Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter C.No.1/6-Collector/East/ 2000-2001/17139,
dated 13 th February, 2001 on the above subject and to answer the questions raised by
‗clubs‘ in Karachi as follows:-
Question No.1. The term services has been defined and it is not clear as to what
would fall within the category of services by each club. A list of typical items
included in club billings is attached herewith?
Answer
Keeping in mind the definition of excisable services given in
section 2(20) of the Central Excises Act, 1944, services means all utilities and
facilities by whatever name these may be called, which are rendered or provided
by a person for consideration and all inclusions and exclusions envisaged in the
definition of ‗supply‘ given in section 2(33) of the Sales Tax Act, 1990 shall
mutatis mutandis apply in this regard. Thus all activities carried out by a club for
consideration of any sort shall be treated as services. For the purpose of assessing
‗consideration‘ of a service, the provisions of the definition of ‗value of supply‘
embodied in section 2(46) of the said Act of 1990 shall be applicable. All charges
billed or otherwise received by clubs for any service are liable to sales tax.
Question No.2.
No Rules have been published with regard to sales tax on
services?
Answer
Rule 96W of the Central Excise Rules, 1944 is no more
applicable. But by virtue of section 3 of the Sindh Sales Tax Ordinance, 2000
(VIII of 2000), all provisions of the Sales Tax Act, 1990 and rule made and
notifications, orders and instructions issued thereunder shall mutatis mutandis