Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter C. No. Nil dated 1 st August 1998 on the above
subject and say that small manufactures already enjoy the following exemption
/concession from sales tax: -
(i)
(ii)
Supplies made by manufacturers whose turnover does not exceed Rs.3 lac in
any period during the last 12 months are exempt under S1.No. 42 (a) of the
Sixth Schedule to the Sales Tax Act, 1990; and
Manufacturers whose turn-over does not exceed Rs. one million in any period
during the last 12 months can pay turn-over tax at 2% only under section 3A of
the Sales Tax Act, 1990.
2. As regards your proposal to allow general exemption from sales tax on
P.V.C. shoes/chappals valued at Rs. 50/- per pair or less, it is to inform you that the said
proposal shall be considered at the time framing of the next finance Bill. However, small
manufacturers may avail of the benefits of exemption/concession, as stated in paragraph
1 above, if they qualify for it.
[Issued by the C.B.R., Islamabad, under the signature of Mr. Nisar Muhammad,
secretary (STT), addressed to the Collectors of (Sales Tax) (East) Karachi/ (West) Karachi/ Hub
(Balouchisan/ Hyderabad/ Multan/ Faisalabad/ Lahore/ Gujranwala/ Rawalpindi/ Peshawar, coy
to the M. Maqsood Ahmed butt, M.P.A. president, All Pakistan Anjuan-e-Tajran, Lahore.]
*********
C. NO. 2(3) STP/96 DATED 22 ND AUGUST, 1998
SUBJECT:-
CLARIFICATION REGARDING PARTS/COMPONENTS OF
AGRICULTURAL MACHINERY LOCALLY PRODUCED.
I am directed to refer to your letter C. No. MA & AI/98/941 dated 23 rd June,
1998 on the above subject and to say that the components & parts of the exempt
machinery, tractors, combine harvesters, etc. are liable to sales tax, which should be paid
by the vendor industry manufacturing such parts and components.
2. However, the input tax paid on supplies made to the local manufactures
of the exempt agricultural tractors can be claimed as refund by such local manufacturers
of the tractors in terms of SRO 839(I)/98, dated 23 rd July, 1998.
3. It is regretted that your request for exemption on the parts and
components manufactured by the vendor industry cannot be acceded to.
[Issued by the C.B.R., Islamabad, under the signature of Mr. Muhammad Tahir,
Secretary (STP), addressed to Malik Auto & Agricultural Industries (Pvt.) Ltd., Lahore.]
********
C. NO. 1(76)-STT/98 DATED 24 TH AUGUST, 1998
SUBJECT:- SALE OF MATERIAL TO DEFENCE ORGANIZATIONS --
SALES TAX.
I am directed to refer to your letter No. FSL/HIT/CBR/98, dated 18 th August,
1998 on the above subject and to say that ―welding electrodes‖ are liable to sales tax even
if supplied to defence organizations.