Sales Tax Instructions

(iii)
Sales Tax Instructions, 2009
charged on their tax purchase invoices under the federal or provincial
sales tax enactments.
Since the levy on ‗telecommunication services‘ is of central excise duty,
the same cannot be treated as adjustable against the sales tax liability by
holders of invoices issued by the providers of telecommunication
services.
4. It is also clarified that the legal position regarding central excise duty on
travel by air, travel by air-conditioned class in railway and movement of goods by air is
exactly the same as has been clarified in para 3.
5. The information gathered from various segments has revealed that the
providers of telecommunication services have been obtaining adjustment of sales tax paid
on their purchases while on the other hand the holders of invoices issued by providers of
excisable telecommunication services were generally not deducting the central excise
duty paid on such services from their sales tax liability (this aspect needs to be verified).
6. It is, therefore, advised that the mistake of obtaining of input credit may
be reversed abo-initio. Resultantly, the amounts of input credit of sales tax adjusted
against central excise liabilities since the budget 2000-01 till-date is recoverable. Such
amounts may be got deposited back with the government through a separate sales tax
return covering only this amount. Since the mistake was a bonafide error, no additional
tax or penalties will be applicable if the due amounts are repaid before 30 th June, 2001.
Specific cases may be sent to the Board for formal orders of waiver of additional tax and
penalties.
[Issued by the CBR, Islamabad under the signature of Mr. Iftikhar Qutab, Chief (ST-II)
addressed to all the Collectors of Sales Tax. Copy endorsed to M/s
PTCL/Paktel/Mobilink/Instaphone with request to kindly note the contents of this letter and take
action as per para-6 and it is also informed that the government has decided that the providers of