Sales Tax Instructions

exported, same treatment is applicable
on services.
Sales Tax Instructions, 2009
(vi) Filing of Sales Tax Returns: Due
to problems in collection and
compiling records from all offices in
Pakistan the due date for filing sales
tax return should be two months after
the tax period, as recognized by the
Central Excises Act, 1944.
The couriers charge sales tax from the
customer before accepting his
letter/parcel, through their own
offices. This is different from the
situation with airlines, where the
amount is collected through travel
agents. Thus, in case of couriers, there
is no justification for extending the
date of filing of the return.
(vii) Record Keeping and Invoice:
Couriers provide services on credit to
certain customers and issue combined
bills of taxable and non-taxable
services.
(viii) Adjustment of Refund of
Income under section 104(2) of
Income Tax Ordinance: Sales tax
department is not allowing off-setting
of sales tax against income tax refund.
The assumption that certain services
provided by couriers are exempt from
sales tax is unsubstantiated. Sales tax
is chargeable on the total amount
billed.
Sales tax can be set off against
admissible income tax refund
provided the income tax department
certifies that the refund is due and
admissible. A procedure can be
prescribed in this regard.