Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter No.PDP/98/726 dated 27.6.1998 on the above
subject and to say that all manufacturers are required to charge 1% further tax if taxable
supplies are made to un-registered persons. This will apply even in cases where a
manufacturer is liable to pay sales tax on the basis of retail price (items of Third Schedule
to the Sales Tax Act, 1990). However, the amount of the said 1% further tax shall not be
required to be written separately by the manufacturer on the package/label in terms of
section 3(2)(c) of the Sales Tax Act, 1990.
2. Notwithstanding the levy of 1% further tax as aforesaid, no tax on value
addition (if the value of taxable supply does not exceed the retail price) will be payable
by registered dealers/wholesalers/distributors or retailers of such items as the tax has
already been paid on the basis of retail price at the time of supply by the manufacturer.
[Issued by the CBR, Islamabad under the signature of Mr. Akhtar Ali, Secretary (STP)
addressed to Pakistan Dairy products (Pvt) Ltd., Karachi. Copy endorsed to all the Collectors of
Sales Tax/Mirpur(AJ&K)/Muzaffarabad (AJ&K) and S(ST.Ed.),CBR .]
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C.No.3(62)STP/97(Pt.2) DATED 3 RD JULY, 1998
SUBJECT:-
SALES TAX ON GOODS AUCTIONED.
I am directed to refer to your letter No.IV(2)ST/19/98/224, dated 3.6.1998 on the
above subject and to say that auction of goods was not covered by the exceptions
specified under S.No.33 of the First Schedule to the Sales Tax Act, 1990, and the
notifications issued thereunder, as these existed until 30 th June, 1998.
2. Therefore, the goods auctioned by Punjab Road Transport Corporation
(PRTC) until 30 th June, 1998 did not attract the levy of sales tax in terms of the definition
of ―time of supply‖ as per sub-section (44) of section 2 of the Sales Tax Act, 1990.
3. However, supply of taxable goods through auctions or private tenders, on
and after, the 1 st July, 1998 are liable to sales tax.
[Issued by the CBR, Islamabad under the signature of Mr. Akhtar Ali, Secretary (STP)
addressed to the Collector of Sales Tax Lahore. Copy endorsed to the Director (Procurement &
Stores) Punjab Road Transport Corporation Lahore with reference to their letter
C.No.PRTC/Store-Disp/Sales Tax/98/2300/ 2461 dated 23.06.1998, and all the Collectors of
Sales Tax/Mirpur(AJ&K) and S(ST.Ed.),CBR .]
C.No.1(33)STP/93 DATED 4 TH JULY, 1998
SUBJECT:- 1% FURTHER TAX ON TAXABLE SUPPLIES TO
UNREGISTERED PERSON.