Sales Tax Instructions

Sales Tax Instructions, 2009
SUBJECT:-
APPLICATION OF SALES TAX ACT , 1990 TO BAKERIES.
I am directed to refer to your letter No.Nil dated 15.8.2000 and to inform you that
under section 2(28) of the Sales Tax Act, 1990 a retailer cannot be a manufacturer,
producer or an importer. The processes of cooking, preparing and baking food fall within
the ambit of manufacturing. Hence you have to get yourself registered as manufacturer if
your annual turnover is beyond Rs.2.5 million, but if it is between Rs.0.5 million to
Rs.2.5 million, you have to get yourself enrolled with the Collector of Sales Tax having
jurisdiction.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST) addressed to M/s Kitchen Cuisine, Islamabad. Copy endorsed to all the Collectors
of Sales Tax & Central Excise.]
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C.No.1(33)STP/93(Pt-III) DATED 14 TH OCTOBER, 2000
SUBJECT:- STOCK DECLARATION-SRO.614(I)/2000 DATED 2.9.2000.
I am directed to refer to your letter No.Ref.C-42/2000-2001/223 dated
9.10.12000 on the subject cited above and to clarify that an example of calculations of
sales tax payable on the stocks declared under SRO.614(I)/2000 dated 2.9.2000 is as
follows:-
Value of taxable supply from declared stock
Rs.100,000/-
10% minimum value addition (profit) Rs.10,000/-
Sales tax @ 15% on value addition (profit)
Rs.1,500/-
Total value of the supply
Rs.1,11,500/-
Therefore, although the value of stock is Rs.1,11,500/- yet under SRO.614 (I)/
2000 dated 2.9.2000, the registered person will be required to pay sales tax of
Rs.1,500/- only on the value addition, which should be at least 10% greater than
the declared value.
2. It is also clarified that if the aforesaid stock is supplied to a nonregistered
buyer, further sales tax @ 1.5% is payable.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (STP) addressed to Pakistan Chemicals & Dyes Merchants‘ Association, Karachi. Copy
endorsed to all the Collectors of Sales Tax & Central Excise.]
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C.No.2(4)STP/99 DATED 19 TH OCTOBER, 2000
SUBJECT:-
IMPLEMENTATION OF SALES TAX ON THE LOCALLY
GENERATED SCRAP – CLARIFICATION REGARDING.
I am directed to refer to your letter C.No.V-8(360)Cus/ 2000/28089 dated
11.9.2000 on the subject cited above and to clarify that sales tax is chargeable on locally
generated scrap as there is no exemption thereon in the Sixth Schedule to the Sales Tax
Act, 1990. The persons who claim to be owner of scraps and are dealing in such scrap