Sales Tax Instructions

Sales Tax Instructions, 2009
―Raw material used as a percentage of finished product‖
Establish key raw material, establish use of key material and quantity consumed.
Calculate finished product quantities-adjust for opening and closing stock to compute
sales.
―Utility costs as a percentage of finished product/service provided‖
Establish use of utility (Water/Electric/Gas) to make a unit of completed product of
service e. g.
Liters of water per wash for a laundry.
Unit of electricity per ton of steel smelted.
Apply utility usage to manufacturing methods to establish production.
―Production records‖
Apply production to stock records to establish production not in stock = sales. Apply
sales prices. Table and checks already explained above.
―Labour costs for piece rate production‖
Apply piece rates paid to establish pieces produced. Adjust for stocks.
[Issued by the C. B. R., Islamabad, under the signature of Mr. Aftab Ahmed Razzaqi,
Secretary (ST-AS), addressed to the Collector of Sales Tax & Central Excise, (LTU), Karachi/
Gujranwala/ Lahore/ Rawalpindi/ Peshawar, the Collector of Sales Tax, Faisalabad, the
Collector of Sales Tax & Central Excise (Audit), (Sales Tax House), Karachi and the Collector of
Customs, Sales Tax & Central Excise, Hyderabad/Quetta/Multan.]
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C. NO.5(154)-INT-AUDIT/02 DATED 4 TH MAY, 2004
SUBJECT:- SELECTION OF SALES TAX AUDITS
Kindly refer to visits of the undersigned of your Collectorate on 26.04.2004 to
discuss and workout the format and contents of the sales tax audit schedule.
2. After discussions with your good self and the Deputy Collector (Audit
co-ordination) and Computer Operator (Incharge Audit Processing), following decisions
were made, which are reproduced herewith for information:-
Collectorate will continue to issue quarterly audit schedule as per selection
criteria circulated by the Member (Audit) vide C.No. 1(2)M(Audit)/2002, dated
7 th June, 2002.