Sales Tax Instructions

Sales Tax Instructions, 2009
are neither equipments nor the essential spare parts. ―Steel bars‖ are construction
materials and are not covered by the exemptions under section 13(1) of the Sales Tax
Act, 1990, read with the Sixth Schedule thereof.
2. Besides the fact that the Customs Notification No.SRO.150(I)/ 97 dated
05.03.1997 covers only such construction materials as or as not manufactured locally, the
said notification has not been issued under the Sales Tax Act, 1990, and is not legal
document for claiming exemption of sales tax.
3. ―Steel Bars‖ are, therefore, neither covered by Sl.No.41 of the Sixth
Schedule to the Sales Tax Act, 1990 nor covered by the customs notification
No.SRO.150(I)/97 dated 05.03.1997.
4. The dues involved may be recovered accordingly and the Assessing
Officers may also be guided to avoid such incorrect assessment.
[Issued by the CBR, Islamabad under signature of Mr.Muhammad Zahir-ud-Din,
Secretary (STT), addressed to the Collector of Customs (Appraisement), Karachi, copy endorsed
to Joint Secretary, Ministry of Commerce, Secretary, Ministry of Water & Power, Collector of
Customs (Port Qasim, Karachi & Appraisement, Lahore Chairman, SITE Association of Industry,
Karachi, All Pakistan Small Re-rolling Association, Lahore and Secretary (STE), CBR.]
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C. NO.2(24)STP/95 (Pt. III) DATED 8 TH DECEMBER, 1999
SUBJECT:- ADJUSTMENT OF INADMISSIBLE INPUT TAX BY
REGISTERED DISTRIBUTORS / WHOLESALERS
Some of the registered Distributors / Suppliers/ Wholesalers/ Retailers who have
been registered upto 31.7.1998 and have availed the facility as provided under SRO
815(I)/98 dated 20.7.1998 regarding adjustment of input tax as purchases upto 30 days
prior to registration, as were in stock, on the date of filing of application for sales tax
registration has been learnt to have misused the said facility by three ways:-
i. By taking input tax adjustment on purchases made by them for the
period, more than 30 days prior to their registration.
ii.
iii.
by taking input tax adjustment on purchase made by them within 30 days
prior to registration but were not in stock as on the date of filing of
application for registration; or
by taking input tax adjustment on purchases for which they did not have
any valid sales tax invoices under section 23 of the Sales Tax Act, 1990.
2. Further, the facility given under SRO 815(I)/98 was restricted for these
Distributors/Wholesalers only, who had applied for sales tax registration upto 31.7.1998
and not for those who did not apply for registration upto that date.
3. You are accordingly requested that information regarding inadmissible
input tax should be obtained from all Distributors/Wholesalers registered in the
jurisdiction of your Collectorate in the following format:-