Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.1(5)GST-I/91 DATED 2 ND MARCH, 1992
SUBJECT:- CLARIFICATION REGARDING SALES TAX ACT, 1990
I am directed to refer to your letter C.No.IV(2)ST/221/91/2247 dated 21-10-1991
on the above subject and to say that the issues raised in the letter under reference have
been examined in the Central Board of Revenue. The Board is pleased to clarify as
under:-
Valuation of goods when manufactured on labour charges.
Value of supply as defined under section 2(31) of the Sales Tax Act, 1990, is
very comprehensive and should be read in total for its correct understanding. According
to section 2(31)(a)(II) of the said Act, if ―the supply is made for consideration, which is
lower than the open market price, the value of supply shall mean the open market price
excluding the amount of tax. This means that value of supply can, in no case, be less than
the open market price.
Valuation of goods, which are taxable but are exempt from payment of Central
Excise duty.
According to section 2(31)(a), value of supply mean the consideration in money
including the excise duty, if any, which the supplier receives from the recipient for that
supply. Here the concept of value is transactional value i.e. the actual amount received
and not any notional value. The logical inference is that if a registered person has charged
and paid excise duty, then it will be included in the value for assessment purposes. In
other cases, where excise duty has to be charged and paid by the taxpayer, being exempt
under any valid notification, the same will not be included in the value of supply.
Seizure of vehicle alongwith contraband taxable goods.
Vehicle involved in the transportation of contraband goods can be seized but
there is no provision in the law whereby the vehicle can be confiscated. However, penalty
of twenty five thousand rupees or twice the amount of tax, whichever is greater, can be
imposed on the owner / driver of the vehicle under section 35 of the Act.
[Issued by the CBR., Islamabad, under the signature of Mr. Abdul Sattar Aura. Second
Secretary (GST.I), addressed to the Collector, Central Excise and Sales Tax, Lahore.]
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C. NO.1(3)GST-I/91 DATED 4 TH MARCH, 1992
SUBJECT:- REMOVAL OF TAXABLE GOODS AT ZERO-RATE FOR
FURTHER PROCESS BEFORE EXPORT
I am directed to refer to Board‘s letter of even number dated 30th October, 1991
on the above subject and to say that it was allowed by the Board to continue the
procedure for removal of goods under AR-2 under the Central Excise Rules, 1944
because new rules under Sales Tax Act, 1990 were not framed by then. Now, rules under