Sales Tax Instructions

Sales Tax Instructions, 2009
iv) The applicants cannot utilize sales tax registration number issued by the
Sales Tax department of AJK Government, in Pakistan territory, as both
places are under two different ―Governments‖ and two different
territories.
v) A person desiring to operate warehouse/distribution point in the tariff
area of Pakistan has to get registration under the Sales Tax Act, 1990,
and rules made thereunder. Therefore any wholesale/distribution set up
in Pakistan will require sales tax registration in the concerned
Collectorate of Sales Tax in Pakistan.
vi) They will have to charge/pay sales tax at 15% or 15%+1.5%, as the case
may be on their taxable supplies. However, they will be able to adjust
input tax under section 2(14)(c) read with section 8 of the said Act
provided they issue sales tax invoice in their own name (for the
warehouse/distribution point) in Pakistan to the extent of goods brought
here.
[Issued by the CBR, Islamabad under the signature of Mr. Abdul Razzaq, Section (STP)
addressed to Brig.(R) Tariq Amin Ch., Lahore.]
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C. NO.633/2000-LAW DATED 9 TH AUGUST, 2000
SUBJECT:-
LEVY OF SALES TAX ON DISPOSAL/SUPPLY OF TAXABLE
FIXED/MOVEABLE ASSETS BY THE REGISTERED PERSONS.
The undersigned is directed to refer to Central Board of Revenue‘s U.O.
No.3(54)STP/99, dated the 28 th July, 2000, on the above subject and to enclose herewith
the views/comments of this Ministry.
[Issued by the C. B. R., Islamabad, under the signature of Mr. Abdul Razzaq, Secretary
(STP), addressed to the Collector, Collectorate of Sales Tax, Lahore.]
COMMENTS/VIEWS OF MINISTRY OF LAW
The question involved in the earlier reference was regarding difference between the
terms ―disposal‖ and ―taxable supply‖ as well as between the ―normal course of business‖ and
―disposal beyond the normal business activity‖. It is unfortunate that the Sales Tax Wing has not
been unable to locate the real issue involved in the references as well as in the advice.
2. The scrap, old plant, machinery and vehicles are certainly ―goods‖ but Sales
Tax on supply of goods shall be charged from a registered person only if he is a frequent and
constant supplier of such scrap, machinery or vehicles etc., as his business activity. For example
―If a registered person is an importer or retailer of plant, machinery or vehicles for the
purpose of supply of such plant, machinery or vehicles in furtherance of business or ―in the course
of business‖ he shall be liable to pay sales tax not only on the ―supply‖ of such material but also
on the ―disposal‖ thereof, under any condition. However, if a registered person is a manufacturer
of wooden furniture as a normal course of business the disposal of some old machinery or old