Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.4(47)STB/98 (Pt-II) DATED 8 TH MARCH, 2000
SUBJECT:-
DEDUCTION OF ADVANCE INCOME TAX AT THE TIME OF
PAYMENT OF GOODS AND SALES TAX REGISTRATION
I am directed to refer to your letter C.No.6282/2176/SD-2(Prot) dated 12.02.2000
on the subject cited above and to state that:-
(iv) Persons making supply of taxable goods in Pakistan can charge sales tax from
their buyers only when they are registered under the Sales Tax Act, 1990 with the Sales
Tax Department. In token thereof, sales tax invoice has to be issued to the person to
whom taxable supply has been made i.e. buyer. The amount so collected has to be
deposited in the designated branch of National Bank of Pakistan on a monthly return.
Since SD Directorate is buyer and not supplier of taxable goods and is not registered with
the Sales Tax Department in that capacity, it can neither deduct the sales tax, nor deposit
in the Government account. It would remain liability of the supplier of taxable goods;
(v) The decision requiring the Government departments (including Defence) to make
purchases from registered persons was taken by the Cabinet on 23.08.1997 and pursuant
thereto instructions were issued to all concerned to comply accordingly. Hence, CBR
cannot allow any deviation/exemption; and
(vi) The step is directed to encourage documentation of the economy. The
Government departments/public sector enterprises would make purchases only from
registered persons under the Sales Tax Act, 1990 and thus non-registered persons would
loose business/market and registered persons would get encouraged through this
incentive.
2. Copies of the Finance Division‘s Circulars dated 21.05.1998 and dated
18.04.1998 are enclosed.
[Issued by the CBR, Islamabad under the signature of Mr. Iftikhar Qutab, Secretary
(STP), being addressed to Lt. Col. Mr. Muhammad Waqar Aslam, General Headquarters, GHQ,
Rawalpindi]
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C. NO.3(9)STP/99 (Pt-II) DATED 9 TH MARCH, 2000
SUBJECT:-
CLARIFICATION REGARDING SALES TAX EXEMPTION ON
PLANT AND MACHINERY.
I am directed to enclose a copy of letter No. BEL/MKTG/CBR/ST /2000, dated
22.2.2000, along with its enclosures received from M/s. Brothers Engineering (Pvt.)
Limited on the subject cited above and to state that you may please ensure that the matter
is decided on merit keeping in view the provisions of SRO. 230(I)/97, dated 29.03.1997,
and after giving proper opportunity of hearing to the applicants. The facts pleaded by the
applicants and the viewpoint of DRRA may be thoroughly examined before ascertaining
whether or not be machinery, equipments and parts / spares supplied by the applicants
qualify for the benefit of the said notification.