Sales Tax Instructions

[Amended by STGO 4/2004]
Sales Tax Instructions, 2009
47 4 of 2003, the 7 th August, 2003.
48 5 of 2003, the 5 th December, 2003.
49 6 of 2003, the 20 th December, 2003.
[Issued by the C. B. R., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P), vide File 1/33-STB/2004.]
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C.No.1/33-STB/2004 DATED 13 TH JUNE, 2004
SUBJECT:- SALES TAX BUDGET INSTRUCTIONS 2004-05.
For the Budget 2004-05, measures relating to sales tax appear in clause 5 of the
Finance Bill, 2004 and in twenty-nine Notifications [SRO. 445(I)/2004 to 446(I)/2004,
477(I)/2004 to 481(I)/2004, 483(I)/2004 to 501(I)/2004 and 508(I)/2004 to 510(I)/2004,
all dated the 12th June, 2004]. The salient features of these measures are as follows:--
A. REVENUE MEASURES:
(i)
Serial Nos. 5 and 6 of the Sixth Schedule to the Act have been amended
to withdraw the exemption on supply of cottonseed and crude oil
extracted there from. The exemption available on supply of oil dirt
under SRO. 644(I)/2000, dated 16th September, 2000 has been
withdrawn vide SRO. 486(I)/2004, dated 12th June, 2004. The
exemption on cattle feed in serial No. 53 of the Sixth Schedule to the
Act has been withdrawn and supply of oil cake has been zero-rated vide
SRO. 500(I)/2004, dated 12th June, 2004. For the purposes of levy of
sales tax, the minimum value of supply of cottonseed and oil dirt has
been fixed @ Rs. 330/- per 40 kgs and Rs. 220/- per 40 kgs
respectively vide SRO. 501(I)/2004, dated 12th June, 2004.
(ii) Under Chapter II of the Sales Tax Special Procedures Rules, 2004
[SRO. 484(I)/2004, dated 12th June, 2004], a detailed procedure has
been prescribed for collection of sales tax on value addition from
commercial importers at the import stage. This is an optional scheme
and commercial importers who pay sales tax on minimum valueaddition
of 14% shall not be subjected to routine audit.
(iii)
(iv)
A procedure has been prescribed in Chapter XII of the Sales Tax Special
Procedures Rules, 2004 [SRO. 484(I)/2004, dated 12th June, 2004],
whereby sales tax shall be collected on value addition basis from steel
melters and steel re-rollers (excluding Pakistan Steel, which will pay
sales tax on actual transaction value). The production of these
manufacturers has also been linked with their electricity consumption to
determine the minimum production of a unit.
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