Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter dated May 25, 2004 on the subject cited
above and to say that after issuance of Board‘s letter dated 12-05-2003, the situation
arose wherein sales tax was being calculated on the value inclusive of withholding tax,
while withholding tax was calculated on the value inclusive of sales tax. Besides, the
matter had been examined only in terms of non-adjustable withholding tax but the letter
issued by Board had been generalized.
2. The matter has therefore, been re-examined in consultation with the
Direct Tax Wing of CBR and accordingly Board is pleased to withdraw its letter dated
12-05-2003 and to reiterate the instructions contained in its letter dated 23-7-2001.
3. Thus withholding tax shall not constitute part of the value of supply in
terms of section 2(46) of the Sales Tax Act, 1990 and sales tax shall not be levied or
collected on the component of withholding tax.
[Issued by the C. B. R., Islamabad, under the signature of Mr. Aamer Amin Bhatti, (St-
L&P), addressed to M/s. Ford Rhodes, Sidat Hyder & Co., Progressive Plaza, Beaumont Road,
Karachi and copy to all Collectors of Sales Tax & Central Excise.]
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C. NO.4(80)STB/98 (Retail) DATED 30 TH JUNE, 2004
SUBJECT:- DETAILED MINOR HEAD FOR RECEIPTS OF CENTRAL
EXCISE DUTY COLLECTED IN THE VAT-MODE.
I am directed to refer to the subject cited above and to inform that the office of
the Controller General of Accounts, Islamabad has opened/allotted the following head of
account under Consolidated Fund (Receipts) in the Chart of Classification (3 rd Edition) of
Federal, Provincial & Local Governments Accounts to accommodate receipt of central
excise duty levied on vegetable ghee and cooking oil vide Finance Bill 2004-05:
Major Head 0200000 Indirect Tax (On Commodities
& Transaction).
Minor Head 0220000 Sales Tax
Detailed Head 0227000 Sales Tax on goods levied as
(New)
central excise duty in VAT
mode.
2. The taxpayers may be informed through adequate publicity and through
their respective Associations & Trade bodies that central excise duty @15% levied on the
import & supply of edible oils and vegetable ghee / cooking oil with effect from 01-07-
2004, shall be deposited under the aforementioned head of account i.e. 0227000.
[Issued by the CBR., Islamabad, under the signature of Dr. Muhammad Zubair,
Secretary (STR&C), addressed to the Collector, Customs, Sales Tax & Central Excise, Hyderabad