GOVERNMENT OF PAKISTAN
REVENUE DIVISION
CENTRAL BOARD OF REVENUE
SALES TAX WING

Islamabad, the 1st July, 1999

NOTIFICATION
SALES TAX
 

            S.R.O. 804(I)/99.- In exercise of the powers conferred by section 50 of the Sales Tax Act, 1990, read with section 3A and 26 A thereof the Central Board of Revenue is pleased to make the following rules, namely:-

1.        Short title, application and commencement.-

           (1)      These Rules may be called Turnover Tax Rules, 1999.
           (2)      These shall apply to the manufacturers or producers and retailers (including retailers who opt for
                     turnover tax irrespective of amount of their total turnover) making taxable supplies whose total 
                     turnover does not exceed two and a half million rupees in case of manufacturers or producers and
                     twenty million rupees in case of retailers in any period during the last twelve months:

                     Provided that these rules shall not apply to --

                     (a)        manufacturers or producers who are limited companies;
                     (b)        persons supplying taxable goods to persons deducting advance income tax under
                                 sub-section (4) of section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979);

                     (c)        persons claiming input tax credit or adjustment under the Sales Tax Act, 1990; and

                     (d)        persons supplying zero-rated goods.

           (3)      These shall come into force on and from the first day of July, 1999.

2.        Definitions.-

           (1)        In these Rules, unless there is anything repugnant in the subject or context,--

                       (a)        "Act" means the Sales Tax Act. 1990;

                       (b)        "Annex" means an annex to these rules;

                       (c)        "enrolment application" means application for enrollment of turnover tax-payers in
                                   the form at Annex-A;

                       (d)        "enrolment certificate" means a certificate of enrollment as at Annex-B;

                       (e)        "Ordinance" means the Income Tax Ordinance, 1979 (XXXI of 1979);

                       (f)         "return" means turnover tax return-cum-payment challan as in form at Annex-C;

                       (g)        "taxable turnover " means the total value of all taxable supplies of goods other than goods

                                   taxable at the rate of zero per cent; and

                       (h)        "total turnover" means the total value of all supplies, whether taxable or otherwise.

           (2)        All other term and expressions used but not defined herein shall have the same meaning as are
                       assigned to them in the Act.

3.        Enrolment of turnover taxpayer.--
           (1)        A manufacturer or producer and retailer making taxable supplies whose total turnover does not
                       exceed two and a half million rupees and twenty million rupees (including those retailers who
                       opt for turnover tax irrespective of their annual turnover), respectively, shall make an application for
                       enrolment in the form Annex-A to the Collector having jurisdiction in the area where his business
                       premises are located.
 
           (2)        The Collector shall, having satisfied himself with the requisite information provided in the enrolment
                       application, cause the applicant to be enrolled and issue the enrolment certificate in the form
                       Annex-B accordingly.

4.        Furnishing of returns and payment of turnover tax.-

           (1)        A person required to pay turnover tax shall furnish the return in the form in Annex-C, in the
                       prescribed manner and within the prescribed date to the office of Collector of Sales Tax having
                       jurisdiction along with the original of the bank-receipted treasury challan as a proof of payment of
                       the amount of turnover taxes due and National Tax Number (NTN) as indicated in columns (04)
                       and (05) respectively, of the return. A copy of the return, along with a copy of the treasury challan,
                       shall simultaneously be furnished by the enrolled person to his respective Commissioner of Income
                       Tax.
 
           (2)        Notwithstanding the provisions of sub-rule (1), a retailer required to pay turnover tax shall furnish
                       the return as provided under sub-section (6) of section 26A of the Act in the form specified in
                       Annex-C.
 
5.        Record to be kept.-

           A person required to pay turnover tax shall keep the following records, namely:-

           (i)     Record of purchases indicating description, quantity and value of goods purchased and the name 
                   and address of the seller;
 
           (ii)    record of sales indicating description, quantity and value of goods sold, name and address of the
                   buyer; and
 
           (iii)    record of electricity bills, gas bills, telephone bills, rent-payment receipts and wage-payment
                   receipts:

Provided that a retailer required to pay turnover tax shall keep -

 

(a)    daily record of each purchase indicating description, quantity and value of goods purchased;

 

(b)    daily record of aggregate sales indicating value of goods sold;

 

(c)    monthly record of electricity bills, telephone bills, rent receipts, wage payment receipts,

        transport expenditure receipts and such other expenditures as relate to business activity;

        and

 

(d)    quarterly inventory records.

6.        Repeal.-     The Turnover Tax Rules, 1996, are hereby repealed.

Annex-A
[See section 2(1)(a)]
T-1/V.2
 
GOVERNMENT OF PAKISTAN
APPLICATION FOR ENROLMENT OF TURNOVER TAXPAYER
(Under Sales Tax Act, 1990)

=========================================================================================

1. Name______________________________________________________________________________

2. Business address____________________________________________________________________

3. Phone _________________Fax ___________________________Telex/E-mail ___________________

4. Date of commencement of business _____________________________________________________

5. N.T.N.____________________________

6. SALES TAX REGISTRATION NO. __________________________________________
(if any held presently/previously)

==================================================================================

STATUS OF BUSINESS (Please tick appropriate box below)

    1.    Sole Proprietor                2.        Partnership                    3.        Other (Please specify)

=========================================================================================

BUSINESS TYPE

Please Tick         1.        Manufacturer/Producer             2.            Retailer

TOTAL TURNOVER

Last year_________________________________ Rs. _______________________________________

==========================================================================================

DECLARATION

I declared that the above particulars are true and correct.
Signature of Authorised person with Office stamp                                         Date
(Name and designation)

===================================================================================

FOR OFFICIAL USE

(Bank official)

Retail Tax Enrolment No.

Checked by _______________________________________ Date of enrolment ____________________________

================================================================================================================

ANNEX-B
[See section 2(1)(d)]
T-2/V.2
GOVERNMENT OF PAKISTAN
COLLECTORATE OF SALES TAX___________________
__________________________________________________
 
 
CERTIFICATE OF ENROLMENT
(Under Sales Tax Act, 1990)
 

(01)    NAME

(02)    ADDRESS

|(03)    N.T.N.

(04)    You have been enrolled as a turnover taxpayer under Sales Tax Act, 1990.

            This means that you must:--

                (i)        deposit Turnover Tax in the Treasury or Authorised bank and furnish the same alongwith tax
                           return on quarterly basis i.e. Return for July to September, (or any part thereof) by 15th October
                           and October to December, (or any part there of) by 15th January; and

                (ii)       abide by the provisions of the Sales Tax Act, 1990.

(05)            Your Sales Tax Enrolment Number is:
(06)             This number must be shown in the tax return and quoted in all your correspondence with the Sales Tax
                   Department.

 
----------------------------------------------------------
ASSISTANT COLLECTOR (SALES TAX)
(Registration and Information Division)

Annex - C

[See rule 2(1)(f)]

Form ST-7

 

GOVERNMENT OF PAKISTAN

SALES TAX RETURN-CUM-PAYMENT CHALLAN 

FOR ENROLLED MANUFACTURERS & RETAILERS

 

 

(01)  Sales Tax Enrollment No.  _______________________________________

 

(02)  National Tax No.  ______________________________________________

 

(03)  Enrolled Person's name  _________________________________________

 

(04)   Enrolled Person's address _______________________________________ 

 

(05)  Tax Period    Month ________ Year __________

 

Please Tick as appropriate : _____ Monthly   _______ Quarterly

 

 

 

 

 

 

 

(06)

 Taxable Sales for the period

 

(07)

 Other Sales for the period

 

(08)

Total Purchases and Expenses (Including Cost of Utilities)

 

(09)  2% TURNOVER TAX ON TAXABLE SALES     Rs. ____________________

 

 

DECLARATION

 

I declare that the entries in this return are true and correct.

 

Name ___________________________________

 

Designation ______________________________

 

Signature ________________________________

 

Stamp ___________________________________

 

_____________

Date       

 

 

FOR BANK USE

Sr. No. _________

 

Amount Received Rs. ____________________________________

 

Amount in words: _______________________________________

 

 

Bank Officer's Signature __________________________________

 

Stamp _________________________________________________

 

[ST-T-Pub/Call-2001, Dated 31-08-01]

( ASIM MAJID KHAN )   
Secretary (Sales Tax)     
Amended vide SRO. 296(I)/2000 dated 31.05.2000
Amended vide SRO. 616(I)/2001 dated 31.08.2001
Amended vide SRO. 508(I)/2003 dated 07.06.2003