Sales Tax Instructions

Sales Tax Instructions, 2009
plasters, surgical tapes, liquid paraffin, disinfectant (e.g. Dettol, Savlon etc.) medicated
shampoos, absorbent cotton wool and disposable syringes are liable to sales tax and its
suppliers are liable to sales tax registration and should issue tax invoices.
2. If any drug/medical store is making supplies of taxable items (other than
those contained in the said Sixth Schedule), it would be liable to registration under the
sales tax law but shall pay sales tax on the taxable goods only.
[Issued by the C. B. R., Islamabad, under the signature of Mr.Muhammad Tahir,
Secretary (STP), addressed to M/s. Waseem Enterprises, Rawalpindi & copy to the Collectorate of
Sales Tax (West), Karachi & copy to the Collector Sales Tax, (East)Karachi/(West)Karachi/Hub
(Baluchistan)/ Hyderabad/ Multan/ Faisalabad/ Lahore/ Gujranwala/ Rawalpindi/ Peshawar/
Mirpur (AJ&K).] Copy of letter No.WE/2/99, dated 8-1-99 is reproduced below:-
C. NO.WE/2/99 DATED 8 TH JANUARY, 1999
Member Sales Tax,
Central Board of Revenue, Islamabad.
SUBJECT: EXEMPTION FROM REGISTRATION
We are pleased to inform you that we are supplying Medicines to Govt./Semi Govt.
Hospitals. All the hospitals have advised us to register with the Sales Tax Department. As
medicines are exempted from Sales Tax according to Sales Tax Act therefore your advice is
solicited in this regard.
Thanking you in anticipation.
Yours sincerely,
Manager, Waseem Enterprises, Rawalpindi.
*******
C. NO.3(72)STP/97 (Pt-I)P.69672/C DATED 4 TH FEBRUARY , 1999
SUBJECT:- APPLICATION OF GST ON OLD CONTRACTS
I am directed to refer to your letter No. Nil dated 23.12.1998 received through
the President‘s Secretariat. The matter has been examined and reply to the issues raised is
as under:-
(i) under the provisions of the Finance Act, 1998 (which amended the Sales Tax
Act, 1990), all Government, Semi-Government and Defence Organizations,
limited companies and autonomous bodies (authorized to deduct advance tax
under section 50(4) of the Income Tax Ordinance, 1979) are obliged to make
purchases of Sales Taxable goods only from such suppliers who are
registered under the Sales Tax Act, 1990 and that too against valid tax
invoices issued by such registered suppliers.
(ii) All those contract which were made/signed upto 30.06.1998 and supplies
thereof were made on or after 01.07.1998, the suppliers are required to
register with the Sales Tax Department under section 14(i)(iv) of the Sales
Tax Act, 1990 and to issue prescribed tax invoice to such buyers for the
supply of taxable goods. As far as the question of quotation of rate, in old
contracts without sales tax is concerned attention is invited to the provisions
of section 64-A of the Sale of Goods Act, 1930, sale tax shall be levied and
paid on all supplies made on or after 01.07.1998 irrespective of the date of