Sales Tax Instructions

Sales Tax Instructions, 2009
SUBJECT:-
APPLICABILITY OF SALES TAX ON SUPPLY OF METHANOL
AND THINNER
I am directed to refer to your letter No.Anis/0145/98, dated 21 st December, 1998,
on the above subject and to state that supply of import of goods specified in the Sixth
Schedule to the Sales Tax act, 1990 are exempt from sales tax.
2. As ―Methanol‖ or ―Methyl Alcohol‖ falling under PCT heading
2905.1100 and ―Organic Composite Solvents and Thinners‖ of PCT heading 3814.0000
are not covered by the Sixth Schedule to the Sales Tax Act, 1990, these are chargeable to
sales tax at the standard rate of 15% of their import and supply.
[Issued by the CBR, Islamabad under the signature of Mr. Nisar Muhammad, Secretary
(STT) addressed to M/s Anis and Company, Karachi. Copy endorsed to all the Collectors of Sales
Tax/Mirpur(AJ&K)). The Secretary (S.T.Bud), CBR.]
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C. NO.2(24)STP/95 Pt. II DATED 5 TH JANUARY , 1999
SUBJECT:- CLARIFICATION REGARDING TIME OF SUPPLY / DATE OF
INPUT TAX FOR IMPORTED RAW MATERIAL
I am directed to refer to your letter No.Misc./Inf/ST(W)/98/3728, dated 21-11-
1998 on the subject cited above and to say that the Collectorate‘s view point expressed in
para 2 of your letter C. No.Misc./Pt. 2/Infor/STW/98, dated 15-10-1998 and also in
paragraph 2 of your letter dated 21-11-1998 under reference, is confirmed being in line
with the statutory provisions of the Act.
[Issued by the CBR., Islamabad, under the signature of Mr.Muhammad Tahir, Secretary
(STP), addressed to the Collectorate of Sales Tax (West), Karachi & copy to the Collector Sales
Tax, (East)Karachi/(West)Karachi/Hub (Baluchistan)/ Hyderabad/ Multan/ Faisalabad/ Lahore/
Gujranwala/ Rawalpindi/ Peshawar/ Mirpur (AJ&K)]. Copies of letter No.Misc/Inf/ST(W)/98
/3728, dated 21-11-1998 & C.No. Misc./Pt.2/Infor/STW/98, dated 15-10-1998 & 21-11-1998 are
reproduced below:-
C. NO.MISC/INF/ST(W)/98/3728 DATED 21 ST NOVEMBER, 1998
Mr. S. M. Kazimi,
Member (Sales Tax),
SUBJECT: CLARIFICATION REGARDING TIME OF SUPPLY / DATE OF INPUT TAX FOR
IMPORTED RAW MATERIAL
Kindly find enclosed copies of letters dated 9-10-1998 and 7-11-1998 recovered from the
Chairman Valves Importer & Dealers Group, Karachi, and this Collectorate‘s letter of even
number dated 15-10-1998 on the subject noted above.
2. The Value Importers & Dealers Group has requested for clarification as to
whether the date of payment of sales tax or the date of actual physical clearance / delivery from
the customs should be taken as the date of payment for the purpose of entry in the purchase
register and consequent input adjustment. This Collectorate‘s view were expressed in its letter
dated 15-10-1998, since under section 7 of the Sales Tax Act, 1990, a registered person is entitled
to deduct (adjust) input tax paid during a tax period from the output tax that is due from him in
respect of that tax period. Thus, in case of imported goods, the input tax should be adjusted in the