Sales Tax Instructions

SALES TAX CIRCULAR NO. 1 OF 1989
Sales Tax Instructions, 2009
DATE 22 ND AUGUST, 1989
SUBJECT:- ADJUSTMENT OF SALES TAX PAID ON THE RAW
MATERIALS WASTED DURING THE MANUFACTURING OF
TAXABLE GOODS
Section 27(1) of the Sales Tax Act, 1951 provides that the manufactures of
taxable goods are entitled of the refund of tax paid earlier on the goods which are to be
incorporated into and form a constituent or component part of the taxable goods.
2. A question has arisen whether the refund/adjustment of sales tax can be
allowed on the quantity of partly manufacture goods/raw materials, which are wasted
during the process of manufacture of taxable goods.
3. After examining the issue the Board is pleased to state that sales tax
refund/adjustment is to allowed on the entire quantity of partly manufactured goods/raw
materials constituting inputs for taxable goods. The wastage occurring in the process of
manufacture is to be considered as a by product and should be taxed on its own value
otherwise exempted or treated in either of the following manners;
(a)
(b)
Where so provided, such waste can be removed in terms of procedure
prescribed vide Chapter X of the Central Excise Rules, 1944; or
Where so applied, the wastage, may be destroyed in terms of provisions
of Rule 53-C of the Central Excise Rules, 1994.
[Issued by the CBR., Islamabad, under the signature of Mr.Muhammad Younas Khan,
Second Secretary.]
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SALES TAX CIRCULAR NO. 1 OF 1990 DATE 11 TH JANUARY, 1990
SUBJECT:- EXEMPTION UNDER SRO 7(I)/83, DATED 5 TH JANUARY, 1983
PROCEDURE REGARDING.
Attention is invited to SRO 7(1)/83, dated 5th January, 1983 which exempts from
sales tax certain locally manufactured goods subject to fulfillment of 4 conditions laid
down in the aforesaid notification. Considerable difficulties are being experienced by the
manufactures in availing the exemption in the absence of prescribed procedure.
2. On receipt of representations, the problem has been examined in the
Board. In order to claim exemption, the following procedure is prescribed:--
(i)
Any manufacturer, deeming himself eligible for exemption, may apply
for the same to the concerned Collector of CE & ST in whose
jurisdiction the manufacturing unit is located;