Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.2(3)STP/99 (Pt.II) DATED 25 TH JANUARY, 2001
SUBJECT:- CLARIFICATION WITH REGARD TO SALES TAX INVOICE
CALCULATION AND INPUT CLAIM.
I am directed to refer to your letter no. Nil, dated 6.12.2000 on the subject cited
above and to say that you should issue sales tax invoices on the value of supply as
defined in section 2(46) of the sales Tax Act, 1990. In case the raw materials are
purchased on payment of sales tax you may take input adjustment in accordance with the
provisions of sections 7 and 8 of the Sales Tax Act, 1990 (copies enclosed). Under these
provision, sales tax is chargeable on total consideration received from the buyer, which in
your case is Rs. 15,00,000/- (Rs. 1.5 million).
2. Input adjustment cannot be claimed on vehicles as per SRO 578(I)/98,
dated 12.06.1998.
[Issued by the C.B.R., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (STL & P), addressed to Mr. Ikram Rasheed, Managing Director, Mustehkam
Construction, Islamabad & copy to all Collectors of Sales Tax.]
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C. NO.2(1)STP/2000 (Pt.II) DATED 26 TH JANUARY, 2001
SUBJECT:- EFFECT OF SALES TAX ON AUTO LOOM INDUSTRY.
The undersigned is directed to refer to Chief Executive‘s Secretariat U.O. No.
3966/DS(D-3)/2000, dated 05.01.2001 on the subject noted above and to say that the
proposal of Dr. Kamran Khan have been examined in this Wing. The requisite comments
are as under:--
(v) It is not correct to say that the funds of exporters are committed for 5 to 7
months. Under SRO. 417(I)/2000, dated 20.06.2000 refund against
exported goods and 50% of refund against balance stocks in hand/ local
supplies is made within 20 days (reduced from 30 days) of filling
supportive documents, while remaining 50% refund on the un-exported
balance is paid within 40 days (reduced from 60 days) of filing
supportive documents.
(vi)
The proposal that exporters may be allowed to pay the balance at the
time of export and to claim the refund after the export proceeding is
complete runs counter to the efforts for documenting the national
economy. While most of the manufacturing sectors have already been
brought under tax net, registration of the remaining few sector (power
loom and sizing sector etc.) is proceeding at a very fast rate. The process
of registration is being expedited through the ongoing survey for
documentation of economy. Since the requirement of continuous chain