Sales Tax Instructions

Sales Tax Instructions, 2009
Division (Coord-II section), Islamabad‘s Circular F.4(11)98, Coord-II, dated 18-04-1998
was issued in pursuance of a Cabinet Decision dated 23.06.1997, and has to be read as
such while referring to the P.M.‘S secretariat‘s U.O. dated 31.01.1993.
2. Attention is also invited to the amendments made in the Sales Tax Act,
1990, through the Finance Act, 1998, and the consequential D.O. letter No.4/47-STB/98,
dated 01.09.1998 (Copy enclosed) written by the Finance secretary addressed to all
Federal Secretaries (including the Railway secretary). The legal position and obligation
are clearly indicated in the said D.O. letter. Moreover, section 64-A of the Sale of Goods
Act, 1930 (copy enclosed) also defines the liability in such situation involving change in
indirect duties and taxes, including sales tax.
3. The name and addresses of suppliers to the Railways, who refuse to give
their Sales Tax Registration number and/or who refuse to give their Sales Tax
Registration number and/or who refuse to issue prescribed tax invoices for the supply of
sales taxable goods, may also please be communicated to CBR of necessary action
against them.
4. Ministry of Railways and its procurement units are requested to ensure
that they purchase sales taxable goods, from only such suppliers as are registered with the
Sales Tax Department and that too against prescribed tax invoice to be issued by such
suppliers. A list of persons, registered with the Sales Tax Department, may be seen on
Internet: Staxe@isb.Comsats.net.pk.
[Issued by the C.B.R Islamabad, under the signature of Mr. Abrar Ahmad Khan,
secretary (STC), addressed to Mr. Muhammad Ramzan, Section Officer, Ministry of Railways,
Government of Pakistan, Islamabad, along with a copy of D.O. Letter No. 4/47-STB/98, dated
01.09.98.] Copy of letter is reproduced below: -
D. O. NO.4/47-STB/98, DATED 1 ST SEPTEMBER, 1998
Mr. A.W. Kazi Secretary, Cabinet Division,
Islamabad.
SUBJECT:
PURCHASE OF TAXABLE GOODS FROM REGISTERED PERSONS
AND AGAINST PRESCRIBED TAX INVOICES
Dear Wahid,
I am writing on the above subject and with reference to the provision of section
7.I (f) and proviso No. (2) of section 7.II (a) of the Finance Act, 1998, it requires all government
and semi-government departments (including the Defence departments), all autonomous
corporations as well as other institutions (authorized to make deduction of with-holding tax under
section 50(4) of the Income Tax ordinance, 1997) to purchase only such goods for which sales tax
has been paid. It specifies that purchases of goods should be: -
From only such persons as are registered with the Sales Tax Department and quote their Sales
Tax registration number; and
Only against the prescribed sales tax invoices showing amount of sales tax.
2. I am enclosing a copy of the sixth schedule to the Sales Tax Act, 1990. Items not included
in this sixth schedule are liable to sales tax at 12.5%. I am writing to request that the concerned
officers in your Ministry / Division and its Attached Departments, Sub-ordinate Offices and
Autonomous Corporations may please be advised to ensure compliance of the law by proceeding
accordingly.
Best Wishes,
Yours sincerely,
(MUEEN AFZAL),