Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.3(3)STT-II/93 DATED 5 TH SEPTEMBER, 1993
SUBJECT:- PROVISIONAL COLLECTION OF SALES TAX.
In continuation of Board‘s letters of even number, dated 1 st August, 1993, 2 nd
August, 1993, 4 th August, 1993 and 30 th August on the above subject undersigned is
directed to say that the Board is pleased to extend the date from 5 th September, 1993 to 9 th
September, 1993. This facility is for the commodities whose names are indicated in these
letters.
2. The Commodities in respect of which Fixed Tax Schemes for 1993-94
are notified by CBR will be intimated by 8 th September, 1993 so that action is taken to
recover sales tax as per these schemes or in the normal manner whichever is applicable.
[Issued by the C.B.R., Islamabad, under the signature of Mr.Kh.Umar Mehdi, Second
Secretary (GST-II), addressed to the Collector, Central Excise & Sales Tax, Lahore Karachi; and
the Collector, Customs, Central Excise and Sales Tax, Hyderabad/ Multan/ Peshawar/ Quetta/
Rawalpindi].
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C. NO.3(11)GST-I/93 DATED 13 TH SEPTEMBER, 1993
SUBJECT:- INTERPRETATION OF TERM ―SUPPLY‖ USED IN SECTION
2(22) OF SALES TAX ACT.
Reference Collectorate‘s letter No. IV (2) Collector/5/Seiz/93/930 dated 19th
August, 1993 on the above mentioned subject. The undersigned is directed to intimate the
following:-
(i)
In the context of the concrete case before us, the phrase ―Business carried
out for consideration‖ used in section 2(22) does not refer to the business
carried out by a section or department of Railways or WAPDA. It refers to
business being carried out by Railways and WAPDA. As the two agencies do
not provide their services free of charge they are carrying on business for
considerations. Therefore, they will have to pay sales tax on goods produced
and consumed by them.
(ii)
(iii)
Irrespective of the reasons given in item (i) above the Railways, WAPDA
and such other agencies will continue to be liable to sales tax so long as the
Supreme Court does not give a finding different from the one given in Civil
Appeal No. 284 of 1987.
The issue of sales tax liability of goods produced for consumption by
agencies like KDA was examined by the Supreme Court in Civil Court
Appeal No. 284 of 1987 in KDA vs CBR. The Honourable Supreme Court has
held that sales tax is payable by KDA on pre-stressed cement pipes for its own
use and not sale to any other person.