Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter No.Nil, dated 29-12-1998 on the subject cited
above and to say that since M/s. Daewoo Pakistan Express Bus Service Limited have
been registered as commercial importers under section 14 of the Sales Tax Act, 1990,
they have to keep prescribed records including those of the goods imported by them, as
specified under section 22 of the Act, and are also required to submit monthly Returncum-Payment
Challan to the designated branches of National Bank of Pakistan even if no
sales / supplies of taxable goods are made to other commercial persons and all the
imported items are consumed/used by the importers themselves.
[Issued by the C. B. R., Islamabad, under the signature of Mr.Muhammad Tahir,
Secretary (STP), addressed to M/s. M. S. Babar & Associates, Lahore & copy to the Collector of
Sales Tax, (East) Karachi/(West) Karachi/Hub (Baluchistan)/ Hyderabad/ Multan/ Faisalabad/
Lahore/ Gujranwala/ Rawalpindi/ Peshawar (AD&K)].
Copy of letter, dated 29-12-1998 is reproduced below:-
C. NO.NIL DATED 29 TH DECEMBER, 1999
Mr. Muhammad Tahir,
Secretary (STP), Islamabad.
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
As you are aware that a registered person making taxable supplies is liable to maintain
the prescribed record u/s 22 of the Act and to file the return u/s 26. However, our client M/s.
Daewoo Pakistan Express Bus Service Limited is engaged in operating intercity bus service on
Lahore Islamabad, motorway, which is not taxable under Sales Tax Act. Our client imports busses
and parts thereof for the exclusive use of the maintenance of its busses and for no other purpose.
The company is maintaining its own workshop wherein exclusively its own buses are maintained
and looked after. Neither any parts are sold nor any workshop facility, whatsoever, is provided to
any other person, whosever. But our client by virtue of being an importer, had to get itself
registered with the Sales Tax Department.
Now we respectfully seek the clarification on the following issues:-
1. Whether our client though a registered person, but not making taxable supplies is
required to maintain and keep the record at its business premises as envisaged u/s. 22 of the Act?
2. Whether our client is required to file the Sales tax Return every month?
An early reply shall be highly appreciated.
Yours truly,
M. S. Babar, Advocate, M/s. Babar & Associates, Lahore.
********
C. NO.3(2)STP/99 DATED 29 TH JANUARY , 1999
SUBJECT:- EXEMPTION FROM REGISTRATION
I am directed to refer to your letter No.WE/2/99, dated 8-1-99 on the above
subject and to say that Medicaments and Drugs registered under the Drugs Act, 1976 and
as specified at eateries at Serial Nos. 12 and 13 of the Sixth Schedule of the Sales Tax
Act, 1990 are exempt from sales tax. Accordingly, persons dealing ―exclusively‖ in these
exempt goods are not required to be registered under the Sales Tax Act, 1990. however,
filled infusion solution, infusion sets, scrubs (washing preparation), soft soaps, adhesive