SALES TAX GENERAL ORDER 107 OF 2019, Islamabad, the 21st November, 2019

ENFORCEMENT OF SALES TAX PAYABLE BY WHOLESALERS/DISTRIBUTORS OF PRODUCTS ORIGINATING FROM AJ&K Government of Pakistan (Revenue Division) Federal Board of Revenue ***** C. No. 5/119-STB/2018 (Pt) Islamabad, the 21st November, 2019 SALES TAX GENERAL ORDER 107 OF 2019 SUBJECT: ENFORCEMENT OF SALES TAX PAYABLE BY WHOLESALERS/DISTRIBUTORS OF PRODUCTS ORIGINATING FROM AJ K The question has been raised regarding chargeability of sales tax in Pakistan on the goods originating from Azad Jammu Kashmir (AJ K), which have been exempted from payment of sales tax under AJ K law. The issue has been examined under the Sales Tax Act, 1990, as in force in Pakistan and the matter is clarified as under. 2. The sales tax on supplies originating from AJ K is payable in AJ K, however, dealers/distributors of such products located in Pakistan are required to discharge their liability on the value added on such products after adjustment of input tax paid in AJ K as provided in section 7 read with section 2(14)(e) of the Sales Tax Act, 1990. It is further highlighted that under an AJ K Notification No. FD/Tax 1145- 1245/95, dated 8.2.1995, sales tax is exempted on all goods manufactured in AJ K except some specified items. It is emphasized that such notification shall not apply to supplies made in Pakistan and the distributors/dealers in Pakistan of such items originating from…