SCENARIO: We sale yarn to un-registered persons (i.e. not registered under Sales Tax Act, 1990).

The buyers do not ant to get in!oices in their na"e. We issue sale tax in!oices in the na"es o# du""y buyers (e.g. $asan Ah"ad, Ah"ad $asan etc.). %ay"ents against these sales are recei!ed by us through cross che&ues issued by actual buyer and not the buyer in hose na"e e ha!e issued sales tax in!oice. We also pay 1' #urther tax under Sales Tax Act, 1990 against such sale to un-registered persons. The actual buyer acts as a co""ission agent. At the end o# "onth, he raises co""ission bill (e.g. total sale through hi" as (s. )0.00 "illion. $e charges *' co""ission. We boo+ his co""ission #or (s. 1.0 "illion). We "a+e co""ission pay"ent through cross che&ue by deducting 10' ithholding ,nco"e Tax on co""ission.

QUESTIONS: 1) When we issue sales tax invoices to un- e!iste e" #e sons $i%e% #e sons with no i"entit&) is the e an& 'oneta & est iction (o issuin! sales tax invoices to one sin!le #e son $i%e% can we issue sales tax invoices to )*+ (o an a'ount excee"in! Rs% ,%- 'illion o shoul" we est ict ou sale to one sin!le un- e!iste e" #e son to Rs% ,%- 'illion #e annu')./ 0) Recei#ts ( o' un- e!iste e" #e sons "o not co'#l& with the e1ui e'ents o( Section 23 o( Sales Tax Act4 155-% Is it 6in"in! on us to co'#l& with sai" Section as (a as sale to un- e!iste e" #e son is conce ne"./ 3) Su##ose we sell Rs% ,%- 'illion &a n to )*+-an un- e!iste e" #e son% Actual 6u&e e'its Rs% 7%- 'illion to us th ou!h a c oss che1ue $Rs% 1%- 'illion a!ainst sale to othe un- e!iste e" #e son)% We "ivi"e this ecei#t 6& c e"itin! Rs% ,%- 'illion to )*+ an" Rs% 1%- 'illion to othe un- e!iste e" #e son% Is this # actice acco "in! to a##lica6le taxation laws. 8) Recei#ts a!ainst sale to un- e!iste e" #e sons co'e th ou!h the account o( co''ission a!ent% Is this # actice acco "in! to a##lica6le taxation laws.

,) Section 0379 o( Inco'e Tax O "inance 0--1 envisa!es withhol"in! tax "e"uction at the ate o( -%1: a!ainst sale to "ist i6uto s4 wholesale s an" "eale s% Ou co''ission a!ent $actual 6u&e ) clai's that he (alls in this cate!o &% ;lease con(i '/

7) Section 037< o( Inco'e Tax O "inance 0--1 envisa!es withhol"in! tax "e"uction at the ate o( -%,: a!ainst sale to etaile s% As we issue sales tax invoices in the na'e o( "u''& 6u&e s4 we cannot i"enti(& the' as "ist i6uto 4 etailo etc% Shoul" we "e#osit -%,: o -%1: $Section 0379) a!ainst such sale./ 2) We "o not have NTN o CNIC o( un e!iste e" #e sons% Can we "e#osit withhol"in! tax o( such #e sons an" how./