Sales Tax Instructions

Sales Tax Instructions, 2009
SALES TAX ON IMPORT OF EDIBLE OILS IN PURVIEW OF
SRO. 24(1)2006 DATED 07.01.2006
I am directed to refer to subject noted above and to say that it has been reported
that fixed Federal Excise Duty payable Re. 1/kg under SRO 24(1)/2006 dated 07.01.2006
has been included in assessable value for calculation of Federal Excise Duty (FED in
Sales Tax mode). While re iterating instructions contained in Board‘s letter of even
number dated 13-12- 2007, it is pointed out that Sales Tax on edible oils is exempt under
Sixth Schedule to the Sales Tax Act, 1990. FED is payable on edible oils in Sales Tax
mode as provided in Second Schedule to the Federal Excise Act, 2005.
2. At import stage, first FED in Sales Tax mode should be realized on
assessable value inclusive of customs duty and then fixed FED of Re. 1 per kg should be
collected on the same assessable value in terms of SRO 24(1)/2006. The fixed Federal
Excise Duty Re. 1 per kg is in lieu of FED payable after value addition at manufacturing
stage as provided in the said SRO. Therefore, there is no justification to include fixed
FED in assessable value while calculating FED in Sales Tax mode at import stage.
Refund claims, if pending disposal, may be processed in accordance in terms of STGO
03/2004.
[Issued by CBR, Islamabad, under the signature of Mr. Muhammad Sadiq, Secretary
(Law & Procedure) addressed to All Collectors of Customs and copy endorsed to all Director
Generals, RTOs/LTUs and Pakistan Edible Oil Refiners Association, Islamabad.]
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C.NO.1(9)STM/2009 DATED 27 TH APRIL, 2009
SUBJECT:
SALES TAX AUDIT
I am directed to refer to Board‘s letter C. No. 1(9)STM/2009 dated 05.03.2009 of
the subject cited above.
2. The Board had decided to reactivate audit of the registered persons
during the collector‘s conference held on 15.10.2008 and all the field units were advised
vide above said letter to carry out audit in a systematic manner in order to ensure
transparency and objectively and avoid harassment to taxpayers in the name of the
audit. However, it has come to the notice of the Board that audit notices are being issued
recklessly to the taxpayers regardless any audit parameter or risk assessment. These
notices have been issued even to the registered persons covered under the special
procedures and in some cases for previous five years. The state of affairs is not
satisfactory and warrants immediate personal attention of Director General and
Collectors.
3. It is advised to take due care and caution in selection of cases for audit
keeping in view their tax profiles and other parameters. The audit may be conducted for