Sales Tax Instructions

(PCT 8448.4200).
Sales Tax Instructions, 2009
I am directed to refer to your letter No.nil dated 02.09.1998 on the above subject
and to say that such ―Reeds‖ falling under chapter 84 of Pakistan Customs Tariff as are
essential components/parts of machinery, and are also identifiable for use with the
machinery are covered by sub-para (e) of SRO 582(I)/98, dated 12 th June, 1998.
2. Accordingly, when supplied to registered person for use in
manufacturing of sales taxable goods, these ―reeds‖ shall qualify for exemption under
S.No.44 of the Sixth Schedule to the Sales Tax Act, 1990, read with SRO 582(I)/98 dated
12.06.1998. However, when supplied to persons not registered under the Sales Tax Act,
1990, or to any person for purposes other than use in the manufacture of sales taxable
goods, these reeds shall be liable to the sales tax due.
3. Commercial import of ―reeds‖ shall be liable to sales tax at import stage
and the ruling in the aforesaid paragraphs shall apply to local supply of ―reeds‖ by such
commercial importers.
[Issued by the CBR, Islamabad under the signature of Mr. Nisar Muhammad, Secretary
(STT) addressed to M/s Abid Industries, Karachi. Copy endorsed to all the Collectors of Sales
Tax, Collectors of Customs, Collectors of Central Excise and S(ST.Ed.) CBR.]
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C.No.3(72)STP/97 DATED 17 TH NOVEMBER, 1998
SUBJECT:-
LEVY OF 12.5% GENERAL SALES TAX.
I am directed to refer to your letter No.360/Reg/1/4/98 dated 6.10.1998 on the
subject cited above and to invite attention to the provisions of section 64-A of the Sales
of Goods Act, 1930 (Copy enclosed).
2. In terms of the aforesaid provisions of the law, sales tax shall be levied
and paid on all supplies made on or after 01.07.1998 irrespective of the date of contract
and the contracted price shall stand revised accordingly.
[Issued by the CBR, Islamabad under the signature of Mr. Muhammad Tahir, Secretary
(STP) addressed to the Accounts officer (Reg-I), Office of the Auditor General of Pakistan,
Islamabad. Copy endorsed to all the Collectors of Sales Tax/Mirpur(AJ&K) and S(ST.Ed.),CBR.]
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ENCLOSURE-I.
OFFICE OF THE AUDITOR-GENERAL OF PAKISTAN ISLAMABAD
No.360/Reg.I/4/98 Dated 6 th October, 1998.
SUBJECT:-
LEVY OF 12.5% GENERAL SALES TAX.
The undersigned is directed to say that Federal Government, has imposed 12.5% Sales
Tax on supplies, has advised vide CBR Circular No.F.5(1)-TR.I/96 dated 21.5.1998 to insist on
production of Sales Tax invoices. This Office is receiving references from our field Offices about
payment of Sales Tax for supplies/tenders whose contracts were concluded before 30 th June 1998
without covering Sales Tax.