Sales Tax Instructions

Sales Tax Instructions, 2009
dues for services. The definition and scope of the expression ‗services‘ have already been
clearly explained in Board‘s letter of even number dated 28 th February, 2001. Under the
respective Provincial Ordinances, all services rendered or provided by clubs have come
under the ambit of provincial sales tax.
3. As regards the question of ‗mutuality‘ raised by various clubs to take the
benefit of exemption from sales tax, it is clarified that the concept of ‗mutuality‘ as
reflected in the item No.(vii) of Serial No.3 of the Sixth Schedule to the Sales Tax Act,
1990 is not relevant in the case of services rendered/ provided by clubs which are liable
to provincial sales tax through the respective Provincial Ordinances. The doctrine of
‗mutuality‘ is relevant only in case of such ‗messes‘ serving cooked or prepared good
stuff, as are run on the basis of mutuality.
4. The Collectorates are, therefore, advised to ensure proper compliance
from the clubs under intimation to the Board.
[Issued by the CBR, Islamabad under the signature of Mr. Iftikhar Qutab, Chief (ST-II)
addressed to all the Collectors of Sales Tax.]
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C.No.3(9)ST-L&P/2001 DATED 3 RD JULY, 2001
SUBJECT:- BUDGET 2001-2002 – CLARIFICATION REGARDING.
I am directed to refer to Notification No.S.R.O.391(I)/2001, dated 18 th June,
2001 and to state that a question has been raised whether or not the sales tax invoices
issued by a registered jeweller in terms of rule 6 of the Special Procedure for Jewellers
Rules, 2001 can be used for the purpose of input tax adjustment at any subsequent stage.