Sales Tax Instructions

Sales Tax Instructions, 2009
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
ginned cotton adhere to the prescribed procedure. In this case, the
suppliers have to file two separate returns for the month of June 2004
(payable by 15th July, 2004); one in respect of the supplies made at the
rate of 15% and other for the supplies made at the rate of zero per cent.
Import and supply of hides & skins (PCT 41.01 to 41.03) and raw wool
(PCT 5101.1900) has been zero-rated with immediate effect vide SRO.
500(I)/2004, dated 12th June, 2004. Like ginned cotton, in this case also,
the importers & suppliers have to file two separate returns for the month
of June 2004 (payable by 15th July, 2004).
Import as well as supply of tractors, bulldozers and combined harvesters
has been exempted through an amendment made in serial No. 49 of the
Sixth Schedule to the Sales Tax Act, 1990. Import and supply of certain
agricultural machinery, equipment and implements have also been
exempted from payment of sales tax vide SRO. 495(I)/2004, dated 12th
June, 2004. The earlier Notification SRO. 753(I)/98, dated 1st July,
1998 has been rescinded by SRO. 446(I)/2004, dated 12th June, 2004.
Through SRO. 492(I)/2004, dated 12th June, 2004, the deemed price of
DAP for levy of sales tax has been reduced from Rs. 9,280 per metric
ton
to
Rs. 4,610 per metric ton. At the same time, the notification fixing the
deemed price of urea [SRO. 205(I)/2001, dated 2nd April, 2001] has
been withdrawn vide SRO. 493(I)/2004, dated 12th June, 2004. Now
sales tax shall be chargeable on supplies of urea on the basis of the
actual value of supply.
For the purpose of levy of sales tax at import stage, the Government has
also fixed the value of phosphatic acid (PCT 2809.2010) at Rs. 7000/-
per metric ton, if imported by phosphatic fertilizer industry for the
manufacture of phosphatic fertilizers [S.R.O. 494(I)/2004, dated 12th
June, 2004].
Further tax @ 3% chargeable on supplies made to unregistered persons
has been abolished by omitting sub-section (1A) from section 3, and all
other references to further tax in the Act.
The higher rate of sales tax (20%) on the import and domestic supply of
228 tariff headings/sub-headings has been abolished by rescinding SRO.
389(I)/2001, dated 18th June, 2001 vide SRO. 489(I)/2004, dated 12th
June, 2004. Collectors are advised to ensure that net revenue is now
deposited on account of value addition after adjusting inputs @ 15%.
Taxpayers may be reminded that if the rate of tax changes during a tax
period, a separate return is required to be filed in respect of each portion
of tax period. It is further directed to monitor the import and supplies of
the goods previously charged to sales tax @ 20%, and to furnish
periodic report to the Board regarding the same.
The turnover tax scheme has been abolished by omitting sections 3A