Sales Tax Instructions

Sales Tax Instructions, 2009
3. The following elements are noteworthy:
(i)
(ii)
(iii)
(iv)
these are cooked and baked foodstuff;
these are not frozen;
these are not served by the hotels and restaurants but are rather sold by
hotels and restaurants to airlines for service by airlines itself to their
domestic passengers on board the flights;
these are not preserved, canned and bottled; and these are ―packaged‖.
However the hotels/restaurants/airlines plead that these are not
―packaged‖ but are ―packed‖ as per the requirement of the airlines.
4. CBR is of the opinion that the word ―packaged‖ includes ―packed‖.
Moreover, in this case, the hotel/restaurant is not serving its ordinary guest customer or
take-away customer but is selling its product to a business organization (airlines, in this
case) as per the latter‘s specification requirement and order. The packing of cooked
(ready to eat) meal or snacks for sale to the order of the airlines is covered by the term
―packaged‖ in terms of section 2(16) of the Act, CBR, therefore, is of the view that such
packed/packaged (non-preserved, non-canned, non-bottled and non-frozen) cooked/baked
foodstuff supplies by hotels/restaurants to airlines for service by the letter to passengers
on board the domestic flights are not exempt from sales tax under Sl. No. 3 (vii) of the
Sixth Schedule to the Sales Tax Act, 1990.
5. Since the issue involves interpretation of law and interpretation of the
word ―packaged‖, the matter is referred for the considered opinion and advice of the Law
and justice Division, as early as possible.
[Issued by the C.B.R., Islamabad, under the signature of Mr. Nisar Muhammad,
Secretary (STT), addressed to Law and justice Division, Islamabad.]
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C.No.3(86)STP/97 DATED 23 RD NOVEMBER, 1998
SUBJECT:-
REGISTRATION OF LESSEES.
I am directed to enclose a copy of letter received from M/s Goldstar Oil Mills,
Multan on the subject cited above and to say that the issue about registration of lessee has
been examined in the Board. It has been decided that separate Rules for their registration
will be issued by the CBR. It has also been decided that during the interim period all such
persons who have taken other units on lease for at least one year (they must have proper
agreement with the owner of the unit on stamp paper of appropriate value duly verified
by Notary Public) may be registered in their own name subject to following conditions:-
(1) Individual/firm or partnership has a NTN number.
(2) Owners/partners provide attested photo copies of their I.D.
cards.
2. The old sales tax registration number of the unit (which is being taken on
lease) may be de-registered only if the unit clears all sales tax liabilities.