Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter No. 3/Misc/ADC-I/Tax INF/E/98, dated 17 th
November, 1998 on the subject cited above and to say that the provisions of section 5(a)
of the Sales Tax Act, 1990, read with the section 2(44) thereof apply in such cases.
2. However, the Board regrets to give a blanket confirmation as all the
conditions and provisions to section 2(44) of the Act have to be satisfied for which
individual cases have to be seen and cleared individually with reference to various facts
e.g.: --
About the date the payment was received by the supplier in respect of that
supply;
Whether it was receipt of part payment for supply in a particular tax period and
then it shall be accounted for in the return of that tax period and charged to the
rate of tax relevant to the tax period.
Whether it is a case of supply of goods by a registered person to an associated
person.
3. You are advised to deal with each case individually on merits in
accordance with the law.
[Issued by the C.B.R., Islamabad, under the signature of Mr.Muhammad Tahir, Secretary
(STP), being addressed to the Collector of Sales Tax (East), 81-C, Block-VI, PECHS Karachi,
with reference to his letter C. No. 3/Misc/ADC-I/TAX INF/E/98, dated 17 th November, 1998.]
Copy of letter is reproduced below: --
C.NO. 3/MISC/ADC-I/TAX INF/E/98 DATED 17 TH NOVEMBER, 1998
SUBJECT:
CHANGE IN RATE OF TAX AND TIME OF SUPPLY CLARIFICATION
REGARDING.
Kindly refer to the request C. No. IMC/NM-10/968, dated 14 th November, 1998 (copy
enclosed) received from M/s. Indus Motors Company, Karachi on the above subject.
2. The contents of the aforesaid letter of M/s. Indus Motors Limited have been
examined in this Collectorate; Provisions contained in sub-section-44 of section-2 of the Sales Tax
Act, 1990 define ―Time of supply‖ as a supply made in Pakistan shall be deemed to have take
place at the earlier of the time of delivery of goods or the time when any payment is received by
the supplier in respect of that supply. Therefore, such cases where full amount of sales tax has
been realized an account of advance payments made by the buyers prior to actual delivery of