Sales tax rates on services provided by freight forwarders, customs agents, others

Sales tax rates on services provided by freight forwarders, customs agents, others

KARACHI: Sindh Revenue Board (SRB) has issued updated rate of sales tax on services provided by customs agents, freight forwarders and persons authorized to transact business on behalf of others.

The SRB issued working tariff updated on November 01, 2020 for implementation of sales tax rates on services rendered or provided within Sindh province.

Following are the services and rate of sales tax:

Shipping agents: 13 percent

Stevedores: 13 percent

Ship management service: 13 percent

Freight forwarders: 13 percent

However, a fixed rate of Rs500 per bill of lading or house bill of lading is also available on:

(i) services provided by freight forwarding agents in respect of issuance of bills of lading or house bills of lading.

(ii) input tax credit shall not be admissible.

Customs agents: 13 percent

Travel agents: 13 percent;

A reduced rate of five percent is also available with condition that input tax credit shall not be admissible.

Tour operators: 13 percent;

A reduced rate of five percent is available with condition that input tax credit adjustment shall not be allowed;

Further services provided or rendered by tour operators in relation to Hajj and Umrah tour services are exempted from the levy.

Recruiting agents: 13 percent;

A reduced rate of 8 percent is available on:

(i) recruiting agents who is stand-alone service provider and whose principal economic activity is related to recruitment of individuals or group of individuals for overseas employment in countries outside Pakistan.

(ii) Input tax credit adjustment shall not be admissible.

Advertising agents: 13 percent

Ship chandlers: 13 percent

Share transfer agents: 13 percent

Sponsorship services: 13 percent

Business support services: 13 percent

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