Sales Tax Instructions

Sales Tax Instructions, 2009
Some registered persons have approached the Board with the plea that due to
SRO 466(I)/2007 dated 9.6.2007 and subsequent SRO 64(I)/2007 dated 27.06.2007, the
rates of sales tax for various items have been changed twice during a tax period.
Resultantly, the registered persons shall be required to file three different returns, which
might lead to hardship for taxpayers.
2. Keeping in view the genuineness of the problem mentioned above, the
Board, in exercise of powers conferred under section 55 of the Sales Tax Act, 1990, is
pleased to give an option to the registered persons to file a single sales tax return for the
tax period June, 2007. The supplies / purchases charged to 15% may be shown in the
relevant column whereas, supplies / purchases charged to 17.5% and 20% may be
clubbed and mentioned in the column relating to ‗others‘ as provided in the return. It
needs to be ensured that the net tax due as a result of the application of different rates is
duly paid.
[Issued by the Government of Pakistan, Revenue Division, C. B. R., (Sales Tax & Federal
Excise Wing), Islamabad, under the signature of Mr.Abdul Hameed Memon, Secretary (ST&FE-
L&P). Copy to all Collectors of Sales Tax and Federal Excise, with the directives to properly
publicize this circular, the FPCCI/KCCI/LCCI and the tax Haven, Karachi.]
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C. NO.4/2-STB/2007/92069-R DATED 25 TH JULY, 2007
SUBJECT:
SPECIAL EXCISE DUTY
I am directed to refer to your letter BTX-002 dated 11.07.2007 on the subject
cited above and to clarify that the issue of assessable value for the levy of special excise
duty in case of non-excisable goods chargeable to sales tax on retail price basis has been
examined.
2. According to clause 2(i)(b) of SRO 655(I)/2007 dated 29.06.2007 the
value for the purpose of levy of special excise duty shall be, in case of goods produced or
manufactured, the value determined under subsection (1) or as the case may be
subsection (4) of section 12 of the Federal Excise Act, 2005, excluding the amount of
excise duty under section 3 of the said Act. Therefore, only such items shall be assessed
to special excise duty on retail price basis, which are chargeable to Federal Excise duty
on retail price basis under the First Schedule to the Federal Excise Act as per subsection
(4) of section 12 of the said Act. It is, therefore, clarified that in case of all non-excisable
locally produced goods, special excise duty shall be levied under subsection (1) of section
12 of the Federal Excise Act, 2005 i.e. on the basis of wholesale cash price.
[Issued by the Government of Pakistan, Revenue Division, C. B. R., (Sales Tax & Federal
Excise Wing), Islamabad, under the signature of Mr.Wajid Ali, Secretary (ST&FE-Budget), being
addressed to Mr.Muhammad Raza, Senior Manager M/s. A. F. Ferguson & Co., Karachi. Copy to
all Collectors of Sales Tax & Federal Excise.]