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(3) Instructions relating to different parts of the return are given below, namely:-

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:

Sales Tax Credit

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 1/12th of accumulated amount.

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 Debit

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(1), under SRO 647(I)/2007.

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:-

Import and Export Summaries.

The Collectorate codes for various customs stations are given below:

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:-

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.