Sales Tax Instructions

Sales Tax Instructions, 2009
INTERNATIONAL, GUJRANWALA, SALES TAX
REGISTRATION NO.09-02-4205-009-19
I am directed to refer to the subject noted above and to say that the subject unit
has been found involved in issuing of fake sales tax invoices and criminal proceedings
against the subject unit have been initiated by the Collectorate of Sales Tax & Federal
Excise, Gujranwala.
2. The Collectorates are accordingly advised not to entertain sales tax
invoices issued by the subject unit for input tax adjustment / refund. The refund of sales
tax already paid against the invoices of M/s. Danyal International Gujranwala may be
recovered immediately under intimation to the Board.
[Issued by the Government of Pakistan, Revenue Division, C. B. R. (Sales Tax & Federal
Excise Wing), Islamabad, under the signature of Mr. Khalid Mahmood, Second Secretary (STM),
being addressed to the Collectors, Large Taxpayers Unit, Karachi/ Lahore, the Collector, Audit/
Enforcement/ Hqrs., Sales Tax House, Karachi, the Collectors, Collectorate of Sales Tax &
Federal Excise, Lahore/ Faisalabad/ Rawalpindi/ Peshawar and the Collectors, Collectorate of
Customs, Sales Tax & Federal Excise, Hyderabad/ Quetta/ Multan. Copy to the Collector, Sales
Tax & Federal Excise, Gujranwala.]
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C. NO.3 (4) ST-L&P/2005 DATED 8 TH MARCH, 2007
SUBJECT:
ICI PAKISTAN POWERGEN LIMITED APPLICABILITY OF
SRO 666(I)/2005
I am directed to enclose herewith a letter ref. T 1173, dated 12.02.2007, from
M/s. A. F. Ferguson & Co., on the subject noted above.
2. The issue raised in the said letter has been examined. The Board is of the
view that Rule 2(e) of the Sales Tax (Refund of Excess Input Tax to the Manufacturers)
Rules, 2005 provides that the excess input tax can be adjusted during three tax periods
subsequent to the tax period to which excess input relate. Rule 26(c) of the Sales Tax
Rules, 2006 provides that the refund rules shall also apply to the registered persons
claiming refund of the excess amount of input tax, which could not be consumed within
three months. This suggests that the amount of excess input tax, if not adjusted, in terms
of SRO 666(I)/2005, in three months after the month in which the excess input tax arose,
can be paid as refund. In the case of M/s. ICI Powered Ltd., the excess input tax relates to
July 2005 to April 2006. The amount in adjustment advice, if issued, could have been
adjusted in the returns due in three successive months for each of the months mentioned
above. In the instance case, no such adjustment could be made in the period stipulated in
SRO 666(I)/2005. Accordingly, the amount of input tax still outstanding can be
considered for refund on merit in accordance with the provisions cited above.