THE SALES TAX RULES 2006

THE
SALES TAX
RULES 2006
Updated By
Mr. Hamid Hussain
Joint Director
Sales Tax & Federal Excise Wing
Federal Board of Revenue
Islamabad.
Phone No. 051-9205360
May not be use as a reference in courts
Sales Tax Rules 2006
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THE SALES TAX RULES, 2006................................................................................................................6
1. Short title, application and commencement. .............................................................................6
2. Definitions.....................................................................................................................................6
CHAPTER- I ..............................................................................................................................................12
REGISTRATION, COMPULSORY REGISTRATION AND DE-REGISTRATION.......................12
3. Application..................................................................................................................................12
4. Requirement of registration......................................................................................................12

5. Application for registration ......................................................................................................13
6. Compulsory registration ...........................................................................................................14
7. Change in the particulars of registration.................................................................................15
8. Transfer of registration .............................................................................................................15
9. Option to file application with LRO.........................................................................................16
10. Cancellation of multiple registrations......................................................................................16
11. De-registration............................................................................................................................16
12. Blacklisting and suspension of registration .............................................................................17
CHAPTER-II..............................................................................................................................................19
FILING OF RETURNS.............................................................................................................................19
13. Application..................................................................................................................................19
[14. Filing of returns..........................................................................................................................19
15. Receipt of return by the Bank...................................................................................................19
16. Payment of service charges to the Bank ..................................................................................20
17. Filing of Annual Sales Tax return. ...........................................................................................21
[18. Electronic filing of Sales Tax return. .......................................................................................21
CHAPTER-III............................................................................................................................................22
CREDIT AND DEBIT NOTE AND DESTRUCTION OF GOODS.....................................................22
19. Application..................................................................................................................................22
20. Cancellation or return of supply ..............................................................................................22
21. Change in value of supply or amount of sales tax...................................................................22
22. Adjustment of input and output tax.........................................................................................23
23. Destruction of goods ..................................................................................................................24
CHAPTER-IV ............................................................................................................................................25
APPORTIONMENT OF INPUT TAX....................................................................................................25
24. Application..................................................................................................................................25
25. Determination of input tax........................................................................................................25
CHAPTER-V..............................................................................................................................................26
REFUND.....................................................................................................................................................26
26. Application..................................................................................................................................26
27. Establishment of Refund Division and posting of officers. ....................................................27
28. Filing of refund claim. ...............................................................................................................28
29. Scrutiny and processing of refund c1aim.. ..............................................................................29
30. Sanction and payment of refund c1aim. ..................................................................................29
31. Scrutiny and processing of refund claims filed by manufacturers of specified goods.........30
32. Scrutiny and processing of refund claims relating to commercial exporters.......................31
32 Extent of payment of refund c1aim..........................................................................................31
[34. Refund of excess input tax not relating to zero-rated supplies..............................................31
35. Responsibility of the claimant...................................................................................................33
36. Post-sanction audit of refund claims ........................................................................................33
37. Action on inadmissible claims...................................................................................................33
38. Supportive documents ...............................................................................................................33
39. Miscellaneous and savings.........................................................................................................35
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[39A. Processing of refund claims in LTUs ........................................................................................35
CHAPTER VI.............................................................................................................................................37
SPECIAL AUDIT ......................................................................................................................................37
40. Application..................................................................................................................................37
41. Special Audit...............................................................................................................................37
42. Scope of special audit.................................................................................................................37
43. Form of audit report..................................................................................................................37
44. Penalty.........................................................................................................................................37
CHAPTER VII...........................................................................................................................................38
ZERO-RATING OF SUPPLIES AGAINST INTERNATIONAL TENDER FOR AFGHAN
REFUGEES................................................................................................................................................38
45. Application..................................................................................................................................38
46. Procedure and conditions for making zero-rated supplies ....................................................38
47. Maintenance of records .............................................................................................................38
48. Refund.........................................................................................................................................39
49. Penalty.........................................................................................................................................39
50. Other International Tenders.....................................................................................................39
CHAPTER VIII .........................................................................................................................................40
SUPPLY OF ZERO-RATED GOODS TO DIPLOMATS, DIPLOMATIC MISSIONS,
PRIVILEGED PERSONS AND PRIVILEGED ORGANISA TIONS.................................................40
51. Application..................................................................................................................................40
52. Supplies to diplomat and diplomatic missions. .......................................................................40
53. Supplies to privileged persons...................................................................................................40
54. Supply of POL products to privileged persons .......................................................................41
55. Refund.........................................................................................................................................41
56. Supplies to the United Nations and organizations working under it ....................................41
57. Supplies to Privileged Organizations other than the United Nations ...................................42
CHAPTER IX.............................................................................................................................................43
TAXPAYER'S AUTHORIZED REPRESENTATIVES........................................................................43
58. Application..................................................................................................................................43
59. Persons authorized to represent a taxpayer ............................................................................43
60. Disqualifications.........................................................................................................................43
61. Procedure to appoint authorized representative ....................................................................44
62. Power to disqualify ....................................................................................................................44
CHAPTER X..............................................................................................................................................45
ALTERNATIVE DISPUTE RESOLUTION ..........................................................................................45
63. Application..................................................................................................................................45
64. Application for Alternative Dispute Resolution......................................................................45
65. Appointment of Alternative Dispute Resolution Committee................................................45
66. Working of the Committee........................................................................................................45
67. Recommendations of the Committee .......................................................................................46
68. Reconsideration by the committee ...........................................................................................46
69. Decision of the Board.................................................................................................................46
CHAPTER XI.............................................................................................................................................48
RECOVERY PART-I................................................................................................................................48
70. Application...................................................................................................................................48
71. Initiation of recovery action........................................................................................................48
72. Stoppage of clearances and sealing of business premises.........................................................48
73. Demand Dote ..............................................................................................................................49
74. Attachment and sale of property. .............................................................................................49
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75. Master registers to be maintained by the referring authority and the Recovery Officer...49
76. Power to require information to be furnished. .......................................................................50
77. Mode of service of notice ...........................................................................................................50
78. Disposal of proceeds of execution .............................................................................................50
80. Property liable to attachment and sale in execution...............................................................50
81. Objections and investigations, thereof .....................................................................................52
82. Removal of attachment on satisfaction of cancellation of a demand note............................52
83. Officer entitled to attach and sell. ............................................................................................52
84. Adjournment or stoppage of sale..............................................................................................52
85. Defaulter not to interfere with attached property ..................................................................52
86. Prohibition against bidding or purchase by officer................................................................52
87. Assistance for action ..................................................................................................................53
PART-II ......................................................................................................................................................54
A TT ACHMENT AND SALE OF MOVABLE PROPERTY..............................................................54
88. Warrant of attachment..............................................................................................................54
89. Service of copy of warrant ........................................................................................................54
90. Attachment .................................................................................................................................54
91. Property attached how to be dealt with. ..................................................................................54
92. Search how to be made..............................................................................................................54
93. Seizure after search of a building or premises ...........................................................................54
94. Seizure between sunrise and sunset .........................................................................................55
95. Seizure not to be excessive.........................................................................................................55
96. Attachment of movable property which cannot be removed due to certain reasons. .........55
97. Storage of seized movable property .........................................................................................55
98. Attachment of negotiable instrument.......................................................................................55
99. Attachment of property in custody of public officer ..............................................................55
100. Attachment of share in movable property...............................................................................55
101. Attachment of' property in partnership ..................................................................................55
102. Sales.............................................................................................................................................56
103. Proclamation of sale...................................................................................................................56
104. Sale after fifteen days.................................................................................................................56
105. Sale by public auction................................................................................................................56
106. Sale by tender or sealed bids.....................................................................................................57
107. Preference for the co-owner......................................................................................................57
108. Transfer of title ..........................................................................................................................57
109. Irregularity not to vitiate sale ...................................................................................................57
110. Negotiable instrument or share in a corporation....................................................................57
111. Order for payment of coin or currency notes to the Referring Authority ...........................57
PART-III.....................................................................................................................................................58
A TTACHMENT AND SALE OF IMMOVABLE PROPERTY..........................................................58
112. Attachment of immovable property..........................................................................................58
113. Service of order . .........................................................................................................................58
114. Proclamation of attachment.......................................................................................................58
115. Sale and proclamation of sale ....................................................................................................58
117. Time of sale..................................................................................................................................58
118. Sale to be by public auction or tender.......................................................................................59
119. Deposit by purchaser and re-sale in default. ............................................................................59
120. Procedure in default of payment. ..............................................................................................59
121. Amount recoverable from purchaser in default ......................................................................59
122. Authority to bid............................................................................................................................59
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123. Application to set aside sale of immovable property ................................................................59
124. Application to set aside sale of immovable property on ground of non-service of
proclamation or irregularity.....................................................................................................60
125. Setting aside of sale where defaulter has no saleable interest..................................................60
126. Confirmation of sale ....................................................................................................................60
127. Return of purchase money in certain cases ...............................................................................60
128. Sale Certificate .............................................................................................................................61
129. Postponement of sale to enable defaulter to raise amount due under notice .........................61
130. Issue of fresh proclamation before re-sale.................................................................................61
131. Bid of co-owner to have preference............................................................................................61
PART - IV...................................................................................................................................................62
APPOINTMENT OF RECEIVER...........................................................................................................62
132. Appointment of receiver for business ......................................................................................62
133. Appointment of receiver for immovable property..................................................................62
134. Qualification for receiver ..........................................................................................................62
135. Manner of working of receiver .................................................................................................62
136. Withdrawal of management......................................................................................................63
PART-V ......................................................................................................................................................64
MISCELLANEOUS ..................................................................................................................................64
137. Offences and penalties. ..............................................................................................................64
138. Continuance of proceedings......................................................................................................64
139. Recovery from surety ................................................................................................................64
140. Receipt to be given. ....................................................................................................................64
141. Delivery of property in occupancy of defaulter ......................................................................64
142. Delivery of property in occupancy of tenant ...........................................................................64
143. Resistance or obstruction by defaulter. ...................................................................................64
144. Resistance or obstruction by a bona fide claimant .................................................................65
145. Dispossession by certificate holder or purchaser....................................................................65
146. Bona fide claimant to be restored to possession......................................................................65
147. Rules not applicable to transferee pendente lite .....................................................................65
148. Delivery of moveable property, debts and share.....................................................................65
149. Execution of documents and endorsement of negotiable instruments..................................66
150. Form............................................................................................................................................66
[CHAPTER XII..........................................................................................................................................67
SPECIAL PROCEDURE FOR ACCESSING THE COMPUTERIZED SYSTEM...........................67
150A. Application..................................................................................................................................67
150B. Authorization..............................................................................................................................67
150C. Unique User Identifier................................................................................................................67
150D. Access to computerized system ..................................................................................................67
150E. Responsibility of the user...........................................................................................................67
150F. Cancellation of registration .......................................................................................................67
150G. Recording of transmissions........................................................................................................68
150H. Scrutiny of records......................................................................................................................68
CHAPTER XIII .........................................................................................................................................69
ELECTRONIC INTERMEDIARIES..................................................................................................69
150J. Appointment of e-intermediary:................................................................................................69
150K. Cancellation of appointment.....................................................................................................70
150L. Procedure to be followed by registered persons.......................................................................70
150M. Procedure to be followed by e-intermediary. ..........................................................................70
150N. Responsibilities of e-intermediary. ............................................................................................70
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150O. Responsibility of e-dec1aration Administrator........................................................................71
150P. Scrutiny of records. .....................................................................................................................71
CHAPTER XIV..........................................................................................................................................72
SPECIAL PROCEDURE FOR ISSUANCE OF ELECTRONIC SALES TAX INVOICES
BETWEEN BUYERS AND SELLERS ...................................................................................................72
150Q. Application.. ...............................................................................................................................72
150R. Eligibility to use electronic invoicing system ...........................................................................72
150S. Issuance of electronic invoice and record................................................................................72
150T. Transmission of electronic invoice to the Collector ................................................................72
150U. Use of formats and controls over transmission of electronic invoices...................................72
150V. Conditions for electronic storage..............................................................................................73
150W. Audit............................................................................................................................................73
150X. Same conditions to apply in respect of buyer for receiving electronic invoices. ..................73
150Y. Failure to meet the conditions for electronic invoicing system..............................................74
150Z. Provisions of Electronic Transactions Ordinance, 2002, to apply.........................................74
[CHAPTER XV..........................................................................................................................................74
REPEAL .....................................................................................................................................................74
151. Repeal..........................................................................................................................................74
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1Notification No.S.R.O.555(1)/2006, dated 5th June, 2006.--In exercise of the powers conferred
by sub-section (I) of section 4 and section 40 of the Federal Excise Act, 2005, section 219 of the
Customs Act, 1969 (IV of 1969), section 50 of the Sales Tax Act, 1990, read with sub-section (2)
of section 8 2[, clause (ii) of sub-section (2) of section 8B], sections 9, 10, 14, 21 and 28, clause (c)
of sub-section (1) of section 22, section 26, sub-section (6) of section 47 A, sections 48, 50A,
3[52, 52A] and 66 thereof, the 4[Federal] Board of Revenue is pleased to make the following rules,
namely;
THE SALES TAX RULES, 2006
1. Short title, application and commencement.--(I) These Rules may be called the Sales
Tax Rules, 2006.
(2) They shall be applicable to such persons or class of persons as are specified in the
respective Chapters.
(3) They shall come into force on the first day of July, 2006.
2. Definitions. -- (1) In these Rules, unless there is anything repugnant to the subject or
context,--
(i) "Act" means the Sales Tax Act, 1990;
(ii) "Accountant" means--
(a) a Chartered Accountant within the meaning of the Chartered Accountants.
Ordinance, 1961 (X of 1961); or
(b) a Cost and Management Accountant within the meaning of the Cost and
Management Accountants Act, 1966 (XIV of 1966); or
(c.) a member of any association of accountants recognized in this behalf by the
Federal Government;
(iii) "Adjudicating authority" means any officer appointed to Adjudicate and decide cases
under section 179 of the Customs Act, 1969 (IV of 1969), section 45 of the Sales Tax
Act, 1990, and section 31 of the Federal Excise Act, 2005;
(iv) "Agreement" means the agreement executed between the Board and the Bank for the
purposes of payment of tax and submission of tax returns;
(v) "attachment officer" means an officer, not below the rank of Principal Appraiser or
Superintendent or Senior Auditor, authorized by the Recovery Officer to perform any of
the functions under these rules;
1 Reported as PTCL 2007 st. 190.
2 The comma, words, brackets figures and letters inserted by Notification No .S.R.O 307(1)/2008,dated 24 March, 2008, reported as PTCL2008 St.1822(ii)
3 Substituted for the figure “52” by Notification No. S.R.O 470(1)/2007,dated 9th June, 2007 w,e,f Ist day of July, 2007, reported as PTCL 2007 st.1726.
4 Substituted for the word “central” by Notification No. S.R.O 307(1)/2008,dated 24th march, 2008 reported as PTCL 2008 st.1822(II)
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(vi) "Bank" means the National Bank of Pakistan or any of its branches designated, by
notification in the official Gazette, for the purpose of filing of returns and payment of
sales tax;
(vii) "Board" means the 5[Federal Board Of Revenue];
(viii) "claimant" means any registered person who files a claim for refund of sales tax under
these rules;
(ix) "Collector" means the Collector of Sales Tax having jurisdiction;
(x) "Collectorate" means the office of the Collector of Sales Tax having jurisdiction and
includes the Large Taxpayers Unit (LTU) and the Regional Tax Office (RTO), where the
offices of Income Tax, Sales Tax and Federal Excise are co-located;
(xi) "commercial exporter" means a person registered as 6[an] exporter, who does not have his
own manufacturing facility and is exporting the goods, whether in the same state or after
getting them processed or manufactured from one or more registered persons, and holds
a valid sales tax invoice for such processing, manufacturing or conversion;
(xii) "committee" means a committee constituted under sub-section (2) of section 47A of the
Act;
(xiii) "Computerized Payment Receipt" means a computer generated receipt showing payment
of tax to the designated branch of the National Bank of Pakistan;
7[(xiii-a) "CREST" means "Computerized Risk-based Evaluation of Sales Tax;]
(xiv) "CRO" means Central Registration Office established for the purposes of centralized sales
tax registration;
(xv) "CSTRO" means Centralized Sales Tax Refund Office to be established in the 8[Federal
Board of Revenue] for disbursement of refund of sales tax;
(xvi) "defaulter" means a person mentioned in the demand note, who has failed to discharge his
liabilities in payment of Government dues;
(xvii) "demand note" means a note received by the Sales Tax Recovery Officer from the
referring authority specifying the details regarding the defaulter and the Government dues;
5 Substituted for the word “Central Board of Revenue” by Notification No. S.R.O 530(1)/2008, dated 11 june,2008, w.e.f. Ist day of July,, 2008 reported as
PTCL 2008 st.1882.
6 Substituted for the word “commercial” by Notification No. S.R.O 470(1)/2007, dated 9th June, 2007 w.e.f Ist day of July, 2007 reported as PTCL 2007
st.1726.
7 Clause (xiii-a) inserted by Notification No. S.R.O 470(1)/2007, dated 9th June, 2007 w.e.f Ist day of July, 2007 reported as PTCL 2007 st.1726
8 Substituted for the word “Central Board of Revenue” by Notification No. S.R.O 530(1)/2008, dated 11 June, 2008, w.e.f. Ist day of July,, 2008 reported as
PTCL 2008.
Sales Tax Rules 2006
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9[(xviii) * * *]
(xix) "diplomat" means a person entitled to immunities and privileges under the
Diplomatic and Consular Privileges Act, 1972 (IX of 1972);
(xx) "diplomatic mission" means a mission recognized as such under the Diplomatic and
Consular Privileges Act, 1972 (IX of 1972);
(xxi) "dispute" means a case where, for evidently valid reasons, a registered person is aggrieved
in connection with the order of the sales tax officer passed in any matter of sales tax
specified in sub-section (1) of section 47 A of the Act and prima facie deserves relief for
the elimination of possible hardship;
10(xxi-a) "e-declaration administrator" means an officer not below the rank of an Additional
Collector of Sales Tax, authorized by the Collector for the purpose of administration of
the scheme envisaged under these Rules;
(xxi-b) "electronic data interchange (EDI)" means a system of secure transmission of electronic
information, based on an agreed and internationally accepted standards and can be
understood and treated automatically without human intervention;
(xxi-c) "electronic invoicing" means electronic transmission and storage of sales tax invoices,
without the delivery of paper documents;]
(xxii) "Electronic Sales Tax Return Form" means a Form of sales tax Return available on the
11[Federal Board of Revenue] website to be filled in and filed in terms of sub-rule (4) of
rule 18;
(xxiii) "execution" means steps taken for the recovery of Government dues in pursuance of a
demand note;
(xxiv) "Fast Track Channel" means automated risk based system for processing of claims filed
by the registered persons covered under clause (b) of rule 26;
(xxv) "foreign currency" means foreign currency as defined in clause (c) of section 2 of the
Foreign Exchange Regulation Act, 1947 (VII ofl947);
(xxvi) "Government dues" means recoverable amounts of sales tax, default surcharge, penalty or
any other tax, duty or other levy being collected, in the same manner as sales tax is
9 Clause (xviii) omitted by Notification No. S.R.O 530(1)/2008, dated 11 June, 2008, w.e.f. Ist day of July,, 2008 reported as PTCL 2008 st.1882.
10 . Clause (xxi-a), (xxi-b) & (xxi-c) inserted by Notification No. S.R.O 470(1)/2007, dated 9 June, 2007, w.e.f. Ist day of July,, 2007 reported as PTCL 20087
St. 1726.
11 Substituted for the word “Central Board of Revenue” by Notification No. S.R.O 530(1)/2008, dated 11 June, 2008, w.e.f. Ist day of July,, 2008 reported as
PTCL 2008 st.1882.
Sales Tax Rules 2006
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collected, an adjudged penalty or fine or any amount unpaid which may be payable under
any bond, guarantee or instrument executed under the Act or such other laws or the
rules made thereunder and against the recovery of which there is no bar or valid stay order
from the competent Court;'
(xxvii) "ICRC" means International Committee of the Red Cross;
(xxviii) "immovable property" has the same meaning assigned to it in clause (20) of section 3 of
the General Clauses Act, 1897 (X of 1897);
(xxix) "LRO" means Local Registration Office established in the Collectorate of Sales Tax or
Regional Tax Office (RTO) having jurisdiction;
(xxx) "LTU" means the Large Taxpayer Unit having jurisdiction;
(xxxi) "misconduct" means conduct prejudicial to good order, unbecoming of a gentleman and
includes any act on his part to bring or attempt to bring outside or any sort of influence,
directly or indirectly, to bear on the officer of Customs, Federal Excise and Sales Tax
in respect of any matter relating to discharge of his duties under the relevant Acts, or
creating hindrance in discharge of such duties or impersonation or submission of fake
document;
(xxxii) "movable property" means a property which can be taken into custody for removal without
physically knocking it down and includes currency and coin, shares, documents and
instruments;
12(xxxiii) * * *]:
13[(xxxiv) * *]
(xxxv) "nil return" means a return indicating that no sales tax is payable by the registered person
in respect of the tax period to which the tax return relates;
14[(xxxv-a) * * *]
(xxxvi) "PACCS" means Pakistan Automated Customs Clearance System;
(xxxvii) "privileged organization" means United Nations and the organizations working under it
and shall include organisations which the Board may, by notification in the official
Gazette, recognise to be a privileged organization;
12 (xxxiii) omitted by Notification No. S.R.O 530(1)/2008, dated 11 June, 2008, w.e.f. Ist day of July,, 2008 reported as PTCL 2008 st.1882.
13 (xxxiv) omitted by Notification No. S.R.O 530(1)/2008, dated 11 June, 2008, w.e.f. Ist day of July,, 2008 reported as PTCL 2008 st.1882.
14 (xxxv-a) omitted by Notification No. S.R.O 530(1)/2008, dated 11 June, 2008, w.e.f. Ist day of July,, 2008 reported as PTCL 2008 st.1882.Earlier clause
(xxxv-a) was inserted by Notification No. S.R.O 470(1)/2007, dated 9th June, 2007 w.e.f Ist day of July, 2007 reported as PTCL 2007 st.1726
Sales Tax Rules 2006
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(xxxviii) "privileged person"-- (a) for the purpose of rule 53, means a person covered by
United Nations (Privileges and Immunities) Act, 1948 (XX of 1948), and shall
include persons entitled to concessions and exemptions under the Model Rules for
customs concessions to privileged personnel arriving under various foreign aid
programmes or projects issued by the Board, under C. No. 10(34)-Cus-III/58, dated
the 18th April, 1963; and
b) for the purpose of rule 54, means the person so declared under the President's
Salary, Allowances and Privileges Act, 1975 (LVIII of 1975) and the Prime
Minister's Salary, Allowance and Privileges Act, 1975 (LIX of 1975);
(xxxix) "Processing Officer" means audit staff authorized to process a refund claim;
(xl) "RCPS" means the Refund Claim Preparation Software prescribed by the Board;
(xli) "receiver" means a person appointed by the Recovery Officer to manage, run and
account for any attached business or property;
(xlii) "Recovery Officer" means an Inland Revenue Officer as appointed by the Collector to
exercise powers as contained in sub-section (2) of section 48 of the Act, who shall not
be below the rank of Assistant Collector;
(xliii) "reciprocity" means extension of the same privileges and facilities to a diplomat or
diplomatic mission of a country in Pakistan as are extended by such country to
diplomats and diplomatic mission of Pakistan in that country;
(xliv) "records" means the records as provided under section 22 of the Act;
(xlv) "referring authority" means an officer, not below the rank of an Assistant Collector,
desiring to recover Government dues through Recovery Officer;
(xlvi) "Relevant Acts" means the Act, the Federal Excise Act, 2005 and the Customs Act,
1969 (IV of 1969);
(xlvii) "residual input tax" means the amount of tax paid on raw materials, components and
capital goods being used for making taxable as well as exempt supplies but does not
include the input tax paid on raw materials used wholly for making taxable or exempt
supplies;
15[(xlviii) * * *] omitted.
(xlix) "RTO" means the Regional Tax Office having jurisdiction;
15 Clause (xlviii) was omitted by Notification No. S.R.O 470(1)/2007, dated 9th June, 2007 w.e.f Ist day of July, 2007 reported as PTCL 2007 st.1726
Sales Tax Rules 2006
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(I) "same-state-goods" means goods purchased by a commercial exporter against tax
invoice for export as such;
(Ii) "share" means share in a corporation and private limited or public limited company and
includes stock, debenture stock, debentures or bonds;
(Iii) "Special Auditor" means a Chartered Accountant or a Cost and Management
Accountant appointed under section 32A of the Act;
(liii) "STR Form" any of the sequentially numbered Forms as annexed to these rules;
(liv) "supportive documents", in relation to sales tax refund, means the documents as
mentioned in rule 38 of these rules or such other documents as may be prescribed
by the Board;
(Iv) "taxpayer" means any person who is required, or liable, to pay, or is paying duty, or tax,
or any sum under any or all of the relevant Acts, or the rules and includes any person,
other than a government employee, who is assigned any duty or responsibility under
any of the relevant Acts or the rules;
(lvi) "terms of reference", in relation to special audit, means the terms of reference as
specified in the appointment letter issued by the Board to the special auditor
regarding his appointment;
(lvii) "transmit" also means to transmit data or documents through electronic means;
(lviii) "UNDP" means the United Nations Development Program;
(lix) "UNHCR" means the United Nations High Commission for Refugees;
(Ix) "UNICEF" means the United Nations International Children's Emergency Fund;
16 [(Ix-a) "unique user identifier" means a unique identification name, number or password
allotted by the Board to the authorized user of the computerized system under section
50A of the Act;]
(lxi) "WFP" means the World Food Program;
(lxii) "WHO" means the World Health Organization.
(2) Other terms or expressions used but not defined here shall have the same meaning as are
assigned to them in the Act.
16 Clause (lx-a) inserted by Notification No. S.R.O 470(1)/2007, dated 9th June, 2007 w.e.f Ist day of July, 2007 reported as PTCL 2007 st.1726
Sales Tax Rules 2006
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CHAPTER- I
REGISTRATION, COMPULSORY REGISTRATION AND DE-REGISTRATION
3. Application. — The provisions of this Chapter shall apply to the following persons,
namely:--
(a) a person required to be registered under the Act;
(b) a person required, under any other Federal law or Provincial law, to be registered
for the purpose of any duty or tax collected or paid as if it were sales tax under the
Act;
(c) a person who is subject to compulsory registration;
(d) a person who is already registered and requires a change in the name, address or
other particulars of registration;
(e) a person who is blacklisted or whose registration is suspended; and
(f) a person who is required to be de-registered.
4. Requirement of registration.— The following persons engaged in making of taxable
supplies in Pakistan (including zero-rated supplies) in the course or furtherance of any taxable
activity carried on by them, if not already registered, are required to be registered in the manner
specified in this Chapter, namely:--
17[(a) a manufacturer not being a cottage industry;]
(b) a retailer whose value of supplies, in any period during the last twelve months
exceeds five million rupees;
(c) an importer;
(d) a wholesaler (including dealer) and distributor; 18[* * *]
(e) a person required, under any other Federal law or Provincial law, to be registered
for the purpose of any duty or tax collected or paid as if it were a levy of sales tax
to be collected under the Act 19[; and]
20[(f) a commercial exporter, who intends to obtain sales tax refund against his zero-rated
supplies.]
17 Clause (a) Substituted by Notification No. S.R.O. 530(1) /2008 dated 11th June, 2008 w.e.f. 1st July 2008, reported as PTCL 2008 St.1882
18 The words “and” omitted by Notification No.S.R.O 470(1)/2007 dated 9th June,2007 w.e.f .1st day of July,2007,reported as PTCL 2007 St.1726.
19 Substituted for the full stop by Notification No.S.R.O 470(1)/2007 dated 9th June,2007 w.e.f .1st day of July,2007,reported
as PTCL 2007 st.1726.
20 Clause (f) added by Notification No. S.R.O 470(1)/2007, dated 9th June, 2007 w.e.f Ist day of July, 2007 reported as PTCL
2007 st.1726.
Sales Tax Rules 2006
13
5. Application for registration.— (1) A person required to be registered under the Act
shall, before making any taxable supplies, apply to the CRO, through electronic means as
provided by the Board or otherwise, through owner, member or director, as the case may be. Such
application shall be made in the Form STR-l, as annexed to these rules, transmitted to the CRO
electronically or through registered mail or courier service. Such application will specify the
Collectorate in whose jurisdiction the registration is sought, as per criteria given below, namely:--
(a) in case of a corporate person, that is, a listed public limited company or an
unlisted public limited company or a private limited company, the area
where the registered office is located;
(b) in case of a person not incorporated, the area where the business is actually
carried on; and
(c) in case of a person not incorporated, having a single manufacturing unit,
whose business premises and manufacturing unit are located in different
areas, shall apply for registration in the Collectorate of the area in whose
jurisdiction his manufacturing unit is located:
Provided further that a corporate person shall have the option to
apply for transfer of registration to the Collectorate having jurisdiction
where the place of business is located.
(2) Where an applicant has unsold or un-used stocks of tax-paid Inputs on which he desires to
claim the benefit of section 59 of the Act, he shall declare such stocks in a statement in the Form
set out as STR-4, to be appended with his application for registration.
21[(2a) CRO may cause further inquiry from the applicant through LRO or otherwise including
issuance of Objection Slip.]
(3) On completion of such verification or inquiry, through LRO or otherwise, as the CRO
deems necessary, it may register the applicant and issue a certificate of registration containing the
registration number of the applicant in the Form as set out in the Form STR-5, or reject the
application within fifteen days from the date complete application is received in the CRO, under
intimation to the applicant, specifying the reasons for such rejection.
22[(4) A person who has applied for registration as manufacturer shall be registered after LRO
has verified his manufacturing facility.
21 Sub _rule (2a) inserted by Notification No.S.R.O.429(1)/2009,dated 2nd June,2009
22 Sub-rules (4) &(5)added by Notification No.S.R.O.530(1)2008,dated 11th June,2008, w.e.f. 1st July reported as PTCL 2008 st.1882.
Sales Tax Rules 2006
14
(5) In no case, a person required to be registered under the Act shall be issued more than one
registration number.]
6. Compulsory registration. -- (1) if a person, who is required to be registered under this
Act, does not apply for registration and the LRO or any other office as may be authorized by the
Board or the Collector, after such inquiry as deemed appropriate, is satisfied that such person is
required to be registered, it shall issue notice to such person in the Form set out in the Form STR-
6.
(2) In case the LRO receives a written reply from the said person within the time specified in
notice, contesting his liability to be registered, the LRO shall grant such person opportunity of
personal hearing, if so desired by the person, and shall thereafter pass an order whether or not
such person is liable to be registered compulsorily. Copy of the said order shall invariably be
provided to that person.
(3) Where the person to whom a notice is given under sub-rule (2), does not respond within
the time specified in the notice, the LRO shall transmit the particulars of the person to the CRO,
which shall compulsorily register the said person and allot him a registration number which shall
be delivered to the said person either in person through LRO or through registered mail
(acknowledgement due) or through courier service.
(4) A person registered compulsorily as aforesaid, is required to comply with all the
provisions of the Act and rules made thereunder from the date of compulsory registration, and in
case of failure to do so, the Collector of Sales Tax having jurisdiction may issue notice under
section 25 of the Act for production of records or documents and appearance in person to assess
the amount of sales tax payable under section 11 of the Act, and take any other action as required
under the law against such person:
Provided that if it is subsequently established that a person was not liable to be
registered but was wrongly registered under .this rule due to inadvertence, error or
misconstruction, the CRO, shall cancel his registration. In case of such cancellation of
registration, such person shall not be liable to pay any tax, default surcharge or penalty under the
Act or rules made thereunder, subject to the conditions, limitations and restrictions prescribed
under section 3B of the Act.
Sales Tax Rules 2006
15
7. Change in the particulars of registration. -- (1) In case there is a change in the name,
address or other particulars as stated in the registration certificate, the registered person shall
notify the change in the 23[Form STR-l] to the CRO, within fourteen days of such change.
[24(2) The change of business category as 'manufacturer' shall be allowed after LRO has verified
the manufacturing facility and confirmed the status as industrial consumer of the electricity and
gas distribution companies.]
(3) In case of approval of the change applied for, the CRO shall issue revised registration
certificate, which will be effective from the date the concerned person has applied for the change.
8. Transfer of registration.-- (1) The CRO may, subject to such conditions, limitations or
restrictions as it may deem fit to impose, by an order, transfer the registration of a registered
person from the jurisdiction of one Collectorate to another Collectorate or, as the case may be, to
the LTU or RTO.
(2) On transfer of registration,--
(a) all the records and responsibilities relating to such registered person shall be transferred to
the Collectorate or, as the case may be, to the LTU or RTO, in whose jurisdiction the
registration has been so transferred; 25[* * *]
(b) notwithstanding the actions already taken, being taken or otherwise pending immediately
before the transfer in respect of such registered person under any of the provisions of the
Act or the rules made thereunder in the Collectorate from where his registration has been
transferred, the Collectorate, or as the case may be, the LTU or RTO, in whose jurisdiction
the registration is so transferred shall exercise the jurisdiction over such person in the
manner as if it always had such jurisdiction 26[; and]
27[(c) the return for the tax period in which the registration is transferred shall be filed in the
Collectorate from where the registration is transferred.]
(3) In case of transfer of registration, the CRO shall issue intimation letter to the registered
person along with copy to concerned Collectorates, or as the case may be the Large Taxpayers
Unit or RTO.
23 Substituted for the words, letters and figure ‘prescribed form STR-2’ by Notification No.S.R.O.530(1)2008,dated 11th June,2008, w.e.f. 1st July reported
as PTCL 2008 st.1882.
24 Sub-rule (2) substituted by Notification No. S.R.O 470(1)/2007,dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726.
25 The word “and” omitted by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726.
26 Substituted for full stop by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726.
27 Clause (C) added by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726.
Sales Tax Rules 2006
16
(4) In case a registered person intends to shift his business activity from the jurisdiction of one
Collectorate to another, or he has any other valid reason for such transfer, he shall apply to the
CRO for transfer of his registration along with Form 28[STR-I]. The CRO shall follow the
procedure as per sub-rules (2) and (3).
9. Option to file application with LRO.--The person applying for registration, changes in
particulars of registration or transfer of registration, may, in exceptional cases where he is not able
to send such application directly to CRO, file the prescribed application in LRO, instead of filing
the same in CRO. In such case LRO shall forward the same to CRO within three days and the
Collector concerned shall ensure that such application is transmitted to CRO within the stipulated
period.
2910. Cancellation of multiple registrations. -- (l) In case a person holds multiple sales tax
registrations, he shall retain only one registration and surrender all other registrations under
intimation to CRO. Alternatively, such registered persons shall file only one return for the tax
period July 2008, and onwards, against the registration number they wish to retain and all other
registration numbers shall be cancelled by CRO.30 [:]
31[Provided that the Board may, subject to such conditions as it may deem appropriate, allow or
allocate a person separate registration for manufacturing units located in different Collectorates or
Regional Tax Offices.
(2) The tax liabilities against the registrations cancelled in the aforesaid manner shall be
transferred against the registration retained and in case of such registrations being in different
Collectorates, the Collector having jurisdiction over cancelled registrations shall ensure that tax
arrear files are transferred to the Collectorate having jurisdiction over the registration so retained.]
11. De-registration. -- (1) Every registered person who ceases to carry on his business or
whose supplies become exempt from tax, shall apply to the LRO for cancellation of his
registration in Form STR-3, and the LRO, 32[on such application or on its own initiative] may
recommend to the CRO to cancel the registration of such person from such date as may be
specified, but not later than three months from the date of such application or the date all the dues
outstanding against such person are deposited by him, whichever is the later.
28 Substituted for letters and figure “STR-2” by Notification No.S.R.O.429(1)/2009,dated 2nd June,2009.
29 Rules 10 substituted by Notification No.S.R.O.530(1)2008,dated 11th June,2008, w.e.f. 1st July reported as PTCL 2008 st.1882. Before substitution it was
amended by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726.
30 Substituted for full stop by Notification No. S.R.O. 1289(I)/2008, dated 23rd December, 2008, reported as PTCL 2009 St. 780(ii).
31 Proviso added by Notification No. S.R.O. 1289(I)/2008, dated 23rd December, 2008, reported as PTCL 2009 St. 780(ii)
32 The words inserted by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726.
Sales Tax Rules 2006
17
(2) A registered person whose total taxable turnover during the last twelve months remains
below the limit specified in rule 4, may apply to the LRO for de-registration in Form STR-3 or the
Collector may, on his initiative, start proceedings for his de-registration.
(3) The Local Registration Office, upon completion of any audit or inquiry which may have
been initiated consequent upon the application of the registered person for de-registration, shall
direct the applicant to discharge any outstanding liability which may have been raised therein by
filing a final return under section 28.
(4) If a registered person fails to file tax return for six consecutive months, the LRO may,
without prejudice to any action that may be taken under any other provision of the Act, after
issuing a notice in writing and after giving an opportunity of being heard to such person,
recommend to the CRO for cancellation of the registration after satisfying itself that no tax
liability is outstanding against such person.
(5) The obligations and liabilities of the person whose registration is cancelled under sub-rule
(1) relating to the period when he conducted business as a registered person shall not be affected
by the fact that his registration has been cancelled or that he has ceased to be a registered person.
12. Blacklisting and suspension of registration. -- (1) Where the Collector has reasons to
believe that a registered person is found to have committed tax fraud or evaded tax or has failed to
deposit the tax due on his supplies despite having recovered it from the respective buyers or
recipients of such supplies, he may suspend his registration through an order in writing and initiate
such inquiry, as deemed appropriate.
(2) After such inquiry and investigation to confirm the facts and veracity of the information
and after giving an opportunity to such person to clarify his position, the Collector, if satisfied that
such person has committed any of the offences as aforesaid, may blacklist such person through an
order in writing, and such blacklisting shall be without prejudice to any other action that may be
taken against such person under the Act and the rules made thereunder.
(3) The inquiry in such cases shall be completed within ninety days, and show cause notice for
recovery of any evaded amount of tax and for contravention of the provisions of the Act may be
issued within the period specified under section 36 of the Act:
Provided that where the records required for completion of the inquiry are not produced
by the blacklisted person or a person whose registration has been suspended or by the suppliers of
such person, the period of ninety days for completion of the inquiry shall be deemed to have been
extended by a further period of ninety days,
Sales Tax Rules 2006
18
(4) The order for blacklisting or suspending the registration of a registered person shall be
communicated to such person, the CRO and to the Central Sales Tax database provided for this
purpose.
(5) During the period of suspension of registration, the invoices issued by such person shall
not be entertained for the purposes of sales tax refund or input tax credit, and once such person is
blacklisted, the refund or input tax credit claimed against the invoices issued by him, whether
prior or after such blacklisting, shall be rejected through a self-speaking appealable order and after
affording an opportunity of being heard to such person.
----------
Sales Tax Rules 2006
19
CHAPTER-II
FILING OF RETURNS
13. Application. -- The provisions of this Chapter shall apply to all registered persons
required to file a return under section 26 of the Sales Tax Act, 1990.
33[14. Filing of returns.— (1) Every person registered under the Sales Tax Act,1990, or the
Federal Excise Act, 2005, shall file the return as specified in the form STR-7, along with all its
annexure provided therein, in accordance with the instructions given therewith, in the manner as
specified in rule 18.
(2) Where a registered person operates in different sectors for which different dates of filing of
return have been prescribed in any rules made under the Sales Tax Act, 1990, or the Federal
Excise Act, 2005, such person shall file a single return for all such sectors by the due date
applicable to his major activity in terms of sales tax or federal excise duty payable.]
34[l4A. * * *]
15. Receipt of return by the Bank. -- (l) The Bank official shall ensure that the particulars
entered in all the three copies of the return are identical and that the amount deposited by the
registered person tallies with the amount indicated as "TOTAL SALES TAX PAYABLE" in the
return, and shall thereafter sign and stamp the return indicating the date of payment of tax and
submission of tax return.
(2) The Bank shall forward the original copy of the return to the concerned Collectorate of
Sales Tax or the LTU, as the case may be. The second copy thereof along with the computer
generated receipt shall be delivered to the registered person as a token of receipt of payment of
sales tax and filing of return and the third copy shall be retained by the Bank for its record.
(3) In case of payment through cheque, pay order or bank draft, the Bank will receive the
return in triplicate along with the instrument of payment for the amount of tax payable indicated in
the return and issue a provisional acknowledgement receipt to the registered person.
(4) On clearance of the instrument, the Bank official shall sign and stamp the return indicating
the date on which payment is received by the Bank. In cases where the payments are received
through pay order or Bank draft, the bank shall affix two stamps on the return indicating the date
33 Rules 14 substituted by Notification No.S.R.O.530(1)2008,dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882. Before
substitution Rule 14 was amended by Notification Nos. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007
St.1726;.824(I)/2007, dated 16 th August, 2007, reported as PTCL 2008 St. 543, w.e.f. Ist July , 2007 & S.R.O. 307(I)/2008, dated 24th March, 2008,
reported as PTCL 2008, St. 1822(ii).
34 Rules 14 A omitted by Notification No.S.R.O.530(1)2008,dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882. At the time of
omission Rule 14 A was inserted by Notification Nos. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726;
Sales Tax Rules 2006
20
on which the pay order or Bank draft was received for clearing and the date on which the pay
order or bank draft was cleared for payment by transfer.
(5) The date of payment, in case of payment through cash or cheque, shall be treated as the
date on which the payment is received by the Bank. In case of payment through pay order or Bank
draft, the date on which the pay order or Bank draft is tendered at the Bank counter shall be
treated as the date of payment and where the pay order or Bank draft, so tendered at the Bank
counter, is not cleared on its first presentation for Bank clearing before the due date, the registered
person shall, without prejudice to any other action, be liable to pay default surcharge and penalties
prescribed under the Act for late payment of sales tax.
16. Payment of service charges to the Bank.--(l) The Bank shall charge ten rupees per return
(including nil returns) as service charges from the Collectorates having jurisdiction in the area
where the Bank branches are located.
(2) For the purpose of claiming service charges referred to in sub- rule (1), the Manager of the
main branch of the Bank shall submit the claim to the Assistant Collector, assessment and
Processing Division of the concerned Collectorate in the first week of the following month
supported by a statement indicating date, number of returns received, number of returns submitted
to the Collectorate, amount of sales tax collected and amount of sales tax deposited in the State
Bank of Pakistan.
(3) The Assistant Collector, Assessment and Processing Division, shall verify the statement
submitted under sub-rule (2) from the Accounts Section of the Collectorate and from his own
record. If the claim is found to be in order and the Assistant Collector is satisfied that the Bank has
fulfilled its responsibility under clauses (iv), (vi), paragraphs a and b of the Agreement, he shall
sanction the claim and issue a cheque within a week from the date of submission of the claim,
provided that in case of delay by the Collectorate, it shall pay a penalty at the rate of fifteen per
cent per annum for the amount late sanctioned.
(4) If the Bank fails to fulfill the conditions specified in clause (iv), clause (vi), paragraph a, or
paragraph b of the Agreement, the Assistant Collector shall deduct the amount of penalty leviable
thereunder on the Bank at the rate of 15% per annum against the amount late deposited in the
State Bank of Pakistan from the service charges admissible to the Bank.
(5) If the returns are not submitted to the Collectorate within forty-eight hours of the receipt
thereof returns in the designated branches of the Bank, the service charges in respect of the returns
Sales Tax Rules 2006
21
submitted late shall also be deducted and the remaining amount, if any, shall be sanctioned by the
Assistant Collector and cheque therefore will be issued to the Bank.
(6) For deduction of any amount under sub-rule (4), the Assistant Collector shall intimate the
Bank the reasons thereof within seven days of deduction.
(7) Where it is not clear as to whether deduction should be made, the Assistant Collector shall
require the Bank for clarification before taking a decision.
(8) All public holidays and the number of days the Collectorate is prevented from functioning,
due to the factors beyond its control, shall be excluded while calculating delay in sanctioning the
claim for service charges,
(9) Where the Assistant Collector requires any clarification from the Bank, the time taken by
the Bank for this purpose shall be excluded from the time specified for sanctioning the service
charges claim.
17. Filing of Annual Sales Tax return.— As stipulated in second proviso to sub-section (1)
of section 26 of the Act, every registered person, being a private or public limited company, shall
file annual sales tax return, in the Form as set out in STR-10, for a financial year by the 30th
September of the following financial year, with the Collector having jurisdiction.
35[18. Electronic filing of Sales Tax return.— 36(1) Every registered person required to file
return or other statement as prescribed under section 26 or section 27 of the Act or any
notification issued thereunder shall file such a return or, as the case may be, statement,
electronically in the manner as specified by the Board through a general order.]
(2) A registered person filing returns electronically as stipulated above, shall make payment of
the amount of sales tax due, if any, in any of the designated branches of the National Bank of
Pakistan on the prescribed payment challan as specified in the STR-11 or through electronic
payment system devised for this purposes.]
37[(3) In cases where due date has been prescribed as 15th of a month, the tax due shall be
deposited by the 15th and the return shall be submitted electronically by 18th of the same month.]
35 Rules 18 substituted by Notification No.S.R.O. 49(I)2008,dated 15th January ,2008, reported as PTCL 2008 St. 1589. Before Rule 18 substitution it was
amended by Notification Nos. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726; 824(I)/2007, dated 16th
August, 2007, reported as PTCL 2008 St. 543. This amendment shall be made and shall be deemed to have been so made on the w.e.f. Ist July, 2007.
36 Sub-rule (1) substituted by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882
37 Sub-rule (3) added by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882
Sales Tax Rules 2006
22
CHAPTER-III
CREDIT AND DEBIT NOTE AND DESTRUCTION OF GOODS
19. Application.--The provisions of this Chapter apply where a registered person has issued a
tax invoice in respect of a supply made by him and as a result of any of the events specified in section 9
of the Sales Tax Act, . 1990, the amount shown in the tax invoice or the return needs to be modified.
20. Cancellation or return of supply.— (l) Where a registered person has made a supply, and
such supply or part thereof is cancelled or returned, the buyer or the recipient shall issue a Debit
Note (in duplicate) in respect of such supply or part thereof, indicating the quantity being returned
or the supply of which has been cancelled, its value determined on the basis of the value of supply
as shown in the tax invoice issued by the supplier and the amount of related sales tax paid thereon,
as well as the following, namely:--
(i) name and registration number of the recipient;
(ii) name and registration number of the supplier;
(iii) number and date of the original sales tax invoice;
(iv) the reason of issuance of the Debit Note; and
(v) signature and seal of the authorized person issuing the note.
(2) The original copy of the debit note shall be sent to the 38[supplier] and the duplicate copy
shall be retained for record.
(3) In the case of cancellation of supplies made to, or return of goods by, an unregistered
person, the supplier shall issue a credit note providing the same particulars as are specified in subrule
(1) and keep a copy for record.
21. Change in value of supply or amount of sales tax.— (l) Where for any valid reason the
value of supply or the amount of sales tax mentioned in the invoice issued has increased, the
supplier shall issue a Debit Note (in duplicate), with the following particulars, namely:--
(i) name and registration number of the supplier;
(ii) name and registration number of the recipient;
(iii) number and date of the original sales tax invoice;
(iv) the original value and sales tax as in original invoice;
(v) the revised value and sales tax;
(vi) the difference of value and sales tax adjustable;
38 Substituted for the word “buyer” by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St.
1882
Sales Tax Rules 2006
23
(vii) the reason for revision of value; and
(viii) signature and seal of the authorized person issuing the note.
(2) Where, for any valid reason, the value of supply or the amount of sales tax mentioned in
the invoice issued has decreased, the supplier shall issue a Credit Note (in duplicate), with the
same particulars as specified in sub-rule (1).
(3) The original copy of the note as referred to in sub-rules (1) and (2), shall be, sent to the
recipient and the duplicate shall be retained for record. In respect of a case falling under sub-rule
(2), the recipient shall issue a Debit Note with reference to the Credit Note issued by the suppliers
as an acknowledgment of the receipt of the same providing therein the same details as in the
corresponding Credit Note.
22. Adjustment of input and output tax.— (l) The buyer shall not be entitled to claim input
tax in respect of the supply which has been cancelled or returned to the supplier or in respect of
which the amount of tax was reduced.
(2) Where the buyer has already claimed input tax credit in respect of such supplies, he shall
reduce or increase the amount of input tax by the corresponding amount as mentioned in the Debit
Note or Credit Note, as the case may be, in the return for the period in which the respective note
was issued.
(3) Where the supplier has already accounted for the output tax in the sales tax return for the
supplies against which Debit Note was issued subsequently, he may increase or reduce the amount
of output tax by the corresponding amount as mentioned in the Debit Note, in the return for the
period in which the respective note was issued: .
Provided that in case of return of supplies by an unregistered person, the
adjustment as aforesaid can be made against the Credit Note issued by the supplier.
(4) The adjustments as herein before noted which lead to reduction in output tax or increase in
39[input] tax can only be made if the corresponding Debit Note or Credit Note is issued within one
hundred and eighty days of the relevant supply:
Provided that the Collector may, at the request of the supplier, in specific cases, by giving reasons
in writing, extend the period of one hundred and eighty days by a further one hundred and eighty
days.
(5) Where the goods relating to a returned or cancelled supply are subsequently supplied to the
original buyer or some other person with or without carrying out any repairs, the supplier shall
39 The word added by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882
Sales Tax Rules 2006
24
charge sales tax thereon in the normal manner and account for it in his return for the period in
which these goods were supplied.
23. Destruction of goods. -- Where any goods are returned by the buyer on the ground that
the same are unfit for consumption and are required to be destroyed by the supplier, the goods
shall be destroyed after obtaining permission from the Collector of Sales Tax having jurisdiction,
and under the supervision of an Inland Revenue Officer not below the rank of an Assistant
Collector as may be deputed by the Collector for the purpose 40[and the input tax credit in respect
of goods so destroyed shall not be admissible].
-------
40 Substituted for the word”output” by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St.
1882
Sales Tax Rules 2006
25
CHAPTER-IV
APPORTIONMENT OF INPUT TAX
24. Application.— The provisions of this Chapter shall apply to the registered persons who
make taxable and exempt supplies simultaneously.
25. Determination of input tax.— (l) Input tax paid on raw materials relating wholly to the
taxable supplies shall be admissible under the law.
(2) Input tax paid on raw materials relating wholly to exempt supplies shall not be admissible.
(3) The amount of input tax incurred for making both exempt and taxable supplies shall be
apportioned according to the following formula, namely:--
Residual Input Tax Credit Value of taxable supplies x Residual Input Tax
On taxable supplies = (Value of taxable + exempt supplies)
(4) Monthly adjustment of input tax claimed by a registered person under this Chapter shall be
treated as provisional adjustment and at the end of each financial year, the registered person shall
make final adjustment on the basis of taxable and exempt supplies made during the course of that
year.
(5) Any input tax adjustment claimed wrongfully on account of incorrect application of
formula set out in sub-rule (3) shall be punishable under the respective provisions of law
irrespective of the fact that the claim was provisional.
Sales Tax Rules 2006
26
CHAPTER-V
REFUND
26. Application.--This Chapter shall apply to all refund claims filed by--
(a) registered manufacturer-cum-exporters and commercial exporters who zero
rate all or part of their supplies under section 4 of the Act;
(b) registered persons who acquire tax paid inputs for use 41[thereof in the
manufacture of goods chargeable to sales tax] at the rate of zero per cent
under the Act or a notification issued there-under 42[:]
43[* * *].
44[(c) registered persons claiming refund of the excess amount of input tax as
referred to in sub-section (2) of section 8B and first proviso to section 10 of
the Act;)
(d) registered persons who acquire tax paid inputs used in the export of goods,
local supply of which is exempt under the Act or any notification issued
thereunder; 45[* * *]
(e) persons claiming refund of sales tax under section 66 of the Act 46[; and]
47[(f) diplomats, diplomatic missions and privileged persons and organizations
who purchase goods or services on payment of tax and are otherwise
entitled to receive zero-rated supply as provided under Chapter X of these
rules.]
41 Substituted for the words “[in the manufacture of goods which are supplied to the registered person]” by Notification No. SRO 907(I)/2007 dated
07.09.2007 , reported as PTCL 2008 St. 579. This amendment shall be made and shall be deemed to have been so made on the w.e.f. Ist July, 2007.
42 Substituted for semi-colon by Notification No. SRO 831(I)/2007 dated 18.08.2007. This amendment shall be made and shall be deemed to have been so
made on the w.e.f. Ist July, 2007.
43
Proviso omitted by Notification No. SRO 907(I)/2007 dated 07.09.2007 , reported as PTCL 2008 St. 579. This amendment shall be made and shall be
deemed to have been so made on the w.e.f. Ist day of July, 2007. Before omission this proviso was added by Notification No.S.R.O.831(1)/2007, dated
18th August, 2007, reported as PTCL 2008 St. 66. This amendment shall be made and shall be deemed to have been so made on the w.e.f. Ist day of July,
2007.
44 Clause (c) substituted by Notification No. SRO 307(I)/2008 dated 24.03.2008, reported as PTCL 2008 St. 1822(ii).
45 The word “and” omitted by Notification No. SRO 307(I)/2008 dated 24.03.2008, reported as PTCL 2008 St. 1822(ii).
46 Substituted for full stop by Notification No. SRO 307(I)/2008 dated 24.03.2008, reported as PTCL 2008 St. 1822(ii).
47 Clause (f) substituted by Notification No. SRO 307(I)/2008 dated 24.03.2008, reported as PTCL 2008 St. 1822(ii).
Sales Tax Rules 2006
27
48"26A. Expeditious processing and payment of refunds.- (1) The refund claims as provided in
this rule shall be processed and paid in the manner as provided and all other claims shall be processed and
paid in the manner as prescribed in this chapter after rule 26A.
(2) Refunds under this rule shall be allowed to the registered manufacturers-cum-exporters of
RTO, Lahore from tax period April, 2010. From tax period July, 2010 all registered manufacturer-cumexporters
of other RTOs/L TUs will be allowed refund under this rule.
(3) Refunds under this rule shall be allowed to the Active
Taxpayers, at the time of processing by the IT System of FBR, as per Active Taxpayers List displayed at
FBR's website.
(4) Registered persons claiming refund under this rule will electronically submit refund claim
in requisite data in RCPS format through FBR web portal by using the user-id, password and pin code
allotted to them at the time of e-Enrollment.
(5) The registered person claiming refund under this rule shall maintain and keep all the paper
documents relating to the refund claim, such as invoices, credit notes, debit notes, goods declarations,
bank credit advice, etc. in his office instead of submitting to the concerned Regional Tax Office or Large
Taxpayers' Unit.
(6) Refund claims under this rule will be processed by Risk Management System (RMS) of
FBR IT System within two working days of electronic submission of refund claim in the RCPS format
and take further action as follows:
(a) In case the refund claim is cleared fully or partially, electronic advice will be
issued to the concerned RTO/L TU and the registered person about the refund
amount cleared by the RMS for payment; and
(b) In case the refund claim is not cleared by RMS, an electronic intimation will be
issued to the registered person in this regard and his case will be processed in the
manner as prescribed in this chapter after rule 26A.
(7) Concerned RTO/L TU will arrange issuance of cheque for the amount cleared by RMS
within seven working days of the receipt of electronic advice.
(8) After issuance of cheque for the amount cleared by RMS, the electronic copy of refund
claim will be forwarded for post refund audit."
48 Clause 26-A inserted vide SRO 211(I)/2010 dated 29.03.2010.
Sales Tax Rules 2006
28
27. Establishment of Refund Division and posting of officers. — (1) There shall be
established a CSTRO under the 49[Federal Board of Revenue] for centralized payment of refund
amount to such claimants and from such date as the Board may specify.
(2) There shall be established a Refund Division in each Collectorate of Sales Tax to receive,
process and settle the refund claims filed under these rules.
(3) There shall be posted an officer not below the rank of an Assistant Collector of Sales Tax,
as nominated by the Collector to be the officer-in-charge of the Refund Division, herein after
referred to as the officer-in-charge in this Chapter.
(4) There shall be established a Post Refund Division in each Collectorate of Sales Tax headed
by an officer not below the rank of an Assistant Collector of Sales Tax to audit the refund claims
processed and sanctioned by the Refund Division.
28. Filing of refund claim. -- (l) Monthly sales tax return filed by a claimant shall be treated
as a refund claim once all the supportive documents including the requisite data in the format or
software (RCPS), has been received:
Provided that no refund claim shall be entertained if the claimant fails to furnish
the claim on the prescribed software (RCPS) along-with the supportive documents within 50[one
hundred and twenty] days of the filing of return:
Provided further that the period of 51[one hundred and twenty] days as aforesaid, in case of a
commercial exporter, shall be reckoned from the date when the BCA is issued to him by the
concerned Bank 52[:]
53[Provided also that if a claimant is exporting goods manufactured by him as well
as the goods purchased in the same state, in the same tax period, the period of 54[one hundred and
twenty] days shall be reckoned from date of filing of return or the date of issuance of BCA,
whichever is later.]
55[(1A) The manufacturer-cum-exporters, who are registered as limited companies, having annual
turnover more than one hundred million rupees and whose refund claim on inputs consumed in
zero-rated supplies excluding building material and utilities is less than one per cent of the value
of exports and local zero-rated sales, shall have the option to file refund claim electronically
49 Substituted for the words “Central Board of Revenue” by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008,
reported as PTCL 2008 St. 1882
50
Substituted for the words “Sixty” by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882
51 Substituted for the words “Sixty” by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882
52 Substituted for the full stop by Notification No. SRO 307(I)/2008 dated 24.03.2008, reported as PTCL 2008 St. 1822(ii).
53 Proviso added by Notification No. SRO 307(I)/2008 dated 24.03.2008, reported as PTCL 2008 St. 1822(ii).
54
Substituted for “sixty” vide SRO 761(I)/2008 dated 19.07.2008, reported as PTCL 2008 St.41.
55 Sub-rule (1A) inserted by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882
Sales Tax Rules 2006
29
provided their suppliers are also filing return along with details of sale and purchases
electronically.]
(2) In cases where such supportive documents are not submitted to the officer-in-charge
within the time specified under sub-rule (1), the Collector of Sales Tax having jurisdiction may,
on a written request from the claimant justifying the reasons for delay in submission of such
documents or data on RCPS, extend the time limit for a further 56[sixty] days.
(3) The Board may, through a General Order or otherwise, prescribe the date, manner and
procedure for electronic filing of sales tax refund claims by the registered persons filing their
monthly returns electronically.
29. Scrutiny and processing of refund c1aim. -- (l) On submission of a refund claim, the
Refund Receipt Section shall confirm that the claim is complete in all respects, after which it shall
be loaded in the system for assigning the claim a unique identification number.
(2) After assigning the unique identification number, the57[CREST] shall cross match the data
on soft copy with the data available in the system and process the claim by applying the risk
parameters and generate analysis report indicating the admissible amount as well as the amount
not validated on the basis of automated risk criterion along-with the objections raised by the
system.
(3) The processing officer shall forward the claim file along-with the analysis report referred
to in sub-rule (2) to the officer-in-charge for further necessary action.
(4) Where the Processing Officer or the officer-in-charge is of the opinion that any further
inquiry or audit is required in respect of amount not cleared by the 58[CREST] or for any other
reason to establish genuineness and admissibility of the claim, he may make or cause to be made
such inquiry or audit as deemed appropriate, after seeking approval from the concerned Additional
Collector and inform the refund claimant accordingly.
59[(5) * * *] omitted.
30. Sanction and payment of refund c1aim.-- 60[(I) On receipt of analysis Report and refund
payment order for the amount verified by CREST and found admissible by the processing officer,
56 Substituted for the words “Thirty” by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882
57
Substituted for the letters “RRAS” by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007
St.1726..
58 Substituted for the letters “RRAS” by Notification No. SRO 307(I)/2008 dated 24.03.2008, reported as PTCL 2008 St. 1822(ii).
59 Sub-rule (5) omitted by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882. Before
omission sub-rule (5) was substituted by Notification No. S.R.O 470(1)/2007, dated 9th June,2007, w.e.f.1st day of July, 2007,reported as PTCL 2007
St.1726.
60 Sub-rule (1) substituted by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882. Earlier subrule
(1) was substituted by Notification No. S.R.O 470(1)/2007, dated 9th June,2007, w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726.
Sales Tax Rules 2006
30
the officer in-charge shall sanction the amount so determined and issue the Refund Payment Order
(RPO).]
(2) The officer-in-charge shall transmit the Refund Payment Order electronically and 61[,in
respect of claim filed manually,] forward the original copy thereof to the treasury officer of the
Collectorate. The treasury officer shall make payment of refund through a cross cheque in favour
of the refund claimant, indicating his declared account number and Bank name. The crossed
cheque shall also be counter signed by an authorized co-signatory.
(3) The Additional Collector shall reconcile the refund cheques issued by the treasury officer
of the Collectorate during a month with the Bank scrolls received from State Bank of Pakistan and
record the outcome of such reconciliation in the system.
(4) Where any cheque is returned back by the State Bank of Pakistan due to any reason, the
treasury officer shall cancel such cheque, if required, and attach such cancelled cheque with the
respective counter-foil of the cheque-book.
(5) From such date to be notified by the Board, the officer-in-charge shall electronically
transmit the RPO to the treasury officer in the CSTRO under his digital signatures, and retain a
copy thereof in the Refund Division for record.
(6) The treasury officer in CSTRO and the co-signatory designated by the Board in this regard
shall issue the cheque for the sanctioned amount as mentioned in the RPO.
(7) The CSTRO shall also prepare a statement of payment advice for the concerned Bank on a
daily basis, for direct transfer of the refund amount to the declared Bank account of the claimant,
under intimation to the CSTRO, the concerned Collectorate of Sales Tax as well as the claimant.
31. Scrutiny and processing of refund claims filed by manufacturers of specified goods.--
(l) Notwithstanding anything in rule 29, refund of sales tax paid inputs used in the manufacture of
goods, local supply of which has been zero-rated, shall be processed and sanctioned through the
Fast Track Channel within fifteen days from the date of filing of refund claim.
(2) The refund of sales tax paid on utilities and the goods
imported directly by the claimant and the input tax incurred on acquiring furnace oil from Oil and
Gas Marketing Companies for power generation and consumption thereof in the manufacture of
zero-rated goods, shall be sanctioned upon validation by the automated system. Refund of input
tax paid in respect of other inputs, if validated by the 62[CREST], shall also be sanctioned in the
same manner.
61 Substituted for the words “also” by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007
St.1726
62 Substituted for the letters “RRAS” by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726
Sales Tax Rules 2006
31
(3) Subject to validation by the 63[CREST], refund of tax paid verifiable inputs used in the
export of goods, local supply of which is exempt under the Act or any notification issued
thereunder, shall be paid.
32. Scrutiny and processing of refund claims relating to commercial exporters.-
Notwithstanding anything in rule 29, refund of sales tax paid inputs used in the exports made by
commercial exporters, shall be sanctioned only after 64[verification of supportive documents and
approval through CREST].
33. Extent of payment of refund c1aim. -- Refund to the claimants under these rules shall be
paid to the extent of the input tax paid on purchases or imports that are actually consumed in the
manufacture of' goods which have been exported or supplied at the rate of zero per cent.
65[34. Refund of excess input tax not relating to zero-rated supplies.— ( 1) The refund of
excess unadjusted input tax relating to supplies other than zero-rated shall be claimed and
sanctioned in the cases mentioned below, namely:--
(a) the manufacturers of fertilizers, electric power producers and electric power
distribution companies may claim refund of excess input tax over output tax
in any tax period;
(b) registered persons in plastic, paper and steel sectors whose inputs are
subject to sales tax at 20% or 17.5% ad valorem and their final product is
subject to tax at 15% ad valorem may claim refund of excess input tax if the
same is not adjusted within a minimum consecutive period of three months;
(c) registered persons who are not able to adjust input tax in excess of 90% of
output tax in view of restriction in section 8B of the Act, may file refund
claim as under,-
(i) in case of registered persons whose accounts are subject to
audit under the Companies Ordinance, 1984, after the end of
their accounting year; and
(ii) in case of other registered persons, after the end of financial
year;
63 Substituted for the letters “RRAS” by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726
64 Substituted for the words and letters “ processing through the RRAS and after verification of input tax payment on the basis
of risk profiling and targeting of the claimant” by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported
as PTCL 2007 St.1726
65 Rule 34 substituted by Notification No. SRO 307(I)/2008 dated 24.03.2008, reported as PTCL 2008 St. 1822(ii). Before substitution it was amended by
Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726
Sales Tax Rules 2006
32
(d) all other registered persons, not covered by clauses (a) to (c) above, may
claim refund of excess input tax, if the same is not adjusted within a
minimum consecutive period of twelve months:
Provided that the amount of refund claim in all such cases shall not
exceed the excess of total input tax over the total output tax, as declared in
the relevant returns, for the period in respect of which the claim has been
filed and shall not include any excess input tax declared prior to the said
period.
(2) The registered person shall file application for refund claim along with data prepared
through RCPS, providing the following information, namely:--
(i) name and registration number of the claimant;
(ii) period of claim;
(iii) amount of claim; and
(iv) a statement along with annual audited accounts as envisaged in clause (i) of subsection
(2) of section 8B of the Act, if applicable:
Provided that the application for claim shall be filed within the period
specified in rule 28 after the filing of return for the last month in the period of
claim.
(3) The refund of excess input tax under this chapter shall be filed, processed and sanctioned
in the manner as provided in rules 29 and 30.
(4) The refund of excess input tax provided in clauses (c) and (d) of sub-rule (1), excluding
the cases of claims by registered persons, whose accounts are subject to audit under the
Companies Ordinance, 1984 (XLVII of 1984), as referred to in section (2) of section 8B of the
Act, shall be sanctioned as found admissible after a departmental audit of records maintained by
the registered person and after a certificate is recorded by the sales tax officers auditing the
records that actual value addition during the period involved was not found sufficient to require a
net payment of tax for the reasons mentioned in the audit report:
Provided that in case of refund claim falling in clause (b) of sub-rule (1), postrefund
audit shall be conducted after the close of financial year and the auditors shall report on the
aspect of value addition in their audit report.
(5) The refund claimant shall ensure that the input tax involved in the refund claim is not
shown as outstanding credit in the returns for the tax periods subsequent to the period of claim.
Sales Tax Rules 2006
33
(6) The refund of excess input tax under this rule shall not be claimed where the same has
already been claimed or paid under any other notification issued by the Federal Government or the
Board.]
35. Responsibility of the claimant. — The automated processing of refund claims shall be
conducted on the basis of supportive documents and data on prescribed electronic format provided
by the claimant. The claimant shall be responsible for any mis-declaration or submission of
incorrect information and shall be liable for penal action besides recovery of the amount
erroneously refunded along with default surcharge under the relevant provisions of the Act.
36. Post-sanction audit of refund claims. — (1) After disposing of the refund claim, the
officer-in-charge shall forward the relevant file to the Post Refund Audit Division for postsanction
audit and scrutiny; which shall, inter alia include verification of input tax payment by
respective suppliers and compliance of section 73 of the Act.
(2) The officer-in-charge of Post Refund Audit Division shall send his findings to the
concerned Refund Division for further necessary action, as required under the law.
37. Action on inadmissible claims. — Where the claim or any part thereof is found
inadmissible 66[or unverified], the officer-in-charge shall, at the time of issuing RPO, issue a
notice requiring the claimant to show cause as to why the claim or as the case may be, part thereof
should not be rejected and as to why the claimant should not be proceeded against under the
relevant provisions of the Act.
38. Supportive documents.- (l) The refund claimant shall submit the refund claim in
computer diskette in the prescribed format or software along with the following documents,
namely:--
(a) input tax invoices or as the case may be, goods declaration for import in
respect of which refund is being Claimed;
(b) output tax invoices 67[and summary of invoices for local zero-rated goods];
(c) goods declaration for export (quadruplicate copy) indicating Mate Receipt
number with date or airway bill or railway receipt or postal receipt besides
the examination report endorsed on the reverse side thereof by the Customs
Officers 68[,in case of claims by persons other than manufacturer-cum
66 Substituted for the words “ on account of discrepancies pointed out by RRAS” by Notification No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st
July, 2008, reported as PTCL 2008 St. 1882
67 Substituted for the words “excluding zero-rating invoices” by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July,
2007,reported as PTCL 2007 St.1726.
68 The comma, Words and figure added by Notification No.S.R.O. 470 (I) /2007, dated 9th June,2007 w.e.f.1st day of July, 2007 reported as PTCL 2007
st.1726
Sales Tax Rules 2006
34
exporters of goods zero-rated in a notification issued under section 4 of the
Act]:
Provided that in case of imports or exports processed
through PACCS, submission of goods declaration shall not be required and
verification regarding import, or as the case may be export, in such cases
shall be carried out by cross-matching of the declarations with the data
available in the system.
(d) copy of House and Master bill of lading and airway bill or as the case may
be, railway receipt in token of verification of the goods taken out of
Pakistan; and
(e) statement of the tax paid inputs, in respect of which refund is claimed 69[by
the claimants other than the manufacturers of goods zero-rated for local
supplies], in the formal set out below:
(2) In addition to the documents specified in sub-rule (I), a commercial exporter shall submit
Bank credit advice issued by the concerned Bank and copy of the duty drawback order, if issued
by the Customs Authorities.
(3) Where the refund claim is filed under section 66 of the Act, the claimant shall submit an
application for refund indicating his name, address, registration number, the amount of sales tax
refund claimed and reasons for seeking such refund along with following documents, namely:--
(a) input tax invoices in respect of which refund is claimed;
(b) proof of payment of input tax claimed as refund; and
(c) copy of the relevant order on the basis of which refund is claimed.
(4) The refund claimed under section 66 of the Act shall be sanctioned after verifying that no
adjustment or refund of input tax has been claimed earlier and that the goods have been duly
accounted for in the inventory records and the invoices claimed are validated by the 70[CREST] .
69 The Words added by Notification No.S.R.O. 470 (I) /2007, dated 9th June,2007 w.e.f.1st day of July, 2007 reported as PTCL 2007 st.1726
70 The comma, Words and figure added by Notification No.S.R.O. 470 (I) /2007, dated 9th June,2007 w.e.f.1st day of July, 2007 reported as PTCL 2007
st.1726
Description of
input goods
Opening
Balance
Purchased
during the
month
Total available
for
consumption
Consumed for
export/ zerorating
Consumed in
local supplies
Total
consumption
Balance
Sales Tax Rules 2006
35
71[(5) In case of claims by diplomats, diplomatic missions and privileged persons and
organizations, they shall submit original exemption order or certificate or FBR Booklet as referred
to in Chapter 4 72[VIII] and original sales tax invoice. The refund shall be sanctioned after making
necessary endorsements on these documents to the effect that the refund has been paid against the
same.]
39. Miscellaneous and savings. -- (l) In cases where refund has been found to have been paid
in excess of the amount due, such excess paid refund shall be recovered along with default
surcharge besides any other penal action that may be taken under the Act.
(2) The refund claims of a registered person, who is found to have committed tax fraud, shall
be finalized after detailed scrutiny of all partners in the supply chain to establish the forward and
backward linkages and after verifying input tax payment by them
(3) The existing Sales Tax Treasury Offices functioning in the Collectorates shall continue to
pay sales tax refund till such time the CSTRO is established and, accordingly, any reference to
CSTRO, in this Chapter, shall be construed as a reference to such existing Treasury Offices.
(4) The admissible refund claims received with supportive documents up to the date of
commencement of these rules shall be sanctioned and paid in accordance with the provisions of
the Sales Tax Refund Rules, 2002, or the Chapter V of the Sales Tax Rules, 2005, or the Sales
Tax Refund on Zero-Rated Supply Rules, 2006, whichever is applicable.
73 [39A. Processing of refund claims in LTUs.-- (1) The refund claimant registered in a Large
Taxpayer Unit, desirous of availing facility under this rule, shall file a refund application to the
Collector of Sales Tax having jurisdiction along with the following documents, namely:--
(a) an undertaking affirming the accuracy and genuineness of refund; and
(b) a revolving bank guarantee valid for at least one hundred and twenty days
issued by a scheduled bank, to the satisfaction of Collector of Sales Tax
(Large Taxpayers Unit), of an amount not less than amount of refund
claimed.
(2) The refund claim shall be processed as follows:--
(a) where the claimant has filed documents under sub-rule (1), the
Collector shall process and allow fifty percent of the refund of input tax
within five working days of receipt thereof;
71 Sub rule (5) added by Notification No.S.R.O.307(I) /2008,dated 24th March,2008,reported as PTCL 2008 St.1822.
72 Substituted for the letters “RRAS’’ by Notification No.S.R.O.470(I) /2007,dated 9th June,2007 w.e.f.1st day of July,2007, reported as PTCL 2007 St.1726.
73 Rule 39 A substituted for by Notification . No.S.R.O.76(1)/2008, dated 28th Jan,2009. Before substitution Rule 39A was inserted by Notification
No.S.R.O.530(1)/2008, dated 11th June,2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882
Sales Tax Rules 2006
36
(b) within fifteen days after the sanctioning of the claim as at (a) the claimant
shall file a complete refund claim along with the supportive documents and
soft copy on the prescribed format, which shall be scrutinized in the Large
Taxpayer Unit, and objections, if any, related to the refund claim shall be
conveyed to the claimant within seven days of the receipt of the claim;
(c) subject to the provisions of this rule, the refund claim shall be finalized by
the LTU within fifteen days of the filing of complete refund claim under
clause (b) of sub-rule (2); and
(d) where an amount of refund on account of input credit document or
otherwise is unverified, the Collector may require extension in bank
guarantee covering such amount as deemed fit.
(3) In case any amount already sanctioned and paid is found inadmissible or remains
unverified after six months of the bank guarantee, the same shall be recovered within seven days
by encashment of the bank guarantee to the extent of inadmissible amount besides other legal
action under the relevant provisions of the Act and rules made hereunder.
(4) The Collector of Sales Tax shall notify an officer, not below the rank of an Assistant
Collector, as focal person in the LTU to liaise with other Collectorates regarding the problems or
objections encountered on account of purchases and supplies of the refund claimant for speedy
solution thereof.]
Sales Tax Rules 2006
37
CHAPTER VI
SPECIAL AUDIT
40. Application. -- The provisions of this Chapter shall apply to the registered persons who
are subject to special audit in terms of section 32A of the Act.
41. Special Audit.— The Board may cause special audit by a special auditor, of the records, tax
invoices and monthly returns required to be maintained, issued or furnished by any registered
person, or class or classes of registered persons under sections 22, 23 and 26 of the Act.
42. Scope of special audit.--The scope of the special audit shall be the expression of
professional opinion with respect to the following, namely:--
(a) whether the records, tax invoices and monthly returns have been maintained, issued
or furnished correctly by the registered person; and
(b) whether the monthly returns furnished by the registered person correctly reflect
that:
(i) all taxable supplies in the tax period as revealed by the records and tax
invoices; and
(ii) all input tax, output tax and the net amount of sales tax payable or
refundable, as the case may be,
are in accordance with the provisions of the Act and are duly substantiated by the
records required to be maintained for the purpose.
43. Form of audit report. -- The special auditor shall submit his audit report in the Form as
specified in the terms of reference.
44. Penalty. -- (1) In case of violation of this Chapter or any clause of the terms of reference,
the payment of fee as specified therein shall be withheld forthwith, without prejudice to any action
that may be taken under the provisions of the Chartered Accountant Ordinance, 1961 (X of 1961),
the Cost and Management Accountants Act, 1966 (XIV of 1966) and bye-laws made thereunder,
or the Act.
(2) In case the payment has already been made in full or part thereof, to the special auditor,
the same shall be returned within one week of issuance, by the Board, of a demand notice in this
regard.
Sales Tax Rules 2006
38
CHAPTER VII
ZERO-RATING OF SUPPLIES AGAINST INTERNATIONAL TENDER FOR AFGHAN
REFUGEES
45. Application.-- The provisions of this Chapter shall apply to supplies of taxable goods
made by registered persons against international tender to UNICEF, UNDP, WHO, WFP,
UNHCR, Euron Aid and ICRC for Afghan refugees.
46. Procedure and conditions for making zero-rated supplies.— In terms of clause (a) of
section 4 read with Serial No.4 of the Fifth Schedule to the Act, supplies against international
tender for Afghan refugees shall be charged to tax at the rate of zero per cent subject to the
following procedure and conditions, namely:--
(i) the supply shall be made against international tender issued by UNICEF,
UNDP, WHO, WFP, UNHCR, Euro Aid or ICRC. The contract signed with
the concerned organisation shall be retained by the supplier in his record
along with a copy of the tender notice;
(ii) payment for the supply shall be received in foreign currency which shall be
surrendered to the State Bank and the supplier shall receive payment in Pak
rupees as per State Bank procedure and foreign exchange regulations. A
certificate from the respective Bank or authorized dealer in foreign
exchange to this effect shall be retained by the supplier in his record;
(iii) a zero-rated invoice shall be issued for each supply, mentioning the full
particulars of the buyer and the contract number, besides the particulars
required in section 23 of the Act; and
(iv) the goods shall be duly received by the organisation which signed the
contract and a certificate to this effect shall be issued by the organisation
which shall be duly attested by the Chief Collector or Collector of Afghan
Refugees or as the case may be, by the ICRC Kabul or Herat, in which case
ICRC Pakistan will also furnish relevant copies of Bill-of-Export.
47. Maintenance of records.- (1) The supplier shall maintain separate records of supplies of
zero-rated goods and receipt of foreign currency under this Chapter, indicating the number and
date of the international tender, number and date of the contract, name of the organisation to
whom goods were supplied, value of the goods, amount of foreign currency involved, and number
and date of the certificates obtained under clauses (ii) and (iv) of rule 46.
Sales Tax Rules 2006
39
(2) The supplier shall retain the documents specified in rule 46 in his record in addition to
those mentioned in section 22 of the Act.
48. Refund.--When filing a claim for refund of sales tax against supplies made under this
Chapter, in addition to the relevant supporting documents specified in Chapter V of these rules,
the claimant shall furnish the documents specified in rule 46 in original along with one set of
legible photocopies. The original documents shall be returned to the claimant after comparing the
same with copies thereof and endorsement of verification on the photocopies by a Deputy
Collector or an Assistant Collector of the Refund Division.
49. Penalty. — In case the goods are found not to be supplied to the organisation specified in
rule 48, or foreign exchange is not received within one hundred and twenty days of making the
supply, the sales tax involved on such goods shall be recoverable from the supplier, besides legal
or penal action under appropriate provisions of the Act.
50. Other International Tenders. -- The provisions of rule 45 to 49 shall, mutatis mutandis,
apply in case of supplies made against other international tenders subject to the condition that a
certificate of the receipt and delivery of goods issued by the competent officer or authority of the
organization, institution or department who has floated international tender shall be treated as a
final proof of the supply having been made against such tender.
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CHAPTER VIII
SUPPLY OF ZERO-RATED GOODS TO DIPLOMATS, DIPLOMATIC MISSIONS,
PRIVILEGED PERSONS AND PRIVILEGED ORGANISA TIONS
51. Application.— The provisions of this Chapter shall apply to supplies of zero-rated goods
and any other facility on the basis of reciprocity to diplomats, diplomatic missions, privileged
persons and privileged organisations.
52. Supplies to diplomat and diplomatic missions.— (1) Any diplomat or diplomatic
mission desirous of taking a zero-rated supply from a registered person shall apply to the Assistant
Collector or Deputy Collector having jurisdiction for permission to this effect along with the
exemption certificate, in original, issued by the Ministry of Foreign Affairs in this behalf.
(2) The Ministry of Foreign Affairs shall issue such exemption certificates on the following
basis, namely:--
(a) reciprocity shall be observed; and
(b) minimum value of purchases for a transaction is ten thousand rupees or more:
Provided that in case sales tax has been paid by a diplomat or diplomatic
mission, the Ministry of Foreign Affairs shall forward such claims to the Board for
refund, which fulfill the aforesaid conditions.
(3) The Assistant Collector or Deputy Collector shall make entry of the goods being
purchased by the diplomat or diplomatic mission on the original exemption certificate, keep the
same for office record, and issue an "Authorization for Zero-Rated Supplies" in the Form as in
STR-12 to these rules, in the name of the said registered person.
(4) The registered person shall make the zero-rated supply and shall keep record of the same
for presentation to the sales tax department as and when required to do so.
53. Supplies to privileged persons. -- (1) A privileged person desirous of taking zero-rated
supply from a registered person shall apply to the Assistant Collector or Deputy Collector having
jurisdiction for permission to this effect along with the "FBR Booklet" issued in his name.
(2) The Assistant Collector or Deputy Collector shall make entries of the goods intended to be
purchased by the privileged person in the FBR booklet, keep a photocopy of the same for office
record and issue an "Authorization for Zero-Rated Supply", as aforesaid, in the name of the said
registered person.
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(3) The Assistant Collector or Deputy Collector shall ensure that the value of the goods to be
purchased does not exceed the limit specified in the Model Rules as referred to in clause 0 of subrule
(1) of rule 2.
(4) The registered person shall make the zero-rated supply and keep record of the same for
presentation to the sales tax department as and when required to do so.
54. Supply of POL products to privileged persons.-- (1) Zero-rated sales tax invoices shall
be issued by the registered oil companies for each supply of POL, products to the privileged
person, mentioning that the said invoice is being issued under this rule, besides the particulars
required in section 23 of the Act.
(2) A monthly statement summarizing all the particulars of the supplies made in the month
against invoices issued under rub-rule (1) shall be prepared in triplicate by the registered oil
company making the zero-rated supplies and shall be signed by the authorized person of the
registered oil company. All three copies of the said signed monthly statement shall be got verified
by the registered oil company from the person authorized to receive the supplies in the secretariat
of the privileged person, confirming that supplies mentioned in the monthly-statement have been
duly received.
(3) After verification from the secretariat of the privileged person, original copy of the monthly
statement will be retained by the registered oil company, duplicate copy, will be retained by the
secretariat of the, privileged person and the triplicate copy shall be provided by the registered oil
company to the Collector of Sales Tax having jurisdiction, by fifteenth day of the month following
the month in which zero-rated supplies under sub-rule (I) were made.
(4) The registered oil company-shall make the zero-rated supply and keep record of the same
for presentation to the sales tax department as and when required to do so.
55. Refund.--When filing a refund of input tax paid by the registered oil companies against
the supplies made under rule 54 in addition to the relevant supportive documents specified in
Chapter V of these rules, the claimant shall furnish the duly verified original copy of the monthly
statement specified in sub-rule (2) of rule 54 along with one set of legible photocopies.
56. Supplies to the United Nations and organisations working under it. — ( 1) The United
Nations or organisations working under it, desirous of taking a zero-rated supply from a registered
person shall apply to the assistant Collector or Deputy Collector having jurisdiction for permission
to this effect along with an exemption order, in original, issued by the Ministry of Foreign Affairs
in this behalf.
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(2) The Assistant Collector or Deputy Collector shall make entries of the goods intended to be
purchased on the original exemption order, keep the same for official record and issue an
"Authorization for Zero-Rated Supply", as aforesaid, in the name of the said registered person.
(3) The registered person shall make the zero-rated supply and keep record of the same for
presentation to the sales tax department as and when required to do so.
57. Supplies to Privileged Organisations other than the United Nations. -- (l) Any
privileged organisation desirous of taking a zero-rated supply from a registered person shall apply
to the Assistant Collector or Deputy Collector having jurisdiction for permission to take delivery
of goods along with an exemption order, in original, duly issued by the Economic Affairs Division
of the Government of Pakistan.
(2) The Assistant Collector or Deputy Collector shall make entries of the goods intended to be
purchased by the privileged organisation on the original letter of the Economic Affairs Division,
keep the same for office record and issue an "Authorization for Zero-Rated Supply", as aforesaid,
in the name of the said registered person.
(3) The registered person shall make the zero-rated supply and keep record of the same for
presentation to the sales tax department as and when required to do so.
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CHAPTER IX
TAXPAYER'S AUTHORIZED REPRESENTATIVES
58. Application. -- The provisions of this Chapter shall apply to persons authorized by a
taxpayer to represent him or appear on his behalf before the Appellate Tribunal or any other
adjudicating authority.
59. Persons authorized to represent a taxpayer.--For the purpose of this Chapter, only the
following persons are authorized to represent a taxpayer before the adjudicating authority and
Appellate Tribunal, namely:--
(a) a person in the employment of the taxpayer working on a full- time basis
and holding at least a bachelor's degree in any discipline from a university
recognized by the Higher Education Commission provided that such person
shall represent only the taxpayer in whose employment he is working on
full-time basis;
(b) an advocate entered in any rolls, and practicing as such, under the Legal
Practitioners and Bar Councils Act, 1973 (XXXV of 1973);
(c) a person holding a Bachelor or Masters Degree in Commerce;
(d) a person who has retired or resigned after putting in satisfactory service in
the Sales Tax Department or Customs Department or Federal Excise
Department for a period of not less than ten years in a post or posts not
inferior to that of an Assistant Collector;
Provided that no such person shall be entitled to represent a
taxpayer for a period of one year from the date of his retirement, or
resignation, or in a case in which he had made, or approved, as the case
may be, any order under the relevant Acts : and
(e) an accountant.
60. Disqualifications. – The following persons shall not be entitled to represent a taxpayer
under this Chapter, namely:
(a) any person who has been convicted as a result of any criminal proceedings
under any law for the time being in force in Pakistan;
(b) a person who has been dismissed or compulsorily retired from service,
(c) a person who is an undischarged insolvent; and
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(d) a person who has been found guilty of misconduct as defined in clause
(xxxi) of sub-rule (1) of rule 2.
61. Procedure to appoint authorized representative. -- To appoint his authorized
representative, a taxpayer shall issue a Letter of Authorization, in the Form specified in STR-13,
duly signed by proprietor, partner or director of the company or business concern, which shall be
submitted by the authorized representative before the adjudicating authority or Appellate Tribunal.
The authorized representative will use the Letter of Authorization for a single hearing, or till final
decision of the case by the adjudicating authority or the Appellate Tribunal as the case may be.
62. Power to disqualify.-On receipt of a complaint against any authorized representative for
misconduct from the Appellate Tribunal or, as the case may be, an adjudicating authority, the
Board may, after affording such representative an opportunity of being heard, disqualify him from
representing the taxpayer.
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CHAPTER X
ALTERNATIVE DISPUTE RESOLUTION
63. Application.-- The provisions of this Chapter shall apply to all cases of dispute brought or
specified for resolution under section 47 A of the Act.
64. Application for Alternative Dispute Resolution.— Any registered person interested for
resolution of any dispute under section 47A may submit a written application for alternative
dispute resolution to the Board, stating inter alia, the following namely:--
(a) the Collectorate of Sales Tax and the office of the Sales Tax
with whom a dispute has arisen;
(b) the particulars of the case;
(c) the grounds on the basis of which a resolution of a dispute is being sought
by the applicant duly supported with relevant documents;
(d) the extent or the amount of sales tax, default surcharge and penalties,
which the applicant agrees to pay, if any;
(e) details of amounts already paid, if any; and
(f) the particulars of any person who will represent the applicant.
65. Appointment of Alternative Dispute Resolution Committee. -- (1) The Board, after
examination of the contents of an application by a registered person and facts stated therein and on
satisfaction that a dispute deserves consideration for resolution for the removal of hardship under
section 47A of the Act, may constitute a committee for examination of the issues involved in the
dispute and for taking other actions as provided under sub- section (3) of section 47 A of the Act.
(2) The Board may appoint one of the members of the committee, other than a public servant,
to be its Chairman.
(3) The Board shall require the committee to submit its report within 74[sixty] days of its
appointment:
Provided that the time so specified may, if requested by the Chairman of the committee for
reasons to be recorded in Writing, be extended by the Board to such extent and subject to such
conditions and limitations as it may deem proper.
66. Working of the Committee.-- The committee shall hold all its meeting in the office of the
Collectorate of Sales Tax. The Col1ectorate shall be responsible to provide the requisite staff and
74 Substituted for the words “forty five” Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726
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material for the smooth functions of the Alternative Dispute Resolution Secretariat in the
Collectorate. The Chairman of the Committee shall be responsible for deciding the procedure to
be followed by the committee which may, inter alia, include the following, namely:--
(a) to specify date and time for conducting proceedings by the committee;
(b) to supervise the proceedings and ensure maintenance of record of
proceedings of the committee;
(c) to issue notices by courier, registered post or electronic mail to the
applicant;
(d) to requisition and procure relevant records or witnesses from the
Collectorate or other concerned quarters;
(e) to ensure attendance of all concerned;
(f) to co-opt any other technical, professional or legal expert or tax consultant;
(g) to consolidate recommendations of the committee and submission of the
conclusive report to the Board; and
(h) For any other matter covered under this Chapter.
67. Recommendations of the Committee. -- (l ) The committee may determine the issue and
may thereafter seek further information or data or expert opinion or make or cause to be made
such inquiries or audit as it may deem fit. The committee shall formulate its recommendations in
respect of any matter mentioned in the sub-section (1) of section 47A of the Act.
(2) The Chairman of the committee shall send a copy of the recommendations of the
committee to the Board, applicant and the concerned Collector simultaneously.
68. Reconsideration by the committee. -- (l) The Board of its own motion, or on the request
of the applicant, may refer back the recommendations of the committee for rectification of any
obvious error or for reconsideration of the facts not considered earlier.
(2) The committee after rectification of the error or reconsideration of the facts as aforesaid
shall furnish to the Board its fresh or amended recommendations within such period, as may be
specified by the Board.
69. Decision of the Board.-- (l) The Board, after examining the recommendations of the
committee, shall finally decide the dispute and make such orders, as it may deem fit for the
resolution of the dispute under intimation to the applicant, the Chairman of the committee and the
concerned Collectorate.
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(2) On receipt of the Board's order as aforesaid, the concerned Collectorate shall implement
the order issued by the Board in the manner provided for in sub-section (5) of section 47A of the
Act.
(3) A complete record of all proceedings of the cases dealt with under the alternate dispute
resolution scheme shall be maintained by the concerned Collectorate and the concerned Collector
shall ensure that proper arrangements are made for the purpose of maintaining such records in
appropriate manner.
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CHAPTER XI
RECOVERY PART-I
70. Application. -- The provisions of this Chapter shall apply to recoveries made under section
48 of the Act.
71. Initiation of recovery action. -- (l) On expiry of thirty days from the date on which the
Government dues are adjudged, the referring authority shall deduct the amount from any money
owing to the person from whom such amount is recoverable and which may be at the disposal or
in the control of such officer.
(2) In case the Government dues are not fully recovered under sub-rule (1); the referring
authority may,--
(a) serve a notice to the Sales Tax, Customs, Federal Excise and Income Tax
officers in the Form as set out in STR-16 to deduct the Government dues
from any money owing to the defaulter which may be under their control;
and a copy of such notice shall be endorsed to the defaulter;
(b) require by notice in writing, any person or organization who holds, or may
subsequently hold, any money for or on account of the defaulter, to pay to
such officer the amount specified in the notice;
(c) require, by notice in writing, the customs officers to stop the clearance of
any goods imported by the defaulter; and
(d) attach the Bank accounts of the defaulter:
Provided that either before or after the initiation of recovery
proceedings, the Collector may, if so requested by the person concerned,
recover the dues in such installments as he may deem proper:
Provided further that in case a registered person pays the amount of
tax less than the due tax as indicated in his return, the referring authority
may directly proceed to recover the short-paid amount by attachment of the
Bank accounts of the defaulter or through stoppage of clearances from the
business premises, as provided in the following rule, after serving a notice
for payment of the short-paid amount in three days.
72. Stoppage of clearances and sealing of business premises. -- (l) In case the Government
dues are not recovered in the manner prescribed in rule 71, the referring authority shall serve upon
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the defaulter a notice as set out in STR-17, informing him that removal of any goods from his
business premises shall be stopped with effect from the date specified in the notice till such time
the dues are paid or recovered in full: .
Provided that if the Government dues still remain unpaid, the referring authority shall seal the
business premises of the defaulter till such time the dues are paid or recovered in full.
(2) If the referring authority is satisfied that the defaulter is likely to conceal, remove or
dispose of the whole or any part of such of his movable or immovable property, as shall be liable
to attachment in the process of recovery, and that the realization of Government dues m
consequence be delayed or obstructed, he may at any time after the issue of the notice under subrule
(1), direct, for reasons to be recorded in writing, execution of the notice by ignoring the
specified time limit.
(3) The referring authority may, if he deems fit, publish such notice as mentioned in sub-rule
(l), in one or more newspapers circulated in the district of normal residence of the defaulter.
73. Demand Note.--In the event of failure of recovery measures taken by the referring
authority under rules 71 and 72, the referring authority, shall issue a demand note, in the Form set
out in STR-14, to the recovery Officer, specifying therein the details of Government dues meant
for recovery and shall also certify that the formalities under clauses (a), (b), (c), (ca), (d) and (f) of
sub-section (1) of section 48 of the Act have been completed and there exists no bar or stay order
against the proposed recovery.
74. Attachment and sale of property.-The Recovery Officer, on receipt of the demand note,
shall serve upon the defaulter a notice as set out in STR-18 and his movable and immovable
property shall stand attached and subsequently shall be sold if the recovery is not otherwise
effected.
75. Master registers to be maintained by the referring authority and the Recovery
Officer. - (l) The referring authority and the Recovery Officer shall maintain master registers in
the Form set out in STR-15 and every notice, order and demand note shall be entered in this
register serially, and they shall authenticate all entries by affixing their signatures and seal
thereon.
(2) The referring authority and the Recovery Officer shall exchange their information for
completion of corresponding entries in the master registers of both the offices in the form of a
monthly return which shall be the exact replica of STR-15, after filling the respective columns by
the concerned office.
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76. Power to require information to be furnished.-- The referring authority or the Recovery
Officer may, by requisition in writing, require any person or organisation, whether registered
under the Act or otherwise, to furnish any information, required for the proceedings under this
Chapter.
77. Mode of service of notice.-- All notices or orders served under this Chapter, unless
otherwise specifically provided, shall be served:--
( a) by tendering the notices or orders or sending by registered post or courier
service, to the person for whom these are intended or to his agent, at his last
known address; or
(b) if the notice cannot be served in the manner as provided in clause (a), by
affixing it on the notice board in the office of the Recovery Officer.
78. Disposal of proceeds of execution.- (1) Whenever Government dues are realized, by sale
or otherwise, in execution of a notice of recovery, they shall be applied to the following purposes
in their respective order, namely:--
(a) first to pay the expenses of the sales;
(b) then to pay the freight or other charges, if any, payable in respect of goods,
if notice of such charges has been given to the person holding the goods in
custody;
(c) then to pay the Government dues; and
(d) then to pay the charges due to the person holding such goods in custody.
(2) After making all payments under sub-rule (1), the balance, if any, shall be paid to the
owner of the goods, provided that he applies for it within six months of the sale of the goods or
show sufficient cause for not doing so.
79. Ruling regarding disputed matters.— Save as otherwise expressly provided in the Act
or this Chapter, any question arising between the referring authority and the defaulter or their
representatives, relating to the execution of a notice or discharge or satisfaction of a demand note
duly issued under this Chapter, or relating to the confirmation or setting aside by an order under
this Chapter of a sale held in execution of such notice, shall be determined by the Recovery
Officer, before whom such question arises.
80. Property liable to attachment and sale in execution.-- The following is liable to
attachment and sale in execution of a notice, namely: Lands, houses or other buildings, goods,
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bank notes, Government securities, bonds or other securities for money, cheques, bills of
exchange, hundies, promissory notes, shares in corporation and, save as hereinafter mentioned, all
other saleable property, movable or immovable, belonging to the defaulter, or over which, or the
profits of which, he has a disposing power which he may exercise for his own benefit, whether the
same be held in the name of the defaulter or by another person in trust for him or on his behalf:
Provided that the following particulars shall not be liable to attachment or sale,
namely:--
(i) the necessary wearing apparel, cooking vessels, beds and bedding of the
defaulter, his wife and children, and such personal ornaments, as, in
accordance with religious usage, cannot be parted with by any woman;
(ii) tools of artisan, and, where the defaulter is an agriculturist, his implements of
husbandry and such cattle and seed grain as may, in the opinion of the
Recovery Officer, be necessary to enable him to earn his livelihood as such;
(iii) stipends and gratuities allowed to a pensioner of a Government or payable out
of any service or family pension fund notified in the official Gazette by the
Federal Government or the Provincial Government in this behalf, and political
pensions;
(iv) the wages of labourers and domestic servants, whether payable in money or in
kind;
(v) salary to the extent of first hundred rupees and one half of the remainder;
(vi) all compulsory deposits and other sources in or derived from any fund to
which the Provident Funds Act, 1925 (XIX of 1925), for the time being
applies, in so far as they are declared by the said Act not to be liable to
attachment;
(vii) any allowance forming part of the emoluments of any servant of the
Government or local authority which the Federal Government or Provincial
Government may, by notification in the official Gazette, declare to be exempt
from attachment, and any subsistence grant or allowance made to any such
servant while under suspension;
(viii) any expectancy of succession by survivor-ship or other merely contingent or
possible right or interest; and
(ix) a right to future maintenance.
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81. Objections and investigations, thereof.--(l) When any objection is raised to the
attachment or sale of any property in execution of a notice, on the ground that such property is not
liable to such attachment or sales, the Recovery Officer shall proceed to investigate into it.
(2) If the Recovery Officer is satisfied that the abjection is raised to delay the proceedings, he
shall reject the abjection summarily.
(3) Pending investigation, the Recovery Officer may adjourn recovery proceedings, upon such
terms as to security or otherwise as he may deem fit.
(4) The objector shall produce evidence to prove the legitimacy of the abjection, failing which
the Recovery Officer shall reject the objection.
82. Removal of attachment on satisfaction of cancellation of a demand note. -- When the
Government dues are paid to the Recovery Officer or the demand note is cancelled, the attachment
shall be deemed to be withdrawn and the withdrawal shall, if the defaulter so desires, be
proclaimed at his expense, and a copy of the proclamation shall be affixed in the manner provided
by this Chapter for a proclamation of sale of immovable property.
83. Officer entitled to attach and sell. -- The attachment and sale of movable and immovable
property may be made by such officer as the Recovery Officer may direct in each case of
recovery.
84. Adjournment or stoppage of sale.—-(1) The Recovery Officer may adjourn any sale
proceedings to a specified day and hour, and an officer conducting any sale may adjourn any sale
hereunder to a specified day and hour by recording his reasons for such adjournment.
(2) Every sale shall be stopped if, be fare the lat is knocked down, the amount due is tendered
to , the officer conducting the sale or proof is given to his satisfaction that the amount has been
paid to, the Recovery Officer, who ordered the sale.
85. Defaulter not to interfere with attached property.-Where a notice has been served on a
defaulter under rule 74, the defaulter or his representative in interest shall not sell, mortgage,
charge, lease or otherwise deal with any property belonging to him except with the permission of
the Recovery Officer.
86. Prohibition against bidding or purchase by officer.—No officer or other person having
any duty to perform in connection with any sale under this Chapter shall, either directly or
indirectly, bid for, acquire or attempt to acquire any interest in the property being sold.
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87. Assistance for action. -- (I) An officer authorized to attach or sell any property or charged
with any duty to be performed may take along with him a contingent of sales tax staff and sepoys,
armed or otherwise, for any assistance he may require in the performance of his duties.
(2) In addition to sub-rule (1), such officer may apply to the officer-in-charge of the nearest
police station for such assistance as may be necessary in the discharge of his duties.
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PART-II
ATTACHMENT AND SALE OF MOVABLE PROPERTY
88. Warrant of attachment.--Where any movable property is to be attached, the Recovery
Officer shall furnish a warrant, in the form prescribed in the Form STR-19, to the attachment
officer, in writing and signed with his name along with official seal, specifying therein the name
of the defaulter and the Government dues to be realized.
89. Service of copy of warrant.--(I) The attachment officer shall cause a copy of the warrant
to be served on defaulter or his agent in person.
(2) If service of a copy of warrant in terms of sub-rule (1) is not immediately possible, the
same shall be considered to be served when affixed on the notice board in the office of the
Recovery Officer.
90. Attachment.--If, after service of copy of the warrant, the amount is not paid forthwith, the
officer shall proceed to attach the movable property of the defaulter:
Provided that the standing crops or the agricultural produce lying in the field or stored
in or near the dwelling house of the defaulter or stored on the land owned, leased or cultivated by
the defaulter, which represent the agricultural produce of the land owned, leased or cultivated by
the defaulter, shall not be attached.
91. Property attached how to be dealt with. -- (1) Whether the property to be attached is
movable property in the possession of the defaulter or in the possession of any other person on
behalf of the defaulter, the attachment shall be made by actual seizure.
(2) When anything is seized, the attachment officer, as soon as may be, inform in writing the
person from whose possession the things are seized, of the grounds of such seizure.
92. Search how to be made.--All searches shall be carried out in accordance with the relevant
provisions of the Code of Criminal Procedure, 1898 (Act V of 1898).
93. Seizure after search of a building or premises.--(1) The attachment officer, if he has
reasons to believe that any movable property liable to seizure is hidden, concealed or stored in any
building or premises, he may break open any inner or outer door or window of the building or
premises in order to seize such movable property:
Provided that the officer shall' notify his authority and intention of breaking open if
admission is not given. He shall, however, give all reasonable opportunity to women to withdraw.
(2) The attachment officer shall, after seizure of moveable property, prepare an inventory of
the property in the presence of two or more persons who shall witness the process and sign the
inventory.
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94. Seizure between sunrise and sunset. -- The attachment by seizures shall be made after
sunrise and before sunset and not otherwise.
95. Seizure not to be excessive.-- The attachment by seizure shall not be excessive, that is to
say, the property attached shall be as nearly as possible, proportionate to the recoverable
Government dues.
96. Attachment of movable property which cannot be removed due to certain reasons.--
Where it is not practicable to seize any movable property, the attachment officer may serve on the
owner of goods or any person holding them in his possession or charge an order that he shall not
remove, part with, or otherwise deal with the goods except with the previous permission in writing
of the Recovery Officer:
Provided that the attachment officer shall inform the Recovery Officer, in writing,
of the reasons due to which the movable property could not be seized.
97. Storage of seized movable property. -- (l) All things seized for the purposes of
attachment under this Chapter shall, without unnecessary delay, be delivered into the care of the
Inland Revenue Officer authorized to receive the same, unless otherwise specifically provided by
the. Act or rules made there under.
(2) If there be no such officer at hand, such things shall be carried to and deposited at the
Custom House nearest to the place of seizure.
98. Attachment of negotiable instrument. -- When the property to be attached is a negotiable
instrument not deposited in a Court, nor in the custody of a public officer, the attachment shall be
made by actual seizure, and the instrument shall be brought before the Recovery Officer and held
subject to his orders.
99. Attachment of property in custody of public officer. -- When the property to be
attached is in the custody of any public officer, the attachment shall be made by a notice to such
officer requesting that such property and any interest or dividend becoming payable thereon, may
be held subject to the further orders of the Recovery Officer by whom the notice is issued.
100. Attachment of share in movable property.--Where the property to be attached consists
of an interest of the defaulter in movable property belonging to him and others as co-owners, the
attachment shall be made by a notice to the defaulter prohibiting him from transferring such share
or interest or subjecting the same to a charge in any manner.
101. Attachment of property in partnership.-- (l) Where the property be attached consists of
an interest of the defaulter, being a partner, in the partnership property, the Recovery Officer may
make an order charging the share of such partner in the partnership property and profits, with
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payment of the amount due under the notice, and may by the same or subsequent order, appoint a
receiver of the share of such partner in the profits, whether already declared or accruing, and of
any other money which may become due to him in respect of the partnership, and direct
maintenance of accounts and enquiries and make an order for the sale of such interest or may
make such other order as the circumstances of the case may require.
(2) The other partners shall be at liberty at any time to redeem the interest charged or in the
case of a sale being directed, to purchase the same.
102. Sale. -- (l) The Recovery Officer may direct that any movable property attached under this
Chapter or such portion thereof as may seem necessary to satisfy the notice shall be sold.
(2) The sale shall be made in one or more lots, as the Recovery Officer may consider desirable
and, if the Government dues to be realized by sale are satisfied by the sale of a portion of the
property, the sale shall be only with respect to that portion of the property and the sale of the
remaining property shall be stopped.
103. Proclamation of sale.—(l) When any sale of movable property is ordered by the Recovery
Officer, he shall issue a proclamation of the intended sale specifying therein the time, place and
whether the sales is subject to confirmation or not.
(2) The proclamation shall be made in writing in Urdu, English and language of the Province
where sale is intended and shall be publicized by--
(a) affixing a copy thereof at the notice board in the office of the Recovery
Officer;
(b) affixing copy thereof at such places as the Recovery Officer may direct; and
(c) publishing in one or more newspapers through auctioneer appointed under
the Act and rules made there under.
104. Sale after fifteen days. -- Except where the property is perishable or if the expenses of
keeping it in custody is likely to exceed its value, no sale of movable property under this Chapter
shall be ordered without the consent, in writing, of the defaulter, until after the expiry of at least
fifteen days from the date on which a copy of proclamation of sale was affixed in the office of the
Recovery Officer.
105. Sale by public auction. -- Sale by public auction shall be governed by the provisions of
Chapter V of the Customs Rules, 2001.
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106. Sale by tender or sealed bids. -- The Recovery Officer may, if he deems fit, order sale by
tender or sealed bids.
107. Preference for the co-owner.--Where the movable property to be sold is share belonging
to the defaulter and one or more co-owners, and the bid of such co-owner and some other person
is the same, the bid of co-owner shall have preference.
108. Transfer of title.-- On completion of sale proceedings the Recovery Officer shall grant to
the purchaser, a certificate specifying therein the property purchased, the price paid and the name
of the purchaser and the sale shall thereupon become absolute.
109. Irregularity not to vitiate sale.-Any error or irregularity in publishing or conducting the
sale of movable property shall not vitiate the sale if the provisions of this Chapter have been
substantially complied with.
110. Negotiable instrument or share in a corporation.-- Notwithstanding anything contained
in this Chapter, where the property to be sold is a negotiable instrument or a share in a
Corporation, the Recovery Officer may, instead of directing the sale to be made by public auction,
authorise the sale of such instrument or share through a broker.
111. Order for payment of coin or currency notes to the Referring Authority.--Where the
property attached is coins or currency notes, the Recovery Officer may, at any time during the
continuance of the attachment, direct that such coins or notes, or part thereof, sufficient to satisfy
the demand note, to be paid over to the referring authority.
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PART-III
A TTACHMENT AND SALE OF IMMOVABLE PROPERTY
112. Attachment of immovable property.--Attachment of the immovable property of the
defaulter shall be made, by the Recovery Officer, by an order prohibiting the defaulter from
transferring or subjecting the property to a charge in any manner and prohibiting all persons from
taking any benefit under such transfer or charge.
113. Service of order. -- A copy of the order of attachment shall be served on the defaulter in
the same manner as of service of notices laid down in this Chapter. .
114. Proclamation of attachment. - The order of attachment shall be proclaimed on or
adjacent to the property attached by affixing a copy of order of attachment at a conspicuous place
and a copy of the same shall also be affixed at the notice board in the office of the Recovery
Officer.
115. Sale and proclamation of sale.-- (l) The Recovery Officer may direct that any immovable
property, which has been attached, or such portion thereof, as may be necessary to satisfy the
demand note, shall be sold if the amount due is not otherwise recoverable.
(2) Where an immovable property is ordered to be sold, the Recovery Officer shall cause a
proclamation to be made in the same manner as provided in rule104.
116. Contents of proclamation of sale. -- (1) A proclamation of sale of immovable property
shall be drawn after proclamation of attachment and shall specify therein the time and place of
sale and also specify--
(a) the location of property to be sold;
(b) as fairly and accurately as possible, the revenue or rent, if any, assessed
upon the property or any part thereof; and
(c) the Government due for the recovery of which the sale is ordered.
(2) The proclamation may also specify any other thing which the Recovery Officer considers
material for a purchaser to know in order to judge the nature and value of the property.
117. Time of sale. -- No sale of immovable property under this Chapter shall, without the
consent in writing of the defaulter, take place until after the expiration of thirty days from the date
on which copy of the proclamation of sale was affixed on the property or in the office of the
Recovery Officer, whichever is later.
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118. Sale to be by public auction or tender. -- The sale shall be made by public auction or
tender and shall be subject to confirmation by the Recovery Officer.
119. Deposit by purchaser and re-sale in default. -- (l) On every sale of immovable property,
the person declared to be the purchaser shall pay immediately, after the declaration, a deposit of
twenty-five per cent of the amount of his purchase money to the officer conducting the sale; and
in default of such deposit the property shall forthwith be re-sold.
(2) The full amount of purchase money payable shall be paid by the purchaser on or before the
fifteenth day from the date of sale of the property.
120. Procedure in default of payment. -- (1) In default of payment within the time mentioned
in sub-rule (2) of rule 119, deposit made vide sub-rule (1) thereof shall be kept as deposit to be
dealt with as mentioned in rule 122.
(2) The immovable property shall be re-sold and the defaulting purchaser shall forfeit all
claims to the property or to any part of the sum for which it may be subsequently sold.
121. Amount recoverable from purchaser in default. -- Any deficiency of price which may
happen on a re-sale by reason of a purchaser's default including all expenses attending such resale,
shall be recoverable from defaulting purchaser up to the maximum of deposit money and if
there is any surplus, after meeting the deficiency, the same shall be refunded to the defaulting
purchaser.
122. Authority to bid.-- All persons bidding at a sale shall be required to declare if they are
bidding on their own behalf, or on behalf of their principals and, in the later case, they shall be
required to deposit their authority to bid and in default their bid shall be rejected.
123. Application to set aside sale of immovable property. -- (1) Where immovable property
has been sold in execution of a notice, the defaulter, or any person whose interests are affected by
the sale may, at any time within thirty days from the date of sale, apply to the Recovery Officer to
set aside the sale on his depositing--
(a) for payment to the Referring Authority, the Government dues specified in the
proclamation of sale as that for the recovery of which sale was ordered with a
surcharge thereon at the rate of ten per cent per annum, calculated from the date
of the proclamation of sale to the date when deposit is made; and
(b) for payment to purchaser, a sum equal to ten per cent of the purchase money.
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(2) Where a person makes an application under rule 124 for setting aside sale of his
immovable property, he shall not, unless he withdraws that application, be entitled to make an
application under sub-rule (1).
124. Application to set aside sale of immovable property on ground of non-service of
proclamation or irregularity.-- Where immovable property has been sold in execution of a
demand note, the referring authority, the defaulter, or any other person whose interests are
affected by the sale, may, at any time within thirty days from the date of sale, apply to the
Recovery Officer to set aside the sale on the ground that proclamation of attachment or
proclamation of sale was not made in the prescribed manner and he could not pay the Government
dues or on ground of a material irregularity in publishing or conducting the same:
Provided that--
(a) no sale shall be set aside on any such ground unless the Recovery Officer is
satisfied on the basis of evidence produced before him that the applicant has
sustained losses by such reasons; and
(b) an application made by defaulter under this rule shall be disallowed unless he
deposits the amount recoverable from him in execution of demand note.
125. Setting aside of sale where defaulter has no saleable interest.--At any time within thirty
days of the sale, the purchaser may apply to the Recovery Officer to set aside the sale on the
ground that the defaulter had no saleable interest in the property sold.
126. Confirmation of sale. -- (l) Where no application is made for setting aside the sale under
this Chapter or where such an application is made and disallowed, the Recovery Officer shall, if
the full amount of purchase money is paid, make an order confirming the sale and there upon the
sale shall become absolute.
(2) Where such application, is made and allowed or in case of an application to set aside the
sale on deposit of amount and penalty and surcharge the deposit is made within thirty days of sale,
the Recovery Officer shall set aside the sale:
Provided that no such order shall be made unless notice of the application has been given to the
persons affected thereby.
127. Return of purchase money in certain cases.--Where a sale of immovable property is set
aside, any money paid or deposited by the purchaser on account of the purchase, together with the
penalty, if any, deposited by him, shall be paid to the purchaser.
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128. Sale Certificate.-- (1) Where a sale of immovable property has become absolute, the
Recovery Officer shall grant a certificate specifying therein the property sold and the name of the
person who at the time of sale was declared to be the purchaser.
(2) Such certificate shall state the date on which the sale became absolute.
129. Postponement of sale to enable defaulter to raise amount due under notice.—(l)
Where an order or proclamation of sale of immovable property has been made and the defaulter
satisfies the Recovery Officer that there are reasons to believe that amount of the note can be
raised by mortgage or lease or private sale of such property, or some part thereof, or of any other
movable or immovable property, the Recovery Officer may, on the application of the defaulter,
postpone the sale on such terms and for such period as he thinks proper, to enable defaulter to
raise the amount.
(2) In such case, the Recovery Officer shall grant a certificate to defaulter authorizing him,
within a period to be mentioned therein and notwithstanding any thing contained in this Chapter,
to make the proposed mortgage, lease or sale:
Provided that all money payable under such mortgage, lease or sale shall be paid not
to the defaulter but to the Recovery Officer:
Provided further that no mortgage, lease or sale under this rule shall become
absolute until it has been confirmed by the Recovery Officer.
130. Issue of fresh proclamation before re-sale. — Every re-sale of immovable property, in
default of payment of purchase money within the period allowed for such payment, shall be made
after the issue of a fresh proclamation in the same manner as provided for the proclamation of
sale.
131. Bid of co-owner to have preference.--Where the property sold is a share of undivided
immovable property of two or more persons, of whom defaulter is a co-sharer and the bid of the
co-sharer and some other person is the same, the bid of the co-sharer shall have preference.
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PART - IV
APPOINTMENT OF RECEIVER
132. Appointment of receiver for business. -- (1) Where the property of defaulter consist of a
running business, the Recovery Officer may attach the business and appoint a person as receiver
to manage the business.
(2) Attachment of a business under this rule shall be made by an order prohibiting the
defaulter from transferring or subjecting the business to a charge in any manner and prohibiting all
persons from taking any benefit under such transfer or charge and intimating that the business has
been attached under this rule.
(3) Proclamation of attachment under this rule shall be made in the same manner as provided
for proclamation of sale under rule 103.
(4) Where the Recovery Officer so directs, such order shall also be published in newspapers.
133. Appointment of receiver for immovable property. — Where immovable property is
attached, the Recovery Officer may, instead of directing a sale of the property, appoint a person as
receiver to manage such property.
134. Qualification for receiver.-- (1) Any person from the general public can be appointed as
receiver upon having sufficient knowledge of the kind of business or the property for which he is
to be appointed as receiver.
(2) Notwithstanding anything contained in sub-rule (1), any officer of Customs, Federal
Excise or Sales Tax, not below the rank of Principal Appraiser or Superintendent or Senior
Auditor; may be appointed as receiver of the attached business and property.
135. Manner of working of receiver. -- (1) Where it appears to the Recovery Officer to be just
and convenient, he may by order--
(a) remove any person from the possession or custody of an attached business
or property;
(b) commit the same to the possession, custody or management of the receiver;
and
(c) confer upon the receiver all such powers, as to bringing and defending suits
and for the realization, management, protection, preservation and
improvement of the property, the collection of the rents and profits thereof,
the application and disposal of such rents and profits, and the execution of
documents as the owner himself has or such of those, powers as the
Recovery Officer thinks fit:
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Provided that nothing in this rule shall authorise the
Recovery Officer to remove from the possession or custody of business or
property any person whom any party to the recovery proceedings has not a
right to remove.
(2) The Recovery Officer may, by general or special order, fix the amount to be paid as
remuneration for the services of the receiver but a Government officer appointed as receiver shall
not be entitled to such remuneration.
(3) Every receiver appointed by the Recovery Officer, except Government officers, shall--
(a) furnish such security, if any, as the Recovery Officer deems fit, to account duly for
what he shall receive in respect of the business or property;
(b) submit his accounts as such periods and in such forms as the Recovery Officer
directs;
(c) pay the amount due from him as the Recovery Officer directs; and
(d) be responsible for any loss occasioned to the business or property by his willful
default or gross negligence:
Provided that the Government officer appointed as receiver shall
furnish all such information as desired by the Recovery Officer regarding the
progress of recovery along with accounts of proceeds after such intervals as
prescribed by the Recovery Officer.
(4) The profits or rents and profits of such business or property shall, after deducting the
expenses of management, be adjusted towards discharge of the Government dues and the balance,
if any, shall be paid to the defaulter.
136. Withdrawal of management. -- The attachment and management under aforesaid rules
may be withdrawn at any time at the discretion of the Recovery Officer, or if the Government
dues are realized by receipt of such profits and rent or are otherwise paid.
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PART-V
MISCELLANEOUS
137. Offences and penalties.-- All cases relating to confiscation of goods or imposition of
penalty with reference to operation of this Chapter shall be adjudicated under Chapter VIII of the
Act.
138. Continuance of proceedings. -- (1) No proceedings shall cease to be in force by reason of
the death of the defaulter.
(2) If, at any time, before or after the issue of a demand note to the Recovery Officer, the
defaulter dies, the proceedings under this Chapter may be continued against the legal heirs of the
defaulter, who shall be liable to pay, out of the properties left by the deceased defaulter to the
extent to which the properties are capable of meeting the outstanding Government dues, and
provisions of this Chapter shall apply as if the legal heirs were the defaulter.
139. Recovery from surety.-When any person has, under this Chapter become surety for the
amount due by the defaulter he may be proceeded against under this Chapter as if he were the
defaulter.
140. Receipt to be given.-If any amount is received by any officer or other person in pursuance
of this Chapter, he shall issue receipt of the amount so received.
141. Delivery of property in occupancy of defaulter.-Where the immovable property sold is
in the occupancy of the defaulter, or of some person on his behalf or of some person claiming
under a title created by the defaulter subsequent to the attachment of such property and a
certificate in respect thereof has been granted under rule 128, the Recovery Officer shall, on the
application of the purchaser, order delivery to be made by putting such purchaser or any person
whom he may appoint to receive such delivery on his behalf, in possession of the property and, if
need be, by removing any person who refuses to vacate the same.
142. Delivery of property in occupancy of tenant.--Where the immovable property sold is in
the occupancy of a tenant or other person entitled to occupy the same and a certificate in respect
thereof has been granted under rule 128, the Recovery Officer shall, on the application of the
purchaser, order delivery to be made by affixing a copy of the certificate of sale at some
conspicuous place on the property, and proclaiming to the occupant that the interest of the
defaulter has been transferred to the purchaser.
143. Resistance or obstruction by defaulter.--Where the Recovery Officer is satisfied that
resistance or obstruction was occasioned without any just cause by the defaulter or by any person
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at his instigation, he shall direct that the applicant be put into the possession of the property, and
where the applicant is still being resisted or obstructed in obtaining possession, the Recovery
Officer may also, at the instance of the applicant, order the use of force.
144. Resistance or obstruction by a bona fide claimant. -- Where the Recovery Officer is
satisfied that the resistance or obstruction was occasioned by any person other than the defaulter,
claiming in good faith to be in possession of the property on his own account or on account of
some person other than the defaulter, the Recovery Officer shall make an order dismissing the
application.
145. Dispossession by certificate holder or purchaser. -- (1) Where any person other than
defaulter is dispossessed of immovable property by the holder of a certificate, issued under rule
128, for the possession of such property or where such property has been sold in execution of
demand note, by the purchaser thereof, he may make an application to the Recovery Officer,
complaining of such dispossession.
(2) The Recovery Officer shall fix a day for investigating the matter and shall summon the
party against whom the application is made to appear and answer the same.
146. Bona fide claimant to be restored to possession.--When the Recovery Officer is satisfied
that the applicant was in the possession of the property on his own account or on account of some
person other than defaulter, he shall direct that the applicant be put into possession of the property.
147. Rules not applicable to transferee pendente lite.--Nothing in rules 144 and 145 shall
apply to resistance or obstruction in execution of a certificate for the possession of a property by a
person to whom the defaulter has transferred the property after the institution of proceedings in
which the order was passed or to the dispossession of any such person.
148. Delivery of moveable property, debts and share. -- (1) Where the property sold is
moveable property of which actual seizure has been made it shall be delivered to the purchaser.
(2) Where the property sold is moveable property in the possession of some person other than
the defaulter, the delivery thereof to the purchaser shall be made by giving notice to the person in
possession prohibiting him from delivering possession of the property to any person except the
purchaser.
(3) Where the property sold is a debt not secured by a negotiable instrument or is a share in a
corporation, the delivery thereof shall be made by a written order of the Recovery Officer
prohibiting the creditor from receiving the debt or any interest thereon, and the debtor from
making payment thereof to any one except the purchaser, or prohibiting the person in whose name
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the share may be standing from making any transfer of the share to any person except the
purchaser, or receiving payment of any dividend or interest thereon, and the manager, secretary, or
other proper officer of the co-operation from permitting any such transfer or making any such
payment to any person except the purchaser.
149. Execution of documents and endorsement of negotiable instruments. -- Where any
endorsement or execution of documents is required to transfer a negotiable instrument or any
share to purchaser under this Chapter, such document shall be executed or endorsement shall be
made thereon by the Recovery Officer.
150. Form.-- Any notice, proclamation, certificate or order to be issued under tins Chapter shall
be in such Form as may be prescribed by 75[Federal Board of Revenue], in annexes to these rules
or otherwise. In case the 76[Federal Board of Revenue] has not prescribed any of such Forms, it
shall be in such form as adopted by the Recovery Officer.
75 Substituted for the words “Central Board of Revenue” by Notification No. S.R.O 530(1)/2008, dated 11 June,2008, w.e.f. Ist day of July, 2008 reported as
PTCL 2008 st.1882.
76 Substituted for the words “Central Board of Revenue” by Notification No. S.R.O 530(1)/2008, dated 11 June,2008, w.e.f. Ist day of July, 2008 reported as
PTCL 2008 st.1882.
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77[CHAPTER XII
SPECIAL PROCEDURE FOR ACCESSING THE COMPUTERIZED SYSTEM
150A. Application. -- The provisions of this Chapter shall apply to persons authorized as users of
the computerized system under section 50A of the Act.
150B. Authorization. -- (l) A person desirous to be authorized as user of computerized system
under this Chapter may apply to the Board, 78[by visiting the website https://e.fbr.gov.pk].
(2) Upon scrutiny of the information provided by the applicant, the Board may grant
authorization to the applicant or refuse the application after giving the applicant a reasonable
opportunity of being heard.
(3) No person shall access the computerized system for transmission to or receipt of
information therefrom, unless authorized as aforesaid.
150C. Unique User Identifier. -- Every person authorized as user of computerized system shall
be allotted a 'Unique User Identifier’ for his identification in relation to accessing the
computerized system for transmission to or receipt of information therefrom.
150D. Access to computerized system. -- Subject to the conditions, restrictions and limitations,
as may be prescribed by the Board, the authorized user shall access the computerized system for
transmission to or receipt of information therefrom:
Provided that the Board may impose any additional conditions upon any authorized
user or class of authorized users for accessing the computerized system or to maintain
confidentiality or security thereof:
Provided further that the Board may require an authorized user or class of
authorized users including their accredited agents to use any additional electronic security
including digital certification for electronic filing of return or any other declarations.
150E. Responsibility of the user.-- The authorized user shall be responsible for security and
confidentiality of the 'Unique User Identifier' allotted to him and where any information is
transmitted to the computerized system using a 'Unique User Identifier', the transmission of that
information shall be sufficient evidence that the authorized user to whom such 'Unique User
Identifier' has been issued has transmitted that information.
150F. Cancellation of registration. -- (1) Where the Board is satisfied that any user authorized
to use the computerized system has,--
77 Chapters XII, XIII, & XIV added by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726
78 Substituted for the expression “at such time and in such manner, as may be prescribed” by Notification No. S.R.O 530(1)/2008, dated 11 June, 2008,
w.e.f. Ist day of July, 2008 reported as PTCL 2008 st.1882.
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(a) failed to comply with any of the conditions prescribed by the Board; or
(b) acted in contravention of any of the provisions of the Act or this Chapter; or
(c) failed to take adequate measures for security and confidentiality of the 'Unique User
Identifier'; or
(d) been convicted in an offence under this Act or any other law for the time being in force;
may cancel the authorization of that user after affording him an opportunity of being
heard.
(2) Pending consideration whether an authorization be cancelled under sub-rule (I), the Board
may suspend the authorization.
150G. Recording of transmissions.-- The Board shall keep record of each transmission sent to or
received from an authorized user, for a period of five years from the date of such transmission or
receipt.
150H. Scrutiny of records.-- An officer or officers of Sales Tax, authorized by the Collector in
this behalf, may examine records maintained by an authorized user, whether electronically or
otherwise, in relation to a specific transaction or to verify adequacy or integrity of the system or
media on which such records are created and stored.
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CHAPTER XIII
ELECTRONIC INTERMEDIARIES
150I. Application. -- This Chapter shall apply to the persons appointed as e-intermediaries by
the Board under sub-section (I) of section 52A of the Act to electronically file return and such
other documents as may be prescribed from time to time, on behalf of a person registered under
section 14 of the Act.
150J. Appointment of e-intermediary.-- (l) A person having sufficient information technology
infrastructure and professional experience in the field of providing taxation services, desirous of
being appointed as e-intermediary, shall apply to the e-declaration administrator on the format
prescribed in STR-20:
Provided that for the purposes of this rule, the 'professional experience', shall mean any
of the following, namely:--
(a) a firm or sole proprietorship approved to practice by the Institute of
Chartered Accountant of Pakistan or Institute of Cost and Management
Accountants of Pakistan; or
(b) a person appointed as authorized representative under Chapter IX of the
Sales Tax Rules, 2006,
(c) a person or firm approved to practice as Income Tax Practitioner under the
Income Tax Ordinance, 1979; or
(d) any other person approved by the Board.
(3) The e-declaration Administrator, after receipt of application for appointment as eintermediary,
and after verification, as aforesaid, shall forward the application along with his
specific recommendation to the Board for appointment of the applicant as e-intermediary.
(4) The Board, after receipt of the recommendations from the e- declaration Administrator,
may appoint the applicant as an e- intermediary and issue him a unique user identifier, subject to
such conditions, restrictions and limitations, as may be prescribed:
Provided that the Board may refuse to entertain an application for appointment as eintermediary
for reasons to be recorded and conveyed in writing.
(5) In case of any change in the particulars or information provided by the e-intermediary in
the application for registration, he shall immediately inform the concerned e-declaration
Administrator about such change.
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150K. Cancellation of appointment. — (1) Where the Board is satisfied that the e-intermediary
has--
(a) failed to comply with any of the conditions prescribed by the Board; or
(b) acted in contravention of any of the provisions of the Act or these rules; or
(c) failed to take adequate measures for security and confidentiality of the
Unique User Identifier; or
(d) been convicted in an offence under the Act or any other law for the time
being in force;
the Board may cancel the appointment of such e-intermediary after affording him an opportunity
of being heard.
(2) Pending consideration whether the appointment of the e-intermediary be cancelled under
sub-rule (1), the Board may suspend the appointment.
(3) An e-intermediary who intends to surrender his appointment, shall file an application to
this effect to the Board.
(4) The Board may, on receipt of an application referred to in sub- rule (3), cancel the
appointment of the e-intermediary after necessary inquiry, as it may deem proper to conduct.
150L. Procedure to be followed by registered persons. -- (l) A registered person, may authorize
an e-intermediary, duly appointed by the Board, to furnish e-declarations on his behalf, under
intimation to the e-declaration Administrator having jurisdiction.
(2) The e-intermediary shall generate hard copy of the declaration in duplicate which shall be
signed and retained by both the registered person and the e-intermediary.
150M. Procedure to be followed by e-intermediary.--The e-intermediary shall digitize the data
of e-declaration, duly signed by the registered person and electronically transmit the same to the
computerized system in the manner prescribed under Chapter XII of these Rules.
150N. Responsibilities of e-intermediary. -- (1) The e-intermediary shall be responsible for
security and confidentiality of the 'Unique User Identifier' allotted to him, and where any edeclarations
is transmitted to the computerized system by using his ‘Unique User Identifier’,
transmission of that e-declaration shall be deemed to have been transmitted by the e-intermediary
to whom such 'Unique User Identifier' has been allotted.
(2) The e-intermediary shall retain the data relating to all e- declarations transmitted by him
electronically on behalf of a registered person, for a period of five years following the date of such
declarations.
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79[(3) Where an e-intermediary has retained a printed copy of the return electronically
transmitted by him duly signed by the representative of the registered person as stipulated in rule
150M, he shall be deemed to have transmitted the return, in good faith and the provisions of subsection
(5) of section 52A of the Act shall not be applicable.]
150O. Responsibility of e-dec1aration Administrator.-- Without prejudice to the foregoing
provisions, an e-declaration Administrator shall ensure compliance by e-intermediary operating
within his jurisdiction including the verification about their credentials, any complaints received
against the e-intermediaries and such other matters as he may deem fit and inform the Board
wherever required.
150P. Scrutiny of records.-- (l) An Inland Revenue Officer, authorized by the Collector in this
behalf, may examine records maintained by an e-intermediary, whether electronically or
otherwise, in relation to a specific transaction or to verify adequacy or integrity of the system or
media on which such records are created and stored.
(2) In case any discrepancy or irregularity is committed by the e- intermediary, he shall be
liable to imposition of penalty prescribed under the Act or rules made thereunder.
79 Sub-rule (3) added by Notification No. S.R.O 849(1)/2008, dated 13th August, 2008, ,reported as PTCL 2009 St.284.
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CHAPTER XIV
SPECIAL PROCEDURE FOR ISSUANCE OF ELECTRONIC SALES TAX INVOICES
BETWEEN BUYERS AND SELLERS
150Q. Application.--The provisions of this Chapter shall apply for electronic transmission of
sales tax invoices by the registered persons who opt to do so in the manner specified hereunder.
150R. Eligibility to use electronic invoicing system.-- Every registered person who is engaged
in making supply of taxable goods or providing or rendering taxable services and wishes to use
electronic invoicing system shall seek prior authorization, in writing, from the concerned
Collector before issuing electronic invoices.
150S. Issuance of electronic invoice and record. — (l) The registered person shall issue an
electronic sales tax invoice for every taxable supply made by him, containing such information as
required under section 23 of the Act. The registered person shall also retain the record and
documents for a period of five years on electronic media as provided under section 24 of the Act.
(2) A sales tax invoice may be generated and transmitted electronically where the authenticity
of the origin and integrity of the invoice data are guaranteed by means of either an advanced
electronic signature or electronic data interchange (EDI) or by any other means as approved by the
Collector.
150T. Transmission of electronic invoice to the Collector.--The registered supplier making
supplies under this Chapter shall simultaneously transmit a copy of all such electronically issued
invoices to the Collector of Sales Tax having jurisdiction.
150U. Use of formats and controls over transmission of electronic invoices.-- (1) The
registered person may use any electronic invoice message format provided it contains all the
information specified under section 23 of the Act.
(2) The invoice shall be transmitted in a secure environment, using industry accepted security
technologies in respect of messages as well as communication links and networks over which the
invoice is transferred.
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(3) During the transfer of invoice data between the supplier and the buyer, the registered
person shall ensure,--
(a) completeness and accuracy of the invoice data;
(b) timeliness of processing;
(c) usage of necessary security measures for authenticity and integrity of data; and
(d) prevention of duplication of processing by the recipient.
(4) The registered person shall invariably maintain a back-up data to overcome any possible
system failure or loss or corruption of data.
150V. Conditions for electronic storage. -- (l) The registered person shall ensure the authenticity
and integrity of the data during and after application processing and use all electronic or
procedural means to prevent loss and corruption of data during the storage.
(2) The invoice data shall be stored in such manner that information at the time of original
transmission of invoice is re-created at the time of departmental audit.
150W. Audit. -- (l) The registered person shall allow access to the record and documents
maintained in electronic form as and when required by an Inland Revenue Officer as provided
under section 25 of the Act.
(2) The Inland Revenue Officer shall have access to--
(a) the operation of any computer system which generates or receives sales tax
invoices;
(b) supporting documentation including file structures, etc., operational and technical
manuals, audit trail, controls, safe keeping and information on how the accounting
system of the registered person is organized; and
(c) business intelligence tools to scrutinize the information available on the system.
(3) The Inland Revenue Officer shall be allowed to obtain any information from the system in
any format, and for this purpose the registered person shall provide,--
(a) physical access to system at his premises; and
(b) indirect access providing information on electronic media, or possibly via remote
access.
150X. Same conditions to apply in respect of buyer for receiving electronic invoices.-- (1) The
registered buyer who receives electronic invoices from the registered supplier shall fulfill the
same criterion and conditions for storing them, as are specified for the supplier in this Chapter.
Sales Tax Rules 2006
74
(2) In case the buyer wishes to store the electronic invoices received from the supplier in a
paper-based system, he can do so after obtaining necessary approval from the Collector of Sales
Tax having jurisdiction.
150Y. Failure to meet the conditions for electronic invoicing system. -- If the registered person
has issued and stored invoices electronically but has failed to meet the conditions relating to the
prescribed procedure, besides other legal actions which may be taken for such failure, he shall be
required to issue paper invoices till such time the Collector is satisfied that the electronic system
of the registered person is capable of doing the job.
150Z. Provisions of Electronic Transactions Ordinance, 2002, to apply.-- All the provisions of
Electronic Transactions Ordinance, 2002 (LI of 2002), relating to the recognition of documents,
records, information, communication and transaction in electronic form, accreditation of
certification service providers and for matters ancillary thereto, shall apply.]
80[CHAPTER XV
REPEAL
151. Repeal.--The Sales Tax Rules, 2005, the Electronic Filing of Sales Tax Return Rules,
2005, and the Sales Tax Refund on Zero-Rated Supply, Rules, 2006, are hereby repealed.]
80 Substituted for Rule 151 by Notification No. S.R.O 470(1)/2007, dated 9th June,2007,w.e.f.1st day of July, 2007,reported as PTCL 2007 St.1726
Sales Tax Rules 2006
75
[STR-1]
Sales Tax Rules 2006
76
Sales Tax Rules 2006
77
[STR-3]
Sales Tax Rules 2006
78
STR-4
[See rule 5(2)]
STOCKS DECLARATION FORM
Name: _____________________ Date: ______________________
* In case of local goods, mention name and registration number of the supplier from whom such taxable goods were
purchased during a period of 30 days prior to the date of application for registration. In case of goods imported during a
period of 90 days prior to the date of application for registration, mention the exporter's name and country.
-----
Description of
taxable goods
available in
stock
Name and registration
number of the
supplier*
Sales Tax Invoice No.
and date or name of
customs station of
clearance vessel name,
IGM No. and date,
Index No. BE, cash
No. & date.
Value
(exclusive of Sales Tax)
Sales Tax
involved
(1) (2) (3) (4) (5)
Sales Tax Rules 2006
79
81[STR-5]
TAXPAYER REGISTRATION CERTIFICATE
This Certificate shall be prominently displayed at a conspicuous place of the premises in
which business or work for gain is carried on. It is also required to be indicated on the
signboard where it is affixed.
Note: The NTN must be written on all returns, payment challans, invoices, letter heads,
advertisements etc. and all correspondence made with the tax departments.]
81 Form STR-5 substituted by Notification No. S.R.O. 429(1)/2009, dated 2nd June, 2009. Earlier Form STR-5 was substituted by Notification No. S.R.O.
530(1)/2008, dated 11th June, 2008, w.e.f 1st July, 2008, reported as PTCL 2008 SL 1882 and amended by Notification No. S.R.O. 761 (1)12008, dated 19th
July, 2008, reported as PTCL 2009 St. 41.
NTN Sales Tax Reg. No.
Category
Status
CNIC/Passport No. Birth Date:
Reg./Inc. No. Reg./Inc. Date:
Name
Address
Principal Activity
Other Activities
Registered for
Representative's CNIC
Name
E-Mail Address
Tax Office
Sales Tax Rules 2006
80
STR-6
[See rule 6(2)]
C. No. __________________________ Date _________________
M/s. __________________________
______________________________
______________________________
______________________________
SUBJECT: COMPULSORY REGISTRATION.
Whereas it has been ascertained that you are liable to be registered under the Sales Tax
Act, 1990, for the reason that:
_______________________________________________________________________________
______________________________________________________________________________;
Whereas you have not yet got yourself registered; therefore, you are hereby given an
opportunity to apply for registration in the form attached with this notice. You may also declare
the stocks in hand, if any, in terms of section 59 of the Sales Tax Act, 1990, read with rule 5(2) of
Chapter I of the Sales Tax Rules, 2006 in the Form at STR-4 to the Sales Tax Rules, 2006.
2. Kindly note that in case you fail to apply for registration by _______________
(date),--
(a) you shall be compulsorily registered under section 14 of the Act, read with rule 6
of the Sales Tax Rules, 2006, without any further notice;
(b) you shall render yourself liable to penalty under clause 7 of section 33(1) of the
Sales Tax Act,1990; and
(c) you shall also render yourself liable to arrest and prosecution in terms of section 37
A of the Sales Tax Act, 1990.
Encl. Registration Form (STR-l)
Local Registration Officer
Telephone:
Fax:
E-mail
-----
Sales Tax Rules 2006
81
82[STR-7]
[See rules 14(1)]
82 Form STR-7 substituted by Notification No. S.R.O. 761(1)/2008, dated 19th July, 2008, reported as PTCL 2009 St. 41. Earlier Form STR-7 was substituted
by Notification Nos. S.R.O. 530(1)/2008, dated 11th June, 2008, w.e.f. 1st July, 2008, reported as PTCL 2008 St. 1882, S.R.O. 1000(1)/2007, dated 29th
September, 2007, reported as PTCL 2008 St. 632, w.e.f. 8th September, 2007 and S.R.O. 824(1)/2007, dated 16th August, 2007, reported as PTCL 2008
St. 543, w.e.f.1st July, 2007.
Sales Tax Rules 2006
82
STR-7
(Continued...)
Sales Tax Rules 2006
83
STR-7
(Continued...)
ANNEX-B
SUMMARY OF EXPORTS
NTN: STRN: Tax Period:
Name of Registered Person
S. Particulars of GD Exports (Machine No.)
NO Collectorate GD Type GD
No.
GD
Date
Sales Tax
Rate
Import
Type
Value
for
Sales
Tax
Sales Tax
at
Import
Stage
2% Sales
Tax on
Commerci
al Imports
1 % SED
Total
99999999-9 MM-YY
Sales Tax Rules 2006
84
STR-7
(Continued...)
Sales Tax Rules 2006
85
STR-7
(Continued...)
ANNEX-D
SUMMARY OF EXPORTS
NTN: STRN: Tax Period:
Name of Registered Person
S. Particulars of GD Exports (Machine No.)
NO Collectorate GD Type GD No. GD Date
Value of Exports in Pak Rupees
Total
--------
99999999-9 MM-YY
Sales Tax Rules 2006
86
Sales Tax Rules 2006
87
Sales Tax Rules 2006
88
STR-7
(Continued)
ANNEX-F
INSTRUCTIONS
HOW TO FILL UP THE RETURN
1. These instructions are illustrative only and have no effect upon the provisions of the Sales Tax Act, 1990 or
the Federal Excise Act, 2005.
2. This return is required to be filled by all persons registered under the Sales Tax Act, 1990 and the Federal
Excise Act, 2005.
3. Instructions relating to different parts of the return are given below, namely:--
Sales Tax Rules, 2006
REGISTRY
CNIC
The registered person having the status of 'individual' or 'proprietor' is required to mention his
Computerized National Identity Card number. In all other cases this information can be skipped.
Normal/Revised
Normal return means the first return filed for any specific tax period. A revised return can be filed
under sub-sections (3) and (4) of section 26 of the Sales Tax Act, 1990. While filing the revised
return, the taxpayer shall check the relevant box and fill in all the relevant data for the month
including the columns which were correctly filled in the normal return.
Monthly/Quarterly
All registered persons are required to file return on monthly basis, except retailers, CNG dealers
and dealers of specified electric goods operating under special procedures.
Tax Period
The tax period has to be mentioned in the format "mm yy". For example, July 2009 is to be
mentioned as " ". The persons filing the quarterly return shall mention 'the last month
of the quarter. For example, in case of quarter June to September 2009 2008’, the month of
September 2009 should be mentioned as " ".
SALES TAX CREDITS
Col. 1. Domestic Purchases (excluding fixed assets)
All purchases should be mentioned here. Gross Value means total value of all purchases including
taxable and otherwise. Value of taxable purchases would come under “Taxable Value”. In case of
electronic filing, these fields would be automatically filled based on summary of purchases in
Annex A of the return.
Col. 2: Imports (excluding fixed assets).
This column would also be filled on the basis of details of imports as provided in Annex B.
Col. 3. Capital/fixed assets to be credited at l/12th of accumulated amount
0 7 0 9
0 9 0 9
Sales Tax Rules 2006
89
The accumulated amount' is the admissible input tax paid on fixed assets during the relevant tax
period and previous eleven tax periods. This amount should be divided by 12 to obtain the input
tax deductible during the relevant tax period.
Col. 4. Inadmissible input tax relating to exempt supplies/non-taxed services etc:- The input
tax which is attributed to exempt supplies or to non-taxable services is to be mentioned here. Any
other input tax which is not admissible as credit is also to be included. If any part of input tax
relates to both taxable and exempt supplies or services, inadmissible input tax is to be calculated
in accordance with Chapter IV of these rules.
Col. 6. Previous month credit brought forward:- This is the amount of tax which could not be
adjusted in previous month and should strictly be the amount mentioned in the column 'Balance
Credit to be carried forward' in the return for the preceding tax period. It is to be noted that
previous month's refund claim should not be included in this column.
Col. 7. Accumulated Credit:- This is the total input tax available for adjustment against output
tax. This is the sum of total admissible input tax for the month plus credit brought forward from
the previous month.
SALES TAX DEBITS
Col. 8. Supplies Made & Services Rendered:-Value of sales and services shall be based on
entries made in Annex C. It may be noted that the services chargeable to sales tax under provincial
ordinances and the services subject to FED in VAT mode are to be included in the said Annex.
For example courier services and domestic air travel services etc.
Col. 10. Extra Tax:-The manufacturers and importers charging extra tax under Chapter XIII of
the Sales Tax Special Procedures Rules, 2007, or otherwise, shall mention the same in Annex C
and the total figure shall appear against this column.
Col. 12. Retail Turnover for the Quarter:-The registered persons operating retail outlets are
required to pay sales tax on total turnover of such retail outlets. The retailers shall discharge their
liability through quarterly return as per formula given in Chapter II of the Sales Tax Special
Procedures Rules, 2007. However, for the purpose of exemption the turnover of last twelve
months as specified in Sixth Schedule to the Act shall be relevant.
Col. 13. Electricity supplied to steel sector:-The electricity distribution companies shall mention
the units supplied to steel sector as covered under the Sales Tax Special Procedures Rules, 2007,
on which sales tax is payable at the rate of Rs.6.00 per unit.
Col. 16. Less: Sales Tax deducted by withholding agent @ 1/5th of tax invoiced:- This column
allows a registered person to subtract the sales tax which has been deducted by a withholding
agent from his output tax liability. Only the amount actually deducted needs to be mentioned.
Col. 18. Sales Tax withheld by the return filer (STWH):If a registered person is also
withholding sales tax under the Sales Tax Special Procedure (Withholding) Rules, 2007, he shall
mention the tax deducted during the tax period from the amounts payable to suppliers.
Col. 19. Sales Tax Arrears: Outstanding sales tax arrears can be deposited against this column.
Col. 20. Whether excluded from Section 8B(I), under SRO 647(1)/2007.
Sales Tax Rules 2006
90
The registered person should say yes, if they fall in any of the categories specified in above said
notification. The formula given in next column shall determine admissible credit based on the
reply in this column.
Col. 23. Excess Unadjusted Credit :-This is the excess of input tax which is available either for
carry forward or for claiming refund under rules. This is worked out with the help of formulae
provided.
Col. 24. Refund claim :-The persons making zero-rating supplies can claim refund of excess
input tax relating to inputs actually consumed in zero-rated supplies. The balance excess can be
carried forward. Persons making supplies other than zero-rated can claim refund of excess input
tax in the manner as provided in Chapter V of these rules.
Col. 27. Goods chargeable to Special Excise Duty:- Information in respect of SED under S.R.O.
655(I)/2007 is to be provided in Annex C and the same shall also appear in this column.
Col. 28. SED on inputs used in manufacturing of Goods supplied for domestic consumption:-
SED on inputs used in goods supplied during the tax period is to be given here. It is to be noted
that SED paid on inputs which are still in inventory, as raw materials or as finished goods, cannot
be adjusted here. Such SED amounts can be carried forward in the accounts of the registered
person and adjusted when relevant goods are supplied:
Col. 36. Tax paid on normal/original return:- In case the return is being revised, the credit of
the amount paid on the normal/original return can be availed by mentioning the said amount.
Col. 37. Balance Tax Payable Refundable:-Balance payable is the amount to be deposited on
the return.
Declaration :-Declaration can be filled in by any person duly authorized to file the return. CNIC
mentioned here should belong to the person making the declaration.
Head of Accounts: - The break-up of tax being payable on the return is to be provided. If the
taxpayer is dealing in more than one type of taxes he should provide the head-wise break up of the
total amount payable for the month i.e. the amount mentioned in the column "Total Taxes Payable
(Net ST Payable + Net FED Payable + PDL)". The amount falling in FED and PDL can easily be
determined. However, the problem may arise while providing break-up of sales tax, provincial
sales tax and FED payable in VAT mode because of common inputs involved. In case the
registered person is not conveniently able to determine such break-up, then the total payable
amount for such heads can be apportioned on the basis of value 'of supplies/services relating to a
particular head of account.
ANNEX-A and ANNEX-C:
Purchase and Sale Summaries:- The supplier/buyer wise summaries are required in respect of
all taxable items other than zero-rated, in relation to transactions with registered persons. In case
of sales, sales to unregistered persons, the totals may be mentioned in the last row. Previous
exceptions provided under S.R.O.559 (I)/2006 or any other circular or letter are not valid for these
summaries.
ANNEX-B and ANNEX-D:
Sales Tax Rules 2006
91
Import and Export Summaries
The Collectorate codes for various customs stations are given below:--
Sr.No Customs Station Import
Code
Export
Code
1 Appraisement Collectorate, Karachi KAPR
2 Lahore Dry Port LDRY LEXP
3 Lahore Air Freight Unit LAFU LAFE
4 Karachi Air Freight Unit KAFU KAFE
5 Karachi Oil Section KOIL
6 Sialkot Dry port SDRY SEXP
7 Faisalabad Dry Port FDRY FEXP
8 Rawalpindi Dry Port RDRY
9 Hyderabad Dry Port HDRY HEXP
10 Peshawar Dry Port PDRY PEXP
11 Multan Collectorate/Dry Port MDRY MEXP
12 Gujranwala Dry Port GDRY
13 Port Qasim Karachi KPQI KPQE
14 Quetta Dry Port QDRY QEXP
15 Karachi Export Processing Zone KEPZ
16 Railways (Karachi) KRLY
17 Lahore Thoker Niaz Baig LTNB LTEX
18 Islamabad Airport Freight Unit IAFU
19 Peshawar Airport PAFU PAFE
20 Peshawar Torkham PTOR PTRE
21 Rawalpindi Air Freight Unit RAFU RAFE
22 Sust Dry Port SUST SUSE
23 Chaman Dry Port QCHM QCHE
24 Karachi Air Frieght Unit (lCG) KAFI
25 Export Processing Zone Karachi KEPI
26 Islamabad Dry Port Import" IDRY IDRE
27 Faisalabad Air Freight Unit FAFU FAFE
28 Lahore Air Freight Sialkot LAFS
29 Sialkot EPZ Imports SIPZ SEPZ
30 Multan Air Freight Unit MAFU MAFE
31 Quetta Railway Station Quetta Air QRLY QRLE
32 Quetta Air Port Unit QAFU QAFE
33 Model Custom Collectorate Karachi KMCC
34 Sialkot Air Freight Unit SAFU
35 Karachi Export Collectorate KEXP
Sales Tax Rules 2006
92
ANNEX-E
FEDERAL EXCISE DUTY
Col. 1 to 6. Excisable goods supplied/services provided.
Space has been provided for six excisable goods/services to cater to situations where a person is
supplying or providing more than one good or service. Following nomenclature should be adhered
to while specifying the goods, namely:--
1. Concentrates for aerated beverages
2. Aerated waters
3. Aerated waters with sweetener etc
4. Aerated waters made from pulp/juice etc.
5. Unmanufactured tobacco
6. Cigars, cheroots, cigarillos and cigarettes
7. Cement
8. Clinker
9. Solvent oil (non-composite)
10. Other petroleum oils
11. Other fuel oils
12. Lubricating oils
13. Lubricating oil in bulk
14. Lubricating oil if manufactured from reclaimed oils
15. Mineral greases
16. Base lube oil
17. Transformer oil
18. Other mineral oils
19. Waste oil
20. Petroleum gases in liquefied state
21. Natural gas in gaseous state and other petroleum gases
22. Carbon black oil etc
23. Methyl tertiary butyl ether (MBTE)
24. Flavours and concentrates
25. Perfumes and toilet waters:
26. Beauty or make-up preparations etc..
Sales Tax Rules 2006
93
27. Preparations for hair
28. Pre-shave, shaving or after-shave preparations etc
29. Greases
30. Organic composite solvents and thinners
31. Other solvents excluding thinners
32. Motor cars and other motor vehicles
33. Facilities for International air travel
34. Insurance Services
35. Non-fund banking services
36. Franchise services
37. Services of development of land into plot
38. Services of construction of residential or commercial units
Col. 9. Exempt supplies.
All supplies of exempt excisable goods as in the Third Schedule to the Federal Excise Act, 2005,
or under any notification issued thereunder should be mentioned here.
Col. 10. FED paid on goods used in manufacturing of Goods supplied for domestic
consumption
FED on inputs used in goods supplied during the tax period is to be given here. It is to
be noted that FED paid on inputs which are still in inventory, as raw materials or as finished
goods, cannot be adjusted here. Such FED amounts can be carried forward in the accounts of the
registered person and adjusted when relevant goods are supplied. The FED amount mentioned in
this column has to be less than excise duty payable on finished goods supplied. It would be greater
only in case where the rate of excise duty on inputs is higher. In such cases no refund of higher
duty on inputs is admissible.]
-------
83[STR-8
Omitted]
-------
84[STR-9
Omitted]
-------
83 Form STR-8 omitted by Notification No. S.R.O. 470(1)/2007, dated 9th June, 2007, w.e.f. Ist day of July, 2007, reported as PTCL 2007 St. 1726.
84 Form STR-9 omitted by Notification No. S.R.O. 824(1)/2007, dated 16th August, 2007, reported as PTCL 2008 St. 543. This amendment shall be made and
shall be deemed to have been so made on the 1st day of July, 2007.
Sales Tax Rules 2006
94
[STR-10]
[See rule 17]
Sales Tax Rules 2006
95
85[STR-11
[See rule 18(2)]
PART-I
85 Form STR-ll substituted by Notification No. S.R.O. 840(1)/2008, dated 13th August, 2008, reported as PTCL 2009 St. 284. Earlier Form STR-ll was
substituted by Notification No. S.R.O. 824(1)12007, dated 16th August, 2007, reported as PTCL 2008 St. 543, w.e.f I st day of July, 2007.
Federal Board Of Revenue
Government of Pakistan
SALES TAX PAYMENT CHALLAN
INPUT FORM
Sales Tax Registration No. NTN :
Month Year
Name ______________________________________ Tax Period
Address ________________________________________________________________
HEAD OF ACCOUNT Amount in Pak. Rupees
B-02341 Sales Tax
B-02366 Sales Tax on Services
B-02367 Federal Excise Duty Levy in
VAT Mode
Total Amount
Amount in words _____________________________________________________
DECLARATION
I hereby declare that the particulars mentioned in this challan are correct.
CNIC of Depositor
Name of Depositor _________________________________________________
Stamp & Signatures
Date ____________________
Note: This is an Input Form and should not be signed/ stamped by Bank. However, a CPR
should be issued after receipt of payment by the Bank.
Sales Tax Rules 2006
96
[STR-11]
[Continued…]
PART-II
Sales Tax Rules 2006
97
STR-12
[See rules 52, 53, 55 & 57]
AUTHORIZATION FOR ZERO- RATED SUPPY
S.NO.______________ Date: _________
Messrs. _______________________________________have applied for zero-rated
(Name of buyer)
Supply under chapter viii of sales Tax Rules, 2006, on the basis of the following document: __
1. FBR Booklet No._________________________________________________
2. M/O foreign Affairs Exemption Order No.____________________
3. Other______________________________________________________
The claim for zero-rating has been found in order and the formalities specified in the said
Rules have been fulfilled by this office.
M/s _______________________________are, therefore, authorised to
(Name& registration no. of registration supplier)
deliver the following goods to the said applicant against a zero-rated invoice:--
Assistant/Deputy Collector
(Signature, name and official
seal)
S.NO. Description Quantity and/ or value
1.
2.
3.
4.
5.
6.
Sales Tax Rules 2006
98
STR-13
[See rule 61]
LETTER OF AUTHORIZATION
I, ___________________________________ , Proprietor/Partner/Director of
M/s. _________________________________________________, hereby authorize
Mr. ___________________ S/o Mr. ______________________________________
N.I.C.No. ___________________________ to represent before the adjudicating
authority or the Customs, Excise and Sales Tax Appellate Tribunal, __________
Bench on behalf of M/s._______________ Sales Tax/Federal Excise Registration
No. ____________ for single hearing on _____________________________
(date)/till the decision of the case. (Cross out whichever is not applicable) or till
withdrawal of this authorization, whichever is earlier.
I also affirm and certify that he fulfils the conditions of an authorized
representative as prescribed in Chapter IX of the Sales Tax Rules, 2006.
Dated: ___________ Signature: ________________
Name: ____________________
(Proprietor/Partner/Director)
N.I.C.No. _________________
Company or Business Seal/Stamp ______
Sales Tax Rules 2006
99
STR-14
[(See rule 73)]
FORM OF DEMAND NOTE
C. No. ___________________ Dated: _________________
SUBJECT: ______________________________________________________________
Reference _______________________________________________________________
(e.g. Order-in-Original No., Bank Guarantee No., Insurance Guarantee No., etc.)
WHEREAS a sum of Rs.___________________ (Rupees ________________ only),
as Government dues (as per Schedule attached) is outstanding and needs to be recovered
from the following:
M/s. ________________________________________________________________
Address _____________________________________________________________
Phone No ____________________________________________________________
Sales Tax Registration No _______________________________________________
N.T.N. No.___________________________________________________________
Known properties:_____________________________________________________
2. The above-mentioned Government dues are on account of Sales Tax and
other levies under the Sales Tax Act,1990. It is certified that all other formalities under the
Act and rules made thereunder have been completed as follows, and there exists no bar or
stay order against recovery:--
(a) Action taken under clause (a) of section 48 of the Sales Tax Act, 1990,
(b) Action taken under clause (b) of section 48 of the Sales Tax Act, 1990,
(c) Action taken under clauses ( c) and (ca) of section 48 of the Sales Tax Act,
1990, and
(d) Action taken under clause (d) of section 48 of the Sales Tax Act, 1990.
3. You are, therefore, requested to recover the above-mentioned Government
dues in terms of section 48 of the Sales Tax Act, 1990 and rules made thereunder. The
Government dues may be remitted to the undersigned as soon as the same are recovered.
Referring Authority
(Name)
Assistant/Deputy Collector of Sales Tax
Seal _____________
Sales Tax Rules 2006
100
STR-15
[(See rule 75)]
FORM OF MASTER REGISTER
1. Sr. No. ____________________________________________________________
2. Defaulters Name, Address and PhoneNo._______________________________
__________________________________________________________________
__________________________________________________________________
3. Referring Authority
__________________________________________________________________
__________________________________________________________________
4. (i) No. and date of issue and date of Receipt of demand Note
___________________________________________________
(ii) Reference Nos. _________________________________
5. Details of Government dues ______________________________
S.No. Description Amount
Sales Tax Rs. __ (Rupees ___________________________ only)
Default surcharge Rs. __ (Rupees ___________________________ only)
Federal Excise duty Rs. __ (Rupees ___________________________ only)
Customs duty Rs. __ (Rupees ___________________________ only)
Fines Rs. __ (Rupees ___________________________ only)
Penalty Rs. __ (Rupees ___________________________ only)
Personal Penalty Rs. __ (Rupees ___________________________ only)
Surcharge Rs. __ (Rupees ___________________________ only)
Penal surcharge Rs. __ (Rupees ___________________________ only)
License fee Rs. __ (Rupees ___________________________ only)
Income Tax Rs. __ (Rupees ___________________________ only)
Other Rs. __ (Rupees ___________________________ only)
(i) Rs. __ (Rupees ___________________________ only)
(ii) Rs. __ (Rupees ___________________________ only)
(iii) Rs. __ (Rupees ___________________________ only)
(iv) Rs. __ (Rupees ___________________________ only)
TOTAL Rs. __ (Rupees ___________________________ only)
Sales Tax Rules 2006
101
STR-15
[ Continued ….]
(6) Date of issue of notice under rule 71
(7) Date of issue of notice under rule 72
(8) Date of issue of notice and action taken under rule 74 ________
(9) Known properties of the defaulter:--
(i) Movable ________________________________________
(ii) Immovable ______________________________________
(10) Name and designation of Attachment Officer _______________
(11) Details of movable properties attached:--
(i) ___________________________________________
(ii) ___________________________________________
(iii) ___________________________________________
(12). Date of proclamation of attachment of immovable properties:
(i) ___________________________________________
(ii) ___________________________________________
(13) Details of immovable properties attached:--
(iii) ___________________________________________
(iv) ___________________________________________
(v) ___________________________________________
(14) Date of appointment of receiver, name of receiver and details of business or
properties:--
(i) ___________________________________________
(ii) ___________________________________________
15. Date of sales of properties and their details:--
(i) ___________________________________________
(ii) ___________________________________________
16. Amount of sale proceeds or amount of profits along with mode of receipt:--
(i) ___________________________________________
(ii) ___________________________________________
17. Disposal of sale proceeds _________________________________
_______________________________________________________
18. Date of recovery and details of Government dues shown in column recovered along
with the manner of recovery.
__________________________________________________________________
Sales Tax Rules 2006
102
STR-16
[See rule 71(2)]
FORM OF NOTICE TO SALES TAX, CUSTOMS, FEDERAL EXCISE AND INCOME TAX
AUTHORITIES
No. _________________ Dated: _________
SUBJECT: __________________________________________________________________
WHEREAS, Government dues amounting to Rs._________(Rupees only), are outstanding
against
M/s._______________________________________________________________________
(Name and Complete Address)
having Sales Tax Registration No. _______________________________________________
which they have failed to pay so far.
2. NOW, THEREFORE, in exercise of the powers conferred by clause (a) of sub-section (1) of
section 48 of the Sales Tax Act, 1990, I do hereby require all Customs, Federal Excise, Sales Tax and
Income Tax Authorities that with immediate effect and till further orders:--
(a) to deduct the aforesaid amount from any money owing to the said
M/s.__________________________________________ which may
be under the control of respective authorities; and
(b) the Government dues so recovered should be sent to the undersigned immediately.
Referring Authority
(Name) Assistant/Deputy Collector of Sales Tax
Seal _________________________
To,
(i) M/s. _____________________________________ (defaulter).
(ii) M/s. _____________________________________ (clearing agent or representative).
(iii) All other concerned.
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Sales Tax Rules 2006
103
STR-17
[See rule 72(1)]
FORM OF NOTICE OF RECOVERY
No. _________________ Dated: _________
SUBJECT: Notice for Recovery under Section 48 of the Sales Tax Act, 1990.
WHEREAS, Government dues amounting to Rs._________(Rupees only), are recoverable
from you
(M/s.______________________________________________________________________________)
on account
of _______________________________________________.
2. AND WHEREAS, you have failed to deposit the above said Government dues recoverable from
you and it is believed that the outstanding Government dues cannot be recovered from you in the manner
so far followed;
3. NOW, THEREFORE, you (M/s. ______________________________________ )are hereby
served with this notice in terms of section 48 of the Sales Tax Act, 1990 to pay the amount within fifteen
days from the date of service of -this notice, failing which following proceedings under section 48 of the
Sales Tax Act, 1990 will be initiated without any further notice:--
Removal of goods from your business premises shall be stopped and the business
premises sealed after fifteen days of issue of this notice till such time the amount of tax is paid or
recovered in full.
4. You are also directed not to directly or indirectly, sell,
mortgage, charge, lease or otherwise deal with all movable and immovable property belonging to you
except with the permission of the undersigned.
Referring Authority
(Name)
Assistant/Deputy Collector of Sales Tax
Seal _________________________
To,
(i) M/s. _____________________________________ (defaulter).
(ii) M/s. _____________________________________ (clearing agent or representative).
(iii) All other concerned.
--------
Sales Tax Rules 2006
104
STR-18
[See rule 74]
FORM OF NOTICE FOR ATTACHMENT AND
RECOVERY
Subject: Notice for Recovery under section 48 of the Sales Tax Act, 1990
WHEREAS, Government dues amounting to Rs. _____________________
(Rupees __________________________________________________ only)
are recoverable from you, M/s._____________________________________
__________________________________________________ on account of
_____________________________________________________________.
2. AND, WHEREAS, you have failed to deposit the above said Government
dues recoverable from you and no recovery could be made in the terms of
clauses (a), (b), (c), (ca), (d) and (f) of sub-section (1) of Section 48 of the Sales
Tax act, 1990.
3. AND WHEREAS, it is believed that the outstanding Government dues
can not be recovered from you in the manner so far followed.
4. NOW, THEREFORE, you are hereby served with this notice in terms
of Section 48 of the Sales Tax Act, 1990 to pay. the amount within fifteen
days from the date of service of this notice, failing which following
proceedings under Section 48 of the Sales Tax Act, 1990 and the rules made
there under shall be initiated without any further notice:-
(a) attachment and sale of moveable and immovable property; and
(b) appointment of receiver for the management of the movable or
immovable property.
5. You are also directed not to directly or indirectly, sell, mortgage, charge,
lease or otherwise deal with all movable and immovable property belonging to
you except with the permission of the undersigned.
6. You are also informed that all your movable and immovable properties shall
stand attached on the expiry of 15 days of the service of this notice.
7. Such attached properties can be seized/sold under Chapter XI of the Sales
Tax Rules, 2006, or a receiver can be appointed to manage them. To avoid
such a situation it shall be in your own interest to pay the Government dues
within fifteen days from the date of service of this Notice.
________________________
(Name)
Sales Tax Recovery Officer
_______________________
Seal
Sales Tax Rules 2006
105
To,
(i) M/s. _____________________________________ (defaulter).
(ii) M/s. _______________________________ (agent or representative).
(iii) M/s. _____________________________________ (other concerned).
------
Sales Tax Rules 2006
106
STR-19
[See rule 88]
FORM OF WARRANT OF ATTACHMENT
C. No. ________________________ Dale: ____________________
Subject: ___________________________________________________________________
WHEREAS Mr. ____________________________(Designation )has been
appointed as Attachment Officer in terms of the Chapter Xl of the Sales Tax Rules, 2006, to
attach the movable properties of M/s.________________________________ for the recovery
of outstanding Government dues amounting to Rs.__________ (Rupees
________________________only), recoverable from the above-mentioned defaulter.
THEREFORE, Mr. _________________________________________________
(, Designation __________________________ ) is hereby directed to seize the movable
properties belonging to the defaulter while observing the provisions of Chapter XI of the Sales
Tax Rules, 2006, save exceptions as provided under the above said rules. He is also directed to
report to the undersigned about the completion of attachment formalities as soon as these are
completed.
______________________________
(Name)
Sales Tax Recovery Officer
_______________________
Seal
To,
(i) The Attachment Officer,
___________________,
___________________,
along with a copy to be served on the defaulter or his agent.
(ii) Notice Board.
Sales Tax Rules 2006
107
86[STR-20
[See rule 150J (1)]
Application for appointment as e-Intermediary
Collectorate:_________________________________ (where registration desired)
(1) Business Name
(2) NTN
(3) Business Status
(4) Address of Registered
Head office
(i) City
(ii) Post Code
(iii) Premises (Tick) Self Owned Rented
(iv) Phone no.
(v) Fax No.
(vi) E-Mail address
(vii) Bank Account No.
(viii) Bank name &
Address
I,___________________________ , the undersigned, hereby, certify that the
information above is true and correct and further that the applicant has not
been involved in any case of tax fraud.
Signature & Stamp: ________________
Name: ____________________________
Designation: _______________________
***
86 Form STR-20 added by Notification No. S.R.O. 470(I)/2007, dated 9th June, 2007, w.e.f. Ist day of July, 2007, reported as PTCL 2007 St.
1726.