Sales Tax Instructions

Sales Tax Instructions, 2009
are in conformity with Central Board of Revenue‘s Ruling No. 67/2002 dated 11-11-2002
and whether input tax adjustment can be claimed on the basis of these invoices.
2. The matter has been examined in the Central Board of Revenue in
consultation with PTV. The Board is of the view that invoices issued by PTV (specimen
enclosed) bearing the name and registration number of the registered person/buyer routed
through the advertising agency is in accordance with Board‘s said Ruling. These
invoices are therefore acceptable for input tax adjustment. This would however be
subject to the condition that payment is directly made by the registered person/buyer to
the registered person/service provider as per provisions of section 73 of the Sales Tax
Act, 1990. This has been illustrated in the specimen invoice issued to M/s Reckitt
Benckiser Pakistan by M/s PTV. Moreover, while claiming input tax adjustment the
provisions of Apportionment Rules issued vide Notification No. SRO 698(I)/96 dated 22-
08-1996 may be kept in view and no input tax adjustment for items mentioned in SRO
578(I)/98 dated 12-06-1998 would be admissible.
[Issued by the CBR, Islamabad under the signature of Mr. Pervez Esbhani, Secretary
(STR & S) addressed to all the Collectors.]
[Superceded by Ruling/Instruction No.25/2003]
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SALES TAX RULING/INSTRUCTION No.13/2003
C.No.1(34)STR/99 DATED 24 TH MAY, 2003
SUBJECT:-
CLARIFICATION REGARDING ADMISSIBILITY OF INPUT
TAX ADJUSTMENT ON ELECTRICITY CONSUMED BY
RESTAURANTS.
I am directed to refer to the subject cited above and to say that a question has been
raised whether restaurants which are registered under the Sales Tax Act, 1990 and are
paying 15% sales tax on taxable supplies of food items can claim input tax adjustment on
electricity consumed by them for preparation or supplying of food items in the service
areas.
2. The matter has been examined in the Central Board of Revenue. The
Board is of the view that restaurants can claim input tax adjustment on electricity
consumed by them in the service areas in terms of Rule 3(7) of the Special Procedure for
Supply of Food Rules, 1999. This would however be subject to adherence to the
provisions of sections 7 and 8 of the Sales Tax Act, 1990 read with Rule 7(2) of the
Special Procedure for Collection and Payment of Sales Tax (Electric Power) Rules, 2000.
However, no input adjustment of electricity bill for the area used as children‘s park etc
not subjected to sales tax would be available. Thus, restaurants providing services of
children‘s park or fun fair and other activities not subject to sales tax have to claim