Sales Tax Instructions

(c)
Sales Tax Instructions, 2009
of 1% further tax, input tax credit, etc) as is available to a ―registered
person‖ under the Act; and
on such voluntary registration, their supplies (if otherwise exempt under
section (3) become liable to sales tax and the exemption stand negated.
4. CBR is of the following views on the aforesaid issues, ad-seriatim:-
(a)
(b)
(c)
section 18 is available to only such persons who make or intend to make
taxable supplies but is not liable to be registered. A person who does not
make or does not intend to make taxable supplies is not entitled to the
provisions of section 18 of the Act and his application for voluntary
registration is not liable to be accepted under section 18. In other words,
the person making an application under section 18 must clearly show the
―taxable supply‖ that he makes or intends to make;
Yes, all rights, duties, liabilities, responsibilities and benefits of a
―registered person‖ shall accrue to such a person who is voluntarily
registered under section 18. For input tax credit, provisions of section 8
shall invariably apply; and
the liability to tax on the otherwise exempt supplies shall be governed by
section 13(4) of the Act. Section 13(4) and Section 18 are independent of
each other with the exception that for payment of sales tax on the
otherwise exempt supplies, voluntary registration has been prescribed as
a pre-condition. However, when section 18 is viewed independently, this
is not available to persons making exclusively exempt supplies of goods
covered by section 13.
[Issued by the CBR, Islamabad under the signature of Mr. Muhammad Tahir, Secretary
(STP) addressed to Law & Justice Division, Islamabad.]
********
C. NO. 3(18) STT.II/92.PT. DATED 29 TH SEPTEMBER, 1998
SUBJECT:-
EXEMPTION FROM PAYMENT OF SALES TAX ON 15KV
SWITCHGEAR PANELS BY M/S. SIEMENS PAKISTAN ENGG.
CO. LTD FOR GRID STATION FOR KESC UNDER GRANT.
I am directed refer to your letter No. PM-L/68.03/670, dated 24 th September
1998, received on the above subject from The Karachi electric Supply Corporation
Limited (copy enclosed) and to enclose copies of Board‘s letter of even number dated 31 st
October 1995 and 20 th May 1998 for information.
[Issued by the C.B.R., Islamabad, under the signature of Mr.Nisar Muhammad, Secretary
(STP), addressed to the Collector of Sales Tax, (East), 81-c, block 6., P.E.C.H.S Balouch Colony
Karachi and the Collector of Sales Tax (West), ST. 18/A, Block 6, NIPA Chowrangi. University
Road Gulshan-e-Iqbal Karachi, along with a copy of there letter No. PM-l 69.03/670. Dated 24 th
September 1998 and letter No. 3(18STP-II/92.Pt., dated 20 May 1998)] Copies of letter
reproduced are below:-
LETTER NO.PM-L/68.03/670 DATED 24 TH SEPTEMBER, 1998