Sales Tax Instructions

Sales Tax Instructions, 2009
SUBJECT:- APPLICATION OF SECTION 73 OF SALES TAX ACT, 1990.
I am directed to refer to the Collectorate of Sales Tax & Central Excise, Lahore‘s
letter C. No.02-Refund / N to Z/CBR/Misc/02/978, dated 05.11.2002 on the subject noted
above wherein it has been stated that the Board‘s letter C. No. 3(36)STP/99(Pt-II) dated
28.12.2001 (copy enclosed) is contrary to the provisions of section 73 of the Sales Tax
Act, 1990 and therefore be withdrawn.
2 The matter has been re-examined in the Board. The contention of the
Collectorate has been found correct, as according to the provisions of section 73 of the
Act, the amount is required to be transferred from buyer‘s account to the seller‘s account
within 120 days of issuance of the invoice. Mere issuance of cheque/draft in the name of
seller does not fulfill the requirement of section 73 ibid.
3. In view of the situation, the letter dated 28.12.2001 is hereby withdrawn.
The Collectorates are advised to verify actual transfer of payment from buyer‘s bank
account to the seller‘s bank account within 120 days as per provision of section 73 of the
Sales Tax Act, 1990.
[Issued by the CBR, Islamabad under the signature of Mr. Manzoor Hussain Memon,
Secretary (ST-L&P) addressed to all the Collectors of Sales Tax.]
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SALES TAX RULING/INSTRUCTION No.69/2002
C.No.3(35)STP/98 DATED 19 TH NOVEMBER, 2002
SUBJECT:-
CLARIFICATION REGARDING SECTION 23 OF THE SALES
TAX ACT, 1990.
I am directed to refer to the subject noted above and to say that Collectorate of Sales
Tax & Central Excise, (East) Karachi, vide letter C.No.8/ ST/EC/Ref/2001, dated
21.10.2002 has informed the Board that some registered persons who are engaged in
multiple business activities are issuing Sales Tax invoices with same serial number but
with different dates to depict various commodities. He has further stated that certain units
issue same serial numbered invoices with the alphabet corresponding to the business
activity e.g. ―Y‖ for yarn, ‖D‖ for dying etc.