Sales Tax Instructions

Sales Tax Instructions, 2009
goods, then any change in the rate of sales tax as envisaged in setion-5 of the Sales Tax Act, 1990,
will not be applicable and shall fall beyond the purview of tax rate adjustments.
3. In view of these circumstances, this Collectorate believes that the viewpoint
expressed by M/s. Indus Motors Limited their in aforesaid letter seems to be correct. However,
Board is requested to kindly confirm the same before the same is conveyed to M/s. Indus Motors
(Pvt.) Limited, Karachi.
[Issued by the Collector of Sales Tax (East), Karachi under the signature of Mr. Aftab
Anwar Baloch, Collector, being addressed to Mr. S. M. Kazimi, Member (Sales Tax), Central
Board of Revenue, Islamabad, along with a copy of letter C. No. IMC/NM-10/968, dated
November 1998 is reproduced below: --
C.NO. IMC/NM-10/968, DATED 14 TH NOVEMBER, 1998
The Collector of Sales Tax (East), Karachi
Karachi.
Due to rumours of possible enhancement in Sales Tax rate from 12.5% to 15% our Customers
from whom we have received 100% advance against vehicle sale are constantly enquiring from us
whether they will be required to pay the differential between 12.5% and 15%.
Under the Sales Tax Law Section 2(44) defines the ‖time of supply‖ which inter-alia- states, ―A
supply made in Pakistan shall be deemed to have taken place at earlier of the time of delivery of
goods or the time when any payments is received by the supplier in respect of their supply…‖