Sales Tax Instructions

Sales Tax Instructions, 2009
GOVERNMENT.
I am directed to refer to your letter 248 P. SO-C/2000, dated 28.8.2000 on the
subject cited above and to state that clarification issued vide CBR‘s letter of even number
dated 12.8.2000 is according to the statutory provisions of the Sales Tax Act, 1990. A
wholesaler is required to register himself under section 14 of the Sales Tax Act. He can
claim input tax adjustment only if he has paid the due sales tax at the time of purchase
against tax invoice and he is to make the taxable supplies. In case of purchase of taxable
goods from such suppliers whose supplies are exempt, he cannot claim input tax
adjustment for the simple reason that he has himself, not paid sales tax to his seller.
However, he will have to pay sales tax on his taxable supplies at the time of sale because
he (the wholesaler) is not exempt.
2. In view of the above, the CBR regrets its inability to accept the plea of
Mr. Muhammad Afzal Awan, Advocate being contrary to the express provisions of the
law on the subject.
[Issued by the CBR., Islamabad, under the signature of Mr. Abdul Razzaq, Secretary
(STP), addressed to Mr. Muhammad Younas, Section Officer (Coord.), President‘s Secretariat
(Public), Awain-e-Sadr, Islamabad].
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C.No.1(138)STM/2000(Pt-XVIII) DATED 6 TH SEPTEMBER, 2000
SUBJECT:-
AMENDMENTS OF THE SALES TAX ACT, 1990 VIDE
ORDINANCE NO.XLII OF 2000 DATED 5.9.2000.
Consequent upon promulgation of Ordinance No.XLII of 2000, the following
major changes have been made in the Sales Tax Act, 1990, which the Collectors are
requested to enforce immediately:-
(i)
(ii)
(iii)
Under Section 3AAA read with SRO 622(I)/2000 dated 5.9.2000 start
enlistment of those retailers who opt for enlistment and whose annual
turnover exceed Rs.1 million in any period during the last twelve
months. The retailers already registered or enrolled are allowed to avail
enlistment tax scheme. However, the persons enlisted under section
3AAA shall have to pay further tax @ 1.5% on their purchases under
section 3(1A) of the Sales Tax Act, 1990.
A manufacturer engaged in the manufacture or production and supply of
the goods specified in the Third Schedule is no more eligible for turnover
tax under section 3A. All such manufacturers may be brought under
standard sales tax regime.
Exemption of sales tax on cement has been withdrawn. The Collectors
are advised to take immediate measures to ensure payment of sales tax
on cement by the concerned manufacturers as per law.
2. A progress-cum-compliance report on the above may be sent to the
Board within seven days of the receipt of this letter.