Sales Tax Instructions

Sales Tax Instructions, 2009
SUBJECT:- IMPOSITION OF SALES TAX ON THE SALE OF
UNSERVICEABLE VEHICLES/MISC. STORES BELONGING
TO THE GOVERNMENT OF PAKISTAN.
I am directed to refer to your letter No.DWI/POLICY/83/1342, dated 22.01.2000,
on the above subject. The queries raised in your letter are replied below:-
i) Besides on goods imported into Pakistan, sales tax is chargeable on all
supplies made in Pakistan (at the rate of 15% for the registered persons
and 18% for the non-registered persons). The liability to pay sales tax is
that of a person making taxable supply. However, being indirect tax,
burden of sales tax is eventually transferred to the buyer.
ii) The disposal of condemned/surplus vehicles and other stores through
auction by the Government departments are not required to be registered
with Sales Tax department. They may however, deposit the amount of
sales tax due on such disposals in any designated branch of National
Bank of Pakistan under Head 0220000 in the jurisdiction of the relevant
Collectorate of Sales Tax.
iii) Purchase of taxable goods by the Federal Government is also chargeable
to sales tax at the rate of 15%. Further tax @ 3% is however, not
chargeable on supplies made to the Government departments under
clause (2) to proviso to section 3(1A) of the Sales Tax Act, 1990, read
with Board‘s letter No.2(18) STP/97(Vol-I) dated 5.12.1998 (copy
enclosed) provided they are not liable to income tax under the Income
Tax Ordinance, 1979.
[Issued by the CBR, Islamabad under signature of Mr. Iftikhar Qutab, Secretary (STP)
addressed to Deputy Director (Disposals), Ministry of Industries, Department of Supplies,
Islamabad.]
[Note: The position changed in Budget 2003-2004}.
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C.No.2(5)STP/99 DATED 27 TH MARCH, 2000
SUBJECT:- INPUT CLAIM OF SALES TAX ON MARKETING EQUIPMENT
& ADVERTISING MATERIAL.
I am directed to refer to your letter No.82/99/Audit/ST/2463 dated 1.03.2000 on
the subject cited above and to confirm that input tax adjustment in respect of marketing
and advertising materials such as deep freezers, visi coolers, ice chest, ice boxes
signboard, hoarding etc. acquired by a registered person not as stock in trade but for the