Scope and Payment of Tax Chapter- 05
65 Exemption of tax not levied or short levied as a result of general practice
68 Liability of the registered person for the acts of his agent
69 Issuance of duplicate of sales tax documents
71 Special procedure
74A Validation
75 Application of the provisions of Act 1969 to Sales Tax
76 Fee and service charges
3(8) Sales tax for CNG stations
Sales tax on services
MCQ’s with solutions
ICMAP and CA Mod C past papers theoretical questionsPART – I (For CAF- 6 and ICMAP students)
- Scope of tax [U/S 3]:
Sales tax shall be charged, levied and paid at the rate of 1 7 % on the value of:
(a) taxable supplies made by a registered person
(b) goods imported into Pakistan irrespective of their final destination in territories of Pakistan
as specified in clause (2) of Article 1 of the Constitution of Islamic Republic of Pakistan
Further TaxSubject to the provision of section 8(6) or any notification issued there under, where taxable
supplies are made to a person who has not obtained registration number or he is not an active
taxpayer, there shall be charged, levied and paid a further tax at the rate of 3 % of the value in
addition to the rate specified in this section and in case of zero rated supplies:
The Federal Government may, subject to such conditions and restrictions as it may impose, by
notification in the official Gazette, declare that in respect of any taxable goods, the tax shall be
charged, collected and paid in such manner and at such higher or lower rate or rates as may be
specified in the said notification.
Tax on production capacity basis
On the goods specified in the Tenth Schedule, in lieu of levying and collecting tax under sub-
section (1), the tax shall be levied and collected, in the mode and manner specified therein− –
(a) on the production capacity of plants, machinery, undertaking, establishments or installation
producing or manufacturing such goods; or
(b) on fixed basis, from any person who is in a position to collect such tax due to the nature of
the business,
and different rates may be so prescribed for different regions or areas.
The liability to pay the tax shall be:
(a) in the case of supply of goods, of the person making the supply, and
(b) in the case of goods imported into Pakistan, of the person importing the goods.
(c) The Federal Government may fix a lower or higher rate of sales tax in addition to 1 7 %.
Federal Government vide SRO 657 dated 11- 07 - 2013 has notified that the import and
supply of second-hand and worn clothing shall be charged to sales tax @ 5%.
Liability of Sales Tax on Purchases by Exporters
The Federal Government vide SRO 401(I)/2001 dated June 18, 2001 has notified that where the
goods are supplied to or received by a person as exporter under the provisions of Duty and Tax
Remission for Export Rules, 2001 then sales tax in respect of such goods shall be payable by