Sales Tax Instructions

Sales Tax Instructions, 2009
Goods include every kind of movable property other than actionable claims, money,
stocks, shares and securities.
What are taxable goods?
Taxable goods are all goods other than those which have been exempted from Sales Tax.
(see 6th Schedule of the Sales Tax Act, 1990)
What is a service?
The following services have been brought under the sales tax regime through respective
Provincial Ordinances. Any person rendering these services shall have to get himself
registered and pay GST @ 15%.
1. Services provided or rendered by hotels, marriage hall, lawns, clubs and caterers.
2. Advertisements on TV. and Radio excluding advertisements;
• if sponsored by a Government Agency for health
education;
• if sponsored by Population Welfare Division relating to
Sathi, educational promotion campaign funded by
USAID; and
• public service messages if telecast on television by
World Wildlife Funds for Nature or UNICEF.
3. Services provided or rendered by persons authorized to transact business on behalf of
others;
• Custom agents;
• Ship chandlers;
• Stevedores.
4. Courier services.
5. Services provided or rendered for personal care by beauty parlours, beauty clinics,
slimming clinics.
6. Services provided or rendered by laundries and dry cleaners.
Are all services subject to Sales Tax?
No. Only those services are subject to sales tax which have been specifically mentioned
in the Provincial Ordinances.
However, there are three services on which Sales Tax is collected in the manner of
Central Excise mode. They are;
• Telecommunication Services;
• Travel by Air, Rail; and
• Carriage of goods by air.