Sales Tax Instructions

Sales Tax Instructions, 2009
neither exempt nor zero-rated. The contractors, however, can claim refund of the sales tax
paid on their supplies made against international tenders.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary ST-L&P addressed to Chaudhri M. Qasim, Chief Executive, M/S. Siraj Steels Limited,
Lahore.]
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SALES TAX RULING/INSTRUCTION No.33/2002
C.No.4(47)STB/98(Vol-I) DATED 27 TH APRIL, 2002
SUBJECT:-
SALES TAX EXEMPTION – PNSC.
I am directed refer to your fax message No.186/2002, dated 08.04.2002 on the
subject cited above and to reply your queries as follows:-
i) Supplies of stores and provisions for consumption aboard a conveyance
proceeding to a destination outside Pakistan as specified in section 24 of
the Customs Act, 1969 are zero-rated under section 4(b) of the Sales Tax
Act, 1990. The relevant customs procedure for export/supply of ship
stores has to be observed.
ii) In case of zero-rated supplies, adjustment of input tax is admissible in
accordance with the provisions of section 7 of the Sales Tax Act, 1990.
The excess amount of input tax may be claimed as carry forward or
refund in the monthly sales tax return.
iii) A sales tax invoice is required to be issued against supplies made at the
rate of zero percent to PNSC. The rate of zero percent sales tax has to be
mentioned in the invoice while the column for amount of sales tax will
show zero/nil amount of sales tax.
2. It may however, be mentioned that zero-rating is only available in case
of stores and provisions for consumption aboard a conveyance leaving Pakistan. Welding
electrodes which are used in the port area are not the stores and provisions of such
conveyance and therefore cannot be zero-rated.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary ST-L&P addressed to Mr. Shujaat Ullah, M/s Maintalloys (Pvt) Ltd., Karachi-75350.]
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SALES TAX RULING/INSTRUCTION No.34/2002