153

Payments against purchase of goods

Ind / AOP 4.50%
Company 4%

Payments against receipt of services

Ind / AOP 10%
Company 8%
Specified Services 3%

Payments under contracts

 Sales Tax

a On Sales of Goods Federal Matter

Punjab
KPK
Balochistan Revenue Goes to FBR
Sindh
Islamabad

b On Provision of Services Provincial Matter

Punjab Punjab Revenue Authority PRA

KPK KPK Revenue Authority KPRA

Balochistan Balochistan Revenue Authority BRA
Sindh Sindh Revnue Board SRB
Islamabad FBR

Invoice 100,000
Punjab Sales Tax 16,000
Invoice Amount Including Sales Tax 116,000
 Standard Rate
17%

Sales Tax Act, 1990

Sales Tax Rules 2006

Punjab Sales Tax on Services Act, 2012 16%

Khyber Pakhtunkhwa Sales Tax on services Act, 2013 15%
Revenue Goes to
relevant Province Balochistan Sale Tax on Services Act, 2015 15%
Sindh Sale Tax on Services Act, 2011 13%
Islamabad Capital Territory Act, 2001 16%
Tahir Ali a Shoe Manufacturer Tahir Ali a Shoe Manufacturer
No. of Pairs 1,000 1,000
Price Per Pair 800 800
800,000 Price withhout Sales Tax 800,000
Sales Tax 136,000
Price With Sales Tax 936,000

Buyer - Adeel - Distributor

Cost without Sales Tax 2,800,000
Sales Tax 476,000

Sale Price with Profit Margin 1,600,000

Sales Tax 272,000
1,872,000

Retailer - Bhatti Sb
Cost without Sales Tax 1,600,000
Sales Tax 272,000

Sale Price with Profit Margin 1,888,000

Sales Tax 320,960
2,208,960
End Consumer
No. of Pairs 1,000
Selling Price Per Pair 2,209

Total Sales Tax

 136,000

Input Tax

- 204,000 244,800 Output Tax Tax Liability = Output Tax - Input Tax

27,200 231,200

48,960

- 19,040
Bhatti SB Soap Manufacturer
Retail Price 800 Manufacturing Retail Price
Sales Tax 136 Retail Price
Retail Price With Sales Tax 936 Sales Tax

Trade Price 600

Retail Price 800
Sales Tax 136 Output Tax 136
736

Buyer - Adeel - Distributor

Cost without Sales Tax 600
Sales Tax 136 Input Tax

Trade Price with Profit Margin 700

Retail Price 800
Sales Tax 136 Output Tax
836

Retailer - Bhatti Sb
Cost without Sales Tax 700
Sales Tax 136 Input Tax

Sale Price with Profit Margin 800

Sales Tax 136 Output Tax
936
End Consumer

Selling Price 936

 800 Taxable Goods
Exempt goods Sixth Schedule
136.00 Zero Rated Goods 5th Schedule
936.00

Tax Liability = Output - input

-

-
Normal Tax 17%
Further Tax 3%
Extra Tax 2%
Tax Liability = Output Tax - input Tax

Tax Liability = Output Tax - Admissible input Tax

Tax Liability = Output Tax - Admissible input Tax

Month 1
Output Tax 500,000
Admissible Input Tax 450,000
Tax liability 50,000

Month 2
Output Tax 600,000
Admissible Input Tax 650,000
Tax Refund - 50,000

Month 3
Output Tax 600,000
Admissible Input Tax adjustment 540,000
Tax liability 60,000

Excess Input Tax 110,000

Month 4
Output Tax 600,000
Admissible Input Tax adjustment 540,000
Adjustment of Carry Forward input Tax
Tax liability 60,000

Excess Input Tax 210,000

90% of Output Tax Actual Input Tax for the month
540,000 650,000
input tax adjustment is not allowed more than 90% of Output Tax

Carry Forward for next month

90% of Output Tax Actual Input Tax for the month

540,000 750,000

Carry Forward for next month

han 90% of Output Tax
Refund for Exporters Section 10
Other Entities Section 66
Price withhout Sales Tax Sales Tax
100,000 17,000

100,000 17,000

Registered Persons
Active Taxpayer
Inactive Taxpayer 100,000 17,000
Unregistered Persons 100,000 -

Inactive Taxpayer 100,000 17,000

Unregistered Persons 100,000 -
Price With Sales Tax Income Tax Withholding Sales Tax Withholding
117,000 5,265.000 3,400

117,000 5,265.000 1,700

117,000 5,265.000 17,000

100,000 4,500.000 17,000

117,000 5,265.000 5,850

100,000 4,500.000 5,000
 1 / 5th Withholding

1 / 10th Withholding

94,735 Whole of Sales Tax Involved

78,500 100% withholding

105,885 5% of gross value of supplies

90,500 5% of gross value of supplies
On Provision of Services Provincial Matter

Punjab Punjab Revenue Authority PRA

KPK KPK Revenue Authority KPRA
Balochistan Balochistan Revenue Authority BRA
Sindh Sindh Revnue Board SRB
Islamabad FBR FBR

Invoice 100,000
Punjab Sales Tax 16,000
Invoice Amount Including Sales Tax 116,000

PRA
Active Taxpayer Company

Inactive Taxpayer Company

Ind and AOP / Active or Inactive
Ind, AOP and Compay Unregistered
 Punjab Sales Tax on Services Act, 2012 16%
Khyber Pakhtunkhwa Sales Tax on services Act, 2013 15%
Revenue Goes to relevant Province Balochistan Sale Tax on Services Act, 2015 15%
Sindh Sale Tax on Services Act, 2011 13%
Islamabad Capital Territory Act, 2001 16%

Invoice 100,000
Punjab Sales Tax -
Invoice Amount Including Sales Tax 100,000

16,000.00

No Withholding - Zero % Withholding

100 % withholding
SRB

Registered 20% of sales Tax 2,600.0

Un-registered 100 % Withholding 13,000.00

Balochistan

Registered 20% of sales Tax 13,000

Un-registered Rate as per fraction Formula 13,043

KPK
100% for Provided Sectors
50% for others
Invoice 100,000 Invoice 100,000
SRB Sales Tax 13,000 SRB Sales Tax -
Invoice Amount Including Sales Tax 113,000 Invoice Amount Including Sales Tax 100,000

13%

fraction Formula =a / 100+a

Rate of Sales Tax Applicable a

13.04%

Sales
Purchases