Text Box:  
Sales Tax Ready Reference
 
 
 
146th update dated March 31, 2014
This update covers:-
-Sales Tax (Amendment) Ordinance IV of 2014;
-Provincial Sales Tax: SRB-3-4/3/2014 & SRB-3-4/5/2014;
-SRO: 801(I)/2013, 140(I)/2014, 141(I)/2014, 212(I)/2014 & 236(I)/2014;
-General Orders: 17 to 27 of 2014;
-C.No.3(3)-ST-L&P/2014/26035, C.No.1/23-STB/2010(Pt)/30303-R, 1(8)Rev Bud/98, Judgment of the Honorable Lahore High Court Lahore dated. 07.03.2014 & C.No.1(1)M(IR-Policy)/2014.
These are briefly explained as under:–
Part I –Sales Tax Act
1.      On page 45, Section 3 has been amended by Sales Tax (Amendment) Ordinance IV of 2014 dated March 24, 2014. This is a redrafting for tax on CNG.
2.      On page 48, Section 3B has been amended by Sales Tax (Amendment) Ordinance IV of 2014 dated March 24, 2014. This is a redrafting to override any orders of the superior courts so as to ensure that any sales tax wrongly recovered is payable to the Federal Government as sales tax.
Part II –Provincial Sales Tax
3.      On pages 112 onwards, Sindh Provincial Sales Tax on Services Rules, 2011 has been amended by SRB-3-4/3/2014 & SRB-3-4/5/2014 dated February 25, 2014 & March 20, 2014 respectively.
Part III –Notifications
4.      On page 8, SRO 212(I)/2014 dated March 26, 2014 has been reproduced. This is to allow adjustment of tax paid under the provincial sales tax laws, as input tax w.e.f. July 1, 2013.
5.      On page 16, SRO 236(I)/2014 dated March 31, 2014 has been reproduced. This is provides that the Value of supply to the CNG consumers as the “Total Value Added Cost” of CNG as notified, from time to time, by the OGRA.
6.      On page 30ii, SRO 490(I)/2004 dated June 12, 2004 has been amended by SRO 141(I)/2014 dated February 28, 2014. This provides limits on adjustment of Federal Excise Duty and Sales tax based on capacity paid on aerated waters.
Part VA – Special Procedure 2007
7.      On pages 93 onwards, Production Capacity (Aerated Water) Rules, 2013 2014 has been amended by SRO 140(I)/2014 dated February 28, 2014.
Part VI – General Orders
8.      On pages 218 onwards, General Orders No. 17 to 20 of 2014 dated February 19 and 21, 2014 respectively have been reproduced. These are re: supply of electricity and gas.
9.      On pages 220 onwards, General Orders No. 21 to 23 of 2014 dated February 28 and Mar 06, 2014 respectively have been reproduced. These are re: supply of electricity and gas.
10.     On page 221, General Orders No. 24 to 26 of 2014 dated March 14, 2014 respectively have been reproduced. These are re: supply of electricity and gas.
11.     On page 221, General order No. 27 of 2014 dated March 18, 2014 has been reproduced. This is re: Levy of 2% extra tax on the supply of Auto Parts & Accessories, Tyres & Tubes and Storage Batteries by manufacturers of these goods directly to OEMs/ Automobiles manufacturers – Clarification Regarding.
Part VII – Circulars
12.     On pages 69 onwards, C.No.3(3)/ST-L&P/2014 dated February 18, 2014 has been reproduced. This is re: Introduction of New Risk-Based Sales Tax Registration Procedure.
13.     On page 70, C.No.1(8)Rev Bud/98 dated March 20, 2014 has been reproduced. This is re: Collection of duty & taxes on 29th and 31st March, 2013* by authorized branches of State Bank of Pakistan, National Bank of Pakistan and National Institute of Facilitation Technologies (NIFT0.*it should be 2014.
Part VIII – Instructions/ Rulings
14.     On page 198, C.No.1/23-STB/2010(Pt)/30303-R dated February 27, 2014 has been reproduced. This is re: Writ Petitions filed in the Honourable High Courts Challenging the Vires of Section 2(22A) of the Sales Tax Act, 1990 in the context of input adjustment of Sales tax paid under the Provincial Sales Tax Laws and returns made not online.
15.     On pages 198 onwards, Judgment of Lahore High Court, Lahore dated March 07, 2014 against W.P. 28287 of 2013 has been reproduced. This is re: Vires of Section 2(22A) of the Sales Tax Act, 1990.
16.     On page 202, C.No.1(1)M(IR-Policy)/2014 dated March 31, 2014 has been reproduced. This is re: Collection of sales tax on CNG from CNG stations through Gas Bills under the Sales Tax (Amendment) Ordinance, 2014 – Clarification Regarding.
Part X – Federal Excise
17.     On page 89, Rule 24B has been amended by SRO 801(I)/2013 dated September 19, 2013. This is re: Minimum retail price of cigarette.