KARACHI: Sindh has brought web hosting and cloud services under provincial sales tax net, according to the amended law.
The Provincial Assembly of Sindh recently passed Sindh Sales Tax on Services (Amendment) Bill, 2021 to make amendments in the Sindh Sales Tax on Services Act, 2011.
According to the amendments, a new clause 84B to Section 2 of the Act has been introduced for software and IT based system development consultants.
The Sindh Revenue Board (SRB) has defined the clause as the person providing or rendering the services in relation to software or information technology, including:
— The development of software, network or IT based system and maintenance.
— The study, analysis, design and programming of software or IT based system.
— The adaptation, up-gradation, customization, enhancement, integration, implementation and other similar services related to software or IT base system.
— Web hosting and cloud services.
— Provision of advice, guidance, consultancy and assistance in matters related to software or IT based system including conducting feasibility studies on implementation of a system.
— Provision of specifications for a database design, implementation and management.
— Provision of specification to secure database.
— Provision of the right, whether by licensing or otherwise, to use software or IT based system for commercial exploitation including right to reproduce, distribute and sell the software components for the creation of and inclusion in other software or IT based system products and the renewal of such a right or, license.
— Provision of the right, whether by licensing or otherwise, to use software or IT based system supplied electronically and the renewal of such a right or a license.