Sales Tax Instructions

Sales Tax Instructions, 2009
input tax credits are correctly being claimed by the vendors and the
principals.
(vi) The Collectors have to ensure that the principal pays sales tax
on the value of finished product sold by him after getting it fabricated
through the job vendor.
4. The provisions of Sales Tax General Order No. 5/1994 need not be
followed as the present order covers all the situations.
[Rescinded by Sales Tax General Order No. 2 of 1996 dated 16.07.1996.]
[Issued by the C.B.R., Islamabad under the Signature of Mr. Ahad Nawaz,
Secretary(STP). addressed to all the Collectors.]
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SALES TAX CIRCULAR NO.4/1995
C. No. 1(4) GST-1/93 DATED 13 TH APRIL, 1995
SUBJECT:- LEVY OF ADDITIONAL TAX ON CASES FALLING UNDER
SECITON 34 OF THE SALES TAX ACT, 1990.
Some questions have arisen regarding the additional tax under section 34 of the
Sales Tax Act, 1990. These questions have been examined in consultation with the
Justice Division and the following guidelines are laid down to ensure uniform practice in
all the Collectorates.
2. The additional tax and surcharge leviable under section 34 of the Sales
Tax Act are in the nature of mandatory charge payable by tax payers who fail to pay the
due amount of tax within the specified time. The provisions of section 34 are attracted if
there is failure on the part of tax payer to pay due tax in time. Section 36 of the Act does
not exclude application of section 34; but the tax payer would be liable only in cases
where element of failure is present on his part. Therefore, additional tax and surcharge
under section 34 should be recovered after issuance of show cause notice, in the cases
falling under sub-section (1) of section 36 but should not be recovered in cases covered
by sub-section (2) of section 36.
3. Whenever additional tax/surcharge under section 34 becomes chargeable
either under section 6 or section 11 or section 36(1), it is to be calculated from the date
when the tax actually became due under section 6.
4. This supersedes Sales Tax Circular No.4/94.