Sales Tax Instructions

Sales Tax Instructions, 2009
(Note: There are special rules for calculations to be made)
Are there other restrictions on claiming input tax?
Yes. You may not claim as an input tax, the sales tax charged on, among other things the
following:-
• business entertainment;
• most vehicles;
• building materials
• office equipment (excluding electronic cash register) furniture,
fixture and furnishings
• electrical & gas appliances
• telecommunication equipment
• generators & generating sets, excluding generators & generating
sets of 250 KVA or above, acquired by a registered manufacturer
for use in manufacture of taxable supplies;
• wires & cables & electrical fittings;
• crockery, cuttlery & utensils, etc;
• gifts;
• P.O.L products other than furnace oil, lubricants and greases.
And, you may not claim a Tax credit unless you hold a valid tax invoice or Bill
of Entry at the time you make your return.
If you lose a tax invoice, you must get an authenticated duplicate tax invoice before you
can claim a credit for the tax as an input.
What happens if I submit my return late?
If you do not submit your return within 15 days after the end of the relevant return period,
you will be liable to a penalty.
If you do not deposit with the National Bank of Pakistan the full amount of tax due by the
due date, you will be liable to a penalty. And if you fail to deposit the correct amount of
tax for two consecutive months you will have committed a tax fraud.
Debit Notes, Credit Notes & Invoices.
How do I deal with returned goods?
A customer returns goods and demands a refund of the purchase price, and this you agree
to do. On the other hand, you may return goods to your suppliers. In either event, you
have already paid tax on the basis of the original supply figures, and so you now need to
issue either debit or credit note.