Sales Tax Instructions

Sales Tax Instructions, 2009
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C. NO.3(62)STP/97 (PT-I) DATED 19 TH APRIL, 2000
SUBJECT:-
CALCULATION OF SALES TAX ON IMPORTED ITEMS
I am directed to enclose a copy of letter No.1(2)/Collector/ST/CE/
Chamber/2000, dated 27.3.2000 received from Collectorate of Sales Tax and Central
Excise (West) Karachi, on the subject cited above and to request you to let the Board
know about the practice in respect of the valuation (calculation of value addition) of
imported goods supplied by registered commercial importers. Board has also desired that
the items/commodities prone to value mis-declaration may be selected, their open market
price ascertained and proposals be prepared for fixation of their values for the purpose of
sales tax in terms of the provisions of section 2(46).
[Issued by the CBR, Islamabad, under the signature of Mr. Iftikhar Qutab, Secretary
(STP), addressed to the Collector, Collectorate of Sales Tax & Central Excise,Lahore/Gujranwala
/Faisalabad/Karachi(East)/West.] Copy of letter C. No.1(2)/Collector/ST/CE/Chamber/2000,
dated 27th March, 2000 is reproduced below:-
C.NO.1(2) OLLECTOR.ST/CE/CHAMBER/2000 DATED 27TH MARCH, 2000
SUBJECT:
CALCULATION OF SALES TAX ON IMPORTED ITEMS
Kindly refer to your letter No.R&EDC/99-2000/4910 dated 21st March, 2000 on the
above subject.
2. It is to inform that no record regarding the understanding referred in your above letter is
available in this Collectorate. It is also to inform that expenses for clearances of goods from
Customs control including withholding tax, KPT charges, insurance, delivery charges, clearance
charges etc. exceeds 15% of the duty paid value. If the cost of in bonding and ex-bonding of
goods, financial cost and administrative cost borne by the importers are added, the total cost is
about 20% without any addition of profit of the importer. Thus this Collectorate has decided to
audit the records of all such importers who are showing no value addition or less than 20% on the
duty paid value. It has also been found that most of the importers are not paying 3% extra tax by
using the sales tax registration number either without the consent of registered persons or after
paying 1/2% or 1% to these registered persons without actually supplying/selling the goods to
these registered persons.
43. The Chamber of Commerce & Industry, Karachi is therefore very humbly requested to
advise all the importers to pay the sales tax on the actual value addition in the public interest and
save themselves from the audits and adjudications resulting into penal actions. This Collectorate
is also willing to work out the actual value addition in case of regular imported items in
consultation with the Chamber of Commerce & Industry, Karachi as this Collectorate believes
that the Chamber of Commerce & Industry, Karachi would not protect the tax evaders and
rendered all possible assistance in collection of sales tax keeping in view the dire need of revenues
in the present circumstances.
[Issued by the Collectorate of Sales Tax & Central Excise (West) Karachi, under the signature of
Mr. Muhammad Ramzan, Collector, addressed to Mr. Zubair Motiwala, Chairman, Specific
Purpose Committee on GST, Chamber of Commerce & Industry, Karachi, with reference to his
letter No.R&EDC/99-2000/4910, dated 21.03.2000. Copy of letter is reproduced below:-
C. NO.R&EDC/99-2000/4910 DATED 21ST MARCH, 2000
SUBJECT:
CALCULATION OF SALES TAX ON IMPORTED ITEMS