Sales Tax Instructions

Sales Tax Instructions, 2009
As the Notification SRO 507 does not contain any exclusion, the manufacturers of footwear
manufacturing the goods from raw materials imported under concessionary notification have been
prohibited from selling its footwear to the general body of consumers. If they do so, they will not be
entitled for adjustment of input tax paid on import of these raw materials. We understand that this was
not the intention of the legislature. While drafting the notification, the aforesaid aspect was not in the
knowledge of the draftman.
CBR is requested to kindly take an immediate action and a proper amendments in the SRO
507 be made as we have stopped the supplies to aforesaid footwear manufactured from the raw
materials imported under concessionary notification.
[Issued by Bata Pakistan Limited addressed to the Member Sales Tax Central Board of
Revenue, Islamabad.]
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C.NO. 1(14)STR/2002 (Vol-I) DATED 11 TH JULY, 2003
SUBJECT:-
LETTER ON THE STATUS OF RESTAURANTS.
I am directed to refer to your email dated 23.06.2003 on the subject cited above
and to say that your contention that restaurants fall in the category of retailers by virtue of
the amendment made in section 2(28) of the Sales Tax Act, 1990 has been examined in
the Central Board of Revenue. The Board is of the view that your contention is not
correct since restaurants are to be treated as manufacturers in terms of Rule 3(3) of the
Special Procedure for Supply of Food Rules, 1999 notified vide SRO 1039(I)/99 dated
14.09.1999. Rule 3(3) is reproduced below:
―(3) Every such person, whose total annual turnover exceeds rupees two and a
half million during the last twelve months, shall be liable to registration and shall
get himself registered under the Act, if not already registered.‖
2. Hence restaurants shall be treated as manufacturers and threshold and
turnover limits prescribed for manufacturers vide section 3A and Serial No. 42 of the
Sales Tax Act, 1990 shall apply to them.
[Issued by the CBR, Islamabad under the signature of Mr. Pervez Esbhani, Secretary
(STR), addressed to Shangrilla Chinese Restaurant, Multan Cantt.]
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C.NO. 3(36)STP/99 DATED 18 TH JULY, 2003
SUBJECT:-
FEDERAL BUDGET 2003-04 – ANOMALIES/IRRITANTS OF
SECTION 73 OF THE SALES TAX ACT, 1990.
I am directed to refer to the subject noted above and to say that the following
clarifications were given by the Board in respect of the issues arising out of the
substituted section 73 of the Sales Tax Act, 1990.
I. Issue
As per amendment of section 73, a registered person can claim input tax only if