Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.1(5)GST-I/91 DATED 13 TH JUNE, 1994
SUBJECT:- THE CORRECT AMOUNT OF SALES AND APPLICATION OF
HIGHER GROSS PROFIT / NET PROFIT RATE IN INCOME
TAX ASSESSMENT ORDERS – APPREHENSION OF SALES
TAX PAYERS
It has been brought to the notice of Central Board of Revenue that some
registered persons who are otherwise in favour of sales tax levy have expressed an
apprehension that the Income Tax Department will make use of the information about
correct sales declared in sales tax returns.
2. At present the Income Tax Authorities do not accept the declared amount
of sales and gross profit / net profit if the books of account are not maintained as per
Income Tax Law. The Income Tax Officers generally enhance the sales marginally while
the rate of gross profit / net profit is enhanced substantially. This system has been
established over the years. The registered persons under the sales tax may be reluctant to
pay sales tax on their actual sales because of a fear that sales tax authorities will pass on
the information to Income Tax Authorities, who will apply the existing gross profit / net
profit rates to true sales declared for sales tax purpose. They apprehended that their
income tax liability will be enhanced in this way.
3. This issue has already been taken care of. In this respect the following
passage from Finance Minister‘s Speech for 1993-94. budget is relevant:--
4. In this connection necessary amendment has been made in sub-section
(4) of section 32 of the Income Tax Ordinance.
5. The trade associations of sales tax registered persons may, therefore,
contacts the Income Tax side of Central Board of Revenue to invoke the facility
announced by the Finance Minister.
[Issued by the CBR., Islamabad, under the signature of Mr. Pervez Iqbal, Secretary
(Sales Tax Reforms), addressed to all Collectors of Central Excise and Sales Tax.]
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C. NO.1(84)STC-I/94 DATED 30 TH JUNE, 1994
SUBJECT:- SALES TAX FROM GOODS FORMERLY ON FIXED TAX
SCHEME – AND TAX ON INGOTS & BILLETS
I am directed to refer to SROs No.566 and 567(I)/94 both dated 9 th June, 1994
and to say that the following course of action, in addition to the provisions of above
mentioned SROs, may kindly be followed:-