Sales Tax Instructions

Sales Tax Instructions, 2009
respect of that tax period. Thus, in case of imported goods, the input tax should be adjusted in the
tax period in which the sales tax was paid (date of payment of duty and taxes on the bill of entry),
even through delivery/clearance from the port occurs in the next month.
3. Board is requested to kindly confirm the Collectorate‘s interpretation of law.
IFTIKHAR QUTAB)
COLLECTOR, SALES TAX (WEST), KARACHI.
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Copy of letter dated 7-11-1998 is reproduced below:-
The Deputy Collector of Sales Tax West,
Karachi.
SUBJECT:
CLARIFICATION REGARDING TIME OF SUPPLY / DATE OF
INPUT TAX FOR IMPORTED MATERIAL
Thank you for your letter No.Misc/Pt-2/Inf/STW/98, dated 15-10-1998.
As stated in above referred letter para 2(ii) Input Tax can be adjusted in Tax period
(month) dated of payment of duties and Taxes on the Bill of Entry. We Would like to state that on
the day of payment, physical delivery of goods from port is not possible for want of completion of
other formalities and entry is not cleared out of charged by Custom Authority for examination etc.
After payment and during the process of Bill of Entry and before delivery, Tax period
(month) is changed. For instance: Duty is paid on 30-10-1998 and physical, delivery of goods is
effected on 2-11-1998 that is after examination. In the case what will be the Tax Period that is
October 98 or November 98, because according to section 14(b) Input Tax, ―Goods imported
entered and cleared u/s. 79 or 104 of Customs Act‖ and this clearance means physical delivery of
goods/out of charged by Custom Authority after their formalities.
It will not be out of place to mention that Mr. Iftikhar Qutab, Director of Training
(Custom, Excise and Sales Tax) and Collector of Sales Tax (Karachi West) during a Seminar of
Custom House, Karachi stated that the Physical Delivery will be the Input Tax Date, no matter
payment is made earlier i.e. previous month.
Please clarify in the above case what would be the Input Tax Date / Month as the goods
were not marketable on the date of payment.
Truly yours,
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For Valves Importers & Dealers Group
Copy of letter No.Misc/Pt-2/Inf/STW/98, dated 15-10-1998 is reproduced below:-
Shaheen Sarwana, Chairman,
C. NO.MISC/PT-2/INF/STW/98 DATED 15 TH OCTOBER , 1998
Mr. Shaheen Sarwana,Chairman,
M/s. Valves Importers & Dealers Group,
SUBJECT: CLARIFICATION REGARDING TIME OF SUPPLY.
Please refer to your letter dated 9-10-1998 on the subject noted above.
2. The clarifications for the two situations mentioned in your letter are as follows:-