Sales Tax Instructions

Sales Tax Instructions, 2009
No.3(13)STP/96(Pt) DATED 6 TH DECEMBER, 1999
SUBJECT:-
PURCHASE OF COTTON BY T.C.P.
I am directed to say that it is learnt that you have obtained Sales Tax Registration
No.12-00-900-1119. You are advised to:-
(i)
(ii)
(iii)
(iv)
receive taxable goods only from such persons as are registered under the
Sales Tax Act, 1990, and that too against prescribed tax invoices to be
issued by such registered persons;
supply/sell taxable goods against prescribed tax invoices only. For sale to
persons, other than a registered person, a further tax of 3% is payable
under section 3(1A) of the Act in addition to the standard rate of sales tax
at 15%;
submit monthly Return-cum-Payment Challan in any of the designated
National Bank of Pakistan Branches and pay, after claiming permissible
input tax adjustments, the sales tax charged and collected by you from
the buyers; and
comply with the requirements of the Sales Tax Act, 1990, and the rules
made thereunder.
2. Since the sales tax on ginned cotton is to be paid by TCP, the TCP is
advised (in its own interest) to issue bank draft/pay order equal to the amount of sales tax
involved in favour of the Collectors of Sales Tax, separately for each Collector, having
registration jurisdiction over the Ginners from whom purchases were made by you:-
Name of Collector
Has registration jurisdiction over Ginner whose
registration number (as on invoice) begins with
Collector of Sales Tax Hyderabad 01
Collector of Sales Tax Multan 04
Collector of Sales Tax Faisalabad 08
Collector of Sales Tax Lahore 03
3. While a separate Bank draft/pay order may be made for purchases from
each Ginner, you may (at your convenience) preferably issue one consolidated Bank
Draft/Pay Order, for each Collectorate, for each calendar month‘s purchase in such a
manner that such a duly-crossed Bank Draft/Pay Order must reach the respective
Collector of Sales Tax alongwith enclosed proforma by the 10 th day of every month
following the calendar month to which the purchases relate. If the T.C.P. fails to deposit
the duly crossed Bank Draft/Pay Order within the due time it shall be liable for penal
action as per provisions of section 33 and 34 of the Sales Tax Act, 1990.
4. In case you find any problem or need any clarification, you may
approach the concerned Collector of Sales Tax for guidance.
[Issued by the CBR, Islamabad under the signature of Mr. Zulfiqar A. Kazmi, Secretary
(STP) addressed to Trading Corporation of Pakistan, Karachi. Copy to Secretary, Ministry of
Commerce, Islamabad and Collectors of Sales Tax, Hyderabad/Multan/Faisalabad/Lahore.]