Sales Tax Instructions

Sales Tax Instructions, 2009
(c) Here, only the value of exempt imports and purchases, if any,
shall be mentioned.
(d) In this sub-column, the value of utilities like telephone, gas and
electricity along with sales tax paid thereon shall be declared.
Adjustment of such sales tax is admissible only if the dealer is using
these utilities exclusively in connection with his registered business
provided that all the relevant requirements or conditions of the Sales Tax
Law are fulfilled.
(07) In this column, all arrears including default surcharge, if any, which is payable
along with other liabilities on the return, shall be mentioned.
(08) In case dealer is filing return after due date, he is required to pay penalty as well
as default surcharge in terms of section 33 and 34 of the Sales Tax Act, 1990, in
addition to sales tax payable under section 3 ibid.
2. In order to calculate and declare the net payable amounts of sales tax, the
first box under the head 0220000 shall be used to enter the sales tax amount payable on
all kinds of commissions charged by a dealer. In the second box under the head
02250000, net payable sales tax amount on the supply of imported and purchased
vehicles whether new or old shall be declared. In the third box, the amount of sales tax
payable on the sale of old, second hand and used vehicles shall be declared. The sales tax
amount payable on the commissions charged on such vehicles shall however, not be
included here, which shall be shown in the first box as aforesaid. Sales tax payable on all
other supplies (other than vehicles) shall be declared in the fourth box. In all these boxes
the net sales tax amounts payable by a dealer shall be declared and other amounts
intended to be paid on account of arrears and penalties, if any, shall be added to work out
the total payable sales tax liability of the relevant tax period.
3. The return shall be prepared and filed in triplicate. The bank shall send
one copy to the Sales Tax Collectorate while one copy shall be retained by the bank and
one copy shall be returned to the registered person. If there is any change in the tax rate
during a tax period, separate returns will have to be filed by the dealer for each tax rate
for the corresponding periods. A return is to be filed for each tax period, even if no tax is
payable or no taxable transaction has taken place. Failure to file a return or pay the tax by
the due date shall attract levy of default surcharge and imposition of penalties. However,
if no tax is payable during a tax period, such default surcharge will not be charged. A
revised return may be filed to correct any omission or wrong declaration in the previous
return. The return is required to be certified as correct. The person who makes return and
signs the return must be the authorized representative of the dealer. It may be ensured that
the entries in the return are correct, before signing and filing it in the designated branch
of National Bank of Pakistan.
4. The Collectors of Sales Tax & Federal Excise are directed to proactively
publicize these guidelines/instructions and extend maximum assistance and facilitation to