Sales Tax Instructions

Sales Tax Instructions, 2009
Question No.2.
No Rules have been published with regard to sales tax on
services?
Answer
Rule 96W of the Central Excise Rules, 1944 is no more
applicable. But by virtue of section 3 of the Sindh Sales Tax Ordinance, 2000
(VIII of 2000), all provisions of the Sales Tax Act, 1990 and rule made and
notifications, orders and instructions issued thereunder shall mutatis mutandis
apply so far as collection/payment of tax, registration/de-registration, record
keeping including audit, enforcement/adjudication, penalties/prosecution and all
other allied and ancillary matters etc. are concerned. No special procedure is
required to be issued for clubs under section 71 of the Sales Tax Act, 1990.
QuestionNo.3. Whilst the Provincial Sales Tax Ordinances state that all the
provisions of the Sales Tax Act, 1990 and rules made and notifications, orders
and instructions issued thereunder shall, mutatis mutandis, apply to the collection
and payment of tax under these Ordinances, the Sales Tax Collectorate needs to
give clear-cut instructions on the following issues-
(i)
It is not clear whether input tax can be claimed by the service
providers in accordance with section 7 of the Sales Tax Act, 1990.
Moreover, are the limitations of claim of input tax placed by section 8
and SRO.578(I)/98 applicable?
Ans.
The provisions of sections 7 and 8 and notifications issued
thereunder are applicable for the purpose of input tax adjustment by the
service providers including clubs subject to the condition that central