20000130

3 pc addl ST to be paid by all not included in exemption list

RECORDER REPORT

ISLAMABAD: The Central Board of Revenue (CBR) has told Karachi Chamber of Commerce and Industry (KCCI) in response to a query, that all unregistered persons and trade bodies not included in the exemption list have to pay three percent additional sales tax, it is learnt from official sources.

In a letter to Asif Aziz Balgamwala, chairman of taxation sub-committee, Chamber of Commerce and Industry, Karachi, the Sales Tax wing of CBR has clarified that all those persons, institutions and companies, whether public or private, who are not covered under the exemption list are subject to levy of three percent additional sales tax.

The exemption list of sales tax includes those cases where taxable supplies are made by a person registered as a retailer, or by any registered person, to a person whose income is not liable to tax under the income tax or by a registered person on the supply of electrical energy, natural gas, petroleum gas including liquefied petroleum gas and petroleum.

The CBR has referred to Section 3 (1A) of the Sales Tax Act, 1990 that all taxable supplies made in Pakistan to unregistered persons are subject to the levy of additional tax except the registered names given in the list.

The CBR has further said that no relaxation can be extended regarding recovery of three percent additional sales tax from unregistered trade bodies.