Sales Tax Instructions

Sales Tax Instructions, 2009
input tax credit, adjustment or deduction, or refund or drawback or zero-rating etc. of tax
under this Act."
2. The provisions of the aforesaid section 73 of the Sales Tax Act, 1990,
will apply to all transactions and payments for transactions made on or after the 1 st
January 2000.
3. In the light of the above legal provisions, all the Sales Tax registered
persons are advised to make all payments (against purchases of taxable goods and inputs)
exceeding fifty thousand rupees, in the shape of crossed cheque, crossed bank draft or
crossed pay order and keep a copy of the same for their record, duly reflected in bank
statements (where applicable), to claim input tax adjustments, credits, deduction or zerorating
for the tax paid in such transactions. In case of transactions or payments for
transactions (for amount exceeding Rs. 50,000/-) being not in conformity with the
provisions of section 73 of the Sales Tax Act, 1990 effective 1 st January, 2000, no input
tax credit, adjustment, deduction, refund or zero-rating shall be admissible on
such purchase of taxable goods.
4. The threshold of fifty thousand rupees will be inclusive of the amount of
sales tax involved.
[Rescinded vide STGO No.3 of 2004 dated 12 th June, 2004]
[Issued by the CBR, Islamabad under the signature of Mr. Muhammad Tahir, Secretary
(STP).]
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C.No.4/84-STB/97 DATED 28 TH DECEMBER, 1999
SUBJECT:-
SALES TAX ON TEXTILE PROCESSING UNITS.
I am directed to refer to your letter C.No.R/G-668/99/954, dated 4.12.1999, on
the above subject and to say that the fixed sales tax schemes have been abolished and are
no more operative or lawful. You are requested to inform all your members to pay sales
tax in an invoice-based VAT-mode, as prescribed under the Sales Tax Act, 1990.
2. As regards your request for adjustment/deduction of the input tax (on
account of sales tax on electricity and gas) from the amount of fixed tax, the Board
reiterates that notwithstanding the aforesaid position that there is no more any fixed sales
tax scheme, the deduction/adjustment of any input tax from the fixed sales is even
otherwise inadmissible under section 8(5) of the Sales Tax Act, 1990. Your request for
continuation/revival of the fixed sales tax scheme and also of allowing input tax credit in
the fixed tax scheme cannot be acceded to.
3. In his Economic Revival Plan, the Chief Executive has already
announced that sales tax shall be levied at all stages. The request for exemption, whether
for sizing industry, weaving industry or processing industry cannot be acceded to. Your
Association may cooperate with the Government in enforcement of invoice based GST in
VAT-mode at all stages in general and at the processing stage, in particular.