Sales Tax Instructions

Sales Tax Instructions, 2009
[Issued by the C.B.R Islamabad under the signature of Mr. Iftikhar Qutab, Chief (DDS),
being addressed to Mr. Shahzad Azam Khan, Circle Chairman, Pakistan Knitwear and Sweater
Association, Lahore; and copy to the Collector, Collectorate of Customs, Peshawar/ Rawalpindi/
Lahore/ Faisalabad/ Sumbrial; the Collectors, Collectorate of Customs (Appraisement/
Preventive/ Exports/ Port Bin Qasim), Karachi; the Collector, Collectorate of Sales Tax &
Central Excise, Multan/ Hyderabad/ Queeta; the Collector Collectorates of Sales Tax, Peshawar/
Rawalpindi/ Gujranwala/ Lahore/ Faisalabad; the Collector, Collectorate of Sales Tax & Central
Excise (Headquarters/audit/Enforcement), Karachi & the Director, Duty Suspension Audit/Input
Output Co-efficient Organization, Customs House, Karachi.] Copy of letter, dated 10th
November, 2003 is reproduced as below:-
Dated: 10/11/2003.
To,
The Honourable Minister for Finance & Economics Affairs.
SUBJECT:-
IRRITANTS IN THE IMPLEMENTATION OF DIRECT RULES AND
ISSUE RELATING TO SALES TAX.
Your good self had desired that the undersigned should continue coordinating with you for
successful implementation of DTRE Rules and Sales Tax. I am therefore, pointing out, in the
enclosed paper, few irritants in the implementation of DTRE and Sales Tax.
Your kind attention in the matter is solicited.
Shahzad Azam Khan
IRRITANT IN DTRE RULES
(1) Manufacture –exporters exporting goods with more than us$ one
hundred thousand per annum can import their six months
requirement of raw material under rule 297(4)of DTRE Rules. It is
not clear to many DTRE claimants if they can make taxable
purchases and make local taxable supplies while claiming input
and paying output tax. It may be clarified that there is no such
restriction.
(2) Under the amended DTRE rules, electricity and natural gas have
been included in the definition of input goods. It is not clear to
WAPDA &SNGPL that they can and should supply these input
without charging sales tax. Appropriate directions should be
issued to these authorities.
(3) It is not clear as to what will be the procedure for claming input
tax/refund of electricity by DTRE manufacture-exporters
supplying goods locally as well.
(4) Generally, Collectorates do not allow DTRE facility for needles &
sinkers etc. used by knitwear industry on the ground that these are
spares. In fact, these are consumable stores and tax-free
import/purchase should be allowed. Suitable clarification
/instructions may be issued.