Sales Tax Instructions

Sales Tax Instructions, 2009
SUBJECT:-
SALES TAX ON WHOLESALERS AND DISTRIBUTORS.
I am directed to refer your letter NO. PG. 02/1041-98 dated 15 th July, 1998 on the
above subject and to say that sales tax is leviable on all taxable supplies made by a
registered person.
2. The goods, acquired before registration but supplies after becoming
liable to registration, are also liable to the sales tax leviable thereon.
[Issued by the C.B.R., Islamabad, under the signature of Mr. Muhammad Tahir,
Secretary (STP), being addressed to M/S. Imperial Electric Company (Pvt.) ltd., Lahore, with
reference to their letter No. PG. 02/1041-98, dated 15.07.98.] Copy of letter is reproduced
below:-
LETTER NO.PG.02/1041-98 DATED 15 TH JULY, 1998
Member Sales Tax,
Central Board of Revenue,Islamabad.
Sales tax Act, 1990 as amended b the Finance Act, 1998 has levied Sales Tax on wholesalers and
Distributors.
We are registered with Sales Tax Department as Commercial Importer and regularly file our
Sales Tax return. We also buy electrical goods from the local market and sell them to our Dealers.
As the aforesaid change is effective form 1 st July, 1998, we wish to seek your guidance whether
stocks held by us on 30 th June, 1998, which were purchased from other Distributors in the local
market, will be subject to Sales Tax at the time of their sale or not.
An early reply will be greatly appreciated.
Thanking you.
for THE IMPERIAL ELECTRIC CO. (PVT.)LTD.
ZAFAR IQBAL
GENERAL MANAGEER (FINANCE)
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C. NO. 2(1) STP/97(Pt.I) DATED 9 TH SEPTEMBER, 1998
SUBJECT:- IMPLEMENTATION OF AMENDMENT MADE IN SECTION 10
OF THE SALES TAX ACT, 1990.
I am directed to refer to your letter No. IV (2) ST/53/98/Pt.4/335, dated 5 th
August, 1998 on the above subject and to say that even under the old procedure,
importers were not allowed refund and were allowed only to carry forward their input
tax. By analogy, same principle is now applicable in respect of wholesalers, dealers,
distributors and commission agents. Retailers have yet to file a return; hence there is no
problem so far as they are concerned. The manufacturers, who were previously allowed
refund, are now required to carry forward their input tax credit under the amended section
10 of the Act which is effective from 1 st of July, 1998. Therefore, the returns of June,
1998 or earlier (if filed on or after 1 st July, 1998) shall be governed by the section 10 of