Sales Tax Instructions

Sales Tax Instructions, 2009
In the case of manufacturers the past practice will be followed and manufacturers will pay Sales
Tax on the new rate (15%) on all sales from 1 st December, 1998 (from the day of announcement of
the increase).
However, the distributors who are holding on to stocks where input sales tax has been paid at 12-
1/2, will be out of pocket if the output sales tax is 15 %. These items have been already price
labeled at the factory for consumer protection. Estimated stock level of the distributors are 2-4
weeks and are fully documented with manufacturers invoices, etc.
The proposal is that distributors who have fully documented stock at input sales tax at 12-1/2% he
allowed to liquidate this stock at the sales tax rate of 12-1/2%. All stock invoices to the
distributors from 1 st December, at 15% sales tax will be sold with output sales tax of 15%.
This facility should only be applicable to those registered distributors who have full
documentation of their receipt and sales.
We seek your approval on the above proposal on an urgent basis.
Yours truly,
ZAHID ZAHEER
SECRETARY GENERAL
Overseas Investors Chambers of Commerce & Industry.
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C. NO. 3(19) STP/98 DATED 4 TH DECEMBER, 1998
SUBJECT:-
CLARIFICATION REGARDING INTER-UNIT TRANSFERS OF
GOODS BY A REGISTERED PERSON WITH SEPARATE
BRANCH REGISTRATION.
I am directed to refer to your letter C. No. 1(12) ST/APP/S.Z./98/1186, dated
11.07.1998 on the above subject and to say that under Sl. No. 43 of the Sixth Schedule to
the Sales Tax Act, 1990, ―partly manufactured goods if used within the same factory to
manufacture goods in respect of which sales tax is leviable on their supply‖ is exempt.
2. However, the aforesaid provision does not apply in case of M/s Suraj
Textile Mills, as the supply is not within the same ―factory‖.
3. By electing, under section 16 of the Sales Tax Act, 1990, to separately
register the units in Karachi (East) and Lahore Collectorates, M/s. Suraj Textile Mills
have the status of 2 distinct and separate ―registered persons‖ under the Sales Tax Act,
1990. Each registered part of M/s. Suraj Textile Mills, because their owners have elected