Sales Tax Instructions

Sales Tax Instructions, 2009
collection of sales tax on old and used vehicles. Rule 129 of the notified procedure only
stipulates that in case of vehicles presented for transfer of registration without the
involvement of any dealer, the proof of payment of the sales tax due shall be produced
before the said authorities, at the time of registration of such vehicles. In other words the
Excise & Taxation authorities just have to make it sure that the due payment of tax has
been made. The authorities shall only intimate the Collector concerned of all such
payments of tax, on monthly basis. There is in effect, no collection effort additionally
entrusted to the provincial authorities through this measure. It may be appreciated that in
practice, it is no different from what the Excise and Taxation authorities have already
been doing in the case of imported vehicles, by demanding the Goods Declaration (filed
at the import stage) to ensure that all import levies have been paid in respect of such
vehicles.
3. That being so and consistent with the norms of continued mutual
cooperation between the federal and provincial institutions, the Board would indeed
appreciate if the provincial authorities could look into the issue in the right earnest and
help ensure immediate payment of government taxes, in force for a considerable time
now.
[Issued by the Central Board of Revenue, (Sales Tax & Federal Excise Wing) under the
signature of Mr. Shahid Ahmad, Member (Sales Tax & Federal Excise), addressed to the
Secretary (Excise & Taxation), Government of Sindh, Karachi, Copy to the Chief Secretary
(Sindh), Government of Sindh, Karachi and the Collector (Hqrs), Sales tax House, Karachi with
reference to this C.No.17(153)Reg/SP/STH/05 dated 31-12-2005. ]
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CBR‘s U.O. No. 1/5-STT/2005 DATED 19 TH JANUARY, 2006
SUBJECT:
EXEMPTION OF SALES TAX ON PLANT AND MACHINERY
IMPORTED UNDER SRO. 27(I)/98 DATED 17.1.1998
I am directed to refer to Law, Justice and Human Rights Division‘s U.O. No.
1553/05-Law-I dated 7.1.2006 on the subject cited above, and to enclose copies of SRO
455(I)/2004 dated 12.06.2004 (amended vide SRO 734(I)/2004 dated 28.8.2004) as
desired. As regards letter dated 14.02.2005 from Customs Wing, CBR, it is stated that the
same was effective only to the extent of liabilities of customs duty as section 13 of the
Sales Tax Act, 1990 was not invoked in SRO 455(I)/2004.
2. As desired, the following legal questions are framed for Law Division‘s
opinion in continuation of CBR‘s earlier U.O. of even number dated 26.12.2005:
(i) Are sales tax liabilities arising under SRO 27(I)/98 dated 17.1.1998
exempted under clause (iii) of SRO 455(I)/2004 dated 12.06.2004?