Sales Tax Instructions

Sales Tax Instructions, 2009
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST L&P) addressed to the Collector of Sales Tax (West), Karachi. Copy endorsed to
all other Collectors of Sales Tax.]
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C.No.1(27)STR/2000 DATED 28 TH FEBRUARY, 2001
SUBJECT:-
APPLICATION OF PROVINCIAL TAX ORDINANCE, 2000 ON
THE CLUBS.
I am directed to refer to your letter C.No.1/6-Collector/East/ 2000-2001/17139,
dated 13 th February, 2001 on the above subject and to answer the questions raised by
‗clubs‘ in Karachi as follows:-
Question No.1. The term services has been defined and it is not clear as to what
would fall within the category of services by each club. A list of typical items
included in club billings is attached herewith?
Answer
Keeping in mind the definition of excisable services given in
section 2(20) of the Central Excises Act, 1944, services means all utilities and
facilities by whatever name these may be called, which are rendered or provided
by a person for consideration and all inclusions and exclusions envisaged in the
definition of ‗supply‘ given in section 2(33) of the Sales Tax Act, 1990 shall
mutatis mutandis apply in this regard. Thus all activities carried out by a club for
consideration of any sort shall be treated as services. For the purpose of assessing
‗consideration‘ of a service, the provisions of the definition of ‗value of supply‘
embodied in section 2(46) of the said Act of 1990 shall be applicable. All charges
billed or otherwise received by clubs for any service are liable to sales tax.