KARACHI: Sindh Revenue Board (SRB) has issued sales tax rate for service provided on sale and purchase of immovable properties within the province.
According to working tariff issued by the SRB for tax year 2020, the sales tax rate for services provided on sale and purchase of immovable property is 13 percent.
The reduced rate is 10 percent for service provided for sale and purchase of immovable properties. However, at this rate the input tax adjustment will not be allowed.
The sales tax on services rendered by property dealers is 13 percent. The property dealers availing reduced rate at 10 percent shall not be allowed input tax credit adjustment.
The sales tax on services for rending of immovable property shall be 10 percent. However, a reduced rate of three percent is also allowed but the service provider shall not be allowed to adjust input tax credit.
The sales tax on services 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.