Sales Tax Instructions

Sales Tax Instructions, 2009
ISSUES
(i) Definition of Courier: The
definition of courier as adopted in the
Central Excises Act, 1944 should also
be adopted for sales tax purposes, i.e.
non-documents (parcels) over 20 kg
should not be subject to tax. Freight
forwarders, airlines and air cargo
agents who are providing similar
services should be charged sales tax
on such services.
BOARD‘S RULING
Express delivery of non-document
parcels weighing more than 20 kgs
were outside the ambit of courier
service in the central excise regime.
The provincial sales tax ordinance
does not provide for any such
exclusion. Therefore, the services
provided by couriers are chargeable to
sales tax whether non-document
parcels are of 20 kgs or above. Since
the couriers apparently did not charge
sales tax from their customers on nondocument
packages of more than 20
kgs., it is decided that sales tax will
be collected and paid on such parcels
with effect from 15 th December, 2001.
(ii) Single Registration: Whether a
single registration in any Collectorate
where the courier has its head office/
principal office is sufficient for sales
Yes, a single registration in any
Collectorate where the courier has its
head office/principal office is allowed
for sales tax purposes.
tax purposes.