Sales Tax Instructions

Sales Tax Instructions, 2009
C. No. 3/13-STB/98 DATED 28 th July, 2006
SUBJECT:- ISSUES RELATING TO STEEL SECTOR ---- INSTRUCTIONS
REGARDING.
To streamline the sales tax regime applicable for the steel sector under SRO
678(I)/2006 dated 30.06.2006, the Central Board of Revenue, in exercise of the power
conferred under section 55 of the Sales Tax Act, 1990, is pleased to issue the following
instructions:
(i)
(ii)
Under SRO 678(I)/2006 dated 30.06.2006, fixed value addition per tonne
of Rs. 3600/- and Rs. 2470/- has been prescribed for steel melters and
Rs. 1800/- for the steel re-rollers. The net sales tax payable on account
of the aforesaid value addition comes to be Rs. 540/- PMT and Rs. 370/-
PMT for the steel melters and Rs. 270-/- PMT for the re-rollers. After
the issuance of the aforesaid notification, steel re-rollers are issuing sales
tax invoices showing Rs. 270/- PMT as the amount of sales tax
chargeable from customers due to which the various industries using
long steel products have agitated that the steel re-rollers are not passing
on the input tax of Rs. 3300/- PMT leviable on imported/Pakistan Steel
billets and consequently the downstream industry is entitled to input tax
adjustment of Rs. 270/- PMT only, which has substantially increased
their net liability as their end products are chargeable to sales tax @
15%.
Keeping in view the genuine hardship of the downstream industry, it is
directed that the steel re-rollers shall issue sales tax invoices reflecting
sales tax of Rs. 270/- PMT and Rs. 3300/- PMT to the buyers entitling
the downstream industry to obtain adjustment of sales tax paid on billets.
[Issued by the Central Board of Revenue under the signature of Wajid Ali, Secretary
ST&FE-Budget to all Collectors].
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C. No.1/1-STB/2006 DATED 28 TH JULY, 2006
SUBJECT:
EXCISE DUTY ON INTERNATIONAL AIR TRAVEL.
I am directed to refer to your letter Ref: SVP/SALES/CBr/06 dated 26 th July,
2006 on the subject cited above and to clarify that the CVT @ 1.5% leviable on
international air travel has been abolished and replaced by the excise duty at the rates
mentioned in Federal Excise Circular 01/2006.
[Issued by the CBR, Islamabad, under the signature of Mr. Wajid Ali, Secretary (ST&FE-
Budget), addressed to Mr. S. Kamran Hasan, Sr. Vice President Sales, Pakistan International
Airlines (PIA), Karachi.]