SALES TAX INSTRUCTIONS

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SALES TAX INSTRUCTIONS/
RULING NO.19 / 2003

GOVERNMENT OF PAKISTAN
CENTRAL BOARD OF REVENUE
REVENUE DIVISION
(SALES TAX WING)

Islamabad the 7th August, 2003.

C. No. 1/29-STR/99.

To:               The Collector, Collectorate of Sales Tax & Central Excise, Lahore/Rawalpindi/ Gujranwala/ Peshawar/Karachi (East/West).

The Collector, Collectorate of Customs, Sales Tax & Central Excise, Multan/Hyderabad/Quetta.

The Collector, Collectorate of Sales Tax, Faisalabad.
                    The Collector,
                    Large Taxpayers Unit, Karachi.

SUBJECT:     CLARIFICATION REGARDING CNG GAS STATIONS.

                    I am directed to refer to the subject cited above and to say that a question has been raised whether persons supplying CNG from CNG gas stations fall within the definition of manufacturer or retailer.

2.                 The matter has been examined in the Central Board of Revenue. The Board is of the view that persons supplying CNG from CNG gas stations fall within the definition of manufacturer as given in section 2(17)(a) of the Sales Tax Act, 1990 which is re-produced below: -

                    “(17) “manufacturer” or “producer” means a person who engages, whether exclusively or not, in the
production or manufacture of goods whether or not the raw material of which the goods are produced
or manufactured are owned by him; and shall include—
(a) a person who by any process or operation assembles, mixes, cuts, dilutes, bottles, packages,
repackages or prepares goods by any other manner.” 3.                 Hence the threshold and annual turnover limits for manufacturers as prescribed vide section 3A, 14(a) and Sr. No. 42(a) of the Sixth Schedule to the Sales Tax Act, 1990 would be applicable for suppliers of CNG from CNG gas stations. 4.                 All Collectors are advised to ensure that persons supplying CNG from CNG gas stations located in their jurisdiction are registered as manufacturers.
( Pervez Esbhani ) Secretary (STR)
Copy to: - Dr. Farooq Saeed Khan, Project Director, M/s. Gas Point, 50-Lower Mall Road, Lahore with reference to his letter No. GPII-CNG-786/01 dated 21-07-2003.

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