Sales Tax Instructions

Sales Tax Instructions, 2009
(a)
(b)
(c)
Section 18 is available to only such persons who make or intend to make
taxable supplies but is not liable to be registered. A person who does
not make or does not intend to make taxable supplies (i.e. supply of
goods not exempt under section 13) is not entitled to the provisions of
section 18 of the Act and his application for voluntary registration is not
liable to accepted under section 18. In other words, the person making an
application under section 18 must clearly show the ―taxable supply‖ that
he makes or intends to make;
Yes, all rights, duties, liabilities, responsibilities and benefits of a
―registered person‘ shall accrue to such a person who is voluntarily
registered under section 18. For input tax credit, provisions of section 8
shall invariably apply; and
the liability to tax on the otherwise exempt supplies shall be governed by
section 13(4) of the Act, section 13(4) and section 18 are independent of
each other with the exception that for payment of sales tax on the
otherwise exempt supplies, voluntary registration has been prescribed as
a pre-condition. However, when section 18 is viewed independently, this
is not available to persons making exclusively exempt supplies of
goods covered by section 13.
5. Since the matter involves interpretation of law, Law & Justice Division
are requested kindly to give their considered opinion on the questions posed in paragraph
2 above.
(STP).
[Issued by the CBR, Islamabad, under the signature of Mr. Muhammad Tahir, Secretary
********
C.NO. 3(22) STP/98(Pt.II), DATED 29 TH DECEMBER, 1998
SUBJECT:-
LEVY OF FURTHER TAX OF ONE PER CENT ON SALE MADE
BY MANUFACTURERS DIRECTLY TO THE END
USER/CONSUMERS.
I am directed to refer to your letter No. FOAR/CBR-ST/12/98, dated 14.12.1998,
on the above subject and to say that the Board vide letter No. 1(33) STP/98, dated
04.07.1998 has clarified that a manufacturer may make direct sales to the ordinary
consumer without charging 1% further tax provided that: --
(i)
the sales is genuinely made to ordinary consumers for his final
consumption and is not in bulk/wholesale quantities; and