Sales Tax Instructions

Sales Tax Instructions, 2009
SUBJECT:
CLARIFICATION OF SRO 530(I)/2005
I am directed to refer to the subject cited above and to clarify that the expression
―plant, machinery and equipment‖ mentioned in SRO 530(I)/2005 dated 6.6.2005 does
not include consumer durables and office machines. By virtue of the said exclusion the
parts of consumers durables whether imported under the form ‗S‘ or otherwise are not
entitled to zero-rating of sales tax. It is further clarified that SRO 70(I)/2006 dated
28.1.2006 has only amended the SRO 530(I)/2005 to the extent that the condition /
restriction of 5% rate of customs duty has been abolished and now plant, machinery,
equipment and parts thereof, excluding consumer durables and office machines, are
importable at zero percent sales tax irrespective of the rate of customs duty chargeable
thereon.
[Issued by the Government of Pakistan, Revenue Division, C. B. R., Islamabad, (Sales
Tax & Federal Excise Wing), under the signature of Mr.Wajid Ali, Secretary (ST&FE-Budget),
addressed to the Collector of Customs, Model Customs Collectorate, Appraisement / Preventive/
Port Qasim, Karachi, the Collector of Customs, Lahore/ Sambrial (Sailkot)/ Faislabad/
Rawalpindi/ Peshawar, the Collector, Large Taxpayers Unit (LTU),(Enforcement/ (Hqrs.)/
(Audit), Karachi, the Collectors, Collectorate of Customs, Sales Tax & Federal Excise,
Hyderabad/ Quetta/ Multan, the Collectors, Collectorate of Sales Tax & Federal Excise, Lahore/
Faisalabad/ Gujranwala/ Rawalpindi/ Peshawar. Copy for information to Mr. Ghalib Ata,
Director R&D and International Affairs, Lahore, Chamber of Commerce and Industry, Lahore
with reference to letter dated 18.3.2006.]
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C. NO. 3(41)STB/99 DATED 22 ND MARCH 2006
SUBJECT:- REPRESENTATION REGARDING VALUE OF LPG FOR THE
PURPOSE OF SALES TAX
Please refer to your letter dated 06-03-2006, on the subject noted above.
2. The issue raised in the above said letter has been examined in the Board.
It is found that under the Sales Tax Act, 1990, there is no bar on fixing different prices
for different regions. Moreover, LPG is subject to levy of sales tax on ad-valorem basis.
Therefore, if different prices are fixed for different regions and these prices represent the
whole of consideration, to be received from the recipient of supply, then in term of value
of supply, as defined in section 2(46) of the Sales Tax Act, 1990, these different prices
will be treated as value for respective supplies. However, if there is reason to believe that
the value of a supply has not been correctly declared in the invoice, the Collector of Sales
Tax having jurisdiction may resort to the action as in section 2(46)(e) of the Sales Tax
Act, 1990.
[Issued by the Central Board of Revenue (Revenue Division) (Sales Tax & Federal
Excise Wing), under the signature of Mr. Abdul Hameed Memon, Secretary (ST&FE-L&P),
addressed to M/s. Ali Sibtain Fazali & Associates, Legal Advisors, Advocate & Solicitors, Mall
Mansions, 30 th the mall, Lahore. Copy to the Collector, Sales tax & Federal Excise, Rawalpindi.]