As per Lawkidunya, In Pakistan, the Sales Tax Act, 1990, is the primary legislation governing sales tax. The Act imposes a tax on the sale and supply of goods and services, as well as on imported goods. Here are the key aspects of sales tax rules and acts in Pakistan:

Scope of Sales Tax

– Sales tax applies to all goods, except those exempted under Section 13 of the Sales Tax Act, 1990.
– Services are also subject to sales tax, with certain exceptions.

Registration

– Every person making a taxable supply in Pakistan must be registered under the Sales Tax Act.
– Manufacturers with a taxable turnover below Rs. 5 million and utility bills below Rs. 7 lac during the last 12 months are exempt from registration and payment of sales tax.

Rate of Sales Tax

– The standard rate of sales tax is 16% of the value of supplies.
– Certain items are chargeable to sales tax at 18.5% or 21% of the value of supplies.

Returns and Refunds

– Registered persons must file a return by the 15th of each month regarding the sales made in the last month.
– Refunds are available in cases where the input tax exceeds the output tax due to exports or other zero-rated supplies.

Additional Tax and Arrears

– Failure to pay tax within the specified time or claiming a tax credit or refund not admissible can result in additional tax.
– Arrears may arise from late or non-submission of returns, underpayment of tax, or disputes arising from audits or scrutiny.

Sales Tax Rules, 2006

– The Sales Tax Rules, 2006, provide detailed guidelines for the implementation of the Sales Tax Act, 1990.
– The rules cover aspects such as registration, returns, refunds, and penalties.