Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.3(28)STP/98 DATED 28 TH JANUARY, 1999
SUBJECT:- CLARIFICATION REGARDING INPUT TAX ADJUSTMENT ON
SUPPLIES OF GOODS UNDER SRO 826(I)/98, DATED 21-7-1998
I am directed to refer to your letter No.REF.SML/1122/CBR, dated 31-12-1998
on the subject cited above and to say that goods supplied by the manufacturers under
SRO 826(I)/98, dated 21-7-1998, do not fall under section 4(a) of the Sales Tax Act,
1990 and neither these goods are exported nor specified in the Fifth Schedule to the Act.
Moreover, since the supplies are made under a General Agreement between the suppliers
and Commercial Exporter/Manufacturer-cum-Exporter, for the removal of goods without
payment of leviable sales tax, therefore, no input tax adjustment or input refund is
permissible to the supplier to the extent of goods supplied under SRO 826(I)/98, dated
21-7-1998.
2. However, it is informed that the subject notification is under review by
the Government of Pakistan and further operation of this notification has been suspended
till the finalization of the review.
[Issued by the C. B. R., Islamabad, under the signature of Mr.Muhammad Tahir,
Secretary (STP), addressed to M/s. S. M. Law Associates, Karachi & copy to the Collector of
Sales Tax (East) Karachi/ (West) Karachi/ Hub (Baluchistan)/ Hyderabad/ Multan/ Faisalabad/
Lahore/ Gujranwala/ Rawalpindi/ Peshawar (AJ&K).] Copy of letter Ref.SML/1122/CBR, dated
31-12-1998 is reproduced below:-
C. NO.REF.SML/1122/CBR DATED 31 ST DECEMBER, 1999
Member Sales Tax,
Islamabad.
SUBJECT:
CLARIFICATION REGARDING INPUT TAX ADJUSTMENT ON SUPPLIES
OF GOODS UNDER SRO 826(I)/98, DATED 21-7-1998
With reference to above required clarification.
Whether input tax adjustment is allowed on supplies of goods made by the registered
manufacturers without payment of Sales Tax under SRO 826(I)/98, dated 21-7-1998, to those
persons having special registration for export.
We are of the view, these supplies made by the registered manufacturer to the commercial
exporter falls under section ―4‖ (a) read with Clause (41) of Section 2 of the Sales Tax Act, 1990,
and according to that provisions, the registered manufacturer is entitled for refund of input tax in
respect of said supplies.We shall be highly obliged of the above quarries / questions are attended
to promptly, so to enable my client to pay the sales tax liabilities/submit the sales tax returns
correctly.
Thank you.
For S. M. Law Associates,
Shafqat. M. Sagar, Advocate.
********
C. NO.3(84)STP/97 DATED 28 TH JANUARY, 1999
SUBJECT:- DAEWOO PAKISTAN EXPRESS BUS SERVICE LTD.
MAINTENANCE OF RECORD U/S 22 AND FILING OF SALES
TAX RETURN U/S. 26 OF THE SALES TAX ACT, 1990 –
CLARIFICATION REGARDING