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Sales Tax Instructions

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<strong>Sales</strong> <strong>Tax</strong> <strong>Instructions</strong>, 2009<br />

importers, wholesalers and dealers) against prescribed tax invoices. While you, as a<br />

registered retailer, shall have the privilege to receive sales taxable goods at 12.5 % sales<br />

tax with the benefit of input tax credit, the un-registered retailers shall get sales taxable<br />

goods at 13.5 % (12.5 % standard rate + 1 % further tax) and shall also not have the<br />

benefit of input tax adjustment.<br />

3. The Government has not acceded to any proposal of fixed sales tax for<br />

any category of person making taxable supplies, including the retailers with annual<br />

turnover of Rs. 5 million.<br />

4. As regard the goods produced in certain areas e.g. Hattar by<br />

manufacturing units enjoying exemption under SRO 561(I)/94, dated 9-6-1994, the said<br />

notification restricts exemption on supplies made by manufacturers of producers of<br />

industrial units in that area but does not extend the exemption to the wholesalers, dealers,<br />

distributors or retailers of their products. Accordingly, their wholesalers, dealers and<br />

distributors should issue tax invoices.<br />

5. As regard the inventory of stocks as on 01-07-1998, your attention is<br />

invited to Notification No. SRO 815(I)/98, dated 20-7-1998 (copy enclosed)<br />

[Issued by the C.B.R., Islamabad, under the signature of Mr.Muhammad Nazim Saleem,<br />

Secretary (STP), being addressed to Rajani‘s (Private) Ltd. 1102 Park Avenue, Shara-e-Faisal,<br />

Karachi.] Copy of S.R.O. No. 815(I)/98, dated 20 th July 1998 is reproduced below: --<br />

Notification No. S.R.O. 815(I)/98, dated 20 th July, 1998. -- In exercise of the powers<br />

conferred by sub-section (2) of section 13 of the sales <strong>Tax</strong> Act, 1990, the Federal Government is<br />

pleased to exempt sales tax on taxable supplies to extent of input tax, other than the fixed tax or<br />

turn-over tax, paid in respect of goods purchased by a wholesaler, dealer, distributor or retailer<br />

who gets himself registered under section 14 of the said Act on any day during the period from the<br />

12 th June, 1998, 10 31 st July, 1998, provided that such goods were purchased by him from a<br />

registered person against an invoice issued under section 23 of the said Act during a period of<br />

thirty days before making an application for registration under section 15 thereof.<br />

2. The amount of sales tax specified in column (6) of the declaration made under<br />

paragraph 3 shall be claimed as input tax by the registered person:--<br />

(a) In case of wholesaler, dealer and distributor, in his return due on 15 th August,<br />

1998; and<br />

(b) In case of retailer, in the return due on 15 th October, 1998.<br />

3. The stocks held at the time of registration shall be declared to the Collector<br />

<strong>Sales</strong> <strong>Tax</strong> by the applicant--<br />

(i)<br />

Along with his application for registration; or<br />

(ii) By the 31 st July, 1998, whichever is later, in the form set out below: --<br />

Name and registration No. of the<br />

supplier from whom taxable supplies<br />

were purchased during a period of 30<br />

FORM<br />

Description of<br />

taxable goods<br />

purchased<br />

<strong>Sales</strong> <strong>Tax</strong> invoice<br />

No. and date<br />

against which<br />

Purchase<br />

value

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