Sales Tax Instructions

Sales Tax Instructions, 2009
C.No.4(47)STB/98(Vol.I) DATED 4 TH AUGUST, 2001
SUBJECT:-
PROCEDURE OF SALES TAX ON SUPPLIES MADE TO
GOVERNMENT AND PAYMENT THEREOF THROUGH
CHEQUES.
I am directed to refer to your letter No.298-AC-I/10-7/94-Vol.V, dated 20 th
February, 2001 on the subject cited above addressed to the various Accountants General
and to say that the clarification issued by the Central Board of Revenue vide its letter of
even number dated 27 th January, 2001 has not been conveyed to the field offices in the
proper context resulting in confusion.
2. It is therefore again clarified that:-
(i)
(ii)
(iii)
By virtue of the Cabinet Decision circulated vide F.5(1)-TR.1/96, dated
21 st May, 1998 (copy enclosed) all Government departments and
organizations are required to purchase taxable goods only from
registered persons against prescribed sales tax invoices and payment of
sales tax. The registration status of any supplier can be confirmed by
obtaining a copy of the sales tax registration certificate and/or latest sales
tax return filed in the bank from the supplier.
If purchases have been made in the above circumstances, no deduction of
sales tax at source is to be made by the purchasing
department/organization, as the amount of sales tax is to be paid to the
registered supplier for deposit in the designated branch of National Bank
of Pakistan alongwith his monthly sales tax return. The purchasing
department/organization may forward an intimation to the concerned
Collectorate for the purpose of audit/verification of deposit of tax by the
supplier.
The instructions in para 3 & 4 of Board‘s letter of even number dated
27 th January, 2001 (copy enclosed) were intended only to resolve the
issue regarding bills pending at that time due to purchases made from unregistered
suppliers by some Government departments in violation of
Cabinet‘s decision. These instructions cannot be applied to subsequent
purchases and should not be misconstrued as a
condonation/regularization of violations of the Cabinet decision.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST L&P) addressed to Office of the Auditor General of Pakistan Islamabad. Copy