Amendments in Sales Tax Special Procedure withholding Rules 2007.

GOVERNMENT OF PAKISTAN
MINISTRY OF FINANCE AND REVENUE
(REVENUE DIVISION)

Islamabad, the 30th July, 2009.

NOTIFICATION
(SALES TAX)

S.R.O. 704 (I)/2009. - In exercise of the powers conferred by sub-sections (6) and (7) of section 3 of the Sales Tax Act, 1990, read with section 71 thereof, the Federal Government is pleased to direct that the following further amendment shall be made in the Sales Tax Special Procedure (Withholding) Rules, 2007, namely:--

In the aforesaid Rules, in rule 2 after sub-rule (3A) the following shall be added, namely:--

"(3B) Notwithstanding anything contained in sub-rule (3) or (3A) a registered person in a Large Taxpayers Unit (LTU), who purchases goods from a registered person, other than one registered in an LTU, shall deduct and withhold one percent of value of taxable supplies received by him as sales tax from the payment due to the supplier. This amount will be deposited by the withholding agent through his monthly return. Remaining amount of fifteen percent or more, as the case may be, of the value of taxable supplies shall be paid by the withholding agent to supplier who will account for that in his monthly return."

[C. No. 3(10)ST-L&P/2007]

(Mehmood Alam)
Additional Secretary