Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your Ref No. MD-574/0679 dated 09.09.2005 on the
subject cited above and to clarify that electrical meters do not fall in the ambit of plant,
machinery and equipment for the purpose of SRO 530(I)/2005 dated 06.06.2005.
Similarly, the same are not covered under SRO 527(I)/2005 dated 06.06.2005.
[Issued by the CBR, Islamabad, under the signature of Mr. Wajid Ali, Secretary (ST&FE-
Budget), addressed to Mr. Zamir Ahmad Khan, Managing Director, Syed Bhais (Pvt.) Lt., Post
Box No. 483, 200- Ferozepur Road, Lahore]
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C.NO. 3(12)-ST-L&P/2004 DATED 14 TH SEPTEMBER, 2005
SUBJECT:
SPECIAL PROCEDURE FOR COLLECTION AND PAYMENT
OF SALES TAX ON VEHICLES
Vehicles and its parts are chargeable to sales tax at both import and
manufacturing stages. Apparently, there is no administrative problem in the collection of
sales tax at import and local manufacturing stages. However, the subsequent distribution
and dealership network in automobile sector including dealers involved in the sales of
second hand vehicles is not fully GST-compliant. In order to overcome this deficiency in
the implementation of sales tax system in the country, the Federal Government has
prescribed a special procedure for the collection and payment of sales tax on vehicles
including three and two wheelers through an amending notification No SRO 951(I)/2005,
dated 14-09-2005 (copy enclosed).
2. Under the procedure, the sale of used and second hand vehicle (including
individual transfer of registrations without the involvement of a dealer) has been made
liable to the payment of sales tax. The tax shall be deposited with the National Bank of
Pakistan prior to transfer of registration of the vehicles as provided in the notification.
The concerned vehicle registration authorities will be required to report the sales tax
receipts, on monthly basis, to the Collector of Sales Tax having jurisdiction.
3. In view of the above, you are requested to please advise the registration
authorities within your respective jurisdictions to extend maximum assistance to the Sales
Tax authorities in order to ensure accurate implementation of the special procedure. The
Collectors of Sales Tax are being directed to coordinate with the vehicle registration
authorities with a view to brief them about the sales tax payment procedure.
matter.
4. It will indeed be appreciated if CBR is posted with the action in the
[Issued by the Government of Pakistan, Revenue Division, Central Board of Revenue (ST
& FE Wing), under the signature of Mr. Shahid Ahmad, Member (ST&FE), addressed to the Chief
Commissioner, Islamabad Capital Territory, Islamabad, the Chief Secretary (Punjab), the
Government of the Sindh, Karachi, the Chief Secretary (NWFP), the Government of the NWFP,
Peshawar, the Chief Secretary (Balochistan), the Government of the Balochistan, Quetta. Copy to
the President, National Bank of Pakistan, Karachi. He is requested to please issue necessary