Sales Tax Instructions

Sales Tax Instructions, 2009
but enjoys time bound Sales tax Exemption under SRO 561(I)/94, dated 9 th June, 1994. In
addition to their qualification for exemption under the above SRO the Units have also got
themselves registered with Central Board of Revenue as provided under Para-3 of the above
SRO.
The CBR has also issued confirmation for exemption under SRO 561(I)/94 to such units.
Since the RSO 561(I)/94 has been issued under section 13 of the Sales Tax Act, 1990,
therefore, you are requested to please confirm that the goods manufactured and supplied by
the units enjoying Sales Tax Exemption under the said SRO shall remain exempt on all
subsequent supplies and would not be considered as ―Taxable Supply‖, from 1 st July, 1998.
The definition of ―taxable Goods‖ and ―Taxable Supply‖ as give under section 2(39 & 41)
of Sales tax Act, 1990 specifically excludes the Goods and Supplies exempted under section
13.
2. The Distributors of the Taxable Goods (Biscuits & Confectionery) shall be
carrying substantial Opening Stock as at 1 st July, 1998 on which the Sales Tax would have
already been paid by the manufacturers at the time of supply on or before 30 th June, 1998 for
which they would be having the Sales Tax Invoice evidencing payment of Sales Tax by the
manufacturers. Prior to omission/deletion of Section 59 of Sales Tax Act, 1990 through
Finance Bill, 1997 the facility of claiming adjustment of Input Tax was available to the
persons who were subsequently required to be registered under section 14 of Sales tax Act,
1990 provided that such goods were purchased by them from registered persons against
invoice issued under section 23. By virtue of the extension of sales tax at the
Distributor/Wholesaler and Retail Level, the revival of Section 59 has become indispensable.
Alternatively an SRO could also be issued authorizing adjustment of Input Tax on the Sales
Tax paid stock acquired on or before 30 th June, 1998.
3. The Distributors of Biscuit and Confectionery are also engaged in the
Distribution of other taxable and exempt consumer goods. The magnitude of the transactions
is so big that the Sales Tax Invoice for each and every transaction is difficult to be prepared
by the Salesman. At the moment the Cash Memo is issued by the Salesman for each
transaction on the selling price. It is requested that the facility of one consolidated Sales Tax
Invoice for the Sales of a particular product for example ―Biscuit‖ made in a day be given
on the basis of the Cash memos issued in a day. In this connection we would like to draw
your kind attention on the News item appeared in the Business recorder of 1 st June, 1998,
which is self explanatory (copy enclosed).
4. Whether the additional 1% Sales Tax charged erroneously by a Registered
Manufacturer form a registered Distributor could be claimed as Input Tax adjustment
against Output Tax by the Distributor.
We shall be highly obliged if the above quarries / questions are attended to promptly and
an opportunity is afforded to the Group Members for an interview with you good self on Monday
29 th June, 1998 at 11:00 a.m.
Thanking you.
********
Your faithfully
M. Zubair Habib,Chairman.]
C. NO. 5281-M (ST)/98 DATED 29 TH JUNE, 1998
SUBJECT:-
LEVY OF SALES TAX ON PRE-CAST MATERIAL USED IN
THE CONSTRUCTION OF BRIDGES.