Sales Tax Instructions

Sales Tax Instructions, 2009
registered person, being not exempted under section 13 or being not specified in the 6 th Schedule
to the Sales Tax Act are chargeable to Sales Tax and supply thereof, are taxable supply. The
consideration / sale proceeds received against disposal of fixed assets as well as scrap / waste are
their income and therefore, it had been taken as income and accounted fro as such in their financial
accounts. Such income being a part of business and investing activity done during the course of
business is an act of furtherance of business. It is statutory authority under subsection (2) of
section 13 of the Sales Tax Act, 1990, which vests in the Federal Government the power to
exempt any taxable supply made in Pakistan or any goods or class of goods from the whole or any
part of the tax chargeable under the said Act, subject to the conditions and limitations so specified.
No exemption has since been notified by the Federal Government in relation to the sale, auction or
otherwise disposal of goods, moveable fixed assets including plant/machinery equipment having
no value addition to the goods and for which the input tax was not allowed.
25. The conclusion of the above discussion is that the fixed assets as have been referred in
the cases are goods or taxable goods and comes within the ambit of taxable supply and liable to
the levy of sales tax. The High Courts have proceded on the wring premises and have wrongly
interpreted the legal provisions and have drawn a wrong conclusion thereto. Resultantly, while
accepting these appeals, the judgments impugned herein are set aside it is held that the
respondents/ assesses are liable to the levy of tax on the sale of the assets subject-matter of the
cases.
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OFFICE MERMORANDUM
C. No.1/1-STB/2006 DATED 23 RD JUNE, 2007
SUBJECT: RATIONALIZATION OF FEDERAL LEVIES ON
INTERNATIONAL AIR TRAVEL
The undersigned is directed to refer to the subject cited above and to say that the
following budgetary measures have been taken in the Budget 2007-08 with regard to the
Federal levies on international air travel:
(i)
Foreign travel tax (FTT) shall be abolished with effect from 1 st July,
2007. The Government Airport (GAT) shall also stand abolished with
effect from 1 st July, 2007;
(ii)
The rates of Federal excise duty (FED) have been notified to include the
existing combined incidence of FED, FTT and GAT to be collected as
Air Travel Tax (ATT). The new rates of ATT applicable from 1 st July,
2007 are as under:
Passengers embarking to or from
SAARC region, UAE (Middle East),
Saudi Arabia, Africa, Afghanistan
Rs. 3200/- for economy and economy
plus classes, and Rs. 4200/- for club,
business and first classes
Passengers embarking to or from
Europe, Far East, China, USA, Canada,
Rs. 4200/- for economy and economy
plus classes, and Rs. 5700/- for club,