Sales Tax Instructions

Sales Tax Instructions, 2009
medicine classifiable under PCT heading 30.03 of the Ist Schedule to the Customs Act,
1969, and, therefore, exempt from payment of sales tax.
2. The matter has been examined in the Board in consultation with Collector
of Sales Tax & Central Excise, Lahore. ―Murabbajaat‖ in question are actually fruits
preserved with additives like sugar etc. They are usually first boiled and then preserved
with the help of sugar. They are meant for human consumption as energizers. Specimens
obtained from the market show that the containers of ―Murabbajaat‖ indicate the word
―preserved‖ including fruit, sugar and preservatives as ingredients. They are available for
sale without prescription in bakeries, general stores etc for use as a part of food. The
contention that they are classifiable under PCT heading 30.03 of the 1st Schedule to the
Customs Act, 1969, is not tenable as the said heading includes medicaments consisting of
two or more constituents which have been mixed together for threpeutic or prophylactic
uses, not put up in measured doses or in form or packing for retail sale. ―Murabbajaat‖
under reference are manufactured for retail sale and, therefore, do not qualify to be
classified under heading 30.03 of the 1st Schedule to the Customs Act, 1969. It is,
therefore, ruled that ―Murabbajaat‖ sold in packed/bottled form in retail sale/bulk packing
are classifiable under chapter 20 of the 1st Schedule to the Customs Act, 1969, and,
therefore, chargeable to sales tax.
[Issued by the CBR, Islamabad under the signature of Mr. Manzoor Hussain Memon,
Secretary (STT) addressed to all the Collectors of Sales Tax/Large Tax Payers Unit, Karachi.
Copy to Mr. Khawaja Akhtar Masud, Chief Executive, Khawaja & Co., Lahore.]
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SALES TAX RULING/INSTRUCTION No.21/2003
C.No.3(2)STP/99(Pt-I) DATED 16 TH AUGUST, 2003
SUBJECT:-
NEW SALES TAX REGISTRATIONS.
As the existing rules/procedure for sales tax registration do not provide sufficient
check to ward off the applicants who want to abuse the system and in order to provide
safe guard against possible abuse of the system, the Collectorate of Sales Tax and Central
Excise (East), Karachi carried out an exercise of processing of new application for sales
tax registration.
2. After considering the outcome of the exercise, the following instruc-tions
are laid for new registrations:-
(i)
(ii)
(iii)
All individual applicants (persons other than manufacturer/companies)
for new registration be asked to appear in person before the registration
authority for verification of their personal identity, alongwith supportive
documents, as indicated at Annexure-A;
Apart from declaration of business address, (including addresses of head
office, manufacturing/business premises, branch office (s), godowns etc).
in the application form, it shall be made mandatory for the applicants to
declare home address and provide detail of the property in their names;
All applicants shall be required to submit a certificate from their banks,
certifying the financial worth of the business concern;