Reduced rate of sales tax granted on services for sale, purchase of immovable properties

Reduced rate of sales tax granted on services for sale, purchase of immovable properties

KARACHI: A reduced sales tax rate of 10 percent is granted on service provided or rendered by persons engaged in sale and purchase of immovable properties.

The Sindh Revenue Board (SRB) issued working tariff updated up to November 01, 2020.

The SRB issued the rate of sales tax on services provided or rendered in the matter of sale, purchase or hire.

The SRB said that the sales tax rate shall be 13 percent on services provided for purchase or sale or hire of immovable properties. However, reduced rate of 10 percent is allow with condition that input tax credit adjustment shall not be admissible.

Similarly, the rate of sales tax is 13 percent on services provided by property dealers. A reduced rate of 10 percent is available with condition that input tax credit adjustment shall not be admissible.

The rate of sales tax shall be 13 percent on renting of immovable property services. However, a reduced rate of three percent is available with condition that input tax credit adjustment shall not be admissible. The SRB said that the tax shall be exempted on renting of immovable property services provided or rendered to an individual person whose income does not exceed the maximum amount that is not chargeable to tax under the Income Tax Ordinance, 2001.

The rate of sales tax is 13 percent on services provided by car or automobile dealers. A reduced rate of 10 percent is available with condition that input tax credit adjustment shall not be admissible.

The SRB said that sales tax rate shall be 13 percent on renting of machinery equipment, appliances and other tangible goods. However, a reduced rate of 5 percent is available with condition that input tax credit adjustment shall not be admissible.