Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.3(54)STP/99 DATED 28 TH JANUARY, 2004
SUBJECT:- LEVY OF GST/ADVANCE INCOME TAX ON DISPOSAL OF
UNSERVICEABLE SCRAP/MATERIAL
I am directed to refer to your letter No.CAC/GST/26/949-51 dated 16 th January,
2004 on the subject cited above and to say that it is correct that vide S. No. 60 of Sixth
Schedule to the Sales Tax Act, 1990 supply of fixed assets against which input tax
adjustment is not available under a notification issued in terms of section 8(1)(b) of the
Act is exempted from sales tax. However, it is clarified that the exemption does not
extend to supply of scrap or unserviceable material which are not ‗fixed assets‘. As
regards advance income tax, a copy of your letter is being forwarded to Income Tax
Wing for reply.
[Issued by the CBR., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P), addressed to Mr. Ahmed Nawaz Mughal, Director General (CPCC), Water
and Power Development Authority, Corporate Planning & Control Cell, 712-WAPDA House,
Lahore.]
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C. NO. 3(9)STP/99 (Vol-II) DATED 1 ST FEBRUARY, 2004
SUBJECT:- RELEASE OF MORITZ 200 MIXING MACHINE WITHOUT
PAYMENT OF SALES TAX VIDE SRO 987(I)/99 DATED 30-08-
1999 IMPORTED BY M/S.ROCHE PAKISTAN LTD. VIDE IGM
B/L NO.HLCUBSL 020504330
I am directed to refer to your letter C. No.SI/MISC/1973/2002-VI dated 30-06-
2003, on the subject cited above and to say that under condition (4) of paragraph 2 of
SRO 987(I)/99, dated 30-08-1999, the importer of the machinery submits an indemnity
bond binding himself to pay the sales tax so exempted along with additional tax in case of
his failure to fulfill the conditions. No distinction has been made whether such failure is
voluntary and deliberate or involuntary. Since, the machinery is now not going to be used
in the manufacture of taxable goods the importer may be asked to deposit the amount of
sales tax involved on the machinery along with additional tax under section 34 of the
Sales Tax Act, 1990 thereon (not markup @14% as mentioned by the Collector).
[See also C. No 3(9) STP /99 dated 1st April, 2006.]
[Issued by the Central Board of Revenue, Sales Tax Wing, under the signature of Mr.
Ashfaq Ahmed Tunio, Secretary (ST-L&P), addressed to the Collector (Appraisement), Custom
House, Karachi.]
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