Sales Tax Instructions

Sales Tax Instructions, 2009
[Issued by the CBR, Islamabad under the signature of Mr. Muhammad Tahir, Secretary
(STP) addressed to Mr. Waqar Ullah, Lahore. Copy to all the Collectors of Sales
Tax/Mirpur(AJ&K).]
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No.3(62)STP/97(Pt.I) DATED 2 ND OCTOBER, 1999
SUBJECT:-
SALES TAX CLARIFICATION.
I am directed to refer to your letter No.nil, dated 13.8.1999 on the subject cited
above and to reply your queries as under:-
CATEGORY-I
If a dealer is engaged only with the sale of vehicles on behalf of some principal
(manufacturer) and gets only commission in the sale/purchase of vehicles which is made
directly by the seller and purchaser, then the dealer is providing service only and that
does not come under the ambit of taxable activity as services are still exempt from
payment of tax. However, if the same dealer is also providing after sale service in the
shape of sale of parts (even those purchased from the principal) then sale of parts is a
taxable activity and he has to be registered with the department, keep necessary records,
charge sales tax and pay to the Government.
CATEGORY-2
In this case too if the car is sold by the seller to buyer, and only services of a
dealer are hired against some commission, no registration or payment of sales tax on that
commission amount is required. However, if the invoice is issued by the dealer, then it is
a taxable activity and he has to register himself, charge sales tax and pay the same to the
Government.
CATEGORY-3
The answer is the same as given in the above two categories.
[Issued by the CBR, Islamabad under the signature of Mr. Muhammad Tahir, Secretary
(STP) addressed to M/s All Karachi Motor Dealers Association. Karachi. Copy to all the
Collectors of Sales Tax/Mirpur (AJ&K).]
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C. NO.3(72)STP/97 (Pt.I) DATED 2 ND OCTOBER, 1999
SUBJECT:-
IMPOSITION OF GENERAL SALES TAX
I am directed to refer to your letter No. DPS/Misc/S.Tax/GP-8/Food, dated
27.03.1999 on the subject cited above and to say that Defence Departments may purchase
taxable goods only from the registered suppliers and that too against prescribed sales tax
invoices. Taxable supplies by units located in non-tariff areas (FATA/PATA/Northern
area) become taxable when such supplies made to the tariff areas of Pakistan. Therefore,
suppliers of FATA/PATA/Northern Areas engaged in making supplies outside the nontariff
(exempt) zones/areas are liable to sales tax registration. In case, they want to make