Sales Tax Instructions

Sales Tax Instructions, 2009
the specified time. Section 36 does not exclude application of section 34 in cases which
fall in the scope of section 36.
6. Field formations may take further action in the light of this ruling.
[Issued by the CBR, Islamabad under the signature of Mr. Akhtar Ali Secretary (STP)
addressed to all the Collectors.]
[Superceded by Sales Tax Circular N o. 4 of 1995 dated 13.04.1995]
********
SALES TAX CIRCULAR NO.7/1994 DATED 9 TH MAY, 1994
SUBJECT:- CLARIFICATION WITH REGARD TO SECTION 34 OF SALES
TAX ACT, 1990.
A question has arisen whether additional tax provided in section 34 will be
attracted in case of tax collected at import stage under section 6(1) or in case the sales tax
was not paid when the goods were cleared for consumption or ex-bonded from the
warehouse sanctioned under section 13 of the Customs Act, 1969. There are two
conflicting opinions in this regard. One view is that additional tax is not leviable with
respect to imports. The other view is that the failure to pay the tax on due date
automatically attracts chargeability to additional tax.
2. The question has been examined in consultation with the Law and Justice
division and it is ruled as under:-
(i)
(ii)
Section 6(1) of the Sales Tax Act, deals with the scope and payment of
the sales tax in respect of goods imported into Pakistan and it lays down
that it is liable to sales tax to be realised in the same manner and at the
same time as customs duty. Section 34 deals with the penalty for evasion
of sales tax which is recoverable as additional tax.
As is clear, section 6(1) provides for mode of realisation of sales tax on
imported goods in accordance with the provisions of the Customs Act,
1969. For any deviation or evasion from section 6 of the Sales Tax Act,
1990, additional charge is provided under section 34 ibid. Customs Act,
1969 has been referred in connection with the mode of realisation and
not otherwise. Therefore, in case of failure of payment of due amount of
tax, additional tax is to be levied under section 34 of Sales Tax Act, 1990
notwithstanding that the provisions in respect of levy of additional tax do
not exist in Customs Act, 1969.
3. Further necessary action may be taken in the light of this ruling.