Sales Tax Return Form 2007

GOVERNMENT OF PAKISTAN (REVENUE DIVISION) CENTRAL BOARD OF REVENUE *** Islamabad, the 16th August, 2007 NOTIFICATION (SALES TAX) S.R.O. 824(I)/2007.- In exercise of the powers conferred by sub-section (1) of section 4 and section 40 of the Federal Excise Act, 2005, section 219 of the Customs Act, 1969 (IV of 1969), section 50 of the Sales Tax Act, 1990, read with sub-section (2) of section 8, sections 9, 10, 14, 21 and 28, clause (c) of sub-section (1) of section 22, section 26, sub-section (6) of section 47A, sections 48, 50A, 52, 52A and 66 thereof, the Federal Board of Revenue is pleased to direct that in the Sales Tax Rules, 2006, the following further amendment shall be made and shall be deemed to have been so made on the 1st day of July, 2007, namely:- In the aforesaid Rules, - (a) in rule 14, sub-rule (4) shall be omitted. (b) in rule 18, after sub-rule (9), the following new sub-rule shall be added, namely:- “(10) The Board may, through a General Order, prescribe any other manner of filing returns electronically.”; (c) for form STR-7, the following shall be substituted, namely:-

“STR-7 [See rule 14(1)] Government of Pakistan Sales Tax & Federal Excise Return-cum-Payment Challan istry Name (if individual)CNIC Normal Revised Monthly QuarterlyNTN mm yy egR STRN Tax Period Details of taxable purchases from top 20 suppliers (exclude utilities and 3rd schedule items) Note: Please provide complete invoice summary of all taxable purchases and sales electronically to CBR or manually to Collectorate, if not fully covered by details below. Supplier's STRN Purchase % Rate Sales Tax Supplier's STRN Purchase % Rate Sales Tax - - - - it - - - - cred -- -- -- -- axT - - - - - - - - ales - - - - S - - - - - - - - - - Other suppliers - - Total 100% - Purchases Value Rate Sales Tax 1 Domestic taxable purchases/services @ 15% (Excl. Electricity, Natural Gas & fixed assets) - 15% - 2 Electricity - 15% - 3 Natural Gas - 15% - 4 Capital/ fixed assets to be credited in twelve parts Accumulated Amount - x 1/12 - 15% - 5 Domestic taxable purchases @ 17.5% - 17.5% - 6 Domestic taxable purchases @ 20% - 20% - 7 Taxable Imports (excluding fixed assets) @ 15% - 15% - it 8 Taxable Imports @ 17.5% - 17.5% - redC 9 Taxable Imports @ 20% - 20% - 10 Others (Pl. specify - - ax T 11 Less: Inadmissible input tax relating to exempt supplies/ non-taxed services etc. - 12 Exempt domestic purchases/services - ales 13 - Exempt importsS 14 Zero-rated purchases - 15 Zero-rated imports - 16 Ship imports by ship breakers LD Tons - 17 Commercial Imports (S.R.O. 645(I)/2007) Tax paid including 2% - Value - 18 Input Tax for the month (Add 1 to 11) - 19 Add: Previous month credit brought forward - 20 Less: Input tax paid on inputs consumed in zero-rated supplies/ exports Refund Claim - 21 Accumulated Credit (18 + 19 -20) - Sales & services made/rendered Value Rate Sales Tax 22 Taxable supplies chargeable @15% - 15% - 23 Taxable supplies chargeable @17.5% - 17.5% - 24 Taxable supplies chargeable @20% - 20% - 25 Taxable supplies chargeable @24% (By gas companies to CNG stations) - 24% - 26 Taxable services rendered - 15% - 27 Others (Pl. specify - - 28 Output Tax - it 29 Stevedores Containers moved Nos. - x Rs. 220 - eb 30 Dry bulk cargo M Tons - x Rs. 25 - D 31 Liquid bulk cargo M Tons - x Rs. 6.5 - axT 32 Electricity supplied to steel sector KWH - x Rs. 4.75 - 33 Re-rollable scrap sold by ship breakers M Tons - x Rs. 3500 - ales 34 - Re-meltable scrap sold by ship breakers M Tons S 35 Less: Sales Tax deducted by withholding agent @ 1/5th of tax invoiced - 36 Tax invoiced on sales - Value - Commercial Importer 37 Tax paid (inc. 2%) at import stage on sales - Differential payable - 38 Invoices issued under Special procedures Tax invoiced - Value - 39 Zero-rated local sales - 40 Sales to DTRE registered persons - 41 Exempt sales - 42 Exports - 43 Debit for the month - /F C 44 Whether excluded from Section 8B(1), under SRO 647(I)/2007 (Yes / No) - le 45 Admissible Credit - if 44 = Yes then 21; if 44 = No, then least of "90% of 28" or 21 or 43 - ayab 46 Payable ST - if 43 > 45 then (43 - 45) otherwise zero - P 47 Credit to be carried forward - if 44 = Yes and if 45 > 43 then (45 - 43) otherwise zero; if 44 = No then (21 - 45) - 48 Sales Tax withheld by the return filer (STWH) -

Federal Excise Value Rate FED 49 Excisable goods cleared for domestic consumption (a) - - 50 (b) - - 51 (c) - - 52 (d) - - 53 (e) - - 54 Excisable services rendered - - 55 Excisable goods exported - 56 Zero-rated clearances - Excises 57 Exempt clearances - 58 Less: FED paid on goods used in manufacturing of Goods cleared for domestic consumption - - 59 Payable FED - Add 49 to 54 minus 58 (ignore negative value) - Federal 60 Excise duty on import of edible oil Rs. / kg - 61 Goods chargeable to special FED - 1% - 62 (-) Special FED on inputs used in manufacturing of Goods cleared for domestic consumption - 1% - 63 Payable Special FED (61 - 62) - 64 (-) FED paid on goods used in manufacturing of Goods exported (drawback) - - 65 Total FED (59 + 63 - 64) - PDL 66 Petroleum Development Levy PDL - Sales Tax Arrears ST liability due to late filing 67 Principal amount - 71 Default surcharge - 68 Default surcharge - 72 Penalty - 69 Penalty - 73 Surcharges y/n 70 ARR (ST) (Add 67 to 69) - 74 ST (SUR + PEN) (71 + 72) - 75 Net Sales Tax Payable (46 + 48 + 70 + 74) - FED Arrears FED liability due to late filing ent 76 Principal amount - 80 Default surcharge - Paym 7778 DefaultPenalty surcharge -- 8182 PenaltySurcharges y/n - 79 ARR (FED) (Add 76 to 78) - 83 FED (SUR + PEN) (80 + 81) - 84 Net FED Payable (if 65 + 79 + 83 > 0 then 65 + 79 + 83, otherwise zero) - 85 Net FED Drawback (if 65 + 79 + 83 < 0 then -(65 + 79 + 83), otherwise zero) - 86 Total Taxes Payable (66 + 75 + 84) - 87 Tax paid on normal/ original return (applicable in case of revised return) - 88 Balance Tax Payable/ Refundable (86 - 87) - I,_______________________________________________________________________, holder of CNIC Nr_______________________________________ In my capacity as self/member or partner of association of persons/principal/ officer / trustee/ representative of named above, do solemnly declare that to the best of my knowledge and belief the information given in this return is/ are correct and complete in accordance with the provisions of the Sales Tax Act, 1990, the Federal Excise Act, 2005, and rules and notifications issued thereunder. Declaration Date_______________Stamp________________________________Signature____________________________ Head of Account Amount Amount Received (in words) _________________________________ B02341 - Sales Tax - - Use __________________________________________________________ B02366 - Sales Tax on services Accounts B02367 - Federal Excise Duty in VAT mode - (in figures) __________________________________________________ of B02485 - Federal Excise Duty - Bank Head B03041TOTAL- PetroleumAMOUNTDevelopmentPAYABLELevy -- For BankBank'sOfficer'sStamp _________________Signature _______________________________________Date_______________ (dd/mm/yy) INSTRUCTIONS HOW TO FILL UP THE RETURN (1) These instructions are illustrative only and have no effect upon the provisions of the Sales Tax Act, 1990 or the Federal Excise Act, 2005. (2) This return is required to be filed by all persons registered under the Sales Tax Act, 1990 and the Federal Excise Act, 2005. (3) The return shall be filed printed on both sides of paper. (4) Instructions relating to different parts of the return are given below:

Registry CNIC: The registered person having the status of ‘individual’ or ‘proprietor’ is required to mention his Computerized National Identity Card number. In all other cases this information can be skipped. Normal/ Revised: Normal return means the first return filed for any specific tax period. A revised return can be filed under section 26(3) of the Sales Tax Act, 1990. While filing the revised return, the taxpayer shall check the relevant box and fill in all the relevant data for the month including the columns which were correctly filled in the normal return. Monthly/ Quarterly: All registered persons are required to file return on monthly basis, except persons engaged exclusively in commercial imports, who shall file the same return on quarterly basis. Tax Period: The tax period has to be mentioned in the format “mm yy”. For example, August 2007 is to be mentioned as “x 0 8 0 7 x”. The persons filing the quarterly return shall mention the last month of the quarter. For example, in case of quarter July to September 2007, the month of September 2007 should be mentioned as follows: “x 0 9 0 7 x”. Sales Tax Credit Details of taxable purchases from Top 20 suppliers: Details of top 20 local suppliers with respect to tax charged are to be provided in descending order. After providing the details for top 19 suppliers, the total for the remaining suppliers is to be provided in the last row. When a single supplier is making supplies at multiple rates of sales tax, the supplies at each rate are to be provided in separate rows. In case there are no taxable sales to registered persons and the total number of suppliers does not exceed nineteen, the registered person shall not be required to furnish separate invoice summary as prescribed under SRO 559(I)/2006 dated 5.6.2007. Domestic Taxable purchases/ services @15%, 17.5% and 20%: Data of all purchases (goods & services) subject to tax at 15%, 17.5% and 20% is to be given here after adjustment on account of debit/ credit notes. The figures for telecommunication services including telephone will be given here. Third schedule items, subject to sales tax on the basis of retail price, shall also be included here. In such a case, value shall be the retail price. Capital/ Fixed Assets to be credited in twelve parts: The adjustment of sales tax on each fixed asset has to be spread over twelve months. ‘Accumulated amount’ is the total value of fixed assets against which adjustment has not been completely made. For example, in the first month fixed assets valuing Rs. 8,000 (sales tax Rs. 1200) were purchased and in the second month assets worth Rs. 16,000 (Sales tax Rs. 2400) were purchased; in first month accumulated purchases would be Rs. 8000 and adjustment of Rs. 100 would be made. In the second month, accumulated purchases would be Rs. 24,000 and the adjustment of Rs. 300 would be

made. When all twelve instalments of adjustment against a particular fixed asset have been availed, the value of such asset shall not be mentioned in accumulated amount. Others (Pl. Specify): Data of all purchases/ imports on which sales tax has not been paid on the standard rates (15%, 17.5% or 20%) shall be given here. A brief description must also be provided in the available space. Inadmissible input tax relating to exempt supplies/ non-taxed services etc: The input tax which is attributed to exempt supplies or to non-taxable services is to be mentioned here. Any other input tax which is not admissible as credit is also to be included. If any part of input tax relates to both taxable and exempt supplies or services, inadmissible input tax is to be calculated in accordance with the Apportionment Rules as in the Sales Tax Rules, 2006. Ship imports by ship-breakers: The LDT of ships imported during the current month need to be mentioned. Commercial Imports (S.R.O. 645(I)/2007): The commercial importers shall mention here the total amount of sales tax paid i.e. 2% under SRO 645(I)/2007 plus in addition to the tax payable under section 3(1) and 3(2). The amount of tax should be total tax i.e. paid at normal rate plus 2% tax. Part of input tax attributed to zero-rated supplies/ exports: The registered person shall work out the amount of input tax relating to inputs consumed in zero-rated supplies or exports made during the tax period. This amount constitutes the refund claim which will be processed under refund rules, after the required documents/ information have been provided. This amount cannot be greater than the sum of total input tax for the month mentioned and the credit brought forward. In case, there are local sales as well, the refund claim should be lower than the sum as aforesaid. Previous month credit brought forward: This is the amount of tax which could not be adjusted previous month and should strictly be the amount mentioned in the column ‘Credit to be carried forward’ in the previous return. It is to be noted that previous month’s refund claim should not be included in this column. In the return for the tax period July 2007, this amount shall be zero. Accumulated Credit: This is the total input tax available for adjustment against output tax. This is the sum of total admissible Input tax for the month plus Credit brought forward from the previous month minus Refund claim. Sales Tax Debit Taxable supplies chargeable @ 15%, 17.5% and 20%: Data of all supplies subject to tax at 15%, 17.5% and 20% is to be given here after adjustment on account of debit/ credit notes. Third schedule items, subject to sales tax on the basis of retail price, shall also be included here. In such a case, value shall be the retail price.

Taxable services rendered: The services chargeable to sales tax under provincial ordinances and the services subject to FED in VAT mode are to be mentioned here. For example courier services and domestic air travel services etc. will be mentioned here. Others (Pl. specify): Data of all supplies on which sales tax has not been paid on the standard rates (15%, 17.5% or 20%) shall be given here. A brief description must also be provided in the available space. Electricity supplied to steel sector: The electricity distribution companies shall mention the units supplied to steel sector as covered under the Sales Tax Special Procedures Rules, 2007, on which sales tax is payable at the rate of Rs. 4.75 per unit. Sales Tax deducted by withholding agent @ 1/5th of tax invoiced: This column allows a registered person to subtract the sales tax which has been deducted by a withholding agent from his output tax liability. Only the amount actually deducted needs to be mentioned. Commercial Importers: The commercial importer shall provide the value and sales tax charged on all invoices issued by him. In case the sales tax charged exceeds the amount paid on the same goods at import stage, the differential amount has to be mentioned in space provided. Invoices issued under Special procedures Where the registered person, other than a commercial importer, is allowed to issue invoices showing amount of sales tax but the actual tax liability has already been discharged, such as in case of steel sector, the registered person shall provide the value and sales tax charged on all invoices issued by him. This detail is for information only and does not add to the tax payable with the return. Whether excluded from Section 8B(1), under SRO 647(I)/2007: The registered person should tick the relevant box and calculate net liability and the amount of tax to be carried forwarded in accordance with the formulas provided. Sales Tax withheld by the return filer (STWH): If a registered person is also withholding sales tax under SRO 660(I)/2007, he shall mention the tax deducted during the tax period from the amounts payable to suppliers. Federal Excise Duty Excisable goods cleared for domestic consumption: Space has been provided for five types of excisable goods. If such goods are more than five, then top four in terms of highest duty payable should be specified and the rest should be clubbed and mentioned against the heading description ‘others’. Following nomenclature should be adhered to while specifying the goods: 1 Vegetable ghee and cooking oil 2 Concentrates for aerated beverages

3 Aerated waters 4 Aerated waters with sweetener etc. 5 Aerated waters made from pulp/juice etc. 6 Unmanufactured tobacco. 7 Cigars, cheroots, cigarillos and cigarettes 8 Cement 9 Clinker 10 Solvent oil (non-composite) 11 Other petroleum oils 12 Other fuel oils 13 Lubricating oils 14 Lubricating oil in bulk 15 Lubricating oil if manufactured from reclaimed oils 16 Mineral greases 17 Base lube oil 18 Transformer oil 19 Other mineral oils 20 Waste oil 21 Petroleum gases in liquefied state 22 Natural gas in gaseous state and other petroleum gases 23 Carbon black oil etc 24 Methyl tertiary butyl ether (MBTE) 25 Flavours and concentrates 26 Perfumes and toilet waters: 27 Beauty or make-up preparations etc. 28 Preparations for hair 29 Pre-shave, shaving or after-shave preparations etc. 30 Greases 31 Organic composite solvents and thinners 32 Other solvents excluding thinners Excisable services rendered: Excisable services on which FED is being charged (not in VAT mode) are to be mentioned here; such as international air travel and services chargeable to FED at 5% i.e. insurance, non-fund banking services, franchise services etc. Exempt clearances All clearances of exempt excisable goods as in the Third Schedule or under any notification should be mentioned here. FED paid on goods used in manufacturing of Goods cleared for domestic consumption: The credit of FED paid on inputs consumed in excisable goods supplied during the tax period will be availed by mentioning the same. This value has to be less than excise duty payable on finished goods supplied. It would be greater only in case where the rate of excise duty on inputs is higher. In such cases no refund of higher duty on inputs is admissible. Excise duty on import of edible oil: The fixed FED at Re. 1/kg on imported oils under SRO 24(I)/2006 is to be mentioned here.

Goods chargeable to special FED: Information in respect of Special FED under SRO 655(I)/2007 is to be provided. Special FED on inputs used in manufacturing of Goods cleared for domestic consumption: Special FED on inputs used in goods supplied during the tax period is to be given here. Payment Arrears and current liability: In this part sales tax and FED arrears arising from various orders, observations or voluntary assessments can be mentioned and paid. Separate space is provided for mentioning and paying default surcharge and penalty due to late filing of the return being filed. Tax paid on normal/ original return: In case the return is being revised, the credit of the amount paid on the normal/ original return can be availed by mentioning the said amount. Balance Tax Payable / Refundable: Balance payable is the amount to be deposited on the return. Declaration: Declaration can be filled in by any person duly authorized to file the return. CNIC mentioned here should belong to the person making the declaration. Head of Accounts: The break-up of tax being payable on the return is to be provided. If the taxpayer is dealing in more than one type of taxes he should provide the head-wise break up of the total amount payable for the month i.e. the amount mentioned in the column “Total Taxes Payable (Net ST Payable + Net FED Payable + PDL)”. The amount falling in FED and PDL can easily be determined. However, the problem may arise while providing break-up of sales tax, provincial sales tax and FED payable in VAT mode because of common inputs involved. In case the registered person is not conveniently able to determine such break-up, then the total payable amount for such heads can be apportioned on the basis of value of supplies/ services relating to a particular head of account.”; (d) form STR-9 shall be omitted; and (e) for form STR-11, the following shall be substituted, namely:-

“STR-11 [See rule 18(5)] Sales Tax Payment Challan (for Electronic Filing of Tax Retuns) (1) Sales Tax (2) N.T.N. Reg.No. (3) Name (4) Tax Period Month Year Address (5) Net amount payment (under each head) B02341 Sales Tax B02366 Sales Tax on Services collected on behalf of Provincial Govt. B02367 Sales Tax on goods and services levied as FED in VAT mode B02485 Federal Excise Duty B03041 Petroleum Development Levy Total Amount Amount in Words Declaration: I declare that the entries in this challan are true and correct. Name. Designation CNIC# Date Day Month Year Signature. Stamp. For Bank use only: Computerized payment Date: Receipt No. Bank Branch Branch Code: Bank Officicer's Sign. Bank's Stamp ". [C. No. 3(3)ST-L&P/07-Pt] Abdul Hameed Memon Secretary (ST&FE-L&P)