Sales Tax Instructions

Sales Tax Instructions, 2009
For the purpose of showing transaction through bank instrument the registered
buyer gets opened a bank account in the name of registered supplier. Declaring in
the bank account opening application as proprietor who is other than the person
declared as proprietor in the sales tax registration application. The person who is
declared before the Bank as proprietor of business concern of the registered
supplier is usually a person under control of the buyer or his broken. The buyer
issues a cross cheque is transferred in the bank account which is though opened
in the registered business name of supplier but neither belongs to him nor is
operated controlled by him. In this way, this amount remains under the control of
the buyer and is drawn back by him.
A photocopy of crossed banking instrument is prepared by the buyer in favor of
the supplier but his instrument is neither presented in the bank or any transaction
is made against it.
3. Inquiry regarding transactions through bank instruments in the cases of
M/s. Imam Di Sheikh & M/s. Interrex has been conducted has been conducted. The initial
inquiry revealed that the copies of crossed-cheque submitted by these registered persons
in support of their refund claims had neither been presented in the bank nor any
transaction had been made against the same. It seems that the registered persons had
themselves prepared false bank instruments and bank statements for obtaining sales tax
refund illegally against fake sales tax invoices. Involvement of bank staff has not come to
the surface so far. However, a through inquiry in this case has been instituted to reach
conclusive findings. Involvement of bank staff is also being probed in these cases as well
as in other similar cases.
Further progress will be submitted to the Board in due course of time.
[Issued by the C.B.R., Islamabad, under the signature of Mr. Saeed Akhtar, Collector,
being addressed to The Member (Sales Tax), Central Board of Revenue, Islamabad.]
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SALES TAX RULING/INSTRUCTION No.59/2002
C.No.1 (51) STT/99 DATED 2 ND AUGUST, 2002
SUBJECT:-
-
SALES TAX EXEMPTION ON THE RAW MATERIALS FOR THE
MANUFACTURE OF PHARMACEUTICAL PRODUCTS VIDE
SRO 211(I)/2002,DATED 7 TH APRIL, 2002.
I am directed to refer to Sales Tax Ruling/Instructions No. 41/2002, dated 15 th
May, 2002, on the subject cited above and to say that in the aforesaid Ruling/Instruction
the word letter and figures ―SRO 416(I)/2001, dated 18 th June, 2001‖ wherever occurring
shall be read as ―SRO 372(I)/2002, dated 15 th June, 2002.‖