Sales Tax Instructions

Sales Tax Instructions, 2009
STAGE
I am directed to refer to your letter No.C-14/M/ST.CBR/98, dated 26 th June, 1998
on the above subject and to give replies, as hereunder, to the specific questions raised by
the Group:-
(1) Under Notification No.SRO 561(I)/94, dated 9 th June, 1994, exemption is available
to supplies made by the manufacturers or producers of industrial units which are set
up in the province of NWFP and the province of Baluchistan (including Hub
Chowki area) in terms of the said notification. However, exemption from sales tax is
not available on subsequent supplies, say, by, wholesalers, dealers, distributors or
retailers;
(2) Section 59 of the Sales Tax Act, 1990, was omitted through the Finance Act, 1997
(XXII of 1997). After this omission, input tax credit is not available to stocks
acquired by a person during the period when he was not registered under the Sales
Tax Act, 1990;
(3) A cash memo is as good as tax invoice subject to the condition that it contains
relevant information as indicated in section 23 of the Act and the word ―sales tax
invoice‖ are printed thereon. The suggestion for issuance of a single tax invoice, at
the end of the day, for all supplies is not legally valid under the Sales Tax Act, 1990.
However, in case you desire to have a notified tax invoice, you may discuss the
same with the respective Collectors of Sales Tax along with the format proposed by
you. The Board will consider the recommendations made by the Collector on your
such proposals in terms of the first Proviso to section 23(1) of the Sales Tax Act,
1990;
(4) 1% further tax charged erroneously by a registered manufacturer from a registered
distributor could be claimed as refund under section 66 of the Sales Tax Act, 1990.
[Issued by the CBR., Islamabad, under the signature of Mr. Akhtar Ali, Secretary (STP),
addressed to M/s. Pakistan Biscuit & Confectionery Manufacturers Group, Karachi, with reference
to his letter No.C-14,/M/ST.CBR/98, dated 26 th June, 1998.].Copy of letter is reproduced below:
LETTER C-14/M/ST.CBR/98 DATED 26 TH JUNE, 1998
Mr. Mushtaq Kazmi, Members of Sales Tax
Central Board of Revenue, Islamabad.
We are indeed thankful to your prompt response to our Letter No.C-14/M/ST.CBR/98, dated 25 th
June, 1998. The specific questions relating to our industry are as under:-
1. There are certain Industrial Units located at Industrial Estate of Hatter N. W. F.
P. and other Sales Tax Exempt Areas which come under the purview of Sales Tax Act, 1990