Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter No.PO/CE/22, dated 29 th October, 2001 on
the subject cited above and to say that the ruling given vide Board‘s letter of even number
dated 18 th October, 2001 also applies whether the goods destroyed were raw material, and
the destruction or damage was due to other conditions such as rain, flood etc.
2. The sales tax paid on the goods destroyed or damages is not refundable
or adjustable. If the amount of sales tax involved has already been adjusted in the
monthly return. It should be repaid to/recovered by the Government, as by virtue of
section 7 and 8 of the Sales Tax Act, 1990. Adjustment is only allowed where the inputs
are used in making taxable supplies.
3. It is added if the damaged raw material is used to produce any taxable
product, sales tax shall be payable on supplies of such taxable goods as per law.
[Issued by the C. B. R., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P), addressed to M/s. APTMA, Karachi & to all the Collectors of Custom, Sales
Tax & Central Excise.]
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C.No.2(10)STP/97 DATED 13 TH NOVEMBER, 2001
SUBJECT:-
CLARIFICATION ON APPLICABILITY OF SALES TAX ON
DAMAGED RAW MATERIAL.
I am directed to refer to your letter No.PO/CE/22, dated 29 th October, 2001 on
the subject cited above and to say that the ruling given vide Board‘s letter of even number
dated 18 th October, 2001 also applies whether the goods destroyed were raw material, and
the destruction or damage was due to other conditions such as rain, flood etc.
2. The sales tax paid on the goods destroyed or damaged is not refundable
or adjustable. If the amount of sales tax involved has already been adjusted in the
monthly return, it should be repaid to/recovered by the Government, as by virtue of
sections 7 and 8 of the Sales Tax Act, 1990, adjustment is only allowed where the inputs
are used in making taxable supplies.