I want to know if we ship small orders just below 1 lac through DHL or any other courier from Pakistan to some other country. Is there any tax applied.
Actually,we are going to make small garments and want to ship some small consignments to someone. while calculating the price I had not cosidered any tax applied, so is there any tax applied for small orders too?
If you want to do in organized manner than why don't you contact, they are performing the job of what previously Export Promotion Bureau was doing.
Trade Development Authority of Pakistan
3rd Floor, Block A, Finance & Trade Centre
P.O. Box No. 1293, Shahrah-e-Faisal,
Karachi 75200 Pakistan.
Dear the position taken by the tax department is correct.
You have to pay the sales tax on applicable tax rates during 2007 to 2011, during the period in which you were un-registered, if applicable SED is also payable, plus default surcharge @ KIBOR+3% from the actual date of payment to the date liability actually paid. Sales tax will be applicable only if, goods sold are taxable.
Further you will not be allowed adjustment against the said payment of tax.
Relevent sections are reproduced below for your convinience. However you should consult with a good sales tax consultant who may advise you if any provision is available in your favour. I think you should have get yourself registered with new entity to avoid these kind of issues.
(7) "distributor" means a person appointed by a manufacturer, importer or any other person for a specified area to purchase goods from him for further supply and includes a person who in addition to being a distributor is also engaged in supply of goods as a wholesaler or a retailer
"taxable supply" means a supply of taxable goods made by an importer, manufacturer, wholesaler (including dealer), distributor or retailer other than a supply of goods which is exempt under section 13 and includes a supply of goods chargeable to tax at the rate of zero per cent under section 4
(25) "registered person" means a person who is registered or is liable to be registered under this Act
Provided that a person liable to be registered but not registered under this Act shall not be entitled to any benefit available to a registered person under any of the provisions of this Act or the rules made thereunder;
"Requirement of registration" The following persons engaged in making of taxable supplies in Pakistan (including zero-rated supplies) in the course or furtherance of any taxable activity carried on by them, if not already registered, are required to be registered in the manner specified in this chapter, namely
18[(a) a manufacturer not being a cottage industry]
(b) a retailer whose value of supplies, in any period during the last twelve months exceeds five million rupees;
© an importer;
(d) a wholesaler (including dealer) and distributor; 19[***]
(e) a person required, under any other Federal law or Provincial law, to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act; 20[and]
21[(f) a commercial exporter, who intends to obtain sales tax refund against his zero-rated supplies.]