Sales Tax Instructions

Sales Tax Instructions, 2009
treatment to both KESC and WAPDA who shall w.e.f. 1 st July 2006, collect and
pay sales tax on accrual basis.
(viii)
(ix)
The procedure for payment of refund to cotton ginners has been streamlined
linking the refund of input tax on electricity, Hessian cloth and bailing hoops to
the production of cotton bales.
Registered manufacturers dealing in 29 items specified in SRO 543(1)/2006 shall
be required to submit details of production, clearance and stocks on monthly
basis. The information so obtained will help the Collectorates to identify trends
in various sectors and make realistic revenue estimates. The field formations are
expected to compare the provided data with actual market information and
accordingly ascertain and investigate the causes of variations (effective from 1 st
July 2006).
V. MISCELLANEOUS CHANGES
(i)
(ii)
(iii)
The definition of ―supply‖ has been amended in the Sales Tax Act, 1990 to
include the financial and operating leases in the purview of supply. By
implication, any direct lease by a manufacturer shall be treated as a supply liable
to tax (effective from 1 st July, 2006).
The Alternative Dispute Resolution Rules have been amended to provide for
disposal of dispute within 45 days by the ADRC. The rules also stipulate proper
record maintenance of ADRC proceedings and holding of ADRC meeting in the
Collectorates (effective from 1 st July, 2006).
Section 11A and Recovery Rules have been amended whereby the referring
authority can proceed for imposition of embargo and attachment of bank
accounts in cases where a registered person deposits an amount less than payable
as per his declaration (effective from 1 st July 2006).
(iv) Section 45 of the Sales Tax Act, 1990 and 31 of the Federal Excise Act, 2005
have been amended to give one time extension in the time limit for pending
adjudication cases up to 31 st December 2006. The Collectors shall personally
monitor the disposal of all pending adjudication cases within the extended time
limit.
2. Regarding measures relating to collection of sales tax on minimum value
addition at import stage, it will be the responsibility of the Collectors of Sales Tax to
keep a close contact with Customs Collectorates to ensure that collection is made without
any lapse.
3. The Collectors are requested to carefully study all budgetary
amendments and notifications, etc. for their proper comprehension and application. The