Sales Tax Instructions

Sales Tax Instructions, 2009
In case goods are imported by the law enforcement agencies / donees themselves,
they may apply for provisional release without payment of sales tax, provided the
requirements as at clause (a) & (b) above are fulfilled and EAD undertakes to
formalize each case within 30 days of arrival of the goods.
2. The respective law enforcement agencies and the US Embassy may be
informed accordingly.
[See also C. No.1(136)Stt/99, dated 17 th March, 2004]
[Issued by the CBR., Islamabad, under the signature of Mr. Aamer Amin Bhatti,
Secretary (STT), addressed to Syed Mujtaba Hussain, Section Officer, Economic Affairs Division,
Islamabad with reference to Office Memorandum of Economic Affair Division dated 28.02.2004.]
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C. NO.1(3)STR/2000 DATED 15 TH MARCH, 2004
SUBJECT:- CLARIFICATION NEEDED REGARDING SALES TAX
I am directed to refer to your email dated February 27, 2004 on the subject cited
above in which the following two questions have been raised:
Whether the new management is entitled to claim input tax adjustment on arrears
of electricity bills incurred by the old management, which are now being paid in
installments and reflected in the monthly returns?
Whether SRO 529(I)/2003 dated 02.06.2003 is applicable on electricity bills
relating to the period prior to its date of issue?
2. In reply to the first question it is stated that sub-rule (2) of rule 7 of the
Special Procedure for Collection and Payment of Sales Tax (Electric Power) Rules, 2000,
registered consumers are entitled to claim input tax adjustment against an electric power
bill (invoice) in the tax period in which the bill in paid as per provisions of section 7 and
8 of the Sales Tax Act, 1990, provided the bill contains registration number and address
of the business premises of such consumer declared to the Collector. In case of arrears,
the usual practice of WAPDA/KESC is that the installment to be paid is mentioned in the
current bill along with current liabilities. Thus, if the new management is paying arrears
of old electricity bills in installments, it would be doing so on the current monthly bills.
As per aforementioned provision of law, they will thus be entitled to claim the paid as
input tax provided, the conditions mentioned in the said sub-rule are fulfilled, most
importantly, that the electricity was used in the manufacture of taxable goods. However,
in case they are paying the installments/arrears in any other manner, they will have to
claim refund under section 66 of the Sales Tax Act, 1990.
3. In reply to the second question, it is stated that SRO 529(I)/2003 is an
amending notification which allows registered consumers to claim input tax adjustment
against electricity bills wherein the registration number is written in hand and duly
verified and attested by an official of WAPDA/KESC. It appears that you have obtained
the WAPDA official‘s signatures on the old bills and intend (or already have) claimed