Sales Tax Instructions

Sales Tax Instructions, 2009
buyer, relevant entries were made in the cash book of the buyer, and pay order / bank
draft made from any other bank by the buyer in the name of the seller, which has been
deposited in the bank account of the seller.
[Issued by the Government of Pakistan, (Revenue Division), Central Board of Revenue,
[Sales Tax Wing], under the signature of Dr. Ashfaq Ahmed Tunio, Secretary (ST-L&P),
addressed to M/s. Aryan Steel Industries (Pvt.)Ltd., 3-Rajput Street, Badami Bagh, Lahore. Copy
to the Collector of Sales Tax & Central Excise, Lahore.]
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C. NO. 3(36)STP/99 VOL. – I DATED 26 TH MAY, 2004
SUBJECT:- CLARIFICATION REGARDING SALES TAX RULING /
INSTRUCTION NO.08/2003 DATED 18 TH APRIL, 2003
I am directed to refer to your letter dated 24.04.2004 on the subject cited above
and to say that Board‘s Sales Tax Ruling / Instruction No.08/2003 dated 18.04.2003 was
a facilitative measure, aimed at removing the difficulties in the situation where the bank
draft or pay order required under section 73 of the Sales Tax Act, 1990 was not prepared
from the bank account of the buyer but from a bank in the city where the seller was
located.
2. The Ruling was not intended to restrict or force a buyer to open an
account only in the city where the supplier was located and to only prepare bank drafts /
pay orders from that account. A buyer may buy goods from different suppliers in
different cities, and it would be impractical for him to open accounts in each city and
make pay orders to each supplier from such account. Thus, section 73 requires that
payment for taxable supplies more than Rs.50,000 be made from the business account of
the buyer to the business account of the seller, and the aforementioned Ruling may be
read as allowing a person to prepare a banking instrument from a bank where he did not
have an account, not necessarily in the same city, subject to the other conditions specified
in the Ruling.
[Issued by the Government of Pakistan, (Revenue Division), Central Board of Revenue,
[Sales Tax Wing], under the signature of Dr. Ashfaq Ahmed Tunio, Secretary (ST-L&P),
addressed to M/s. Gulberg Industries (Private) Limited, Ahmadpura, Khan Mahal Road, Silakot.]
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SALES TAX GENERAL ORDER NO.2 OF 2004 DATED 27 TH MAY, 2004
SUBJECT:- CONDONATION OF OUT-OF-TAX PERIOD INPUT
ADJUSTMENT
It has been reported to the Board that a number of cases have been made out and
are pending in adjudication or appeal due to the fact that the input tax was claimed or
adjusted by the registered person out of the relevant tax period.