Tax Queries

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  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 eui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 cheue $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./
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