Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to the Board‘s letter No.9(33)CM/88(CEJ)/1526 dated 01-
10-1995, on the above cited subject (copy enclosed) and to intimate that the above
referred letter containing write-off powers of different authorities is very much is force/
operative.
2. You are requested to write-off all the cases pertaining to your
Collectorate in the light thereof in which recovery of outstanding amounts could not be
effected, despite exhausting all the legal formalities and there is no chance of there
recovery, in future also.
3. Please ensure that write-off action is initiated after meeting all the legal
requirements in each case.
[Issued by the Government of Pakistan, Revenue Division, Central Board of Revenue
(Audit Wing), under the signature of Mr. Pervez Sultan Rana, addressed to the Collector,
Collectorate of Sales Tax & Central Excise, Lahore/ Rawalpindi/ Gujranwala/ Peshawar, the
Collector, Collectorate of Customs, Sales Tax & Central Excise, Multan/ Hyderabad/ Quetta, the
Collector (Audit), Collectorate of Sales Tax & Central Excise, Karachi and the Collector, Large
Taxpayer Unit (LTU, Karachi.]
********
C. No. 3(4)ST-L&P/05 DATED 15 TH JULY, 2005
SUBJECT:
APPLICABILITY OF SRO 666(I)/2005 DATED 30.06.2005 TO
AUTHORIZED DISTRIBUTORS.
I am directed to refer to SRO 666(I)/2005 dated 30.06.2005 whereby a registered
manufacturer has been authorized to use excess amount of input tax for the purposes of
adjustment against his output tax liability during the three succeeding tax periods, instead
of claiming refund thereof.
2. The application of this scheme was restricted to the registered
manufacturers only. However, various trade associations have approached the Board for
extending application of this scheme to distributors/dealers of the goods/items chargeable
to sales tax under the Third Schedule to the Sales Tax Act, 1990. They argue that since
the dealers/distributors usually procure/purchase 3-4 months‘ stocks in advance from the
manufacturers, the input tax paid in a particular tax period (when stocks are purchased)
may exceed the output tax liability for that tax period, resulting in accrual of refunds on
account of excess input tax.
3. The issue has been examined. It is clarified that since the final sales tax
liability in respect of the items/goods mentioned in the Third Schedule to the Sales Tax
Act, 1990 is discharged/paid at the manufacturer‘s level, the dealers & distributors of
these items are not required to pay sales tax on account of value addition, etc. It is
accordingly clarified that the distributors & dealers of the items/goods mentioned in the
Third Schedule are allowed to carry over the purchases made in a tax period, which have