Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.5(17)PC/91-ST(VOL.II) DATED 27 TH SEPTEMBER, 1993
SUBJECT:- WHOLESALE TAX ON PAPER BOARD.
I am directed to refer to your telex No .IV(2)CE/125/91/540, dated 5 th
September, 1993 on the above subject and to say that sales tax is not payable by the
Packages Ltd., as a wholesaler on those goods which are produced by them. They will,
however pay sales tax as a wholesaler if they buy a commodity and sell it without
subjecting it to any process.
2. As far as sales tax liability on intermediary goods is concerned, the
Packages Ltd., will pay sales tax if intermediary article produced by the company is sold
to another person. However, if the intermediary commodity is consumed by the packages
Ltd., they will pay sales tax on it if the end product is exempt from tax. If the end product
is liable to sales tax, no tax will be paid on the intermediary article under SRO 560(I)/89.
[Issued by the C. B. R., Islamabad under the signature of Mr. Javed Iqbal Mirza, Second
Secretary (GST-I),addressed to the Collector, Central Excise and Sales Tax, Lahore]. Copy of
Notification SRO. No.560(I)/89 dated 3 rd June, 1989 is reproduced below:-
Notification No. S.R.O. 560(I)/89, dated 3 rd June, 1989.-- In exercise of the powers
conferred by sub-sections (1)and (2) of section 7 of the Sales Tax Act, 1951 (III of 1951), the
Federal Government is pleased to exempt such partly in manufactured goods as are produced or
manufactured in a factory and used within the same factory to manufactured goods in respect of
which sales tax is payable, from the whole of the sales tax leviable thereon under the said Act.
[Issued by the Federal Government, under the signature of Mr.G.A Jahangir, Additional
Secretary, vide File C .No. 288-Chief (CE & ST)/89.]
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C. NO.16(5)STT.I/93 DATED 19 TH OCTOBER, 1993
SUBJECT:- SALES TAX ON PRESS MUD.
I am directed to refer to Board‘s letter of even number dated 3 rd March, 1993 on
the subject noted above and to say that the matter has been examined in the Board and it
has been observed that press mud falling under PCT Heading No.23.03 is conditionally
exempted from payment of sales tax under S.R.O. 598(I)/90, dated 7 th June, 1990. It is
thus evident that bagasse and press mud (23.03) would be exempt only if used by
manufacturer of sugar as fuel for manufacture of sugar or for any related purpose under
the mills. As such exemption is not available for supply of press mud outside the sugar
factories with or without considerations.
2. In view of the foregoing, Collectors are requested to ensure that sales tax
is levied on all taxable supplies and to recover arrears of such levies in the past.