Sales Tax Instructions

Sales Tax Instructions, 2009
(d) Notification No.SRO. 679(I)/99 and 681(I)/99, dated 12.06.1999 and
SRO. 788(I)/99 dated 29.06.1999, issued by the Federal Government;
(e) Notification No.SRO. 680(I)/99 and 682(I)/99, dated 12.06.1999 issued
by the CBR;
(f) Notification No.SRO. 751(I)/99 dated 15.06.1999;
(g) Notification No.SRO. 794(I)/99 dated 30.06.1999;
(h) Notification No.SRO. 795(I)/99 dated 30.06.1999;
(i) Notification No.SRO. 804(I)/99 dated 01.07.1999; and
(j) Notification No.SRO. 805(I)/99 dated 01.07.1999.
2. The following salient changes in the law and procedure of sales tax have
been effected in the current budget 1999-2000.
I. IMMEDIATE MEASURE
(i) Extention of Amnesty Scheme upto30.06.1999:- Notification SRO
679(I)/99, dated 12.06.1999 read with SRO 788(I)/99 dated 29.06.1999
allowed amnesty from the payment of 4/5 th of the additional tax and
penalty, if the principal amount of sales tax (in arrears) and also the 1/5th
of additional tax and penalty relatable thereto as were outstanding as on
31st May, 1999, were paid by the 30 th June, 1999. Similarly, where there
was no principal amount of tax in arrears but there were arrears of
additional tax and penalties, amnesty could be availed of by paying 1/5th
of that arrears of additional tax and penalty by 30.06.1999.
II. MEASURES EFFECTIVE FROM 1 ST JULY, 1999
A. Legal changes
(1) Definition of Value.-- The incidence of all Federal and Provincial taxes
(except the sales tax) has been included in the assessable value for the
purpose of sales tax by adding the words ―and taxes‖ after the word
―duties‖ occurring in the definition of ―value of supply‖ giving in clause
(a) of sub-section (46) of section 2 of the Act. This will remove all
doubts and ambiguities in this regard.
(2) Further Tax.—The rate of ―further tax‖ leviable on the taxable supplies
made to persons other than registered persons has been enhanced from
1% to 3% through an amendment in sub-section (1A) of section 3 of the
Act.
(3) The levy of further tax @ 3% will be applicable on the supplies of goods
chargeable to sales tax on the basis of ―value‖ under sub-section (1) of
section 3, on the basis of their ―retail price‖ under sub-section (2) of
section 3 read with Third Schedule or fixed tax chargeable under subsections
(4) and (5) of section 3.
(4) Extra Amount of Tax.—A new sub-section (5) has been added to section
3 authorizing the Federal Government to levy extra amount of tax (not
exceeding 15%) in addition to the standard rate of 15% and also in
additional to the 3% further tax (where leviable). The first notification
under this sub-section (5) has already been issued by the CBR, Islamabad
under SRO 795(I)/99 dated 30.06.1999, which levies extra amount of