Sales Tax Instructions

Sales Tax Instructions, 2009
[Issued by the C. B. R., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P), addressed to M/s. Riaz Ahmed & Company, Chartered Accountants, Lahore
& copy to all the Collectors of Sales Tax & Central Excise.]
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C. NO. 2(4)STP/99 DATED 14 TH SEPTEMBER, 2001
SUBJECT:-
EXPORT OF LPG BY LAND ROUTE TO AFGHANISTAN AND
INDIA
I am directed to refer your letter No. 1896/01, dated 18 th August, 2001 on the
subject cited above and to say that although exports are generally entitled to the facility
of zero-rating under section 4 of the Sales Tax Act, 1990, under Notification SRO
751(I)/99, dated 15.06.1999, the provisions of the said section 4 are not applicable on
goods exported via land route to Afghanistan and through Afghanistan to the Central
Asian Republics, except those specified in the proviso to the notification.
2. Thus goods not specified in the said proviso to the said notification, if
exported to Afghanistan or to Central Asian States through Afghanistan are chargeable to
sales tax. As regards exportability of LPG, the current Export Policy Order or the
Ministry of Commerce may please be consulted.
[Issued by the C. B. R., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P), addressed to Mr. Iqbal Z. Ahmed, Lub Gas (Pvt.0Ltd., Lahore & copy to all
the Collectors of Sales Tax & Central Excise.]
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C. NO. 3(54)STP/99/2653 DATED 14 TH SEPTEMBER, 2001
SUBJECT:-
LEVY OF SALES TAX ON DISPOSAL OF ASSETS
I am directed to refer to the subject cited above and to say that it has come to the
notice of the Board that in some cases sales tax is not being charged on the disposal of
assets, including old and used plant and machinery, vehicles and scrap, by the registered
persons, on the ground that such disposal is ‗not part of the regular and continuous
business activity‘ of that registered person, and that it is not a frequent and constant‘
taxable supply by such person.
2. It is clarified that sales tax is to be charged, levied and paid on all taxable
supplies made by a registered person under section 3 of the Sales Tax Act, 1990 read
with subsections (33), (35), (39) and (41) of section 2 ibid. There is no legal provision
excluding the sale of old plant and machinery, vehicles or scrap, etc. from the purview of
taxable supply. The Sales Tax Act, 1990 makes no distinction between goods supplied by