MASTER

CAF-2 TX & CAF-7 CL

CAF 2 TAX PRACTICES MASTER SHEETS BY SIR TARIQ TUNIO SHEET
BY SIR TARIQ TUNIO
03322130867 SALES TAX DEFINITIONS 20
(16) DUE DATE (20) TIME OF SUPPLY
(1) SALES TAX (9) RETAILER
“SALES TAX” means the tax, additional tax, or default surcharge § Means a person supplying goods to general public for the purpose of In relation to the furnishing of a return means the 15thday of the In relation to
consumption. month following the end of the tax period, or such other date as the (a) a supply of goods, other than under hire purchase
levied under STA-90, fine, penalty or fee imposed or charged under
Board may, by notification in the official Gazette, specify and different
the Act; and any other sum payable under the provisions of the Act § Provided that any person, who combines the business of import and agreement, means the time at which the goods are
dates may be specified for furnishing of different parts or annexures
or the rules made thereunder. retail or manufacture or production with retail, shall notify and of the return. delivered or made available to the recipient of the
advertise wholesale prices and retail prices separately, and declare the supply,
address of retail outlets.
(2) TAXABLE SUPPLY (17) PROVINCIAL SALES TAX (b) a supply of goods under a hire purchase agreement,
"TAXABLE SUPPLY" means Means tax levied under the provincial laws or laws relating to means the time at which the agreement is entered
§ supply of taxable goods made by importer; manufacturer, (10) RETAIL PRICE Islamabad Capital Territory, declared by Federal Government through
into; and
wholesaler (including dealer), distributor or retailer other With reference to 3rd Schedule, means price fixed by manufacturer or notification in the official Gazette to be provincial sales tax for the
importer, in/c/of imported goods, inclusive of all duties, charges and taxes purpose of input tax.
than supply of goods which is exempt u/§ 13 & (c) services, means the time at which the services are
(other than ST) at which any particular brand or variety of any article should
§ includes supply of goods chargeable to tax at 0% u/§ 4. rendered or provided;
be sold to the general body of consumers or, if more than one such price is so (18) TAX PERIOD
fixed for the same brand or variety, the highest of such price; Provided that Means a period of one month or such other period as the Board with Provided in respect of clause (a), (b) or (c) above where any
(3) & (4) TAXABLE GOODS & GOODS board may through a general order specify zones or areas for the purpose of the approval of the Federal Minister in-chagre may, by notification in part payment is received for a supply in a tax period
§ Taxable Goods means all goods other than those which have determination of highest retail price for any brand or variety of goods. the official Gazette, specify.
1. it shall be accounted for in the return for that tax
been exempted u/§ 13. period, and
(11) DISTRIBUTOR (19) E-INTERMEDIARY
§ Goods include production, transmission and distribution of A person appointed by a manufacturer, importer or any other person for a 2. In respect of exempt supply, it shall be accounted for
Means a person appointed as e-intermediary under section 52A for
electricity, every kind of movable property other than specified area to purchase goods from him for further supply and includes in the return for the tax period during which the
filing of electronic returns and such other documents as may be
actionable claims, money, stocks, shares and securities. a person who in addition to being a distributor is also engaged in supply of prescribed by the Board from time to time, on behalf of a person exemption is withdrawn from such supply.
goods as a wholesaler or a retailer. registered under section 14.

(5) & (6) EXEMPT & ZERO-RATED SUPPLY

(12) WHOLESALER (21) COMPANY
§ Exempt Supply means a supply which is exempt from tax u/§
Includes a dealer and means any person who carries on, whether regularly Means
13.
or otherwise, the business of buying and selling goods by wholesale or of (a) company as defined in the Companies Ordinance, 1984
§ Zero-Rated Supply means a taxable supply which is charged to supplying or distributing goods, directly or indirectly, by wholesale for cash (b) body corporate formed by or under any law in force in Pakistan
tax at the rate of zero per cent u/§ 4. or deferred payment or for commission or other valuable consideration or (c) modaraba
stores such goods belonging to others as an agent for the purpose of sale; (d) body incorporated by or under the law of a country outside Pakistan relating to incorporation of companies
and includes a person who deducts income tax at source under the Income (e) trust, a co-operative society or a finance society or any other society established or constituted by or under any law for the time
(7) IMPORTER Tax Ordinance, 2001. being in force, or
Importer is any person who imports any goods into Pakistan (f) foreign association, whether incorporated or not, which the Board has, by general or special order, declared to be a company
(13) OPEN MARKET PRICE for the purposes of the Income Tax Ordinance 2001
Means the consideration in money which that supply or a similar supply
(8) MANUFACTURER would generally fetch in an open market. (21) ASSOCIATES OR ASSOCIATE PERSONS
§ Manufacturer means a person who engages, whether
exclusively or not, in the production or manufacture of goods (14) SIMILAR SUPPLY Associates or associated persons mean: (d) a trust and any person who benefits or may benefit under the
whether or not the raw material of which the goods are trust
In relation to the open market price of goods, means any other supply of (i) two persons who are associated with each other in a way that
produced or manufactured are owned by him;
goods which closely or substantially resembles the characteristics, their relationship is such that (e) a shareholder in a company and the company,
quantity, components and materials of the aforementioned goods; § one may reasonably be expected to act in accordance § where the shareholder,
and shall include: § either alone or together with an associate or associates
with the intentions of the other, or
§ both persons may reasonably be expected to act in under another application,
§ a person who by any process or operation assembles, mixes, (15) MANUFACTURE OR PRODUCE
accordance with the intentions of a third person. § controls either directly or through one or more
cuts, dilutes, bottles, packages, repackages or prepares goods § Any process in which an article interposed persons:
by any other manner; (ii) Two persons shall not be associates solely by reason of the - 50% or more of the voting power in the company;
- singly or fact that - 50% or more of the rights to dividends; or
§ an assignee or trustee in bankruptcy, liquidator, executor, or - in combination with other articles, materials, components, § one person is an employee of the other or - 50% or more of the rights to capital; and
curator or any manufacturer or producer and any person who § both persons are employees of a third person. (f) two companies
is either converted into another distinct article or product or
disposes of his assets in any fiduciary capacity; (iii) Without limiting the generality of above following shall be § where a person,
is so changed, transformed or reshaped that it becomes capable of treated as associates: § either alone or together with an associate or associates
§ any person, firm or company which owns, holds, claims or uses being put to use differently or distinctly, § under another application,
any patent, proprietary or other right to goods being (a) an individual and a relative of the individual. § controls either directly or through one or more
manufactured, whether in his or its name, or on his or its and includes (b) members of an association of persons interposed persons:
(c) a member of an AOP and the association where the
behalf, as the case may be, whether or not such person, firm or - 50% or more of the voting power in both
company sells, distributes, consigns or otherwise disposes of § any process incidental or ancillary to the completion of a member companies;
manufactured product; § either alone or together with an associate or associates - 50% or more of the rights to dividends in both
the goods. § under another application, companies; or
§ For the purpose of refund under the Act, only such person shall § Process of printing, publishing, lithography and engraving; and § controls fifty per cent or more of the rights to income - 50% or more of the rights to capital in both
or capital of the association. companies.
be treated as manufacturer-cum-exporter who owns or has his § Process and operations of assembling, mixing, cutting, diluting,
own manufacturing facility to manufacture or produce the bottling, packaging, repacking or preparation of goods in any other Relative means (a) ancestor, descendant of any of grandparents, or Note: Two persons shall not be associates under (a) or (b) of paragraph
goods exported or to be exported. manner. adopted child, of individual, or of spouse of individual, or (b) a (iii) where CIR is satisfied that neither person may reasonably be
spouse of the individual or of any person specified in sub-clause (a). expected to act in/acc/with the intentions of the other.