Sales Tax Instructions

Sales Tax Instructions, 2009
2. The Board is of the view that the Collectorate may examine one of the
following options relating to zero-rating of sales tax on electricity supplied by LIEDA.
(Option A): LIEDA should get registered and, like all other registered persons, may pay
sales tax to KESC on their purchases. They will make zero-rated supplies to notified RPs
and claim refund, if input tax exceeds output tax.
(Option B): LIEDA should get registered. The supplies of KESC to LIEDA to the extent
of supplies made to registered persons should be zero-rated. Since, the extent to which
supplies would be made to the notified RPs cannot be determined in advance, LIEDA
will intimate about supplies actually made to such notified RPs and, in the next month,
KESC, will treat supplies of the same quantity as zero-rated and will not charge sales tax
on the same. This situation will save LIEDA from claiming refunds however; they will
have to pay sales tax against all other supplies for the value addition made by them.
(Option C): LIEDA will get themselves registered. All the supplies of KESC to LIEDA
should be zero-rated. Supplies of LIEDA to notified RPs shell be zero-rated, whereas all
other supplies of LIEDA shall be charge to sales tax including internal consumption.
LIEDA will deposit sales tax so collected.
3. It is requested to examine all above options and forward
recommendations alongwith factual position of electricity purchased by LIEDA and
break-up of is supplies to notified and non-notified RPs. Per unit value of electricity
purchases and supplied may also be provided. The reply may be furnished within a
week‘s time.
[Issued by the Government of Pakistan, Revenue Division, C. B. R., (ST&FE Wing),
Islamabad, under the signature of Mr. Abdul Hameed Memon (STM) being addressed to the
Collector, of Customs, Sales Tax & Federal Excise, Quetta.]
********
C. NO. 1(51)STT/96 DATED 3 RD MARCH, 2007
SUBJECT:
REQUEST FOR SALES TAX EXEMPTION ON IMPORT OF
LOW DENSITY POLYETHYLENE (LDPE) IN GRANULAR
FORM (PHARMACEUTICAL GRADE) H. S. CODE 3901-.1000
I am directed refer to the Collectorate‘s letter C. No.SI/Misc./112/06-II, dated 7 th
June, 2006, on the subjected noted above.
2. The issue of availability of sales tax exemption to Low Density
Polyethylene (Pharmaceutical Grade) in terms of SRO 673(I)/2005 dated 30.06.2005 has
been examined in the Board. It is pointed out that the Board‘s letter C. No.1(9)SS-Val/88
dated 08.09.1997 resolved the issue with reference to similar exemption than available
under S. No.43 of the Sixth Schedule to the Sales Tax Act, 1990. SRO 673(I)/2005 has