Sales Tax Instructions

Sales Tax Instructions, 2009
person is unable to claim input tax on his purchases on account of late receipt of sales tax
invoices, he may file a refund claim under section 66 of the Sales Tax Act, 1990. The
same applies to late receipt of electricity bills.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P) addressed to the Collector of Sales Tax. Copy endorsed to all other
Collectors of Sales Tax.]
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C.No.3(36)STP/99(Pt) DATED 17 TH SEPTEMBER, 2001
SUBJECT:-
CLARIFICATION.
I am directed to refer to your fax message No.Nil, dated 8 th September, 2001 on
the subject cited above and to say that under section 73 of the Sales Tax Act, 1990, a
registered person is required to make payment against all transactions (excluding utility
bills) for a sum exceeding Rs.50,000 through crossed cheque, bank draft, pay order or
other banking instruments showing transfer of payment to the seller from the business
account of the buyer in order to claim input tax on refund thereon. In case of credit
transactions, such payment has to be made within 120 days.
2. In the circumstances mentioned in your letter, L/C is established through
a bank on DA basis from a local supplier, the bank makes payment to the suppliers
immediately, but you make payment to the bank after 150 days. It is thus clear that
payment is being made to the supplier through banking channels from your business
account within 120 days. The arrangement with the bank to pay the bank after 140 days is
not restricted by section 73 of the Sales Tax Act, 1990, as it constitutes a form of
loan/credit agreement with the bank.