Sales Tax Instructions

Sales Tax Instructions, 2009
registered where the total turnover of such retailer exceeds Rs.5 million (five million) in a year. As
our annual turnover (including supplies to Government Institutions) is Rs.450,000
(approximately), we are of the view that we do not fall within the ambit of provisions of the Act
dealing with registration.
We would appreciate if you would provide information of following queries under the provisions
of the Act.
Whether we are liable to get registered with the sales tax department.
Can we make supplies to Government Institutions without registration of sales tax. In case Yes,
whether any certificate in this regard can be issued by the sales tax department which will enable
us to submit the same to these institutions and continue to supply without charging sales tax.
Procedure of registration (in case registration is required).
An early response in this regard will be highly appreciated. A prepaid envelope for your reply is
enclosed.
Yours truly, Sheikh Rafique Ahmad.
********
C. NO.3(1)STP/99, Pt. DATED 22 ND MARCH, 1999
SUBJECT:-
SALES TAX ON COMMERCIAL IMPORTERS OF FINISHED
PRODUCTS
I am directed to refer to your letter No. Nil, dated 26-2-1999 on the subject cited
above and to say the Board regrets its inability to accede to your request.
2. Watch importers selling their goods to any wholesaler/dealer /distributor
have to issue prescribed tax invoices in VAT-mode and ensure that such
wholesaler/dealers/distributors are registered ones because they are liable to registration,
irrespective of turnover.
3. However, for sales to non-registered retailers, having annual turnover of
less than Rs.5 million, the importer shall still issue prescribed tax invoices in VAT-mode
but shall also charge 1% further tax (under section 3(1-A) of the Act in addition to the
standard rate of 15%. For sale to registered retailers, the 1% further tax shall not be
charged.
4. You are requested to assist in the Government‘s effort for documentation
of the economy and for tax compliance of GST in a VAT-mode.
[Issued by the CBR., Islamabad, under the signature of Mr.Muhammad Tahir, Secretary
(STP), addressed to Mr. Aftab Khalil, Honourable Secretary, Karachi Watch Importers Group,
Karachi & copy to the Collector of Sales Tax (East)Karachi /(West)Karachi /Hub (Baluchistan)
/Hyderabad/Multan/Faisalabad/Lahore/Gujranwala/ Rawalpindi/ Peshawar/ Mirpur (AJ&K).]
Copy of letter No.Nil, dated 26-2-1999 is reproduced below:-
C. NO.NIL DATED 26 TH FEBRUARY, 1999
Syed Mushtaq Kazmi,Member Sales Tax,
Central Board of Revenue, Islamabad.
SUBJECT: SALES TAX ON COMMERCIAL IMPORTERS OF FINISHED GOODS
We would like to bring the fact to your kind notice that the commercial importers who are
importing finished products which does not require any industrial process and are selling their
finished products to end user be exempted from keeping input/output register and may be