Before Registration and Filing of your Sales Tax Return, it is recommended that one should establish basic understanding regarding these processes. Knowledge of basic concepts would not only ensure that the tasks are performed easily but also in the prescribed manner.
Sales Tax is a tax levied by the Federal Government under the Sales Tax Act, 1990, on sale and supply of goods and on the goods imported into Pakistan. Sales Tax on services is levied by the Federal Government under Azad Jammu and Kashmir Sales Tax (Tax on services) Act, 2001.
Input tax is the tax paid by registered person on the taxable goods and services purchased or acquired by him. This also includes the sales tax paid on imports.
It is the sales tax charged and levied on the sale or supply of goods or services on which sales tax is leviable.
Sales tax applies to the following:
All goods are taxable except those that have been exempted under section 13 as mentioned under 6th Schedule of the Sales Tax Act, 1990. For sales tax purposes goods include every kind of movable property other than actionable claims, money, stocks, shares and securities.
All goods imported into Pakistan are liable to sales tax at the time of import, except goods specifically exempted under section 13 as mentioned in Sixth Schedule to the Act.
Under section 13 of The Sales Tax Act 1990, the Sixth Schedule of the Sales Tax Act, 1990 specifically and explicitly mentions those goods on which exemption of sales tax is available. Other exemptions are available through various notifications (SROs) issued by the Government under section 13.
Sales tax registered person must keep a record in English or Urdu of all the goods and services supplied, purchased or imported in the course of business.
Record should contain following details of goods supplied or services rendered:
Description.
Quantity.
Value.
Name and address of the
if tax paid by a registered person on taxable purchases made during a tax period exceeds the output tax on account of zero rated local supplies or export made during that tax period, the excess amount of input tax shall be refunded to the registered person not later than 45
Every person registered under the Sales Tax Act,1990, or the Federal Excise Act, 2005, is required to file a Sales Tax Return.
A Sales Tax return is the taxpayer’s document of declaration through which taxpayer not only furnishes the details of transactions during a tax period but also deposits his
Before filing your Sales Tax Return is to get yourself registered with Central Board of Revenue (CBR).
The registration with CBR provides you with a Sales Tax Registration Number (STRN) or User ID and password. These credentials allow access to efile portal, the online portal for filing Sales Tax Return.
