Sales Tax Instructions

Sales Tax Instructions, 2009
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C. NO.9(36)-STT/65 DATED 11 TH JANUARY, 1995
SUBJECT:- APPLICATION FILED BY P.C. POLES MANUFACTURERS
ASSOCIATION FOR EXEMPTION OF SALES TAX UNDER
SERIAL NO. 17 OF SRO 553(I)/94, DATED 09.06.1994.
I am directed to refer to the above subject and to say that Messrs P.C.C. Poles
Manufacturers Association have requested for grant of exemption of sales tax on P.C.C.
poles on the ground that P.C.C. poles is a component part of electricity pole. The
requested has been examined in the Board and the same is not acceptable as P.C.C. pole
is an electricity pole itself and as such it does not qualify for exemption of sales tax in
terms of S. No. 17 of Notification No. SRO 553(I)/94, dated 09.06.1994. It is, therefore,
requested that sales tax, if any payable may be recovered expeditiously.
[Issued by the C.B.R., Islamabad, under the signature of Mr.Muhammad Arshad,
Secretary,(Tariff)), addressed to the Collector of Customs, Central Excise & Sales Tax, Lahore,
Karachi, Rawalpindi, Quetta, Multan, Hyderabad, Gujranwala.]
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SALES TAX GENERAL ORDER NO.1/1995 DATED 9 TH APRIL, 1995
SUBJECT:- LEVY OF SALES TAX ON GOODS PRODUCED BY VENDORS
FROM MATERIALS SUPPLIED BY PRINCIPALS.
Attention is invited to Sales Tax General Order No. 5/1994 dated the 6th April,
1994 (copy enclosed for ready reference). The said General Order deals with calculation
of sales tax on consideration received by a vendor who manufactures a product with the
help of raw materials supplied by the principal to the vendor for converting them into
finished products.
2. It is stated in the said General Order that value of supply by the vendor
for calculating sales tax in such cases, will be the gross amount of conversion charges
without any deduction therefrom. Sales tax is therefore, to be calculated on the gross
amount of such charges and excise duty, if any, levied thereonHowever, input tax credit
for sales tax paid on raw materials and packing materials or other goods supplied by the
principal would not be adjusted against the tax so calculated. Certain conditions are also
laid down vide para 4 of the said General Order which are required to be fulfilled.