Exchange rate declaration must for services exports

Exchange rate declaration must for services exports

KARACHI: The Sindh government has made mandatory the requirement of exchange rate declaration to avail sales tax concessions on export of services.

In this regard, the Sindh Revenue Board (SRB) issued a notification to amend Sales Tax on Services Rules, 2011.

The provincial revenue board amended the changes in Annex-D of the Sindh Sales Tax on Services Return in Form SST-03.

The decision to amend the rules has been taken considering the high volatility in exchange rate as the Pak Rupee hit record low at Rs178.04 on December 17, 2021 and lost around 13 per cent against the dollar since start of the current fiscal year.

READ MORE: Dollar hits record high of Rs178.04 at interbank closing

As per the amended sales tax on service return form, an exporter is required to provide name of the foreign buyer or the non-resident service recipient. The other details shall be provided by the exporters, included: country to which service exported; description of the service exported; tariff heading of the service exported; 4-digit code as per State Bank of Pakistan (SBP) Code List; Invoice No.; Invoice Date etc.

The exporters are also required to value of the service exported, included: in foreign exchange (with currency name); exchange rate; in Pak Rupee.

The exporters further required to provide details, included: amount of sales tax involved being claimed to be exempt (in Pak Rupee); Reference No. of the notification / authority for exemption; and actual/estimated date for receipt of sale value in foreign exchange.