Sales Tax Instructions

Sales Tax Instructions, 2009
the provisions contained in the Establishment of the Office of the Wafaqi Mohtasib
Ombuds Order, 1983 (P.O.I. of 1983). Strict disciplinary action be taken against all those
individual / officials who are found negligent in this regard.
2. It is, therefore requested that the above instructions may be circulated to
all attached department subordinate offices for compliance letter & spirit.
[Issued by the Law, Justice & Human Right Division, under the signature of Mr. Bin
Yamin, Joint Secretary, addressed to Mr. Maqbool Mahmood, Second Secretary (ACE-III).]
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C.No.3(9)STP/99 DATED 9 TH FEBRUARY, 2001
SUBJECT:-
1.5% FURTHER TAX ON SALE OF VEHICLES BY LOCAL
MANUFACTURERS TO LEASING COMPANIES.
An issue has arisen whether vehicles sold by local automobile manufacturers to
leasing companies attract 1.5% further tax under section 3(1A) of the Sales Tax Act,
1990?
2. The matter has been considered and it is clarified that no sales tax is
leviable on ‗financial leases‘ as is evident from the definition of ―supply‖ under section
2(33) of the Sales Tax Act, 1990. It is however, being examined whether, in order to
implement the underlying spirit of this policy, there is any need for issue of a specific
notification or to make amendment in law.
3. In the meanwhile, Collectors are advised not to demand 1.5% further tax
on such transactions between automobile manufacturers and leasing companies nor ask
the leasing companies for registration under Sales Tax Act, 1990 on the plea and they are
engaged in making supplies of taxable goods.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmad Tunio,
Secretary(ST L&P) addressed to DG Intelligence & Investigation, Islamabad/all the Collectors of
Sales Tax. Copy endorsed to SA to FM/PS to Secretary General Finance.]
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C. NO.4(47)STB/98-VOL.I DATED 10 TH FEBRUARY, 2001
SUBJECT:- VERIFICATION REGARDING DEPOSIT OF SALES TAX BY
FIRMS/ SUPPLIERS INTO GOVERNMENT TREASURY.
I am directed to refer to your letter dated 29.01.2001 on the subject cited above to
state that all Government departments and public sector organizations are required to
purchase taxable goods only from registered person against valid tax invoices and on
payment of sales tax. While only a sales tax invoices issued by the registered person may
be sufficient proof in case of established and recognized suppliers, in case of new
suppliers, a copy of Sales Tax Registration Certificate and latest sales tax return may be