Sales Tax Instructions

Sales Tax Instructions, 2009
However giving clarification in respect of Item No.44 of the sixth schedule regarding exemption
from sales tax, vide SRO 582(I)/98, dated 12.01.1998 ―Wires and Cables‖ have been specifically
excluded from the benefits of item 44 of the sixth schedule. The specific exclusion of Wires and
Cables for concession under item 44 of the sixth schedule confirms that the authorities regard
―Wires and Cables‖ as ―Equipment and Machinery‖ but does not allow concession under item 44
of the sixth schedule. The clarification is therefore restricted for the purpose of item 44 of the sixth
schedule only but does not exclude ―Wires and cables‖ to be ―Equipment or Machinery‖.
There are no exclusion attached to Serial No.1(vi) of the fifth schedule which reads:
―Supply of equipment and machinery for other services provided for handling of Ships or Aircraft
in a Port or Customs Airport.‖
We shall be obliged if you would kindly advise whether Electric Wires and Cables (which fell
under Chapter 85 of the Pakistan Custom Tariff titled ―Electrical Machinery and Equipment‖)
shall be zero rated under item 1(vi) of the fifth schedule if supplied for other services provided for
handling of Ship or Aircraft in a Port or Customs Airport.
Thanking you,
Yours faithfully,
For Newage Cables (Pvt.)Ltd.(M. Azam), Director.
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SL. NO.39 OF 6 TH SCHEDULE OF SALES TAX ACT, 1990
SRO230(I)/97, DATED 29.03.1997
The subject noted products have been exempted from Sales Tax since 1951, by various
notifications and clarification issued by Central Board of Revenue, time and again.
SR. NOTIFICATION
REMARKS
NO. /CLARIFICATION
1. SRO 230(I)/97,
dated 29.03.97.
2. CBR‘s Clarification
C. No.16(42)/ST/80,
dated 04.11.1990.
3. CBR‘s Clarification
No.3(8)-
C.E.Board/82, dated
06.11.1991.
4. SRO 697(I)/77,
dated 04.08.1977
5. SRO prior to SRO
697(I)/77, dated
04.08.1977
Definition of ―Plant, Machinery and Equipment‖, which has been
placed as item 39 in the sixth schedule has been given. The
definition is substantially the same as given in various previous
Sales Tax exemption notification and clarification. The subject
products fall in this definition. Accordingly the clarifications
issued in the past for the subject items hold good for this SRO
also.
Board has clarified that ―Wires and Cables‖ shall be covered by
the words ―Machinery and Equipment‖ used in Sales Tax /
Exemption Notification No.597(I)/90, dated 07.06.90.
Board has clarified that ―Wires & Cables‖ shall be covered by the
words ―Machinery and Equipment‖ used in SRO 798(I)/90, dated
30.07.1990. The definition of machinery in SRO 798(I)/90, dated
30.07.1990 is the same as Sr. No.(1) above.
This SRO also exempted ―Machinery and Equipment‖, the
definition of which as given in this SRO was the same as against
serial No.1. In addition the SRO contained a table of PCT
headings for the purpose of exemption under this SRO. All the
subject PCT Headings were included in the table and as such
these items were treated as machinery and equipment and
remained exempt. The SRO remained operative from 04.08.1977
to 07.06.1990.
All the prior SRO‘s beginning from SRO 3 ST. dated 13.03.54
were identical to SRO at Sr. No.4 and granted exemption from
Sales Tax on subject items.The SROs were: