Sales Tax Instructions

Sales Tax Instructions, 2009
[Issued by the CBR, Islamabad under the signature of Mr. Abdul Razzaq, Secretary
(STJ) addressed to all the Collectors of Sales Tax. Copy endorsed to Mr. Siraj ul Haq, Advocate,
Karachi/FPCCI, Karachi.]
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C. NO. 3(5)STP/99 DATED 2 ND MAY, 2001
SUBJECT:-
REQUEST FOR DEREGISTRATION OR CLARIFICATION
I am directed to refer to your letters C. No.4(39)Audit-II/STW/99/4096, dated
22.05.2000 and 13.07.2000 on the subject cited above and letter C.
No.28/INFO/INTT/W/2001/630, dated 30.03.2001 in response to Board‘s letter of even
number dated 22.03.2001.
2. M/s. Siddiqsons Tin Plate Limited have stated that they had never
voluntarily applied for voluntary registration either under section 13(4) or under section
18 of the Sales Tax Act, 1990 nor opted to forgo the exemption under SRO 77(I)/95,
dated 19.01.1995, but were required to get registration as importers to avoid blocking of
their imported raw material and subsequently were forced to get registered again by the
Collectorate vide notice of the Assistant Collector Sales Tax C. No.
1(03)Tech/Wh/Oil/CED-II/ETW/99/349, dated 02.09.1999.
3. Under section 14 of the Sales Tax Act, 1990, only such persons
(including importers) are required to be registered who are making taxable supplies in
Pakistan. M/s. Siddiqsons are manufacturers located in an exempt area and in-house use
of their imports is exempt from sales tax vide SRO 849(I)/97, dated 25.09.1997. Supply
of their own end-products, even in tariff area, does not constitute wholesale or taxable
activity. The Sales Tax Act, 1990 does not restrict the manufacturer from supplying his
goods anywhere in Pakistan, nor places any restriction on keeping his goods in any
premises.
4. Since M/s. Siddiqsons Tin Plate Limited are not engaged in making any
taxable supplies, they were not required to be registered, neither the requirement for
registration by the Appraisement Collectorate nor the action of the West Collectorate to
compulsorily register the unit was in accordance with the law. In view of the above, the
Collectorate is advised that their registrations may be cancelled ab initio.
[Issued by the C. B. R., Islamabad, under the signature of Dr.Ashfaq Ahmed Tunio
Secretary (ST-L&P), being addressed to the Collector, Collectorate of Sales Tax & Central Excise
(West) Karachi]
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