Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter C.No.PTA-105/99/1867, dated 20.11.1999 on
the above subject addressed to Federal Minister for Commerce, Industry and Production
Islamabad and to say that the matter regarding levy of sales tax on raw hide and skins
was examined in depth and it is held that ―Hides & Skins‖ (of PCT chapter 41) are not
covered by Sl.No.2 of the Sixth Schedule to the Sales Tax Act, 1990, as ―Agricultural
produce of Pakistan, not subjected to any further process of manufacture‖. Being not
otherwise exempt under any of the provisions of section 13 of the Sales Tax Act, 1990 or
under any of the entries in the Sixth Schedule thereof, the supply of ―Hide & Skins‖ are
liable to sales tax. The viewpoint of the Central Board of Revenue was also confirmed by
Law & Justice Division.
2. Regarding withdrawal of Show Cause Notices issued to some member of
Pakistan Tanners Association as referred to in para 5 of the record note (issued by the
Ministry of Commerce) of meeting held on 19.8.1999 under the chairman-ship of
Additional Secretary Commerce with Pakistan Tanners Association, it is stated that since
the matter relates to Customs Notification No.SRO 1319(I)/96 dated 24.11.1996. It is
therefore suggested that Pakistan Tanners Association may take up the matter with
Member (Export) CBR for further necessary action at their end.
[Issued by the CBR, Islamabad under the signature of Mr. Nisar Muhammad, Secretary
(STT) addressed to M/s Pakistan Tanners Association, Karachi. Copy endorsed to Member
(Export) CBR alongwith copy of Ministry of Commerce O.M. 8(3)/99-Exp-III dated 18.12.1999
(alongwith its enclosures) with the request to take necessary action on para 5 of the record note of
meeting held on 18.9.1999 under the Chairmanship of Additional Secretary Commerce with PTA.
Ms. Neelam S. Ali, Deputy Secretary, Ministry of Commerce, Islamabad with reference to O.M.