Sales Tax Instructions

Sales Tax Instructions, 2009
(c)
the Appellate Tribunal/Member (Judicial) Central Board of Revenue as
per the provisions of section 46 of the Sales Tax Act, 1990; and
Similarly, the orders passed under section 46 may indicate that questions
of law arising out of that order can be referred to the Honorable High
Court through the Appellate Tribunal as per the provisions of section 47
of the Sales Tax Act.
[Issued by the CBR, Islamabad under the signature of Mr. Akhtar Ali, Secretary (STP),
addressed to all the Collectors), vide File No.1(43)STP/94.]
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SALES TAX CIRCULAR NO.4/1994
C.No.1(4)GST-1/93 DATED 14 TH APRIL, 1994
SUBJECT:- LEVY OF ADDITIONAL TAX ON CASE FALLING UNDER
SECTION 11 AND SECTION 36 OF THE SALES TAX ACT,1990.
A question has arisen regarding the date and time of calculation the additional tax
in cases where tax due under section 6 is not paid on the due date or return is not filed or
in-correct return is filed and assessment order is passed under section 11 of the Sales Tax
Act, 1990.
2. The question has been examined in consultation with the justice Division
and necessary directions are being issued through this circular.
3. Section 6 of the Sales Tax Act lays the time and manner for the payment
of tax. Under section 11, if a registered person does not file return or the amount of tax
shown as payable in the return is not correct, appropriate officer of Sales Tax Department
makes an assessment of the tax which the registered person is required to pay within the
specified time. Under section 34, if a registered person fails to pay the tax within the time
specified in section 6, he shall, in addition to tax due, be liable to pay additional tax and
surcharge at the rate specified in section 34.
4. The provisions of section 6, 11 and 34 read together lead to the
conclusion that if tax is not paid on the due date, the additional tax starts accumulating
and whenever an assessment of tax is made under section 11, the period of default is to be
calculated from the date when the tax was originally due and should have been deposited
and not from the of assessment order under section 11. Section 11 lays down the date by
which the original tax and additional tax etc. due under section 34 is to be deposited.
5. Regarding cases falling under section 36, it is pointed out that additional
tax is in the nature of a charge payable by the tax payer who fails to deposit the tax within