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030616
SALES TAX INSTRUCTIONS/
RULING NO. 15/2003
GOVERNMENT OF PAKISTAN
CENTRAL BOARD OF REVENUE
REVENUE DIVISION
(SALES TAX WING)
*****
C. No. 1/29-STR/99. Islamabad the 16th June, 2003.
To: 1.
The Collectors,
Collectorates of Sales Tax & Central Excise,
Lahore/ Rawalpindi/Gujranwala/ Peshawar/Karachi (East/West).
2. The
Collectors,
Collectorates of Customs, Sales Tax & Central Excise,
Multan/Hyderabad/Quetta.
3. The
Collector,
Collectorate of Sales Tax, Faisalabad.
4. The
Collector,
Large Tax Payers Unit, Karachi.
SUBJECT: CLARIFICATION ON CHARGEABILITY AND PAYMENT OF SALES TAX BY
PRODUCERS OF LPG.
I am directed to refer to the subject cited above and to say that a question has
been raised whether producers of LPG are liable to charge and pay sales tax on
supplies made by them from bore-holes and wells in terms of the Collection and
Payment of Sales Tax on Natural Gas Rules, 1999.
2. The matter
has been examined in the Central Board of Revenue. The provisions of the
Collection and Payment of Sales Tax on Natural Gas Rules, 1999 are explicit and
un-ambiguous. Rule 3 enlists stages of collection and payment of sales tax and
identifies, stage-wise, the persons responsible to charge and pay sales tax on
the supply of natural gas. In case of LPG, the liability to collect and pay
sales tax commences from the event of supply from bore-holes and wells and
continues until the same is sold to the ultimate consumers. As such all the
persons engaged in the sale and supply of natural gas including LPG at any stage
from bore-holes and wells to retail sale, are liable to get themselves
registered under section 14 of the Sales Tax Act, 1990 and discharge their
statutory responsibilities under the Sales Tax Act, 1990. The person paying
sales tax (output tax) is, however, entitled to take adjustment of the tax
(input tax) already paid at the previous stage. Therefore, all persons involved
in any taxable activity of production, supply transmission, distribution or
retailing of LPG, are liable to follow the provisions of the Sales Tax Act, 1990
read with Collection and Payment of Sales Tax on Natural Gas Rules, 1999
notified vide SRO 1040(I)/99 dated 14-09-1999.
(Pervez Esbhani)
Secretary (STR&S)
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