Sales tax exemption allowed to certain personal care services

KARACHI: Sindh Revenue Board (SRB) has issued updated working tariff for tax year 2020, which showed certain sales tax exemptions are available on personal care services.

According to the working tariff, services provided or rendered for personal care by beauty parlors, beauty clinics, slimming clinics or centers and other are subject to sales tax at 13 percent.

However, such services are available at reduced rate of 10 percent but with condition that input tax adjustment shall nto be allowed.

The provincial revenue authority, however, allowed exemption with conditions:

01. Persons providing the services of hair cutting, hair dressing and hair dyeing and shaving provided that they do not provide any other beauty treatment, beauty care, beauty parlour or beauty clinic service.

2. Services provided or rendered by beauty parlors/clinics and slimming clinics whose turn over does not exceed Rs2.5 million in a financial year:

Provided that the exemption shall not apply in case of the beauty parlour/clinics and sliming centers:-

(i) which are located within the building premises or precincts of a hotel, motel, guest house or club whose services are liable to tax;

(ii) which are franchisers or franchisees;

(iii) which have any branch or have more than one outlet in Sindh; and

(iv) whose total utility (electricity, gas & telephone) bill exceeds Rs25,000/- in any month during a financial year.

Provided that the exemption shall not apply in case of the beauty parlor/clinics and sliming centers:-

(v) which are located within the building premises or precincts of a hotel, motel, guest house or club whose services are liable to tax;

(vi) which are franchisers or franchisees;

(vii) which have any branch or have more than one outlet in Sindh; and

(viii) whose total utility (electricity, gas & telephone) bill exceeds Rs25,000/- in any month during a financial year.

Leave a Reply

You have to agree to the comment policy.