Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO. 1/1-ST-L&P/2001 DATED 19 TH OCTOBER, 2001
SUBJECT:- UNLAWFUL REFUND CLAIMS BY SPINNERS AND
EXPORTERS
I am directed to refer to the subject noted above and to say that it has come to the
notice of the Board that certain spinners and exporters are purchasing cotton from ginners
without payment of sales tax under the Special Procedure for Ginning Industry Rules,
1996, but are taking refunds of sales tax on the same. It has been reported that the refund
sanctioning Collectorates do not respond positively expeditiously to requests by the
Collectorate where ginner is located to recover the outstanding amounts from pending
refund claims. In some cases, refund was paid despite reporting the fact of default, which
is against the provisions of section 10(3) of the Sales Tax Act, 1990.
2. In this context, you are requested to kindly inform the particulars of all
cases where cotton was purchased under the Special Procedure for Ginning Industry
Rules, 1996 but sales tax was not paid within the stipulated time. The statement should
mention the names of the units involved (ginner and purchaser), date of supply/invoice,
amount of sales tax involved whether the concerned Collectorate was informed and its
response, besides any other relevant information. Refund sanctioning Collectorates
should also inform action taken on requests for recovery from such units.
[Issued by the C. B. R., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P), addressed to the Collectors, Collectorates of Sales Tax & Central Excise,
Karachi (West/West)/ Lahore/ Gujranwala/ Rawalpindi/ Peshawar, the Collector Collectorate of
Customs, Sales Tax & Central Excise, Hyderabad/ Multan/ Quetta and the Collector, Collectorate
of Sales Tax, Faisalabad.]
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C. NO. 2(77)STP/95 (VOL-II) DATED 20 TH OCTOBER, 2001
SUBJECT:-
INPUT (SALES TAX REFUND) ON DIESEL
I am directed to refer to your letter No.PZ/GST/01/524, dated 30 th August, 2001
on the subject cited above and to say that the question of allowing adjustment of input tax
against diesel and generators has already been considered in the Board, and it was
observed that adjustment was disallowed as a conscious decision by the Federal
Government.
2. The adjustment is not allowed on diesel due to the fact that it has
multiple uses and can be consumed in vehicles and non-taxable activity. A copy of
Board‘s letter of even number dated 04.10.2001 in this regard is enclosed.
3. Originally, no input adjustment was admissible on any generator or
generating set. However, on the persistent demand of trade bodies, the matter was