Sales Tax Instructions

Sales Tax Instructions, 2009
(iii)
the Customs Act, 1969 are zero-rated under section 4(b) of the Sales Tax
Act, 1990. The relevant customs procedure for export/supply of ship
stores has to be observed.
A sales tax invoice is required to be issued against supplies made at the
rate of zero percent to PNSC. The rate of zero percent sales tax has to be
mentioned in the invoice.
2. It may however, be mentioned that zero-rating is only available in case
of stores and provisions for consumption aboard a conveyance leaving Pakistan. Goods
which are used in the port area are not the stores and provisions of such conveyance and
therefore cannot be zero-rated.
[Issued by the CBR, Islamabad, under the signature of Mr. Rizwan Salabat Second
Secretary, Tariff (ST&FE) addressed to the Executive Director (Finance), Pakistan National
Shipping Corporation, PNSC Building, M. T. Khan Road, P. O. Box 5350, Karachi.]
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C. No. 1/59-STB/2002 DATED 20 TH FEBRUARY, 2008
SUBJECT:
REFUND OF VALUE ADDED TAX
I am directed to refer to your D.O. No. 10(5)/2003-EU-II, dated 7 th February,
2008 on the subject cited above and to say that the issue has been examined and the legal
provision as regards trade fair held in Pakistan and the facilities available to their
participants to imported goods for display is provided at S. No. 57 of the Sixth Schedule
to the Sales Tax Act, 1990 (copy enclosed) which allows exemption for goods
temporarily imported into Pakistan, for subsequent exportation subject to limitations and
procedures as envisaged under the Customs Act, 1969. The relevant portion in the
Customs Act where such conditions are mentioned in heading 9920 of the Pakistan
Customs Tariff is as under:
Goods mentioned below, imported temporarily into Pakistan with a view to
subsequent exportation, subject to furnishing of undertaking/bond by the
importers as well as their sponsoring Ministry/Department/Embassy:
Goods imported for display at international or single country exhibition
organized by foreign mission or imported by or through the Ministry of
Commerce or the Ministry of Foreign Affairs.
2. As exemption from customs duty and sales tax is available on goods
imported for trade fair/exhibition to be held in Pakistan and no sales tax is leviable on the
space charges and stand construction, the Embassy of Pakistan in Berlin may be apprised
of this fact accordingly and present the case of Pakistani exhibitors for VAT refund as the
reciprocity principle is already covered under Pakistan‘s Sales Tax Law. This position
has already been intimated to Finance Division vide this Office OM dated 05.05.2004
(copy enclosed).
[Issued by the CBR, Islamabad, under the signature of Mr. Asif Abbas, Second Secretary
(ST-Budget), addressed to Mr. S. Anjum Bashir, Joint Secretary, Ministry of Commerce,