Sales Tax Instructions

Sales Tax Instructions, 2009
2. You are therefore advised to apply to the concerned Collectorate for
addition of the category of ―retailer‖ in your registration certificate and to follow the
conditions prescribed under the proviso to section 2(28) of the Sales Tax Act, 1990 in
case of retail supplies.
[Issued by the C. B. R., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P), addressed to M/s. Rauf Textile & Printing Mills (Pvt.)Ltd., S/31, SITE,
Mauripur Road, Karachi.] Copy of letter No.R/Accounts/04/912, dated 16 th March, 2004 is
reproduced below:-
LETTER NO.R/ACCOUNTS/04/912 DATED 16 TH MARCH, 2004
SUBJECT:-
REQUEST FOR CLARIFICATION REGARDING LEVY OF
FURTHER TAX UNDER SECTION 3(1A) OF THE SALES TAX
ACT, 1990 ON SUPPLY OF UNIFORM SETS TO ARMY
OFFICERS/JAVANS
Dear Sir,
It is intimated that we are one of the leading manufacturers and suppliers of uniform cloth
to our Defence Forces i.e. Pakistan Army, Navy and Air Force. We are the only suppliers of
uniform cloth to the commissioned officers of Pakistan Army through Canteen Stores Department.
Prior to the issue of ruling No.65/2002 dated 25.10.2002 further tax @3% was not charged by us
on the sale of two/three uniform sets to Officers/Javans of Defence Forces. Now we are charging
further tax in accordance with the instructions contained in CBR letter C. No.3(62)STP/97(Pt.-I)
dated 04.07.2003 (copy attached for ready reference).
We will like to inform you that we have supplied three / four uniform sets each to Vice Chief of
Army Staff Sectt. and Adjutant General Sectt. and will request you to please clarify whether
further tax @3% is required to be charged or not on this supply. May we add here that the retailers
are not required to charge further tax from the consumers but the manufacturers have to charge
this tax from the consumers, which appears to be illogical and discriminatory. Your honour is also
aware that consumer is not under any legal obligation to get sales tax registration and as such, in
our opinion, there should be no discrimination between the sales to ultimate consumers made by
manufacturer or retailer. We have learnt that Spinning Units have been given such an exemption.
We shall be obliged for an early clarification on this point.
Thanking you,
Cordially yours
For Rauf Textile & Printing Mills (Pvt.)Ltd.
G. R. Arshad
Managing Director
********
C. NO.3(17)ST-L&P/2003 DATED 22 ND MARCH, 2004
SUBJECT:- OUTSTANDING GOVERNMENT DUES FOR PENDING
ADJUDICATION CASES