Sales Tax Instructions

Sales Tax Instructions, 2009
The above audits relate to an approval under DTRE and in many instances there
is more than one approval for the Registered Person. Please, wherever, possible group all
the approvals of the RP and do one audit for the R.P.
2. The routine audit of Sales Tax may also (if not carried out) be grouped
together and RP be visited for all this in one go.
3. I have requested to the Director DSAO to prepare a ―Checklist‖ for the
DTRE Audit, which should be completed for all DTRE Audits after it is made available.
Thanking you,
[Issued by the C.B.R., Islamabad, under the signature of Syed Perwaiz Amjad, Member
(Audit), addressed to the Collector of Sales Tax, Peshawar/ Rawalpindi/ Gujranwala/ Lahore/
Multan/ Faisalababd/ Quetta/ Hyderabad/ Karachi (East) Karachi (West), LTU, Karachi. Copy to
the Member (Sales Tax), Chief (Sales Tax), the Director (D. S. A. O) and the Secretary (STAS).]
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SALES TAX RULING/INSTRUCTION No.11/2003
C.No.3(19)STP/2000 DATED 12 TH MAY, 2003
SUBJECT:- LEVY OF SALE TAX ON VALUE INCLUSIVE OF
WITHHOLDING TAX PAID AT IMPORT STAGE AS FULL AND
FINAL LIABILITY OF INCOME TAX.
The Central Board of Revenue had in consultation with Justice Division issued a
letter No. 3(19)STP/2000 dated 27.02.2001, that withholding Tax on the charges of gas,
being adjustable, was not liable to sales tax as per provisions of section 2(46) of the Sales
Tax Act, 1990. later on, with reference to clarification sought by certain Associations of
importers, the Board vide letter C.No. 3(19)STP/2000 dated 23.07.2001 also applied this
ruling in case of importers who pay Withholding Tax (Income Tax) as full and final
liability of income tax at the time of import.
2. A number of registered persons invited the attention of Central Board of
Revenue to the definition of value of supply mentioned in clause (a) of section 2(46) of
the Sales Tax Act, 1990, vide which the value of supply means the consideration in
money including all Federal and Provincial duties & taxes. They contended that the
clarification issued by the Board vide C.No.3(19) STP/2000 dated 23.07.2001 was not
legally tenable as the Withholding Tax paid by the importers at the import stage was full
and final liability of Income Tax and was to be included in value of supply as per above
referred provisions of the Sales Tax Act, 1990. Accordingly, a reference was sent to the
Justice Division which after a proper examination has ruled that sales tax in terms of
section 2(46) of the Sales Tax Act, 1990, is leviable on the value of supply inclusive of
non-adjustable Withholding Tax paid as full and final liability, under the Income Tax
Ordinance, on goods at import stage in view of the contention of the Justice Division, the
Central Board of Revenue is pleased to withdraw its letter No. 3(19)STP/2000 dated