Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.6(7)-STP/95 DATED 18 TH JULY, 1995
SUBJECT:- SALES TAX LAW APPLICABLE TO COMMERCIAL
IMPORTERS.
I am directed to refer to your letter dated 17 th July, 1995 on the above subject:-
2. Queries raised by you and replies thereof are as under:-
(1) We are required to prepare sales
tax invoice only for such sale
tax which are made to industrial
customers who are registered
with the Department of Sales
Tax and would claim the
amount of sales tax shown on
our sales tax invoices as
their input tax.
(2) We are not required to prepare
sales tax invoice for sales
pertaining to purchase from us
by those customers who
cannot claim input tax for
various reasons e.g. being on
fixed sales tax regime, or being
trades or for some other
reasons.
(3) The sales tax on imports is
already paid at the stage of
imports. The value on which
sales tax is collected by the
Customs authorities is also the
value of supplies as per SS
31(d) of section 2 of sales Tax
Act, 1990. As such no sales tax
is payable by us even when we
sell the imported material at a
profit.
(4) In case where we are required
to prepare a sales tax invoice do
we also have to issue a
transport permit.
(5) Will it be appropriate to
mention in our sales tax
invoices that the sales tax has
already been paid by us at the
import stage on such and such
(1) Invoices should be issued for all
supplies for the purpose of
documentation.
(2) Invoices should be issued for all
supplies for the purpose of
documentation.
(3) The supplies to domestic market
will be exempt once that sales
tax has been paid at the import
stage. This position will
continue until the Government
decides to levy sales tax at
wholesale/ retail stages also.
(4) There is no need of issuance of
transport permit as after
payment of sales tax on imports,
further supplies to domestic
market will be exempt supplies.
(5) It is required to mention
in sales tax invoices that
the sales tax has already
been paid at the import
stage on such and such