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Sales Tax Instructions

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<strong>Sales</strong> <strong>Tax</strong> <strong>Instructions</strong>, 2009<br />

I am directed to say that it appears from some press reports that there exist some<br />

mis-understanding about the effect of withdrawal of exemption from sales tax on ―milkbased<br />

food preparations of PCT heading 19.01‖ through notification No.SRO.922(I)/99<br />

dated 16 th August, 1999.<br />

2. It is clarified for information of all concerned that notification No SRO<br />

198(I)/98 dated 28 th March, 1998 had exempted milk-based food preparations of PCT<br />

heading 19.01. Later, this exemption was made a part of the Sixth Schedule to the <strong>Sales</strong><br />

<strong>Tax</strong> Act, 1990, as Sl.No.3(xi) thereof through the amendments carried out vide the<br />

Finance Act, 1998 and the aforesaid notification No. SRO 198(I)/98 (whose content<br />

became a part of the Act) was consequently rescinded vide notification No. SRO<br />

576(I)/98 dated 12 th June, 1998.<br />

3. Now, notification No. SRO 922(I)/99 dated 16 th August, 1999 simply<br />

withdraws the aforesaid exemption of Sl.No.3(xi) of the Sixth Schedule to the <strong>Sales</strong> <strong>Tax</strong><br />

Act, 1990, but does not interfere with the exemption granted on ―fresh and dried milk,<br />

whether or not packed for retail sale (of respective PCT headings)‖ as it exists under<br />

Sl.No.3(iv) of the Sixth Schedule to the <strong>Sales</strong> <strong>Tax</strong> Act, 1990, and even existed prior to<br />

28 th March, 1998 when a new item ―milk-based food preparations of PCT heading 19.01‖<br />

was exempted (now exemption withdrawn under SRO 922(I)/99 dated 16 th August, 1999)<br />

under SRO 198(I)/98 (later converted into the said Sl.No.3(iv) of the Sixth Schedule to<br />

the <strong>Sales</strong> <strong>Tax</strong> Act, 1990).<br />

4. If there still remains any doubt or confusion, a detailed reference may be<br />

made to CBR, specifying as to how the said product of PCT heading 19.01 was treated by<br />

the Customs assessment for sales tax purposes during the period from 1 st July, 1996 to<br />

27 th March, 1998 and why a different treatment should be granted now after 16 th August,<br />

1999.<br />

[Issued by the CBR, Islamabad under the signature of Mr. Muhammad Zahir-ud-Din,<br />

Secretary (STT) addressed to all the Collectors of Customs, all the Collectors of Customs &<br />

Excise and all the Collectors of <strong>Sales</strong> <strong>Tax</strong>/Mirpur(AJ&K). Copy to Chief (CT) and Secretary<br />

(ST.Edu.),CBR.]<br />

********<br />

C. NO.3(5)STP/99 DATED 25 TH AUGUST, 1999<br />

SUBJECT:-<br />

DEREGISTRATION OF MEMBERS UNDER SECTION 21 OF<br />

SALES TAX ACT, 1990<br />

I am directed to refer to your letter C.No.1/Misc./ADC-I/97-98, dated 21.05.1999<br />

on the above subject and to say that the Trade Enrolment Certificate scheme of 1998-99<br />

applied to such retailers whose total annual turnover did not exceed Rs. 5 million.<br />

2. The registered retailers having annual turnover exceeding Rs. 5 million<br />

during 1998-99 should not be de-registered on account of their having obtained TEC.<br />

They are liable to normal GST (in VAT-mode) during 1998-99 and also liable to refund<br />

of TEC fee.<br />

3. For 1999-2000, there is no TEC scheme. Retailers having GST turnover<br />

exceeding Rs. 5 million are liable to be registered under normal GST (in VAT-mode)<br />

regime while those having annual turnover exceeding RS.1 million but not exceeding Rs.

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