Sales Tax Instructions

Sales Tax Instructions, 2009
(ii)
the sales price on which the sales tax at the standard rate of 15% is
levied, is the genuine consumers‘ price, which the general body of retail
traders charges from the general body of consumers.
2. The said letter concludes that, inter alia, the cases not covered by the
aforesaid provisions shall be charged 1% further tax.
3. In your case, since the buyers are procuring in bulk quantities, they
cannot, therefore, be termed as ―ordinary consumers‖. You are, accordingly, advised to
please charge 1% further tax on all supplies such as made to un-registered person in bulk.
[Issued by the CBR, Islamabad, under the signature of Mr. Muhammad Tahir, Secretary
(STP), addressed to M/s. FOAR Chemicals, 312- B, R.A. Bazar, Muhammad Hussain Road,
Rawalpindi.]
C.No.1(6)ST(RT)98(STP) DATED 31 ST DECEMBER, 1998
SUBJECT:-
GENERAL SALES TAX ON RETAIL STORES.
I am directed to refer to your letter No.M/Gen-98/7532, dated 22.8.1998 on the
above subject and to say that M/s Services Sales Corporation Lahore Ltd (hereinafter
called SSCLL) fall within the purview of the definition of a ―person‖ under sub-section
(21) of section 2 of the Sales Tax Act, 1990. Moreover, SSCLL, being in retail business,
are also covered by the term ―retailer‖ under section 2(28) of the Act. Since annual
turnover of SSCLL (the total of its 225 retail outlets) exceeds Rs.5 million, they do not
qualify for exemption under S.No.42(b) of the Sixth Schedule to the Sales Tax Act, 1990.
2. In view of the aforesaid legal position, SSCLL are required to register under
section 14(1)(ii) of the Act as a ―retailer‖ and should apply for registration under section
15.
3. SSCLL, however, has an option to get its branches (the 225 retail stores /outlets)
registered separately, Collectorate-wise, in terms of section 16 of the Act but that would
not alter the liability of SSCLL either as a ―person‖ or as a ―retailer‖. Accordingly, all of
the 225 retail outlets of SSCLL, irrespective of individual annual turnover, are required to
charge sales tax from the customers in retail. However, SSCLL shall be free to exercise
their option as to whether to file a ―single consolidated Return-cum-Payment challan‖
from the single Registered Office of SSCLL or to file ―separate Returns-cum-Payment
Challans‖ for the branches, Collectorate-wise, in case these branches are so registered
Collectorate-wise, separately, under section 16 of the Act.