General education not taxable under training services: SRB

KARACHI: Sindh Revenue Board (SRB) on Monday said that general education services are not taxable under ‘training services’ which is introduced through Sindh Finance Act, 2019.

The provincial revenue authority issued clarification on the issued after receiving objections from the stakeholders for explaining the training services.

The SRB said; “The general education services like pre-primary, primary, elementary, secondary (matric), higher secondary (intermediate), general certificate of secondary education, international general certificate of secondary education, college or university education (leading to degrees like BA, BSC, B.S, B.Com, BBA, BE, Bed, B Tech, LLB, MBBS, MA, MSc, MS, MCS, M Com, MBA, M Ed, LLM, M Phil, MCPS, FCPS, PhD, special education for handicapped children and education under the adult literacy program are not taxable as training services of tariff heading 9848.000 of the Second Schedule to the Sindh Sales Tax on Services Act, 2011.”

Earlier, Deloitte Yousf Adil, Chartered Accountants urged the SRB for clarification regarding applicability of Sindh Sales Tax on education related activity under Tariff Heading 9848.000 (training services).

The chartered accountants firm said that through the Sindh Finance Act, 2019, the training services had been brought to tax net under the tariff heading of 9848.000 with effect from July 01, 2019.

Through notification issued July 01, 2019, the rate of Sindh Sales Tax on training services had been reduced to five percent with not input tax adjustment.

The chartered accountants firm pointed out that there was confusion regarding chargeability of SST on education related services provided or rendered by schools, colleges, institutes and universities as chartered by the government or related bodes such as Higher Education Commission etc.

The chartered accountants firm had urged the provincial revenue authority to clarify the scope of tariff heading specifically keeping the scenario of general education services.

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