Sales Tax Instructions

Sales Tax Instructions, 2009
RENDERED/PROVIDED TO/BY CUSTOMS AGENTS.
I am directed to refer to Karachi Customs Agents Group letter No.339/2000-2001
dated 26 th May, 2001 on the above subject and to inform that various issues raised by the
Group have been examined and it is held that:-
(iv)
(v)
(vi)
The value of supply is defined as the consideration received by a
Customs Agent on account of services provided or rendered by him to
his client. It does not include consideration received on other accounts
e.g. transportation charges, demurrage, wharfage, labour charges,
customs duty and other taxes etc;
―Further tax‖ levied under section 3(1A) of the Sales Tax Act, 1990, is
not chargeable on services Customs Agents are providing or rendering to
clients who are not required to be registered under the Sales Tax Act,
1990, including various Federal and Provincial Government departments,
autonomous bodies, diplomats, charitable institutions, hospitals,
educational institutions, export processing zones etc. and to individuals
for the clearance of their baggage/vehicles etc.
The record which Customs Agents are required to maintain under
Customs Agent licensing Rules, shall be sufficient in terms of section 22
of the Sales Tax Act, 1990 and preserved for five years as per the
provision of section 24 of the said Act. In addition a separate record of
invoices indicating the name and address of the persons to whom
services was provided and rendered and the amount billed/received shall
also be mentioned.
[Issued by the CBR, Islamabad under the signature of Mr. Asim Majid Khan, Secretary
(STB) addressed to Karachi Customs Agents Group, Karachi. Copy endorsed to all the Collectors
of Sales Tax/all the Collectors of Customs with the request that this clarification be widely
circulated among the Clearing Agents,Karachi/Customs Agents Group Karachi/Lahore,Customs
Agents Group Lahore/Faisalabad, Customs Agents Group Faisalabad/Rawalpindi/Islamabad,
Customs Agents Association, Rawalpindi.]
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