Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter No.116/AC-1/7-1094-Vol.V, dated
11.10.1999 and subsequent reminder of even number dated 21.2.2000 on the subject cited
above and to state that as per ―Cabinet‘s decision dated 23-8-1997 circulated vide
Finance Division‘s Circular No.F.5(1)-TR.1/96, dated 21.05.1998 read with Circular
No.F.4(11)/98-Coord-II, dated 18.04.1998, all Government departments and public sector
organizations are required to purchase taxable goods only from registered persons against
valid tax invoices. In this regard, the guidelines already issued by the Board in its letter
C. No.4/47-STB/98, dated 13.3.1999 may please be followed and in case of purchases
made from manufacturer-cum-suppliers located in FATA/PATA, the procedure
prescribed in Board‘s letter C. No.3(13)STP/98, dated 17.11.1998, may please be applied.
The Sales Tax Act, 1990, is applicable to Northern Areas w.e.f. 27.12.1999.
2. I am also directed to refer to MAG‘s letter U.O. No.AT/S/1687-IX dated
13.5.1999 and to say that the position taken by MAG in his said letter does not appear to
be correct because the amount of sales tax deductible from the bills and payable to the
concerned Collector of Sales Tax as aforesaid is a part of the payment due to the supplier
from the budget grants of the Government departments and would become part of the
Federal Consolidated Fund only after its deposit in the designated branch of
NBP/Government Treasury under the relevant Sales Tax head.
[Issued by the CBR, Islamabad, under the signature of Mr. Iftikhar Qutab, Secretary
(STP), addressed to Mr. M. Khalid Khan, Assistant Auditor General (Accounts), Auditor General
of Pakistan, Islamabad and copy to the Collector of Sales Tax & Central Excise, Faisalabad,
Peshawar, Azad Kashmir, Lahore, Quetta, Islamabad, Gujranwala, Multan, Hyderabad, Karachi
(East) and Karachi (West).]
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C. NO.2(65)-STP/95 DATED 6 TH APRIL, 2000
SUBJECT:- REGISTRATION OF MANUFACTURERS / IMPORTERS
LOCATED IN PATA / FATA
I am directed to refer to your letter No.ST(TECH)REF/13/1221, dated 8.2.2000
and reminder of even number dated 19.2.2000 on the subject cited above and to say that a
person who does not desire to avail any sales tax exemption and gets himself registered
voluntarily in terms of sub-section (4) of section 13 read with section 18 of the Sales Tax
Act, 1990 is not only entitled to all privileges and rights but is simultaneously required to
perform all obligations and duties under the said Act. He is required to maintain and keep
all the prescribed records, issue tax invoices, file monthly tax return and pay sales tax due
(after availing input tax adjustment, if any) on his supplies as prescribed under the Sales
Tax Act, 1990. In case of non-compliance, such person is liable to all penalties and
punishments provided under the said Act. The manufacturers/importers located in
FATA/PATA who obtained voluntary registration cannot be treated in a different
manner. If they do not comply with the prescribed provisions of the Sales Tax Act, 1990,
and rules made thereunder, they are liable to all penal actions provided under the law.
You are therefore, advised to ensure compliance from all such delinquents and short/nonpayments,
if any, may be made good immediately under intimation to the Board.
[Issued by the CBR, Islamabad, under the signature of Mr. Iftikhar Qutab, Secretary
(STP), addressed to the Collector of Sales Tax & Central Excise, Peshawar.]