Sales Tax Instructions

Sales Tax Instructions, 2009
Balochistan can enjoy sales tax exemption upto 30.6.2001 provided
capital outlay of the unit is rupees one billion or more and the unit is set
up before 31.12.2000. The cut out date for setting up units has been
changed to 30.6.1996. However, letters of credit opened upto that date
will be protected.
(viii) Items taxable @ 17%.—At present vacuum flasks and bicycle tyres &
tubes are liable to sales tax @ 17%. With a view to reducing the number
of sales tax rates, these items will also be taxed at the standard rate.
(ix) Fixed tax schemes.—All fixed tax schemes except for brick kilns are
due to lapse on 30.6.1996. These schemes are not being renewed. The
fixed tax scheme on brick kiln will lapse on 30.6.1997. The Fourth
Schedule to the Act prescribes the rates of fixed tax for 1996-97.
(x) Threshold of turnover.—The manufacturers whose turnover (i.e., sale)
does not exceed rupees one million per year will not be under an
obligation to get registered. However, they will pay a turnover tax @ 4%
on their total sales. This turnover tax will be payable on six monthly
basis and no input credit will be admissible. Further instructions
regarding this will be conveyed in due course.
(xi) Cottage Industry.—The present SRO relating to cottage industry is
being withdrawn. It has, however, been decided that units with an
annual turnover of less than Rs. 300,000/- (3 lac) shall not be required
to pay sales tax or turnover tax. The purpose is to keep the genuinely
small units completely out of the tax net. At the local level it may be
ensured that officials do not harass such genuinely small manufacturers
on the pretext that they should ―register‖ for sales tax or ―enroll‖ for
turnover tax.
(xii) Retail supply of furniture and hand knotted carpets and wholesale
supply of paper board.—Sales tax has been restricted to supplies made
by manufacturers only. Hence, supplies made by retailers of furniture
and hand knotted carpets and by wholesalers of paper board have been
exempted.
(xiii) Zero rating of supplies to diplomats.—Rules are being issued to
provide for detailed procedure to allow local manufacturers to make
zero-rated supplies to diplomats, diplomatic missions and privileged
persons/organizations. This will, on the one hand, improve the
competitive position of local supplies against import and, on the other
hand, widen the choice available to diplomats/privileged persons.
(I) IMPORT
Note:-- [All revenue measures including changes in rates are effective from 13.6.1996.]
(i)
(ii)
Withdrawal of Exemptions.—All general and sector specific exemptions
are being withdrawn except those on unprocessed foodstuff etc. The
items which will remain exempt, have been made part of the Act. The
sixth Schedule to the Act refers.
Effective date of withdrawal of exemptions.—Exemptions of sales tax
on imports are being withdrawn with immediate effect. Since existing