Who is Gonne Registered and Pay the Sales Tax?

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2. Management Taxation
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3. Group Members
Names Roll No.
Ahmad Ali 22
Hassan Naeem Butt 43
Aqeel Ashiq 53
Aqib Javeed Khan 54
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4. Topic
Sales Tax, Registration and Returns
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Sales Tax
IS A TAX PAID TO
A GOVERNING BODY FOR THE SALES OF
CERTAIN GOODS AND SERVICES.
LAWS ALLOW (OR REQUIRE) THE SELLER
TO COLLECT FUNDS FOR THE TAX FROM
THE CONSUMER
AT THE POINT OF PURCHASE.

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Who is Gonne Registered and Pay the
Sales Tax?

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Sales Tax is chargeable
on all locally produced and imported goods
except
 Computer software
 Poultry feeds
 medicines and
 unprocessed agricultural produce of
Pakistan other goods specified in Sixth
Schedule to The Sales Tax Act, 1990.

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PERSONS MUST BE REGISTERED UNDER SALES TAX
 A manufacturer not having a cottage industry
 A retailer whose supplies values exceeds 5 million any time
in last 12 months
 An importer
 A wholesaler, dealer and distributer
 A person who is required under any law i.e under provincial
or federal law is bound to be registered
 Any commercial exporter

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COTTAGE INDUSTRY
 Annual sales for taxable supplies must not exceed 5 million any time
in last 12 months
 Annual utility bills during last 12 months must not exceed Rs.700,000

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SALES TAX INVOICE
Sales tax invoice can be issued only by the sales tax
registered person
It is required for a registered person to issue it wither he
sells to a registered person or not
A further tax of 2% is to be charged to un-registered person
An unregistered person can not issue sales tax invoice
A person who purchased goods from an unregistered
person cannot claim his credit refund as he has not paid it
Sales invoice is an evidence of input tax and output tax

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Sales Tax Invoice

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Procedure of Registration
Setups Involves:
 Submit an application using Form STR-1 at any tax facilitation counter at the nearest
Regional Tax Office (RTO).With all required documents.
 The local RTO forwards all applications to the Central Registration Office.
 After verification, the CRO issues a Registration Certificate bearing the registration
number and mails the same to the registered company, on prescribed Form STR-5.

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RETURNS
 Return means any return required to be furnished under
Chapter-V of the Sales Tax Act.
 A return is required to be furnished each 15 of a month,18 was
last date (only for a Registered person).
The sales tax department may require the filing of following
different types of returns:
i. Sales tax return
ii. Returns under Sales Tax Special Procedures Rules.
iii. Special return
iv. Final return

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SPECIAL RETURN
 The collector may require any person whether, registered or not, to furnish a
return (whether on his own behalf or as an agent or trustee) in a prescribed
form.
 Such person shall furnish the return not later than the date specified in this
regard.
FINAL RETURN
If a person applies for de-registration in terms of section 28, he shall before
such de-registration, furnish a final return to the Collector in the specified form
in such manner and at such time as directed by the Collector.

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Rana Aqib Javeed

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Maintenance of Records
All registered persons are required to maintain records at their
business premises of the goods purchased and supplied made by them.
All the records are required to be kept for a period of 5 years.

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Sales Tax Act 1990:
the Sales Tax Act ,1990 originally contained seven(7) schedules..
Currently ,the following schedules are Active and enforceable:
THIRD SCHEDULE: which specifies the goods in respect of which
the tax is levied on the retail price fixed by the manufacturer.
FIFTH SCHEDULE: which specifies the goods which are taxable at
the rate of zero percent.
SIXTH SCHEDULE: which contains the list of such goods that are
exempt from the Sales Tax.

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Taxable Supplies
A supply made by the following persons
Retailer
Wholesaler
Manufacturer
Distributer
Importer

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Input Tax Output Tax
it is the amount paid
by the registered
person on business
purchases and
imports. He/she can
claim a deduction for
the sales tax paid as
input tax if used in the
manufacture of taxable
supplies.
 It is the total amount
of sales tax charged at
current rate of sales
tax on taxable sales
made during the
month i.e. total sales
excluding exempt and
zero-rated supplies

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Tax Refunds
 In cases where the Input Tax exceeds the Output Tax due from the
registered person in respect of a tax period because of exports or other
zero-rated supplies, the excess amount of input is refunded back to the
taxpayer within 45 days.
 In all other cases of excess input tax, the Board can specify the procedure
for refund.

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Muhammad Hassan Butt

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Important Points
 Sales tax is a multi-stage tax The rate of tax is 17%
 It is also known as Value Added Tax (VAT) Value addition
 The Ultimate burden will be on the end use

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