Changes in the Sales Tax Special Procedure (Withholding) Rules, 2007

Vide SRO 485(I)/2015 dated 30.06.2015 following changes have been made in the Sales Tax Special Procedure (Withholding Rules, 2007):

i)        Petroleum dealers (dealers of motor spirit HSD) have been excluded from withholding of one tenth of the sales tax shown on the sales tax invoice.

ii)      Previously, withholding was required at the time of making of payment. This has now been linked with the purchase / purchase period, irrespective of payment in any subsequent month.

iii)    Previously, all mild steel products were excluded from withholding. This has now been linked with payment of sales tax on mild steel product under the Special Procedure.

iv)    Withholding will now be required on purchase of iron and steel sheets, stainless steel sheets and their product, paper and plastic and plastic products.