Sales Tax Instructions

Sales Tax Instructions, 2009
2. It is further informed that presently, debit and credit note can only be
issued for those goods which fall under the express provisions of section 9 of the Sales
Tax Act, 1990, read with SRO.696(I)/96 dated 22 nd August, 1996. Scope of the
notification cannot be extended beyond parameters laid therein.
3. In case sales tax was paid on advance cash/payment received and
subsequently, the goods were not delivered (as a whole or part), debit and credit note in
this situation may be issued for adjustment of tax paid, accordingly.
[Issued by the CBR, Islamabad under the signature of Mr. Muhammad Tahir, Secretary
(STP) addressed to M/s S.S. Advisory Services, Karachi. Copy to all the Collectors of Sales
Tax/Mirpur(AJ&K), S(ST.Ed.),CBR. ]
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No.8(18)STP/96 DATED 12 TH JANUARY, 1999
SUBJECT:-
CLARIFICATION REGARDING ADMISSIBILITY OF INPUT
TAX TO THE EXPORTERS OF COTTON YARN.
I am directed to refer to your letter No.1/Misc/ADC-1/98/12547 dated 21 st
December, 1998 on the above subject and to say that under the proviso of section 6(2) of
the Sales Tax Act, 1990, CBR is authorized to notify the time and manner of payment of
sales tax in respect of all or specified classes of supply of goods, additional tax, under
section 34(1) of the Act, is leviable at 5% per month for not paying sales tax due or part
thereof in the time and manner prescribed under the Act or specified under the Rules.
2. Rule 6(1) of the Special Procedure for the ginning Industry Rules, 1996,
specify the time and manner in which the spinning unit/exporter shall remit the amount of
sales tax on cotton to the ginners and also the time and manner in which the ginner shall
deposit this amount in the treasury. Rule 6(3) ibid prescribes consequences of noncompliance
of rule 6(1) by respective persons.
3. However, since remittance of bank draft, its transmission by post/courier
and its receipt by the ginner involve some time, the Board is pleased to rule if the demand
draft sent by the spinning unit is received by the Ginner well before the 15 th day and is
also deposited by the Ginner in the Treasury by the 15 th day (i.e. the date it was due) a
lenient view may be taken as a special case and refund/adjustment may not be disallowed
in terms of Board‘s C.No.4/76-STB/97 dated 18 th August, 1998 (copy enclosed).
However, the liability to additional tax and penalty shall remain unaltered.
4. However, all efforts should be made to enforce the law in a manner that
such special relaxation of few days do not assume a feature of permanence. Delay in
remittance, in a manner that the draft is not received by the ginner even by the 14 th day
should be viewed seriously and the provisions of rule 6(3) should be enforced rigidly.
[Issued by the CBR, Islamabad under the signature of Mr. Muhammad Tahir, Secretary
(STP) addressed to the Collector of Sales Tax (East) Karachi. Copy to all the other Collectors of
S.Tax/Mirpur(AJ&K) and S(ST.Ed.), CBR.]
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