020319

GOVERNEMNT OF PAKISTAN REVENUE DIVISION CENTRAL BOARD OF REVENUE (SALES TAX WING)
C.No.3(72)STP/97(Pt-I)
Islamabad, the 19th March, 2002

To
Mr. Muhammad Aslam,
Contractor,
Multan Road, Lahore.

SUBJECT:

SUGGESTION FOR DEDUCTION OF SALES TAX FROM THE BILL OF THE SUPPLIERS/CONTRACTORS

I am directed refer to your letter dated 20.12.2001 on the subject cited above and to say that at present, sales tax is being collected in Pakistan in the VAT mode. The suggestion to direct Government departments to deduct the same at source is not in accordance with the existing scheme of tax collection. Suppliers are required to follow the procedures prescribed under the law.

2. As regard taxation at multiple stages, it is informed that the VAT mode of sales tax envisages adjustment of input tax from output tax, thus charging tax only the value addition. For further guidance, you are advised to approach the nearest Collectorate of Sales Tax.

Sd/-
(DR. ASHFAQ AHMED TUNIO)
Secretary (ST-L&P)

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