SRB makes mandatory for banks to provide quarterly statement of taxable services

SRB makes mandatory for banks to provide quarterly statement of taxable services

KARACHI: Sindh Revenue Board (SRB) has made mandatory for banking companies to provide quarterly reconciled statement of taxable services provided during the period.

The SRB issued notification No. SRB-3-4/17/2020 effective from July 01, 2020 to make it mandatory for banking and non-banking financing companies to submit quarterly reconciliation of sales taxable services provided or rendered during the period.

The financial institutions are required to provide particulars of services or services related fee, commission, brokerage or charges.

These services are included:

  1. Branch baking customer free and commission
  2. Consumer finance related fee and commission
  3. Card related fee and commission (debit and credit cards)
  4. Credit related fee and commission
  5. Investment banking fee and commission
  6. Commission and fee on foreign trade
  7. Bill discounting commission and fee
  8. Commission and brokerage on foreign exchange dealing
  9. Commission and fee on guarantees, including bank guarantees
  10. Commission and fee on cash management
  11. Commission and fee on remittances, including home remittances
  12. Commission and fee on bancassurance
  13. Commission on commodity operations
  14. Commission on handing of federal government or provincial or local government businesses
  15. Fee or rent of safe deposit lockers and safe vaults
  16. Services in respect of Hajj and Umrah
  17. Services in respect of Musharika and Modarba
  18. Services in respect of utility bills collection
  19. Services provided as a banker to an issue
  20. Services provided as a consultant to an issue
  21. Financial leasing
  22. Commodity or equipment leasing
  23. Other leasing
  24. Services in respect of Ijarah
  25. Funds management services
  26. Asset management services
  27. Advisory services
  28. Consultancy services
  29. Other services

The reconciliation should include sales tax withheld by the banking/non-banking financial company as a withholding agent.

Sales tax of the banking/non-banking financial companies services withheld, if any, by others as withholding agents.