Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.2(38)STP/97 DATED 2 ND MAY, 2000
SUBJECT:- REQUIREMENT OF REGISTRATION AND FILING OF
RETURNS
I am directed to refer to your letter No. Nil dated 21.4.2000 on the above subject
and to say that the benefits of non-application of the Sales Tax Act, 1990 or of exemption
of sales tax to any non-tariff area or exempt-area are restricted and confined only to the
production and their subsequent sales /consumption in such areas. A person located in
such areas if making supplies of his products in the areas of Pakistan outside non-tariff
or exempt areas is required to get registered, issue tax invoice, pay sales tax on his such
supplies and file return as required under Sales Tax Act, 1990 as already clarified vide
Board; letter C. No.2(38)STP/97, dated 15.4.1999.
[Issued by the C. B. R., Islamabad, under the signature of Mr. Iftikhar Qutab, Secretary
(STP), being addressed to M/s. Martial Enterprises, Importers & Exporters, Mirpur, Azad
Kashmir and copy to the Collector, Collectorate of Sales Tax & Central Excise, Karachi
(East/West), Hyderbabad, Faisalabad, Multan, Peshawar, Azad Kashmir, Lahore, Quetta,
Islamabad, Gujranwala.]
********
C. NO.3(54)STP/99 DATED 2 ND MAY, 2000
SUBJECT:-
LEVY OF SALES TAX ON DISPOSAL/SUPPLY OF TAXABLE
FIXED / MOVEABLE ASSETS BY THE REGISTERED
PERSONS.
The undersigned is directed to state that a question has arisen as to whether or not
sales tax is leviable on fixed / moveable assets, such as plant and machinery, vehicles,
office equipments, furniture items, construction materials etc. sold or disposed of by a
registered person, that are otherwise chargeable to Sales Tax.
under:
2. Board‘s viewpoint is as follows:-
Under section 3(1)(a) of the Act, sales tax is chargeable inter alia on ―taxable
supplies‖ made in Pakistan by a ―registered person‖. The term ―supply‖ has been
defined under section 2(33) as under:
―Supply‖ includes sale, lease or other disposition of goods in furtherance of
business carried out for consideration and also includes:
(e) putting to private, business or non-business use of goods acquired, produced
or manufactured in the course of business;
(f) auction or disposal of goods to satisfy a debt owned by person;
(g) possession of taxable goods held immediately before a person ceases to be a
registered person; and
(h) such other transaction as the Federal Government may, by notification in he
official Gazette; specify.‖
3. Similarly, under section 2(42) ―taxable supply‖ has been defined as