Sales Tax Instructions

Sales Tax Instructions, 2009
Federal Excise Act, 2005. This issue has been raised and agitated even at the highest fora
like Supreme Court of Pakistan. Under rule 65 of the Sales Tax Rules, 2006 Chapter X,
notified vide SRO 555(I)/2006 dated 5.6.2006 the committees are supposed to send their
recommendations to the Board within 45 days of the constitution of the committees.
2. In view of the above legal requirement and the importance attached to
ADR mechanism, it is requested that the Chairman/ Members of ADRCs should ensure
that ADR proceedings are completed and recommendations are submitted to the Board
within the prescribed period. It is accordingly requested that recommendations in the
pending cases should be expedited and findings/ recommendations of the ADRCs be sent
to the Board by 31 st December 2006.
3. All Collectors of the Sales tax & Federal Excise are also requested to
coordinate with all Chairman/ Members of the Committee and extend full cooperation in
expeditious finalization of the proceedings under section 47A of the Sales Tax Act, 1990
and section38 of the Federal Excise Act, 2005.
[Issued by the Central Board of Revenue (Sales Tax Wing), Islamabad, under the
signature of Mr. Ziauddin Wazir, Secretary (ST-Jud-ADR). Copy to the Member, Legal CBR
(HQ), Islamabad.]
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C. NO.3(12)ST-L&P/04 DATED 8 TH DECEMBER, 2006
SUBJECT: SRO # 1039(I)/2006 DATED 11.10.2006
I am directed to refer to your letter ref. No. PHMA/SB Circles/ST /2006-07 dated
03.11.2006 on the subject noted above.
2. The issue raised in the above said letter has been examined. It is pointed
out that the rules relating to the commercial importers stipulate that in addition to normal
15% sales tax payable at import stage, the commercial importer will also have to pay, in
advance, the sales tax on 10% value addition (15% in case of third schedule items). The
rules further require that if their actual value addition is higher than the prescribed
minimum 10% (or 15%), then they have to pay differential amount at the time of filing
quarterly return. The return, designed with the assistance of chartered accountants with
special focus on simplification, provides all the necessary formulae. The importer only
has to keep record of actual value additional on each consignment imported. The
Association may highlight any specific area where further guidance can be provided.
[Issued by CBR, under the signature of Mr. Abdul Hameed Memon, Secretary, (ST&FE-
L&P), addressed to M/s. Pakistan Hardware Merchant, Suite No.33, 8 th Floor, Arkay Square
(Extension), Shahrah-e-Faisal, Karachi/.]
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C. No. 6(3)S(ADJ)/2005 DATED 12 TH DECEMBER, 2006