Sales Tax Instructions

Sales Tax Instructions, 2009
issued or payment (other than commission) is received by the dealer, no ‗supply‘ is made
by the dealer, and thus no sales tax is chargeable thereon.
2. On the other hand, if the dealer sells the vehicle himself, issues a bill or
an invoice to the buyer or receives payment against the vehicle, it constitutes ‗taxable
supply‘ as defined under sections 2(33) and 2(41) of the Sales Tax Act, 1990, and sales
tax is chargeable thereon. The seller will be entitled to take adjustment of input tax only
if the conditions under sections 7 and 8 of the said Act are fulfilled.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P) addressed to M/s Toyota Ravi Motors Lahore. Copy endorsed to all the
Collectors of Sales Tax.]
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C.No.1(33)STR/99(Pt-I) DATED 12 TH OCTOBER, 2001
SUBJECT:- CHARGEABILITY OF SALES TAX ON FIXED FUEL
COMPONENT OF ENERGY PURCHASE PRICE.
I am directed to refer to the subject cited above and to say that the question
whether sales tax is chargeable on Fixed Fuel Component of the Energy Purchase Price
(EPP) was examined in the Board and it was observed that Sales Tax General Order
No.1/2000 dated 24 th January, 2000 clearly rules that the value of supply of electricity by
IPPs is the amount received on account of the EPP. Therefore, while amounts in excess
of the EPP like Capacity Purchase Price, Energy Purchase Price Premium, Excess Bonus,
Supplemental Charges, etc. are not included, all components of the EPP are included in
the value of supply as defined in section 2(46) of the Sales Tax Act, 1990 and thus liable
to sales tax. Consequently, as the Fixed Fuel component of the EPP constitutes a part of
the value of supply, it is liable to sales tax.