Sales Tax Instructions

Sales Tax Instructions, 2009
ANNEX-A, DELETE ANNEX-B & RESTORE PREVIOUS
ANNEXURE-C.
I am directed to refer your letter Ref. GST-23/2962 dated 23.01.2007 on the
subject cited above.
2. The issue raised in the above said letter has been examined and the
Board‘s response in respect of each is given below:
(i)
(ii)
(iii)
KCCI points out that the examination from audit previously available to
commercial importers under SRO 522 (I)/2005 has not been continued under new
SRO 560 (I)/2006. In this respect it is pointed out that the procedure requires that
the commercial importers will pay tax on minimum tax value addition of 10% at
the time of import. However, if the value addition on certain items is higher, the
commercial importers will have to pay the differential amount. To verify
compliance to such requirements is not possible without audit. For this reason,
the exemption from audit was withdrawn.
KCCI also highlights that Annex-B and Annex-C to be submitted by the
commercial importers, require too much information and are complicated. KCCI
may forward any simplified format for consideration by the Board.
KCCI also maintains that the quarterly return does not provide for purchase of
zero-rated inputs and also that there is no option available to commercial
importer to file return on other than value addition basis. In this respect, it is
informed that the information related to zero-rated purchases can be provided in
the column for ‗other‘ purchases as provided in the return. Moreover, the system
of minimum value addition is mandatory for all commercial importers and for
this reason the return does not allow payment under any other system.
[Issued by the Government of Pakistan, Revenue Division, C. B. R. (ST & FE Wing),
Islamabad, under the signature of Mr. Abdul Hameed Memon Secretary (ST & FE-L&P)
addressed to the Collector, M/s. Karachi Chamber of Commerce & Industry, Aiwan-e-Tijarat
Road, Off Shahrah-e-Liaquat, P.O.Box No. 4158, Karachi]
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C.No.1(3)CEB/2004 (Pt) DATED 14 TH FEBRUARY, 2007
SUBJECT:
REQUEST FOR CLARIFICATIONS.
I am directed to refer to your letter Ref No. MEL/2006/834, dated 13.12.2006, on
the subject noted above.
2. The questions raised in your aforesaid letter are replied to as under:
(i)
Board‘s letter of even no. dated 19.01.2006 made it clear that all by
products are taxable. Therefore, sales tax should be charged on all