Sales Tax Instructions

Sales Tax Instructions, 2009
credit/adjustment of the sales tax paid on the purchase of the ―gas‖ under section 7(1) of
the Sales Tax Act, 1990.
2. However, the re-rolling mill should be essentially working under the
invoice-based sales tax system in VAT-mode for claiming input tax credit on ―gas‖ in
cylinders.
3. Since empty cylinders are covered by the terms ―gas appliances‖, sales
tax adjustment of gas cylinders shall not be admissible under SRO.578(I)/98, dated 12 th
June, 1998.
[Issued by the CBR, Islamabad under the signature of Mr. Muhammad Tahir, Secretary
(STT) addressed to Mr. Sibte Haider Zaidi, Karachi. Copy to all the Collectors of Sales
Tax/Mirpur(AJ&K) and Secretary (ST.Edu.), CBR.]
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C. NO.1(6)STR/98, Pt. DATED 4 TH MAY, 1999
SUBJECT:-
ENFORCEMENT OF SALES TAX LAWS ON THE PERSONS
LIABLE TO BE REGISTERED UNDER THE SALES TAX ACT,
1990
Reference Additional Finance Secretary (Budget‘s) telephonic equerries made
this morning on the above subject.
2. The Simplified Sales Tax Rules (SSTR) apply to only such of the
manufacturer of sales taxable goods whose annual turnover does not exceed Rs.1 million.
It has also been specified in SRO 458(I)/99, dated 06.04.1999 that the said SSTR shall
also not apply, irrespective to annual turnover to such manufacturers:-
(iv) as enjoy any customs concession on inputs with industrial surveys Form ―S‖;
(v) as are already registered under the normal sales tax regime (VAT-Mode); and
(vi) as are supplying goods to government, semi-government and defence
departments and/or to Banks, DFIs, autonomous corporations or to limited companies.
3. The Trade Enrollment Certificate (TEC) Scheme applies only to such
retailers whose annual turnover does not exceed Rs.5 million.
4. Section 14 of the Sales Tax Act, 1990, requires that person liable to be
registered should be registered under the Act. Section 19 authorizes ―compulsory
registration‖ of delinquent persons not coming up, themselves, for registration. The
Department can detect persons who under declared their turnover to take undue benefits
of SSTR and TEC schemes and can take appropriate assessment action under section 11
of the Act, besides the penal action under section 33 and the prosecution action under
37A and 37C of the Act. For taking such action, the Sales Tax Officers are armed with
powers under section 37, 37-B, 38, 40, 40-A and 48 of the Sales Tax Act, 1990.
[Issued by the CBR,. Islamabad, under the signature of Mr. S. M. Kazimi, Member (Sales
Tax)]
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C. NO.5(2)STP/98-RETAIL DATED 17 TH MAY, 1999