Sales Tax Instructions

Sales Tax Instructions, 2009
sales tax at 5% on plastic products of the PCT Headings specified
therein. This extra amount of tax is not adjustable and should be
collected from 01.07.1999.
(5) Turnover Tax. – The scope, mode and manner of Turnover Tax has been
modified by substituting section 3A and also by notifying the Turnover
Tax Rules, 1999 under SRO804(I)/99 dated 01.07.1999:-
(i) to include producers and manufacturers and retailers, as well;
(ii) the manufacturers or producers having annual turnover from
Rs.0.5 million to Rs.2.5 million and the retailers having annual
turnover of Rs.1.00 million to Rs. 5.00 million would be enrolled
and charged turnover tax @ 2%;
(iii) manufacturers or producers or retailers who are limited
companies themselves or are owned by limited companies will
stay out of the ambit of Turnover Tax notwithstanding the fact
that they fall within the aforesaid limit of annul turnover;
(iv) The persons under the turnover tax scheme shall be enrolled
under section 3A of the Act read with SRO 804(I)/99 dated
01.07.1999 (i.e. the Turnover Tax Rules, 1999). They should not
be ―registered‖ under Chapter-III of the Sales Tax Act, 1990.
Consequently, they shall pay the ―further tax‖ under section
3(1A) of the Act shall also not be entitled to supply sales taxable
goods to persons making deductions under section 50(4) of the
Income Tax Ordinance, 1979. However, persons falling under
the Turnover Tax Scheme shall have option of voluntary
registration under section 3A(3) to avail the aforesaid benefits of
registration, not hitherto available to enrolled persons.
(2) Zero-Rating of Exports. – Through an amendment in section 4, the
condition of export within the stipulated period of 30 days from the date
of filing of the bill of export has been done away with. Resultantly,
goods extended for export under section 131 of the Customs Act, 1969
will be deemed to have been zero-rated are actually exported to the
satisfaction of the Collector of Customs (Exports) in accordance with the
provision of the Customs Act and the rules and procedure prescribed by
the Customs.
(3) Input Tax Credits.—Section 8 has been amended to disallow input tax
credit;
(a)
(b)
on account of the tax paid under section 3(1A), i.e. further tax
and/or on account of the tax paid under section 3(5), i.e. extra
amount of tax; and
on account of goods purchased by the registered persons working
under the erstwhile Fixed Sales Tax Scheme ―under the then
section 3(4) and allied provisions/rules, as it existed prior to
1.12.1998. This removes all doubts and ambiguities and shows
the intention of the legislature. Provisions of section 8(5) may be