Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO. C (STD)/96, DATED 10 TH OCTOBER, 1998
SUBJECT:-
REFUND OF SALES TAX TO COMMERCIAL EXPORTER.
Some queries have been made by various Collectorates on the subject noted
above. The questions raised are:
(i)
(ii)
Whether a commercial exporter who gets goods manufactured on job
basis from other persons is to be treated as a manufacturer-cum-exporter?
Whether a commercial Exporter is under an obligation to export the
goods in the same form in which he purchased them in order to claim
zero-rating?
2. Although the definition of manufacturer as it appears in the Sales Tax
Act, 1990 leaves much to be desired and may at time be stretched and given a different
meaning the Collectorates will, for the purpose of administering sales tax, treat only such
person as manufacturer who has a manufacturing arrangement and carries out some
manufacturing process whether or not the raw materials of which the goods are produced
are owned by him, if an exporter buys raw materials and gets goods manufactured from
some other person on job basis he cannot be treated as a manufacturer-cum-exporter in
view of the fact that he did not carry out any manufacturing process with regard to the
said goods.
3. As regards the other question, a commercial exporter is not required to
export the goods in the same form in which he purchased them in order to claim zerorating
under the sales tax system. He may purchase raw materials and get goods
manufactured from some other person on job basis before the same are exported. In this
situation too he is entitled to claim refund of input tax paid on the purchase of raw
materials but only to the extent to which the raw materials are used in the manufacturer of
goods as are actually exported by him. As to how much input tax is involved in such case
in an audit function and the same can be worked out on the basis of input-output coefficient.
[Issued by the C.B.R Islamabad under the signature of Mr. Falak Sher , Chief (Sales
Tax), addressed to the Collector of Sales Tax Collectorates East/West Karachi: the Collector,
Sales Tax Collectorates, Nabha Road Lahore and the Additional Collector, Sales Tax
Collectorates, Hub/ Multan/ Hyderabad/ Faisalabd/ Gujranwala/ Rawalpindi/ Peshawar.]
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C.No.1 (16)-STP/94 DATED 12 TH OCTOBER, 1998
SUBJECT:-
P.C.T CLASSIFICATION OF DETTOL.
I am directed to invite attention to your meeting with the Chairman. Central
Board of Revenue, on 25th September, 1998, on the above subject and to say that
DETTOL products are classifiable under H.S Code 38.08.