Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter No.NK/GC/297/99, dated 24.08.1999 on the
subject cited above and to reply the queries as under:-
1. DISCOUNT UNDER NORMAL BUSINESS PRACTICE
Under section 2(46) of the Sales Tax Act, 1990, the sales tax is chargeable on the
discounted price excluding the amount of tax; provided that the tax invoice shows the
discounted price and the related tax and the discount allowed is in conformity with the
normal business practices.
2. SALES TAX AGAINST REPLACEMENT OF DEFECTIVE (SUB-
STANDARD PRODUCT)
All situations where the goods sold are taken back/replaced are covered under
―the Debit and Credit Note and Destruction of Goods Rules, 1996‖ issued vide SRO
696(I)/96, dated 22.8.96. However, in case of replacement against realization of some
amount, the sales tax will be chargeable to the extent of amount so charged.
3. DIRECT SALES
Cases where the tyres are sold to individual customers, 3% further tax is not chargeable.
However, in this case the quantity should be small and the price should be a consumer
price on which tax is to be charged and not the wholesale value. Goods supplied to
consumers / buyers (not registered with the sales tax department) have to bear the 3%
further tax.
[Issued by the CBR, Islamabad, under the signature of Mr.Muhammad Tahir, Secretary
(STP), being addressed to Mr. Nasser Kamal, General Manager Marketing, General Tyre &
Rubber CO., of Pakistan Ltd., Karachi.]
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U.O.No.1/16-STB/99 DATED 22 ND DECEMBER, 1999
SUBJECT:-
LEVY OF GST ON RETAIL TRADERS.
Please refer to the Summary for the Cabinet on the subject noted above and the
decision of the Cabinet thereon (copies enclosed).
2. The Member (Sales Tax) has directed that appropriate action may be
initiated by the concerned sections of the Sales Tax Wing to implement the Cabinet
Decisions.
[Isssued by the CBR, Islamabad under the signature of Mr. Abdul Basit Chaudhry,
Second Secretary (Sales Tax), addressed to C(ST-I)/C(ST-II)/ S(STP)/S(STT)/S(STR)/
S(STE)/S(STJ)/S(STM)/S(STC)/S(STA)/S(ST.Int.Audit)/ S(ST.Ext.Audit),]
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SUMMARY FOR THE CABINET
SUBJECT:-
LEVY OF GST ON RETAIL TRADERS.