Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to the subject cited above and to say that a number of letters
have been received in the Board indicating that the registered persons are facing
problems for calculation of Carry Forward as required under column 12 and 13 of the
Special Return-cum-Payment Challan for the Commercial Importers.
2. The issue has been examined. It is clarified that tax on value addition is
the final discharge of the liability of the commercial importer. As such it is not adjustable
as input tax by the commercial importer, unless the imported goods are finally supplied at
a value addition in excess of 10% and the commercial importer pays his output tax on
such higher value addition. In case the commercial importer supplies goods as per rules,
he is not entitled to claim adjustment of value addition paid at import stage and therefore,
the value of column no 8A is not to be considered for calculation of carry forward/refund
purpose only. For ease of calculation, a detailed working, where the commercial importer
supplies goods as per rules is appended below:-
Return Particular
Tax Amount
Column
05 Input Tax CF Rs. 100
06 Un-claimed input tax Rs. 100
08 Tax paid on import
Rs. 450
3000 * 15%
08A Tax on value addition
3000 * 10% * 15%
Rs. 45
*(It has to be treated as zero for
07 Tax on sales
1000 * 15%
calculation purposes)
Rs. (150)
Formula:
[(5+6+8)-(7+8A)]
[(100+100+450)-(150-0*)
[(650)-(150)]
[Rs. 500 = Carry Forward]
* If the value of addition of actual supplies is not higher than 10%, the
value of column 8A is not to be considered for adjustment purposes, the
final discharge of a commercial importer‘s liabilities.
[Issued by the C.B.R., Islamabad, under the signature of Mr. Aamer Amin Bhatti,
Secretary (ST L&P), addressed to the Collector of Sales Tax, Large Taxpayer Unit, Karachi, the
Collectors, Sales Tax & Central Excise, Peshawar/ Rawalpindi/ Lahore/ Faisalabad, the
Collectors, Customs, Sales Tax & Central Excise, Hyderabad/ Multan/ Quetta and the Collectors,
Sales Tax House, Enforcement/ HQ/ Audit. Copy to the President Karachi Chamber of Commerce
& Industry, Karachi, Karachi Sales Tax Bar Association, All Chambers of Commerce & Industry,
KATYS, Karachi and the Nishtar & Zafar, Advocates & Legal Consultants, Islamabad.]
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