Sales Tax Instructions

Sales Tax Instructions, 2009
action to register them as ‗Retailer‘ is correct. M/s. Ruby Traders may, if desired, apply
to the Collectorate for change in their category under section 20 of the Sales Tax Act,
1990, which change shall have prospective effect.
2. However, in order to remove the difficulties, the Board is pleased to
allow such registered persons who purchased taxable goods from M/s. Ruby Traders
during the relevant period to adjust input tax against tax invoices issued by M/s Ruby
Traders under section 23 of the Sales Tax Act, 1990, subject to the provisions and
restrictions of sections 7 and 8 ibid and rules and notifications issued thereudner
including SRO 578(I)/98, dated 12.06.1998.
[Issued by the C. B. R., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P), being addressed to M/s. Masood Aziz Associates, Karachi and copy to
Collector of Sales Tax & Central Excise, (West)Karachi.]
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C.No.1/247-STT/99-Pt DATED 6 TH OCTOBER, 2001
SUBJECT:-
EXEMPTION FROM SALES TAX ON CERTAIN PLANT AND
MACHINERY (NOTIFICATION SRO.987(I)/99, DATED 30 TH
OCTOBER, 1999).
I am directed to refer to your letter C.No.67-GST/C&E/Hqrs/2000/ 2997, dated
5 th September, 2001 on the subject cited above and to say that under condition (4) of SRO
987(I)/99, dated 30 th October, 1999, the importer or purchaser of the locally
manufactured machinery is required to submit an indemnity bond to the Collector of
Customs or Sales Tax, as the case may be, binding himself to pay sales tax and additional
tax in case of his failure to fulfil the conditions specified in the notification. The
indemnity bond shall not be discharged till the submission of installation-cum-production
certificate.
2. Under sub-section (3) of section 3 of the Sales Tax Act, 1990, the
liability to pay sales tax is on the importer or the supplier. However, under sub-section
(4) ibid, the Federal Government is empowered to specify the goods in respect of which
the liability to pay tax shall be of the person receiving the supply. In case of SRO