Sales Tax Instructions

Sales Tax Instructions, 2009
Please refer to your letter No. Cus (Adj) Addl. C-II/137/98/8505, dated
September, 1998.
2. The issue has been examined. The Board is of the view that CBR‘s
Circular No. 10/94 is not applicable in the instant case. Under clause (IV) of SRO
403(I)/98 if such a vehicle is sold before the expiry of 5 years, certain concessions from
customs duty are available but no concession in payment of sales tax is admissible in
such cases. The whole of sales tax as was leviable at the time of import will have to be
paid on sale of such vehicles.
[Issued by the C.B.R., Islamabad, under the signature of Mr.Abdul Basit Chaudhry,
Second Secretary (STB), addressed to the Collector of Sales Tax, Custom House, Jamrud Road,
Peshawar, with reference to his letter No. CUS (Adj) Addl. C-II/137/98/8505, dated September
1998.] Copy of letter is reproduced below:-
C.NO. CUS(ADJ)ADDL.C-II/137/98/8505, DATED SEPTEMBER, 1998
The Member (Sales Tax),
Central Board of Revenue,
Islamabad.
SUBJECT:
SALES TAX ON VEHICLES CLEARED UNDER SRO. 403(I)/98,
DATED 13.06.1998.
The staff of Intelligence & Investigation (Customs & Excise), Peshawar has seized a
vehicle vide seizure report No. 84/98, dated 22.07.1998 (Annexed as A) on the ground that the
sales tax paid is less than the actual amount payable which was assessed to duty and taxes by this
Collectorate in terms of SRO 403(I)/98, dated 13.06.1998. They are of the opinion that for the
purpose of calculation sales tax, the value of the imported goods should have been taken by
adding the customs duty leviable under the statue instead of actual payable amount of customs
duty.
2. However, contrary to the above, this Collectorate is of the firm view that in
terms of Board‘s Circular No. 10 of 1994, dated 27.10.1998 (Annexed as B) the value of such
goods would mean the value determined under section 25 and 25-B of the Customs Act, 1969 plus
the customs duty actually paid. As such the duty paid value for assessment of sales tax has been
taken by adding customs duty actually paid with the assessable value in terms of the above quoted
circular.
3. The Board is requested to look into the matter and advise this Collectorate for
further necessary action.
[Issued by the C&CE, Peshawar, under the signature of Mr. Hafiz Muhammad Anees,
Collector of Customs & Excise, Peshawar.]
C.No.1(79)S(STJ)/98 DATED 5 TH NOVEMBER, 1998
SUBJECT:-
CLAUSE (4A) OF ARTICLE 199 OF THE CONSTITU-TION OF
ISLAMIC REPUBLIC OF PAKISTAN.
I am directed to invite attention to the Board‘s letter of even number dated
13.05.1998 and to further enclose copy of a judgement dated 29.10.1998 in C.M. No.2/96
in W.P. No.5766/95 passed by the Honourable Lahore High Court, Lahore, disposing off
several similar C.M. Applications relating to various writ petitions mentioned in the said
judgement and to invite attention to paragraph 29 thereof which states as follows:-