Sales Tax Instructions

Sales Tax Instructions, 2009
[Issued by the CBR, Islamabad under the signature of Mr. Ahad Nawaz, Secretary (STP),
addressed to all the Collectors.]
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C. NO.1(2)MACH./95. PT.I DATED 18 TH APRIL, 1995
SUBJECT:- CONDONATION OF DELAY OF INSTALLATION PERIOD.
The Board is receiving many requests for condonation of delay in installation
period as laid down in various SROs. It has been observed that in cases of delay the
Assistant Collectors in certain cases advise the applicants to produce the condonation of
delay first from CBR before they can process the case. CBR must also know the fact
whether the machinery has been installed or not before delay is condoned.
2. You are therefore, requested to direct the Assistant Collectors to process
the requests and issued installation certificate if the machines have been installed subject
to the condonation of delay by CBR. The Collectorate to whom indemnity bond/bank
guarantees have been submitted will take care of delay and will not release the same
unless CBR condones the delay.
[Issued by the C.B.R. Islamabad, under the signature of Mr. Khalid Naseem, Secretary
(Machinery), addressed to the Collector of Customs, (Appraisement)/(Preventive) Port Qasim,
Custom House, Karachi, the Collector of Central Excise & Sales Tax, (East)/ (West)/ (Central),
University Road Karachi, the Collector of Customs, Custom House, Lahore and the Collector of
Customs and Central Excise, Rawalpindi, Peshawar, Gujranwala, Multan, Faisalabad,
Hyderabad and Quetta.].
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C. NO.3(8)GST-I/93 DATED 20 TH APRIL, 1995
SUBJECT:- ADJUSTMENT OF INPUT TAX.
Instances have come to the notice Board, where the manufacturers have agitated
the provision of Sales Tax Circular No. 2 of 1990, on the grounds that on the one hand if
intermediary goods which are exempt, are produced from sales tax paid raw materials
and, these intermediary goods are consumed in the same unit towards manufacture of
finally taxable goods, then the sales tax paid on raw material is adjustable. On the other
the hand if such intermediary goods are supplied to another unit for manufacture of some
finally taxable goods, the second unit is not entitled for sales tax adjustment paid on basic
raw materials.
2. It was, therefore, opined that sub para (iii) of para 2 of the subject
circular is not in conformity with section 27 of the Sales Tax Act, 1951 and section 7 of
the Sales Tax Act, 1990.