Sales Tax Instructions

Sales Tax Instructions, 2009
[Issued by the C.B.R., Islamabad, under the signature of Mr. Falak Sher, Chief (STO),
being addressed to the Collector, Sales Tax, (East/ Wets), Karachi; and the Collector, Sales Tax,
Lahore.]
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C.No.2-Chief (STR)/96 DATED 7 TH MAY, 1996
SUBJECT:- THE CHANGED ROLE OF AUDIT & INSPECTION AND
INTELLIGENCE & INVESTIGATION IN SALES TAX
MATTERS.
The Budget 1996-97 marks a significant change in the manners in which
―registered persons‖ of the sales tax department would be treated/controlled. The aim of
this letter is to apprise you of the changed position and also to request that the change is
fully understood by all staff in your organizations.
2. A registered person is one who holds a sales tax registration number.
Those who hold such registration since before the budget 1996-97 or who acquire such
registration after the budget 1996-97 would henceforth not be visited by any staff of sales
tax department, Inspection & Audit or Intelligence & Investigation. The only staff
authorized to visit such registered persons would be the audit or other designated staff of
the sales tax department; that too under authorization by their Assistant Collectors for
each visit. You may therefore advise all concerned accordingly. In the event of an unknowing
visit to a registered person, such staff must withdraw upon learning that the unit
being visited is a registered one. These instructions are effective from 1 st July, 1996.
3. Where a particular unit is an excise unit or a customs unit (bond etc.)
besides being a sales tax registered person, the authority of CBR‘s staff to visit such units
will remain un-affected by these instructions. However, even the authorised staff would
not undertake any scrutiny of sales tax related matters in such units.
4. In the units at para 3 above, if in the course of scrutiny of excise and/or
customs records etc, there is prima facie evidence of sales tax foul-play as well, the
officers of Inspection & Audit and Intelligence & Investigation shall bring the same to
the notice of the concerned Collector of sales tax in writing.
5. In the sphere of sales tax, however, the officers of Inspection & Audit
and Intelligence & Investigation shall continue to have jurisdiction over non-registered
persons or those ―enrolled‖ as payers of Turnover Tax.
6. In situations where an investigation is warranted for tax fraud by a
registered person, the concerned Collector of sales tax may either transfer the matter to
Intelligence & Investigation or request for assistance. In such cases access to the
concerned units will be authorised by Collectors of sales tax. Where Intelligence &
Investigation have good reasons to suspect tax fraud by a registered person, the matter