Sales Tax Instructions

Sales Tax Instructions, 2009
existing explanation which included additional tax in the expression ―tax due‖ for the
purpose of section 34.
2. With the insertion of new explanation in section34 vide section 7 of the
Sales Tax (Amendment) Ordinance, 2001, an apprehension has been expressed by some
quarters that this new explanation may not mislead the Sales Tax staff to work out the
amount of additional tax again on compound basis.
3. The issue has been examined in the Board and it is observed that under
section 2(34) only the expression ―tax‖ has been defined, while expression ―tax due‖ has
not been defined anywhere in the Sales Tax Act, 1990. The expression ―tax due‖ read
with sections 11(2) and 26(1) shows that the expression ―tax due‖ means the amount of
sales tax payable on the monthly return. Similarly, in case of turnover tax or enlistment
tax it would mean the amount of turnover tax or enlistment tax payable on the relevant
return as per law.
4. It is, therefore, clarified that for the purpose of section 34, the expression
―tax due‖ is not to be confused with the expression ―tax‖ as defined in section 2(34). As a
result the additional tax chargeable under section 34 shall be charged only on the actual
amount of sales tax or turnover tax or as the case may be enlistment tax as was due and
payable in the relevant return and it will be realized on simple (non-compound) basis.
5. All the Collectors are requested to please advise their staff accordingly.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST L&P) addressed to all the Collectors of Sales Tax.]
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