Sales Tax Instructions

Sales Tax Instructions, 2009
production of taxable products he can not claim adjustment of tax paid at
some previous stage on the import or purchase of raw materials.
[REDUNDANT]
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SALES TAX CIRCULAR NO. 3 OF 1990 DATE 30 TH JANUARY, 1990
SUBJECT:- CLASSIFICATION OF BUKRAM AND STARCHED FABRICS.
Cotton fabrics of PCT heading No.55.09 are exempt from levy of Sales Tax vide
SRO.642(I)/89, dated 17 th June, 1989, if coated with natural starch on one or both sides
of the fabrics.
2. A reference was received in the Board that since Bukram is starched
fabric the same is not liable to sales tax. The issue regarding classification of Bukram and
its liability to tax has been examined in the Board.
3. There are three kinds of Bukram based on the constituent materials and
the processes involved in its manufacturing. The first kind of Bukram is woven from
cotton warp and a blend of goat hairs and worsted/polyester yarn in equal ratios of weft.
The presence of goat hairs in the woven fabrics provides stiffness. This type of Bukram is
classified under PCT heading No.59.07.
4. The second category of Bukram is artifical Bukram manufactured by
applying polymers on grey cloth of required weight after heat setting. This is also
calssified under PCT heading No.59.07.
5. The third category is cheap quality Bukram which is made by simply
applying different starches on grey cloth to impart stiffness. The stiffness on the cloth is
not of permanent nature and disappears if the cloth is washed three or four times. This
category is classifiable under PCT heading 55.09 and is exempt from sales tax under
SRO.642(I)/89, dated 17 th June, 1989.
6. The first two categories of bukram are classifiable under PCT heading
No.59.07 and are chargeable to tax at the standard rate of 12-1/2 per cent ad val.
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C. NO. 16(3)-ST/81 DATED 31 ST JANUARY, 1990
SUBJECT:- EXEMPTION OF SALES TAX ON PARTS AND
ACCESSORIES SUPPLIED AS ORIGINAL EQUIPMENT
I am directed to refer to S. No.8 of SRO 565(1)/89 dated 3 rd June, 1989 which
allows exemption to the following:-
― parts and accessories of agricultural tractors,bus and truck engines and chasis if
supplied as original equipment to such assemblers or agricultural tractors, bus
and truck engines and chasis,as are approved----‖.