Sales Tax Instructions

Sales Tax Instructions, 2009
2. M/s. Bismillah Textile 50.000 Recovered
Mills, Faisalabad.
3. M/s. Arzoo Textile
Mills, Faisalabad.
4. M/s. Raza Nazir & 10.500 Recovered
Co., Faisalabad.
5. M/s. Pacific Trading 8.000 1.1 millin recovered
Industry
6. M/s. Weavetex
51.277 Pending in Tribunal
International
7. M/s. Rabia Textile 22.119 Pending in Tribunal
[Issued by the Collectorate of Sales tax, Faisalabad, under the signature of Mr.
Muhammad Ashraf Khan, Collector, addressed to the Member (Sales Tax), Central Board of
Revenue, Islamabad.]
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C.No.3(36)STP/99 DATED 27 TH JUNE, 2001
SUBJECT:-
IMPLICATIONS OF THE NEWLY ADDED PROVISO IN
SECTION 73.
I am directed to refer to the above subject and to say that some queries have been
raised by certain quarters whether under the new proviso to section 73 of the Sales Tax
Act, 1990 added by the Finance Ordinance, 2001 a registered person who makes taxable
supplies for a sum exceeding fifty thousand rupees to an unregistered person, charging
further tax thereon, but not receiving payment through banking channels, would be
deprived from adjustment or refund of input tax adjustment.
2. It is clarified that the amendment through a proviso in section 73 vide
Finance Ordinance 2001 is to be read in the context of the original provisions of section
73. Vide section 73 introduced in the Sales Tax Act in December 1999, the admissibility
for input credit on purchases above Rs.50,000 was restricted to registered buyers who
make payments through banking instruments. Now under the proviso added vide Finance
Ordinance 2001, the transactions of such registered buyers have been linked with the