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020917
GOVERNMENT OF PAKISTAN REVENUE DIVISION CENTRAL BOARD OF REVENUE
Sales Tax Ruling/ Instruction No. 62/2002
(SALES TAX WING)
C. No.3(36)STP/99(Pt-I)
Islamabad, the 17th September,2002.
To:
The Collectors,
Sales Tax & Central Excise,
Peshawar, Lahore, Rawalpindi, Gujranwala,
(East) Karachi, (West) Karachi,.
The Collector,
Customs, Sales Tax & Central Excise,
Hyderabad, Multan, Quetta.
The Collector,
Collectorate of Sales Tax,
Faisalabad.
Subject:
PAYMENT AGAINST A SUPPLY PARTLY IN CASH AND PARTLY IN KIND.
I am directed to refer
to the subject noted above and to say that M/s Toyota Rawal Motors have raised a
question to the Board that whether payment against any supply can be made partly
in cash and partly in kind.
2. The matter has been examined in the Board. The value of supplies can either
be in cash or partly in cash and partly in kind as per the provisions of proviso
(i) to clause (a) to sub-section (46) of section 2 of Sales Tax Act, 1990.
Similarly, as per the provision of section 73 of the Act, if a transaction
exceeds Rs. 50,000/-, the payment is to be made through crossed cheque drawn on
bank or by a crossed bank draft or pay order or any other banking instrument
showing transfer of the payment from the business account of the buyer to the
business account of the seller.
3. In view of the mentioned provisions of Sales Tax Act, 1990, it is ruled that
the payment can be received in kind provided;
(i) goods received in kind represent taxable goods under the Act.
(ii) goods received in kind as consideration are adequately reflected in the
books of accounts with reference to sales tax invoice number and date; and
(iii) the balance/remaining amount even of less than Rs. 50,000/- is transferred
from the business account of the buyer to the business account of seller through
banking instrument, as mentioned in section 73 of the Act.
(MANZOOR HUSSAIN MEMON)
Secretary (ST-L&P)
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