Sales Tax Instructions

Sales Tax Instructions, 2009
SROs do not apply to further tax. Hence perception of PSMA is un-founded and legally
not correct.
[Issued by CBR., Islamabad, under the signature of Mr. Asim Majid Khan, Secretary
(STB), addressed to Mr. K. Ali Qazilbash, Secretary General, Pakistan sugar Mills Association,
Rashid Plaza, Jinnah Avenue, Islamabad}
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C. NO.1/(16)STR/2000 DATED 12 TH JANUARY, 2001
SUBJECT:- SALES TAX REGISTRATION OF CUSTOMS AGENTS.
I am directed to refer to your letter C. No. 11(68)REG-HQ 2000 dated
28.10.2000 on the subject noted above and to clarify that sales tax levied on services
provided or rendered by service providers, including ―custom agents‖ under the
Provincial Sales Tax Ordinances was in lieu of Central Excise duty thereon as an agreed
policy decision between the Federation and the Provinces.
2. The term ―custom agents‖ was defined in section 2(14) of the Central
Excises Act, 1944 as ―a person licensed as an agent under the Customs Act, 1969 (IV of
1969), and the rules made there under for the transaction of any business relating to the
entrance or clearance of import or export or transshipment of any goods or baggage in a
customs house or custom station. The term ―shipping agent‖ was defined separately
under section 2 (34) of the said Act as ―a person licensed as an agent under the Custom
Act, 1969 (IV of 1969), and the rules made there under for the transaction of any
business, in a customs house or custom station, relating to the entrance or clearance of
any conveyance‖. Thus the custom agent deals with goods or baggage and the shipping
agent deal with conveyances.
3. It is also pertinent to mention that the services of shipping agents have
not been exempted from Central Excise duty vide SRO 480(I)/2000, dated 06.7.2000 nor
exempted from licensing requirements or fees under rule 176 for the Central Excise
Rules, 1944, as amended vide SRO 726(I)/2000, dated 5.10.2000. Therefore, it is clear
that the term ‗customs agents‘ used in the Provincial Sales Tax Ordinances cannot be
extended to include ‗shipping agents‘ who are separately defined and charged to Central
Excise duty under the Central Excises Act, 1944.
[Issued by CBR., Islamabad, under the signature of Mr. Asim Majid Khan, Secretary
(STR), addressed to the Collector,. Collectorate of Sales Tax Central Excise (East), Karachi.]
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C. NO.2/(65)STP/95-VOL-I DATED 13 TH JANUARY, 2001
SUBJECT:-
DEDUCTION OF INCOME TAX AND SALES TAX FROM BILLS
OF SUPPLIERS/ MANUFACTURERS IN MALAKAND (SWAT).
I am directed to refer to your three letters Nos. Nil, dated 8.11.2000 (received on
02.12.2000) and 08.12.2000 on the subject cited above and to state that the Sales Tax