Sales Tax Instructions

Sales Tax Instructions, 2009
Finance Division
Mr. Mehboob Elahi Jani, JS (Reg)
Islamabad.
Central Board of Revenue,
(Mr. S. M. Kazimi, Member (ST),
Islamabad.
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Brig.
(ZAHID MUNIR)
(Joint Secretary-III)
C. NO. 1/105-STT/98 DATED 23 RD NOVEMBER, 1998
SUBJECT:-
SALES TAX ON TIMBER.
I am directed to refer to your letter No. ST (Tech) 98/2914, dated 19.10.1998, on
the above subject and to say that Central Board of Revenue is pleased to confirm the view
point as contained in paras 4 and 6 of the above referred letter.
2. While the Sales Tax Act, 1990, does not apply to FATA/PATA, the
goods produced in FATA/PATA but when supplied to or consumed in the tariff areas of
Pakistan, these are not exempt merely on the ground that these were produced in
FATA/PATA. The wholesalers, distributions, dealership supply and retail of all sales
taxable goods are liable to sales tax in Pakistan and input tax already paid can be claimed
as input tax credit for adjustment from the output tax.
[Issued by the C.B.R., Islamabad, under the signature of Mr. Nisar Muhammad,
Secretary (STT), addressed to the Collector, Collectorate of Sales Tax, 3/2 Khalid Lane, Fort
Road, Peshawar Cantt, with reference to his letter No. ST (TECH) 98/2914, dated 19 th October,
1998.]
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C. NO. 1/77-STT/96 DATED 23 RD NOVEMBER, 1998
SUBJECT:-
SALES TAX ON ―PACKAGED‖ FOOD SUPPLIED BY HOTELS
FOR SERVICES ON DOMESTICS FLIGHTS.
Sl. No. 3(vii) of the Sixth Schedule to the Sales Tax Act, 1990, exempts the
following goods from the whole of sales tax:
―3. Up-Processed foodstuff for human consumption which shall mean: --
Cooked and baked foodstuff, whether or not frozen, served by clubs, messes,
restaurants, hotels and other retail or wholesales outlets, but excluding preserved,
canned, bottled, or packaged;"
2. Domestic Airlines are procuring cooked and baked foodstuff from
hotels/restaurants in packaged condition for services to passengers on board the domestic
flights. A question has arisen whether such packaged cooked foodstuff is liable to sales
tax.