Sales Tax Instructions

Sales Tax Instructions, 2009
crossed bank draft or pay order in favour of supplier from a bank where the buyer does
not have an account, fulfills the requirement as stipulated in section 73 of the Sales Tax
Act, 1990, in cases wherein the buyer has the proof that the cash had been withdrawn
from the bank account of the buyer and shown as credit in the cash book and later on cash
amount was taken to the other bank in the same city for the preparation of crossed bank
draft/pay order for payment to the seller.
2. The issue raised has been deliberated upon in consultation with the Law,
Justice & Human Rights Division. It has been found that as a normal business practice, a
buyer obtains a crossed bank draft or crossed pay order in favour of the supplier from a
bank in the same city where the buyer does not have an account. The Central Board of
Revenue, therefore, rules that payment made through a crossed bank draft or a crossed
pay order by a buyer to the seller from a bank in the same city where the buyer does not
have an account, will fulfill the condition stipulated in section 73 of the Sales Tax Act,
1990, provided that the buyer has the documentary evidence to prove that:
i) the amount of crossed bank draft or crossed pay order has been withdrawn
from his bank account and credited in the cash book.
ii) the amount has been shown debited in the cash book and a crossed bank
draft or crossed pay order has been got issued from a bank in the same
city where a buyer does not have an account for payment in favour of
the registered supplier, and ;
iii) the crossed bank draft or crossed pay order was sent to the registered
supplier by mail / courier or got delivered through a special messenger.
[Issued by the CBR, Islamabad under the signature of Dr. Kamal Azhar Minhas,
Secretary (ST-L&P)]
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SALES TAX RULING/INSTRUCTION No.9/2003
C.No.3(21)STM/2002 DATED 29 TH APRIL, 2003
SUBJECT:-
DENIAL OF DTRE APPROVAL TO THE SALES TAX
DEFAULTERS.
It has been brought to the notice of the Board that in certain cases, the Customs
Collectorates sanction DTRE approvals/registration to even those persons who are
defaulters of sales tax dues. In order to safeguard the revenue interest, it has been decided
with the concurrence of Member (Exports) that DTRE approval shall be denied by the
Customs Collectorates to all such persons who have defaulted in payment of accepted/
adjudicated liability of sales tax. In this respect, the Collectorates of Sales Tax and
Central Excise shall provide a list of such defaulters-alongwith the amount of tax due-to
the concerned Collectorates of Customs for information and further necessary action.