Sales Tax Instructions

Sales Tax Instructions, 2009
Presently the scheme is restricted to retailers of specified goods
chargeable to tax @ zero per cent, while other retailers paying sales tax
on the basis of fixed value addition.
The measure is aimed at removing the confusion prevailing in the sector,
particularly among the retailers dealing in both types of goods.
The levy includes 2% sales tax and 1% income tax as final discharge of
tax liability.
Enforced through the Sales Tax Special Procedure Rules, 2006 [SRO
560(I)/2006 dated 05-06-2006] effective from the 1 st July, 2006.
• Allowing input tax adjustment to retailers and wholesaler-cum-retailers
(Chain Stores) who opt to pay sales tax at standard rate.
The phenomenon of hypermarkets and cash & carry stores is fast
emerging. Majority of such stores make bulk imports, hence prefer to
pay sales tax under normal VAT regime so as to entitle them to input tax
adjustment.
Enforced through the Sales Tax Special Procedure Rules, 2006 [SRO
560(I)/2006 dated 05-06-2006] effective from the 1 st July, 2006.
• Abolishing the condition of depositing 15% of the principal amount at the
time of filing appeal under the Sales Tax law.
The provision, which was introduced in the Budget 2002-03, was not
only harsh for the taxpayers, but was also inconsistent with other fiscal
statutes.
Enforced through amendment in section 45B of the Sales Tax Act,
1990 effective from the 1 st July, 2006.
• Amending Sales Tax & Excise laws to improve the working of ADRC.
The concept of minimizing litigations disputes through dispute resolution
mechanism was first introduced in the year 2002 in the Sales Tax Act,
1990 and in 2005 I the Excise law.
The measure is aimed at improving the working of ADRC, besides
synchronizing both laws with other fiscal statues.
Enforced through amendment in section 47A of the Sales Tax Act
and section 38 of the Federal Excise effective from the 1 st July, 2006.