Sales Tax Instructions

Sales Tax Instructions, 2009
3. As regards the second issue, it is clarified that the parts, components,
sub-components and raw material used in the manufacture of plant & machinery (capital
goods), supply of which is zero-rated under SRO 530(I)/2005, shall qualify for zerorating
of sales tax on import as well as on local supply stages in terms of SRO
527(I)/2005, whether or not the import of such plant & machinery as is manufactured
there-from carry statutory rate of more than 5% or is not regulated by any concessionary
notification of customs.
4. Regarding the third issue, the Board is pleased to clarify that condition
(b) of SRO 527(I)/2005 dated 06.06.2005 shall apply in those cases only where import is
regulated through any concessionary or survey-related notification issued under section
19 of the Customs Act, 1969. However, if import is not regulated by any such
notification, the same shall still be charged to sales tax at zero-rate under SRO
527(I)/2005. In other words, condition (b) of the said notification shall not apply in case
of those manufacturers of plant & machinery whose quantitative requirements are not
determined by Form ―S‖.
5. The Collectors are advised to give necessary guidance to the officers
working under their control accordingly.
6. This ruling is in supercession of all previous clarifications concerning
SRO 527(I)/2005 dated 06.06.2005 issued by the Board from time to time.
[Clarified vide C.No.5/8-STB /2005 dated 20.9.05]
[Issued by the CBR., Islamabad, under the signature of Mr. Wajid Ali, Secretary (ST &
FE-Budget), addressed to the Collector, Large Taxpayer Unit (LTU), Karachi/ Lahore, the
Collector, (Enforcement)/ Hdqrs)/ (Audit), Sales Tax House, Karachi, the Collector, Collectorate
of Sales Tax & Federal Excise, Lahore/ Faisalabad/ Gujranwala/ Rawalpindi/ Peshawar and the
Collector, Customs, Sales Tax & Federal Excise, Hyderabad/ Quetta/ Multan. Copy to all
Collectors of Customs for information and necessary action.]
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C. No. 6(35)STC/2003 DATED 18 TH AUGUST, 2005
SUBJECT:
REJECTION OF INPUT SALES TAX ON THE
BASIS OF SHORT WEIGHT ENDORSEMENT
IN SHIPPING BILLS.
I am directed to refer to the subject cited above and to say that following
guidelines shall be followed while sanctioning sales tax refund on articles of textile:
(i)
In cases where ascertained weight is less by 5% or more than the
declared weight, contravention be framed and referred to respective
adjudicating authority.