Sales Tax Instructions

Sales Tax Instructions, 2009
SUBJECT:-
GENERAL SALES TAX ON RETAIL BUSINESS.
I am directed to refer to your letter No. Nil, dated 10 th July, 1998 on the above
subject and to say sales tax is leviable on the taxable supplies of retailers having annual
turnover exceeding Rs. 5 million.
2. Such retailers are liable to registration under the Sales Tax Act, 1990,
and should issue the prescribed invoices/cash memos.
3. The first quarterly return is due on 15 th October, 1998, from such
retailers.
4. All members of your Group may be advised to get themselves registered
and observe the provisions of the law/rules in this regard.
5. CBR shall welcome any proposal from your group for simplification of
procedure for the levy and collection of invoice-based retail tax.
[Issued by the C.B.R., Islamabad, under the signature of Mr. Muhammad Tahir,
Secretary (STP), being addressed to M/S. 5M Retailers Group of Pakistan, Karachi, with
reference to their letter No. Nil, dated 10 th July, 1998.] Copy of letter is reproduced below: --
LETTER NO.NIL DATED 10 TH JULY, 1998
Mr. Moinuddin Khan
Chairman,Central Board of Revenue,Islamabad.
REF:
GENERAL SALES TAX ON RETAIL BUSINESS
We refer to the meeting RETAILERS delegation, including general retailers, members of
All Pakistan Gem & Jewellers Association, had with you and (officiating) Member Sales Tax on
your office on 6 th July, 1998, wherein it was agreed:
1. That Sales Tax on Jewellery Business, due to its peculiar nature need
reconsideration in terns of rate and / or value on which Sales Tax is to be
charge as value addition by jewelers is not over 10% who no input adjustment.
2. Similarly, Sales tax on other (GENERAL) RETAILERS who are unable to get
input adjustment against their supplies from unregistered concern (Cottage
Industries/Industries under FIXED Sales Tax regime) also needed detailed study
for implementation.
You will recall that it was agreed during the meeting that STAUS QUO WILL BE
MAINTAINED until final decision on the above issues are taken and conveyed to us. We, the
RETAILERS relying on our discussion with you have not applied for registration and are awaiting
your final decision.
Perhaps, the decision of the meeting has not been conveyed to Sales Tax Collectorates.
Kindly convey the STAUS QUO position to all Collectorates of Sales Tax so that none of the
RETAILERS is harassed by the department.
Thanking you.
Yours faithfully,
5M RETAILERS GROUP OF PAKISTAN
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C. NO. 3(62) STP/97.Pt. DATED 9 TH SEPTEMBER, 1998