Sales Tax Instructions

Sales Tax Instructions, 2009
[Issued by the CBR, Islamabad under the signature of Mr. Asim Majid Khan, Secretary
(STB) addressed to all the Collectors of Sales Tax.]
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C.No.3(1)ST-L&P/2001 DATED 24 TH APRIL, 2001
SUBJECT:-
PROCEDURE FOR TREATMENT FOR SALES TAX ON
REFUND OF ADVANCES RECEIVED FROM CONSUMERS.
I am directed to enclose a copy of representation dated 3 rd April, 2001 made by
Mr. Sarajul Haque, Advocate on the above subject and to state that issue regarding refund
of sales tax on advances which are eventually cancelled has been examined in the Board.
It is clarified that:
(iv)
(v)
(vi)
Where buyer is a registered person and advance deposited by such buyer
with a registered person (supplier) is required to be paid back due to
cancellation of order/supply, the provision of Debit and Credit Notes and
Destruction of Goods Rules, 1996 may, mutatis mutandis, be invoked
irrespective of the fact that no physical ―return of supply‖ is involved.
However, in cases where buyers are not registered persons but are
consumers from the general public, the registered persons required to pay
back the advance amounts to such consumer buyers may first return the
whole amounts of such advances and then apply for refund of the sales
tax amount in the concerned Collectorate; and
The concerned Collectorate instead of giving cash refund may allow the
registered person (refund claimant) to take input tax credit specifying the
tax period in which that credit can be availed.
2. The Collectorate may specify the bare minimum documents/ information
required to be filed/provided with such refund claims. Copies of the standing orders/local
instructions if issued by the Collectorate may be endorsed to the Board.