Sales Tax Instructions

Sales Tax Instructions, 2009
C.No.3(36)STP/99 DATED 13 TH DECEMBER, 2001
SUBJECT:-
FURTHER CLARIFICATION OF AMENDMENT IN SECTION
73 OF THE SALES TAX ACT, 1990, VIDE FINANCE
ORDINANCE, 2001.
I am directed to refer to the subject cited above and to say that a question has
arisen whether the provisions of section 73 of the Sales Tax Act, 1990 and time limit of
120 days for credit transactions thereunder also applies to exports. Exporters have
claimed that the period of L/C and remittance of foreign exchange proceeds is usually
more than 120 days in case of exports.
2. The matter has been examined and Board is of the view that section 73
was inserted in the Sales Tax Act, 1990 in order to enhance documentation of the
economy and increase sales tax registrations. The export sector is already well
documented and foreign buyers are not required to be registered. Therefore no purpose
would be served by imposing this condition on exports.
3. Therefore, in order to remove the difficulties being faced by the
exporters, the Board is pleased to clarify that the requirement under the proviso to section
73 that payment is transferred through banking channels within 120 days of issuance of
tax invoice does not apply to goods exported from Pakistan. This may be brought to the
notice of all concerned trade bodies and associations.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P) addressed to all the Collectors of Sales Tax/Customs.]
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