Sales Tax Instructions

Sales Tax Instructions, 2009
2. This Office is of the opinion that Sales Tax should be paid by the Government
departments in addition to contracted price provided the supplier produces Sales Tax payment
invoice.
3. The Central Board of Revenue is, therefore, requested to please clarify as to whether
Sales Tax can be paid on the supplies/goods against the contracts concluded before 30.6.1998 and
supplies on these contracts are still continuing.
4. Your early reply in the matter will be appreciated.
[Issued by the CBR, Islamabad under the signature of Mr. Muhammad Latif Qureshi,
Accounts Officer (Reg.I) addressed to the Secretary, Procedure Wing (Sales Tax), CBR,
Islamabad.]
ENCLOSURE-II
Sale of Goods
(Chapter VII – Miscellaneous)
64A. In the event of any duty of customs or excise or tax on any goods being imposed,
increased, decreased or remitted after the making of any contract for the sale of such goods
without stipulation as to the payment of duty or where the duty or tax was not chargeable at the
time of the making of the contract or for the sale of such goods duty-paid or tax-paid where duty
or tax was chargeable at that time,--
(a)
(b)
if such imposition or increase so takes effect that the duty or tax or increased
duty or tax, as the case may be, or any part thereof, is paid, the seller may add
so much to the contract price as will be equivalent to the amount paid in respect
of such duty or tax or increase of duty or tax, and he shall be entitled to be paid
and to sue for and recover such addition; and
if such decrease or remission so takes effect that the decreased duty or tax only
or no duty or tax, as the case may be , is paid, the buyer may deduct so much
from the contract price as will be equivalent to the decrease of duty or tax or
remitted duty or tax, and he shall not be liable to pay, or be sued for or in
respect of, such deduction.
[Explanation.—the word ―tax‖ in this section means the tax payable under the Sales Tax
Act, 1951.]
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C. NO. 2(38) STP/97 DATED 18 TH NOVEMBER, 1998
SUBJECT:-
EXEMPTION FROM SALES TAX.
I am directed to refer to your letter No Nil dated 09.09.1998 on the subject cited
above and to say that Sales Tax Act, 1990, extends to the whole of Pakistan under section
1(2) of the Act. However this is subject to provisions of the constitution of the Islamic
Republic of Pakistan. It is pointed out that under clause (3) and (4) of the Article 247 of
the Constitution, an Act of Majlisa-e-Shura (Parliament) can be applied to any Tribal area
unless the President or the Governor (with the prior approval of the President) so directs.