Sales Tax Instructions

Sales Tax Instructions, 2009
months, then the refund of the balance unadjusted amount may be sanctioned on merit as
provisions to this effect have also been incorporated in Chapter V of the Sales Tax Rules,
2006.
[Issued by the Government of Pakistan, 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 the Collector (Enforcement), Large Taxpayer Units(LTU), 6 th Floor,
Tax House, Nabha Road, Lahore.]
********
C. NO. 3(72)ST-L&P/97 (Pt.2) DATED 26 TH JUNE, 2006
SUBJECT:- SALES TAX ON SALE OF SECOND HAND VEHICLES
Please refer to the letter dated 15-06-2006, from M/s. Dewan Farooque Motors
Ltd., (DFML), on the subject noted above, forwarded to the Board for clarification of
issues raised therein.
2. Both the issues raised in the aforesaid letter have been examined and the
Board‘s views on the same are given as under:-
(i)
(ii)
In the case of trade-in-scheme whereby M/s. DFML sells the said vehicles
purchased from its customers, the sales tax will be chargeable if the sale price of
such old vehicles is higher than the purchase price.
Royalty payments are subject to Federal Excise Duty with effect from 1 st July,
2006.
[Issued by the Government of Pakistan, 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 the Mr. Shabbar Zaidi, Partner, A. F. Ferguson & Co., Chartered
Accountant, 1A State Life Square, I. I. Chundrigar Road, Karachi. Copy to the Collector, LTU,
Karachi alongwith copy of DFML‘s letter referred to above.]
********
C. No. 1/1-STB/2006 DATED 28 TH JUNE, 2006
SUBJECT: REGISTRATION OF MONEY CHANGERS, FOREIGN
EXCHANGE DEALERS, EXCHANGE COMPANIES, BURGLAR
ALARM AND VEHICLE TRACKING COMPANIES.
I am directed to refer to the subject cited above and to say that money changer,
exchange companies and foreign exchange dealers are liable to pay 5% excise duty on
their commission w.e.f. 1 st July, 2006. Similarly, burglar alarm and vehicle tracking
companies are also liable to pay excise duty @ 15% (in VAT mode) w.e.f. 1 st July, 2006.