Sales Tax Instructions

Sales Tax Instructions, 2009
From the above you will note that the value of supply is restricted only in respect of taxable
supply. Taxable supply is defined under section 2(41) of the Act means supply of taxable goods
made in Pakistan. Taxable goods and goods have been respectively defined under section 2(39)
and 2(12) of the Act to mean:
Taxable goods means all goods exempt goods under section13.
Goods include all type of moveable property.
In view of the above, you will note that the sales tax is leviable on taxable goods / supplies. The
delivery charges are not goods and it is merely a service rendered by a company. The value of
supply being a consideration in money is restricted, under the provisions of the law discussed
above, only in respect of taxable supply. We therefore, understands that delivery charges could
not be construed to be goods within the provisions of Act, as the same is merely a service provided
by a seller to the buyer as such are outside the ambit of Sales Tax, 1990.
Based on the above, we appreciate if you please clarify the matter so that our client could be
advised accordingly and shall be pleased to provide you with any other information / explanation
should so you require.
Yours faithfully,
for Taseer Hadi Khalid & Co.
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C. NO.3(33)STP/98. Pt.II, DATED 23 RD APRIL, 1999
SUBJECT:- WAIVER OF ADDITIONAL TAX AND PENALTIES UNDER
SECTION 33 AND 34 OF THE SALES TAX ACT, 1990 UNDER
SRO 461(I)/99, DATED 09.04.1999
I am directed to refer to your letter No. Nil, dated Nil on the above subject and to
say that the benefits of notification SRO 461(I)/99, dated 09.04.1999 are available only in
relation to such payments of principal amount of sales tax or portions of the principal
amount of payable sales tax as are actually paid during the period from 09.04.1999 to
30.04.1999, as clearly specified in the said notification.
2. The provisions of SRO No.461(I)/99, dated 09.04.1999 do not apply to
those cases where the principal amounts were paid prior to 09.04.1999, or are paid after
30.04.1999.
[Issued by the CBR,Islamabad, under the signature of Mr. Muhammad Tahir, Secretary
(STP), addressed to M/s. Javaid Umar Law Associates, 206, Commerce Center, Hasrat Mohani
Road, Karachi, with their letter No. Nil, dated Nil.] Copy of letter is reproduced below:-
S. M. Kazmi Esquire,
Member Sales Tax,
Islamabad.
SUBJECT: WAIVER OF ADDITIONAL TAX AND PENALTIES UNDER SECTION 33
AND 34 OF THE SALES TAX ACT, 1990 UNDER SRO 461(I)/99, DATED
09.04.1999
1. The sales tax Collectorate in Karachi appears to have issued show cause notices to
textile mills in Karachi under section 33 and 34 of the Sales Tax Act, 1990 on account of some tax
payments of sales tax to the ginners during August, September and October, 1998, although at the
departmental levels such late payment was condoned by charging five percent penalty, on account
of such late payments, during the relevant period. Even so the cases appear to have been reopened
now.