Sales Tax Instructions

Sales Tax Instructions, 2009
3. For an effective verification/cross-matching. It is advised that at least
10% of the tax returns selected randomly may be evenly distributed amongst the officers
of the Collectorate for cross-matching. The officers who have been assigned the task shall
submit a certificate in the enclosed format, which shall be forwarded to Board by the 10 th
of the following month, positively.
[Issued by the Government of Pakistan, Revenue Division, CBR., (ST&FE Wing),
Islamabad, under the signature of Dr.Muhammad Zubair Secretary (STM & Reforms) addressed
to the Collector (HQ) sales tax house Karachi, the Collector Large Taxpayers Unit (LTU),
Karachi/Lahore, the Collector, Customs Sales Tax & Federal Excise, Multan/Hyderabad/Quetta,
the Collector, Sales Tax & Federal Excise, Lahore/Gujranwala, and the Collector, Regional Tax
Office, Rawalpindi/Peshawar/ Abbotabad/ Faisalabad]
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C. NO.3 (4) ST-L&P/2005 16518-R DATED 20 TH FEBRUARY, 2007
SUBJECT:
ADJUSTMENT NOTE TO SERVICE PROVIDERS
above.
I am directed to refer your letter ref. nil, dated 18.01.2007, on the subject noted
2. The matter relating to issuance of adjustment advice to service providers
subject to FED in VAT mode has been examined. SRO 666(I)/2006 read with section 7
of the Federal Excise Act, 2005, provides that the services mentioned therein would be
subject to the levy and collection of excise duty as if it were a tax payable under section 3
of the Sales Tax Act, 1990, and all the provisions of the said Act and the rules made and
notifications, orders and instructions issued there under shall, so far as may be, with
necessary modifications, apply. Since telecommunication services are specified in the
said SRO, such service providers are filing sales tax returns and claiming input / output
tax in accordance with the provisions of section 7 and 8 of Sales Tax Act, 1990. In the
same manner section 10 providing for refund of excess input tax over output tax is
equally applicable and so are the SROs issued under section 10 i.e. SRO 666(I)/2005 and
SRO 813 (I)/2005. The question arises which SRO out of the two is applicable to service
providers. Service providers can be considered as producers of services; therefore, they
should be treated at par with manufacturers. Accordingly, the Board is pleased to allow
issuance of adjustment advices under SRO 666(I) 2005, dated 30.06.2005, to the
providers of services as specified in SRO 555(I)/2006, dated 05.06.2006.
3. On the same analogy, the adjustment advises under SRO. 666(I)/2005
can be issued to service providers subject to sales tax under the provincial ordinance,
because these ordinances also adapt the provisions of Sales Tax Act, 1990 and the rules
made there under.