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What is the sales tax collection procedure of goods given in the Third Schedule of the Sales Tax Act, 1990?

Updated on March 8, 2010

Following procedure shall be adopted for the chargeability of sales tax of the goods specified under the Third Schedule of the Sale Tax Act, 1990.

Rate of tax:

Taxable supplies specified in the Third Schedule shall be charged to tax at the rate of 16% of retail price.

Retail Price:

"Retail Price" means the price fixed by the manufacturer (inclusive of all charges & taxes other than sales tax) at which any particular brand or variety of any article shall be sold to general consumers.

Written requirements of retail price:

The retail price shall be legibly, prominently and indelibly printed or embossed by the manufacturer on each article, packet, container, package, cover, or label, as the case may be, along with the amount of sales tax.

Goods specified in the Third Schedule:

Following goods are specified in the Third Schedule:

1)         Fruit juices and vegetable juices

2)         Ice cream

3)         Aerated waters or beverages

4)         Syrups and squashes

5)         Cigarettes

6)         Toilet soap

7)         Detergents

8)         Shampoo

9)         Toothpaste

10)        Shaving cream  

11)        Perfumery and cosmetics

12)        Tea

13)        Power drinks

14)        Milky drinks

15)        Toilet paper and tissue paper

16)        Spices sold in retail packing bearing brand name and trade marks

17)        Shoe polish and shoe cream.

The Federal Government authority to apply higher or lower rates:

The Federal Government is authorized to specify that in respect of any goods or class of goods imported into or produced or any taxable supplies made by a registered person or a class of registered persons, the tax shall be charged, collected and paid in such manner and at such higher or lower rate or rates as may be specified in the relevant notification. The Federal Government may specify certain conditions and restrictions to such notified rates.


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