Sales Tax Instructions

Sales Tax Instructions, 2009
service providers are covered by the definition of retailer given under section 2(28) of the
Sales Tax Act, 1990. Hence, they shall be treated as retailers and threshold and annual
turnover limits prescribed for retailers under the said Act. i.e section 3A and serial No. 42
of the Sixth Schedule of the Sales Tax Act, 1990 shall apply on them. Thus, the said
service providers with annual turnover of less than one million rupees are not required to
charge provincial sales tax while those with annual turnover of more than one million
rupees but less then five million rupees are required to pay turnover tax @ 2% without
charging any sales tax on receipts/invoices issued to their clients. However, beauty
parlours etc. and laundries and dry cleaners with turnover more than five million rupees
per annum are required to maintain records as prescribed under the Sales Tax Act, 1990
and issue invoices/receipts charging sales tax @ 15%.
3. Laundries and dry cleaners having separate washing/laundries for
catering to retail outlets at different places shall however be treated as manufacturers
liable to pay sales tax @ 15% in case of supplies of above Rs. 2.5 million per annum and
turnover tax @ 2% if their turnover is from Rs. 0.5 million to Rs.2.5 million per annum.
4. All the Collectors of Sales Tax are advised to conduct meetings with
respective Associations to ascertain minimum turnover through mutual consultation for
each registered person in a way that input tax does not exceed 10% of turnover in case of
beauty parlours etc. and 25% in case of dry cleaners and laundries.
[Issued by the CBR, Islamabad under the signature of Mr. Pervez Esbhani, Secretary
(STR&S) addressed to all the Collectors of Sales Tax.]
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C.NO. 1(53)STT/2002 DATED 16 TH JANUARY, 2003
SUBJECT:-
WASTAGE AT CNG STATIONS.
I am directed to refer to the Board‘s letter C.No. 2(1)-M(Audit)/2002 dated
08.07.2002 on the subject noted above and to say that a meeting with All Pakistan CNG
Association was held in the Board on 02.01.2003. After a lengthy discussion, the
following decisions were made:
(i)
(ii)
(iii)
All registered persons shall maintain and produce for audit all the record
prescribed under the Sales Tax Act, 1990.
A maximum wastage @ 13% for CNG pumps with machinery
manufactured till 31.12.2000 and maximum wastage @ 11% for CNG
pumps with new importer after 31.12.2000 shall be allowed provided all
records prescribed under the Sales Tax Act, 1990 are maintained and
produced for audit by the Department.
It was also decided that survey of a few various types of CNG stations
selected by the Board will be carried out in consultation with the
association to ascertain the actual percentage of wastage in each type of
station and the matter would be finalized accordingly.
2. The Collectorates are requested to ensure that the decisions taken are
implemented.