Sales Tax Instructions

For Reckit & Colman of Pakistan Limited,
Sales Tax Instructions, 2009
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C. NO.3(72)STP/99 DATED 22 ND MARCH, 1999
SUBJECT:- SUPPLY OF SALES TAXABLE GOODS TO PERSONS /
ORGANIZA TIONS / DEPARTMENTS / DEPARTMENTS /
COMPANIES AUTHORIZED TO DEDUCT ADVANCE TAX
UNDER SECTION 50(4) OF THE INCOME TAX ORDINANCE,
1979
I am directed to refer to your letter No. Nil, dated 24-2-1999 on the subject cited
above and to say that your supplies of taxable goods to National Bank of Pakistan and
other such institutions (who are authorized to deduct advance income tax under section
50(4) of the Income Tax Ordinance 1979) are taxable supplies irrespective of your annual
turnover. Such suppliers, are specifically covered by the term ―wholesaler‖ includes
dealer under section 2(47) of the Sales Tax Act, 1990, as amended by the Finance, Act,
1998.
2. You are, therefore, advised to get yourself registered with the Sales Tax
Department as a ―wholesaler‖ (which includes ―suppliers‖ of your category) by
submitting to the Collector of Sales Tax an application in form Annex-A of the
Registration Voluntary Registration and De-registration Rules, 1996, issued under SRO
550(I)/96, dated 01.07.1996. You should also make taxable supplies only against the
prescribed tax invoices.
[Issued by the CBR, Islamabad, under the signature of Mr.Muhammad Tahir, Secretary
(STP), addressed to Mr. Rafiq Ahmad, 41-H, Ali Hyder Street, Alhameed Colony, Allama Iqbal
Town, Lahore, with their letter No. Nil, dated 24 th February, 1999. copy of letter is reproduced
below:-
C. NO.NIL DATED 24 TH FEBRUARY, 1999
The Chairman,
Central Board of Revenue,Islamabad.
SUBJECT: SALES TAX REGISTRATION
We are running a stationery shop and fall under category of retailer as defined in section 2(28) of
the Sales Tax Act, 1990 (the Act). We are engaged in providing supplies to Government Institution
(National Bank of Pakistan). NBP is pressurizing us for sales tax registration and sales tax
invoices whereas we have learnt that under section 14(I)(ii) of the Act, a retailer is required to get
registered where the total turnover of such retailer exceeds Rs.5 million (five million) in a year. As
our annual turnover (including supplies to Government Institutions) is Rs.450,000
(approximately), we are of the view that we do not fall within the ambit of provisions of the Act
dealing with registration.
We would appreciate if you would provide information of following queries under the provisions
of the Act.
Whether we are liable to get registered with the sales tax department.
Can we make supplies to Government Institutions without registration of sales tax. In case Yes,
whether any certificate in this regard can be issued by the sales tax department which will enable
us to submit the same to these institutions and continue to supply without charging sales tax.