Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter No.Ref.C-42/2000-2001/223 dated
9.10.12000 on the subject cited above and to clarify that an example of calculations of
sales tax payable on the stocks declared under SRO.614(I)/2000 dated 2.9.2000 is as
follows:-
Value of taxable supply from declared stock
Rs.100,000/-
10% minimum value addition (profit) Rs.10,000/-
Sales tax @ 15% on value addition (profit)
Rs.1,500/-
Total value of the supply
Rs.1,11,500/-
Therefore, although the value of stock is Rs.1,11,500/- yet under SRO.614 (I)/
2000 dated 2.9.2000, the registered person will be required to pay sales tax of
Rs.1,500/- only on the value addition, which should be at least 10% greater than
the declared value.
2. It is also clarified that if the aforesaid stock is supplied to a nonregistered
buyer, further sales tax @ 1.5% is payable.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (STP) addressed to Pakistan Chemicals & Dyes Merchants‘ Association, Karachi. Copy
endorsed to all the Collectors of Sales Tax & Central Excise.]
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C.No.2(4)STP/99 DATED 19 TH OCTOBER, 2000
SUBJECT:-
IMPLEMENTATION OF SALES TAX ON THE LOCALLY
GENERATED SCRAP – CLARIFICATION REGARDING.
I am directed to refer to your letter C.No.V-8(360)Cus/ 2000/28089 dated
11.9.2000 on the subject cited above and to clarify that sales tax is chargeable on locally
generated scrap as there is no exemption thereon in the Sixth Schedule to the Sales Tax
Act, 1990. The persons who claim to be owner of scraps and are dealing in such scrap
may be registered under the Sales Tax Act, 1990 and compliance of sales tax laws may
be ensured from them.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (STP) addressed to the Collector of Customs, ST&CE, Quetta. Copy endorsed to the
Secretary (Anti Smuggling) (STE), CBR & all the Collectors of ST&CE.]
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O R D E R
C. NO.1(131)STT/98 DATED 23 RD OCTOBER, 2000
SUBJECT:-
GRANT OF EXEMPTION UNDER SECTION 65 OF THE SALES
TAX ACT, 1990.
M/s. Mandviwalla Mauser Plastic Industries limited, Karachi, who had set up a
manufacturing unit of plastic goods in Uthal, District Lasbela in July, 1990 continued
availing exemption of sales tax on their supplies under SRO 529(I)/88, dated 26.6.1988
till 14.11.1997 despite that the notification was time bound and exemption thereunder had
ceased to be available after 30.6.1996. The principal amount of sales tax not paid by
them for the period from 1.2.1996 to 15.11.1997 was Rs. 16 million. The Collectorate of