Scope and Payment of Tax Chapter- 05
(ii) Specify the manner and modes in which sales tax due on imported or taxable supplies shall be
paid.
Q. NO. 5 (a) March 2015 (b) XYZ Industries (pvt.) Limited has been established for many years and
registered under the Sales Tax Act, 1990. The Chief Financial Officer (CFO) of the company, Mr.
Akram observed that there is often delay and discrepancies in filing of sales tax return due to
inexperienced staff regarding the sales tax matters. He requested the Sales Tax Advisor of the
company to train the staff of the sales tax department.
Required:
Being the Sales Tax Advisor, guide the staff regarding the following queries in the light of the Sales
Tax Act, 1990:
(i) In cases of any short payment of sales tax, how the company can avoid and reduce imposition
of penalty under section 33 of the Sales Tax Act, 1990?
(ii) Under which situations, XYZ Industries (pvt.) limited may be held liable to pay default surcharge
in addition to the sales tax due on it?
Q.NO. 5(a) August 2014 M/s. Sultan Limited is contemplating ways to increase its sales. Assume
you are a Tax
Consultant and the management of the company is seeking your advice on the sales tax
implications. Discuss the provisions of the Sales Tax Act, 1990 in respect of the sales tax and
valuation of the goods under the following schemes:
(i) For a certain range of products, it is being proposed to provide sample packs Free of Cost to
the customers.
(ii) A mix of products ‘X’, ‘Y’ and ‘Z’ is proposed to be sold at a concessional rate as a ‘Package
Deal’.
(iii) Sales of certain products are intended to be introduced under the hire purchase/ installment
mode. However, an additional issue raised in this regard that the rate of sales tax will be
changed subsequently.
Q.NO. 6(a) August 2014 Ajmal Traders is engaged in the retail business. They are not registered with
the sales tax authorities. They intended to get themselves registered as a retailer. However, before
getting themselves registered, they have certain questions.
Required:
Being the company’s Tax Advisor, you are required to answer the following queries in the light of the
relevant provisions of the Sales Tax Act, 1990:
(i) What is the threshold of the value of supplies upon which registration with the sales tax
authorities is compulsory?
(ii) Whether zero-rated and exempted supplies will be considered as a part of value of supplies for
the purpose of charging and collecting sales tax?
(iii) Can a retailer adjust input tax or claim refund of sales tax?
(iv) At what dates, quarterly sales tax returns are required to be filed by the retailer?
(v) Whether issuance of invoice is mandatory for supplies made by the retailer? How such invoices
will be generated?
Q. No. 5(b) February 2014
Briefly state in the light of the provisions of the Sales Tax Act, 1990 whether the following persons can
reclaim input tax?
(i) Alpha Private Limited is a renowned company established in 1990. It is registered under the said
Act and deals in taxable and non-taxable supplies.