Sales Tax Instructions

Sales Tax Instructions, 2009
Serial Nos. 51 to 56 and entries relating thereto have been added to the Sixth
Schedule to the Act, to grant exemption to (i) one passenger vehicle but in CBU
condition imported under the NRI Scheme; (ii) motor vehicles meant for
transportation of persons on payment of customs duty in foreign exchange in
terms of Table I of Section 18 of the Finance Act, 1999; (iii) cattle feed of PCT
heading 2309.9000 imported by fertilizer factories manufacturing phosphatic
fertilizer; (v) import of chemical inputs (not manufactured locally and also of the
specified headings of Chapter 29 of PCT) for agricultural pesticides produced in
Pakistan; (vi) bricks and cement blocks; (vii) supply of CNG Conversion Kits
(N.B. Supply of CNG kits prior to 1.07.1999 remains taxable and the tax should
be recovered immediately); and (viii) imported machinery and equipment,
specified in Table-III of section 18 of the Finance Act, 1999 and imported during
1999-2000.
The conditions of all the aforesaid exemptions, as given in the Sixth Schedule,
should be carefully studied.
C. Other changes in the Sixth Schedule:
(1) The word ―etc.‖ used in clauses (i) and (vi) of Sl. No. 1 of the Sixth
Schedule, has been omitted to remove doubts and disputes and also to
make provisions of exemption as specific ones;
(2) Exemption available to ―baked‖ food served by clubs, messes,
restaurants, hotels and other retail or wholesale outlets has been
withdrawn.
(3) Exemption available under S. Nos. 14, 15 and 16 of the Schedule has
been confined to those imported raw materials and packing materials
which are also simultaneously exempt from payment of whole or part of
the customs duty leviable thereon.
(4) Exemption from sales tax available to imported defence stores against S.
No. 29 and exemption available to machinery against S. No. 44 of the
Sixth Schedule have been made subject to the condition that these are not
manufactured in Pakistan. While for imported plants and machinery,
Customs G.O. No.7/ 98, dated the 24 th March, 1998, should be followed
to determine what are not manufactured in Pakistan. For the purposes of
defence stores a certificate from Defence Production Division and
Industries and Production Division would suffice.
(5) The minimum threshold for the manufacturers for liability to tax has been
increased from Rs. 3 lac to Rs. 5 lac.
D. Notifications:
(1) Amnesty Scheme notification No. SRO 679(I)/99 dated 12.6.99 read with
SRO 788(I)/99 dated 29.6.99, has already been discussed in para 2.1(I)
of this letter.
(2) The Registration, Voluntary registration and De-registration Rules,
1996, notified vide SRO 550(I)/96, dated Ist July, 1996, have been
amended vide SRO 680(I)/99, dated 12.06.1999 to the effect that;