Scope and Payment of Tax Chapter- 05
exempt from sales tax. Through the Finance Act, 2006, the Government withdrew this exemption with
effect from July 1, 2006. 25% advance was paid on signing of contract and balance on the delivery of
goods on July 15, 2006. Advise Mr. Pervez on the chargeability of sales tax.
Q. NO. 7(a) Spring 2007 There shall be charged, levied and paid a tax known as sales tax at the
rate of 15% of the value of taxable supplies made by a registered person in the course or furtherance
of any taxable activity carried on by him; and goods imported into Pakistan.
Explain the term “taxable supply” and “taxable activity” used in above statement describing the scope
of sales tax.
Q. NO 12 Spring 2006 With reference to Sales Tax Rules 2005 relating to the apportionment of
input tax, explain the following:
(a) Residual input tax (b) Manner of computation of residual input tax credit on taxable supplies (c)
Concepts of provisional and final adjustment.
Q. NO. 7(a) Autumn 2006 Where goods supplied are returned, the supplier is required to issue
credit note. The buyer responds by issuing a debit note.
You are required to specify the particulars to be mentioned on the debit note issued by the buyer.
Q. NO. 7(b) Autumn 2006 Describe the circumstances under which a registered person shall not be
able to claim or deduct input tax?
Q. NO. 8(a) Autumn 2006 What is the difference between zero-rated and exempt supplies?
Q. NO. 9 Spring 2006 List down the exports which are outside the purview of zero rating u/s 4 of
the Sales Tax Act, 1990.
Q. NO. 10 Autumn 2005 In the monthly sales tax return filed under the Sales Tax Act, 1990, input
tax paid for the month is adjusted against output tax payable. You are requested to comment on the
following issues relating to input / output adjustment Can input tax paid in prior periods be claimed in a
monthly tax return.
(a) What would happen, if output tax paid exceeds input tax payable for the month.
(b) What recourse is available if output tax for the month inadvertently disclosed at a lesser amount
(c) Can input tax paid in prior periods be claimed in a monthly tax return.
(d) What would happen, if input tax paid exceeds output tax payable for the month.
(e) What recourse is available if output tax for the month is inadvertently disclosed at a lesser
amount.
Q. NO. 10 Spring 2005 What impact would a change in rate of Sales-tax have in case of:
(a) Supply of goods. (b) Import of goods.
Q. NO. 11 Spring 2005 What are the precondition of claiming input tax against output tax by a
registered person?
Q. NO. 11 Spring 2004 Briefly explain the uses of debit and credit notes under the Sales Tax Act.
1990
Q. NO. 12 Autumn 2004 Discuss the treatment provided under the STA, 1990 in respect of any
‘excess tax’ collected from the customer.
Q. NO. 13 Autumn 2004 Describe the category of goods on which sales tax is chargeable at Zero
rate?