Sales Tax Instructions

Sales Tax Instructions, 2009
covered in it, which may not cover all type of audits. Some additional record /
information may be required for an audit of a particular type of registered person. This
should be decided by the audit staff with reference to requirements and risk areas
involved and as per directions of their supervisors.
4. Clarifications required or suggestions in this regard (if any), may be
addressed to the undersigned.
GUIDELINES FOR AUDIT
The Auditor is required to examine/check the accuracy of output tax declared and input
tax claimed by the taxpayer, accordingly he has to verify the correctness of the declared
supplies/sales (both domestic and exported i.e. zero rated) and purchases (both domestic
and imported).
These checks have been developed keeping in view the above objectives and it‘s
application during audit will be helpful to arrive at the correct amounts of the supplies
and purchases of the taxpayer.
This guideline has four parts (i) Checks on Supplies/Sales (ii) Checks on Purchases (iii)
Misc. Checks and (iv) Creditability Checks which will assist the overall sales tax audit of
a taxpayer, however this is not a COMPREHENSIVE guideline but still this along with
upto date knowledge of Sales Tax Law will help the Sales Tax Auditors for a meaningful
audit.
1. CHECKS ON SUPPLIES/SALES INVOICES:
Sales Book and Sales Ledger be checked with carbon copy of the invoices. Also check
invoices with copies of goods dispatched notes, goods outward registered, delivery
challan etc.
Check that formalities of section 23 of Sales Tax Act, 1990 are complied with.
Check the export/Zero-rated supplies under section 4 of the Sales Tax Act, 1990, with the
following documents:-
Form-E issued by State Bank of Pakistan duly signed by the authorized local bank and
Custom Authorities.
Payment advice issued by reimbursing bank (foreign) to the authorized local bank.
Export proceeds realization certificate issued by the local bank.
Sale invoices, shipping bills, clearing and forwarding bills, octroi and freight receipts.
OUTPUT: