Sales Tax Instructions

Sales Tax Instructions, 2009
********
C. NO. 2(7)GST-I-1/91 DATED 14 th DECEMBER, 1991
I am directed to refer to your telex No. 54514, dated 23-10-1991 and the meeting
held with officers of the Board and members of the Association and to say that the points
raised by the Association have been considered in the Board. The Central Board of
Revenue is pleased to rule as under :-
(i) There is no problem if a manufacturer has no storage facility in
consuming area because the manufacturer while issuing a tax invoice has only to
indicate the information i.e. the registration number of the wholesalers, the
amount of sales tax and the number and date of treasury challan. These details
have nothing to do with distances. There should not arise any problem for a
manufacturer whose units is located away from the consuming area.
(ii) The manufacturers and wholesalers have a mutual relationship regarding
payment for the goods. In case a wholesalers makes payment to the
manufacturers in advance for the purchase of goods, the wholesalers is confident
that he would receive goods. There does not seem any practical problem which
could not put either party in hardship.
(iii) The manufacturer is not under the law required to ensure the payment of
sales tax by his purchaser i.e. wholesalers. It is the responsibility of wholesaler to
deposit the amount of sales tax.
(iv) The wholesaler before purchase of goods from the manufacturer has to
pay the fixed tax because he has to give a copy of treasury challan to the
manufacturer. In case the wholesaler has not paid the amount of sales tax, the
manufacturer after issuing tax invoice will only write down the registrations
number of the wholesalers.
(v) A manufacturer should only supply goods to those wholesaler who are
registered with the department.
(vi) The responsibility of a manufacturer is to indicate in his tax invoice
registration number of the wholesaler, the amount of sales tax and the number
and date of the treasury challan.
(vii) Industrial consumer and manufacturer will pay this tax in the same
manner as commercial wholesaler.
[Issued by the CBR., Islamabad, under the signature of Mr. Abdul Sattar Aora, Second
Secretary, (GST-1), addressed to Mr. Abid Hussain, Vice Chairman, Pakistan Pulp and Paper
Board Manufacturing Association, Karachi.