SALES TAX CIRCULAR NO. 2 OF 1991,

DATE 30^th OCTOBER, 1991

SUBJECT:-- GRANT OF EXEMPTION FROM SALES TAX IN TERMS OF SECTION 65 OF SALES TAX ACT, 1990

           In order to give effect to the provision of section 65 of Sales Tax Act, 1990, the Revenue Division is pleased to lay down the following procedure:-

(i)      If a registered person claims that the supplies made by him during a certain period qualify for exemption under section 65 of the Sales Tax Act, 1990, he may make an application to the Collector having jurisdiction in the area where the registered person is located. The Collector will examine the case, collect relevant information from other Collectors and if he is satisfied that the case falls within the scope of section 65, he will refer the same to the Revenue Division.

(ii)      Before making a reference to the Revenue Division the Collector will also fix responsibility on the staff who failed to detect that a taxable item is being cleared without payment of tax and thus caused loss of revenue. He will initiate disciplinary action, against the officials concerned and send a report to the Revenue Division.

(iii)      The case will be processed in the Revenue Division and if the conditions specified in section 65 are met the Federal Government may by means of a notification in the official gazette exempt the said supplies from sales tax.

Mr. Abdul Wadood Khan

 Chief (Sales Tax)