Sales Tax Instructions

Sales Tax Instructions, 2009
contending that quantity of edible oils imported and subsequently cleared from port areas
is less by upto 1% because of ship shortages and it is this short quantity, which actually
reaches their manufacturing units. However, Revenue Audit has raised an objection on
the input adjustment being claimed by the Vegetable Ghee/Cooking Oil Units on total
quantity of edible oil actually indented and imported; Audit insists that input adjustment
should be claimed only on the quantity which actually reaches the Ghee manufacturing
units. As a result of this stance, M/s Pakistan Vanaspati Manufacturer‘s Association
(PVMA) fear that there is every possibility that unjustified recovery/contravention cases
will be made against the manufacturers of Vegetable Ghee/Cooking Oil Units.
2. The issue has been examined and Collectors are advised to take the
following steps in this regard:
(i)
(ii)
allow input adjustment of the amount of sales tax paid at import stage;
and
accept the quantity of imported oil as per short shipment/short landing
certificate issued by Customs Authorities, which shall also be got reverified
from the issuing Collectorate on a monthly basis.
3. This may also be conveyed to DRRA/Auditors and comments, if any,
may be communicated to the Board for further consideration, if required.
[Issued by CBR, Islamabad under the signature of Dr. Fareed Iqbal Qureshi, Secretary
(STB), addressed to all the Collectors of Sales Tax.]
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SALES TAX RULING/INSTRUCTION No.5/2002
C.No.1/57-STT/97 DATED 19 TH JANUARY, 2002
SUBJECT:- CLARIFICATION REGARDING SALES TAX ON THE
FERTILIZER (DAP).
I am directed to refer to your letter No.AGAR/786/1515/2001, dated 31 st
December, 2001 on the above subject and to reply to your queries as follows:-
i) All importers are required to pay sales tax on the import as well as local
supplies of fertilizers. There is no exemption of sales tax on supplies of
fertilizer made in Pakistan by an importer. Importers may however claim
adjustment of input tax of the sales tax paid on import stage as per law.
ii) Importers are required to issue sales tax invoices under section 23 of the
Sales Tax Act, 1990 on all supplies of fertilizer made in Pakistan,
charging sales tax @ 15%, in terms of sub-sections (1) of section 3 of the
said Act. Further tax has been exempted on supplies of fertilizers vide
SRO 205(I)/2001, dated 2 nd April, 2001 and SRO 663(I)/2001, dated 24 th
September, 2001 (copies enclosed).
2. A copy of Board‘s earlier clarification C.No. 1/57-STT/97-Pt dated
14.11.2001 is also enclosed for information.