Sales Tax Instructions

Sales Tax Instructions, 2009
2. As regards your enquiry regarding income tax, you are advised to please
contact the Income Tax authority.
[Issued by the CBR, Islamabad, under the signature of Mr.Muhammad Tahir, Secretary
(STP), addressed to the Deputy Collector of Military Accounts C.M.A.(DP), Rawalpindi with
reference his letter No.DPS/Misc/S.tax/GP-8/Food, dated 27 th March, 1999 & copy to the
Collector of Sales Tax,(East/West)Karachi/Hub (Baluchistan)/ Hyderabad/Multan/Faisalabad/
Lahore/Gujranwala/Rawalpindi/Peshawar/Mirput (AJ&K).] Copy of letter is reproduced below:-
LETTER NO.DPS/MISC/S.TAX/GP-8/FOOD DATED 27 TH MARCH, 1999
Mr. Muhammad Tahir, Secretary ((STP),
Central Board of revenue,
Islamabad.
SUBJECT:
IMPOSITION OF GENERAL SALES TAX
According to para 1 (b & c) of your letter No.3(72)STP/97 Pt. I dated 5 th January, 1999 supplier
of Sales Taxable goods has to be registered with the Sales Tax Department and the supplier has to
prove the exemption if the claims so.
2. Ms/. Swat Can Co and M/s. VIP Food Industries located at Swat are supplying canned
Food to Army at Lahore, Peshawar and Karachi etc. Firms claim that they are located and
manufacturing goods in tribal Area i.e. PATA which has been given the status of Tax Free Area as
per the constitution of Pakistan. Hence, they are exempt from registration of Sales Tax and
recovery of Income Tax under section 50(4) of the Income Tax Ordinance, 1979.
3. On the other hand Collectorate of Sales Tax Peshawar under letter
No.ST/Reg(FATA/PATA)97/98/4288 dated 18.12.1998 (copy enclosed) asked the firm to get
voluntary registration, similarly Commissioner of Income Tax Peshawar clarified that unless the
exemption certificate under section 50(4) of the Income Tax Ordinance, 1979 is issued by Income
Tax Commissioner, the paying authorities are liable to deduct Income Tax. Copies of this office
letter No.DPS/Misc/I.Tax/GP-8/Food, dated 05.09.97 and Commissioner Income Tax Peshawar
letter No.752/J dated 26.09.97 are enclosed for your kind perusal.
4. It is, therefore, requested to kindly advise us whether or not we should ask the firm to get
their firm‘s registration with Sales Tax authorities and provide Sales Tax Invoices alongwith bills
and also recover Income Tax under section 50(4) of Income Tax Ordinance, 1979.
5. This may please be accorded priority.
Dy. Controller of Military Accounts,
(Defence Purchase), Rawalpindi.
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C. NO.3(37)STP/99 DATED 2 ND OCTOBER, 1999
SUBJECT:-
PAYMENT MODE OF EXTRA TAX UNDER SECTION 3(5) OF