTRATION OF DISTRIBUTORS VIDE
NOTIFICATION NO. SRO. 583(I)/98, DATED 12 TH JUNE, 1998.
I am directed to refer to the joint letter dated 27 th June, 1998, from M/S PTC and
M/S LTC and the fax message dated 26 th June, 1998 from OICC&I, Karachi (copies
enclosed) on the above subject and to say that the said applicants, as well as other multinational
and large organization having a large network of their respective