CAF-2 TX & CAF-7 CL CAF 2 TAX PRACTICES MASTER SHEETS BY SIR TARIQ TUNIO MASTER

SHEET UPDATED FOR

BY SIR TARIQ TUNIO
03322130867 SALES TAX PRACTICAL – KEY POINTS (PART 01) 15 MARCH 2025 ATTEMPT

1.1 FOUNDATIONAL CONCEPTS OF SALES TAX 1.3 THIRD SCHEDULE OF SALES TAX ACT, 1990 1.5 MODEL SALES TAX CALCULATION
► Sales Tax Types Two Types: (1) Sales tax on goods (Federal 1. Fruit juices and vegetable juices 12. Perfumery and cosmetics MR TAXPAYER
CALCULATAION OF SALES TAX LIABILTY, REFUND & CARRY FORWARD
subject) & (2) Sales tax on services 2. Ice cream 13. Tea
FOR AUGUST 2023
(Provincial subject) 3. Aerated waters or beverages. 14. Powder drinks
► Consumption Tax Sales tax is a tax on consumption 4. Syrups and squashes. 15. Milky drinks INPUT TAX
► Indirect Tax Person such as e.g. manufacturer, 5. Cigarettes. 16. Toilet paper and tissue paper - Local Purchases from RP (100 x 18%) [To claim IPT, Mr. Taxpayer must also be a RP] 18
distributor or retailer pays sales tax to the 17. Spices sold in retail packing - Imports (100 x 18%) [+ 3% value addition tax in case of commercial imports] 18
6. Toilet soap bearing brand names and trade - Unclaimed IPT if claimed within 6 months (100 x 18%) 18
government and passes it on to the
marks - IPT on credit purchases (IPT payable by buyer to supplier [in 180 days] but supplier must 18
consumers.
7. Detergents 18. Shoe polish and shoe cream
► Taxpayer A taxpayer is referred to as a ‘Registered have paid it to FBR) 100 x 18%
8. Shampoo 19. Fertilizers
Person’ - Sales Tax on services used in making taxable supply [100 x 16%(P+B)/15%(K)/13%(S)] 16
9. Toothpaste 20. Cement sold in retail packing
► Tax Period A month 10. Shaving cream 21. Mineral/Bottled water - Federal Excise Duty in Sales Tax Mode on goods & services purchased (100 x 18%) 18
► Time of Supply Goods are delivered, made available or time 11. Motorcycles 22. Auto rickshaws - Sales tax paid to supplier located in AJK under STA-1990 as adapted by AJK (100 x 18%) 18
when any payment is received by the 23. Household electrical goods, including air conditioners, refrigerators, - IPT paid on local purchase / imports of capital goods (e.g. machine) 100 x 18% 18
supplier (whichever is earlier) deep freezers, televisions, recorders and players, electric bulbs, tube- - Not Admissible: Local Purchases from Un-registered Person -
► Reporting A registered person e-files a Return lights, electric fans, electric irons, washing machines and telephone sets. - Not Admissible: Purchases/ Imports without proper documents -
► Due Date (Payment) 15th of the next month 24. Household gas appliances, including cooking range, ovens, geysers - Not Admissible: Unclaimed IPT claimed after 6 months -
► Due Date (Return Filing) 18th of the next month and gas heaters - Not Admissible: IPT Credit Not Allowed under § 8 -
25. Foam and spring mattresses and other foam products for household
- Not Admissible: IPT paid on goods returned & destroyed being unfit for consumption -
use
- Not Admissible: Purchase payment > Rs.50K paid otherwise than banking channel e.g. paid -
1.2 SALES TAX IN THIRD SCHEDULE METHOD (METHOD 1) 26. Paints, distempers, enamels, pigments, colours, varnishes, gums,
resins, dyes, glazes, thinners, blacks, cellulose lacquers and polishes sold in cash (Exception: Payment for Utilities)
Who is liable to pay § Manufacturer or
in retail packing. - Not Admissible: IPT claimed on credit purchases but payment outstanding for >180 days -
§ Importer (in case of imported goods)
Tax rate § 18% (if goods listed in 3rd Schedule only) 26. Lubricating oils, brake fluids, transmission fluid, and other vehicular - Less: Purchase returns if proper Dr./Cr. Notes are issued (100 x 18%) (18)
§ Board may fix value of imported goods list in Third fluids sold in retail packing INPUT TAX FOR THE MONTH 124
Schedule for ST purposes. (Example: ST on import of 27. Storage batteries excluding those sold to automotive manufacturers
Tea 18% of 130time of import value) or assemblers
§ Reduced rate(s) of 8th Schedule apply if 3rd Schedule 28. Tyers and tubes excluding those sold to automotive manufacturers or OUTPUT TAX
goods are listed in 8th Schedule assemblers - Local supplies to registered person (200 x 18%) 36
Amount Retail price 29. Biscuits in retail packing with brand name
- Local supplies to unregistered person (200 x 18%) 36
Goods Goods listed in the 3rd Schedule to STA-1990 30. Tiles
- Discount (Not mentioned on invoice or in excess of normal business practice) (20x18%) 3.6
Procedure Tax amount is required to be legibly, prominently and 31. Auto-parts, in retail packing, excluding those sold to automotive
manufacturers or assemblers - Goods manufactured given free to friend/director etc. or self-supplied (10 x 18%) 1.8
indelibly printed or embossed by manufacturer or
importer on each article, packet, container, package, 32. DAP [fertilizer] - Exports (200 x 0%) 0
cover or label. - Exempt supplies (100) -
- Federal Excise Duty in Sales Tax Mode on goods & services supplied (200 x Various%) 36
1.4 VALUE ADDED TAX METHOD (METHOD 2) - Sales Tax on Services Rendered in ICT (200 x 18%) 36
SUPPLY CHAIN PURCHASES INPUT TAX SUPPLIES OUTPUT TAX S.T. LIABILITY PAID TO FBR - Less: Sale returns if proper Dr./Cr. Notes are issued (100 x 18%) (18)
FORESTER 00 00 100,000 18,000 18,000 18,000 OUTPUT TAX FOR THE MONTH 131.4
FURNITURE MAKER 100,000 18,000 180,000 32,400 14,400 14,400
LESS: ADMISSIBLE IPT [W-1/W-2]
RETAILER 180,000 32,400 220,000 39,6000 7,200 7,200
- Relating to other than Fixed Assets 89.45
39,600
- Relating to Fixed Assets [ + B/F IPT Relating to Fixed Assets If Any] 13.22
SALES TAX LIABILITY 28.73
1.8 INPUT TAX & OUTPUT TAX 1.7 W-1 APPORTIONMENT OF INPUT TAX
Add: FURTHER TAX – 4% of supplies to un-registered person or RPs not on ATL (200 x 4%) 8
INPUT TAX, in relation to a registered person, means: - Total Input 124
Add: PENALTY/ Default Surcharged/Fees 1
§ Sales tax, on supply of goods to the person, levied under STA-90 - Less: Capital Goods/Fixed Assets (18) [ii]
TOTAL/GROSS SALES TAX LIABILITY 37.73
§ Sales tax, on import of goods by the person, levied under STA-90 - Input Tax other than Capital Goods 106
§ Excise duty in sales tax mode on manufacture/ production of goods, or REFUND (17.70 + 3.18) 20.88
rendering/providing of services, levied under F.E. Act, 2005
- Less: Input Allocated to Taxable Supply (06)
- Less: Input Allocated to Zero Rated (00) SALES TAX CARRY FORWARD 00
§ Provincial sales tax on services rendered or provided to the person
(excluding those services as specified by Board through notification in - Less: Input Allocated to Exempt Supply (00)
official Gazette) and - Residuary IPT 100 [i] 1.6 W-2 RESTRICTION ON IPT EQUAL TO 90% OF OUT
§ Sales tax on goods supplied to the person from AJK, whereon tax is
levied under STA-1990 as adapted in AJK.
- IPT Apportioned to Taxable Supply 73.45
Taxable Supply Zero-rated Supply Exempt Supply - Add: IPT Allocated to Taxable Supply 06
OUTPUT TAX, in relation to a registered person, means:
§ Sales tax, on supply of goods made by person, levied under STA-90 (830/1130=0.734) (200/1130=0.176) (100/1130=0.088) - Add: Brought Forward Input Tax [Data from question] 10
§ Tax levied under in sales tax mode as duty of excise on Res/IPT [i] 100 73.45 17.70 8.85 ACCUMULATED INPUT TAX 89.45
manufacture/production of goods or rendering/providing of services by Cpt Goods [ii] 18 13.22 03.18 1.59 - 90% of OPT (131.4 x 90%) 118.26
the person under F.E. Act 2005
§ Sales tax on services rendered/provided by person levied under - Sales Tax Carried Forward 00
Islamabad Capital Territory (Tax on Services) Ordinance, 2001. - Admissible IPT (w/e/l) 89.45