SRB notifies sales tax exemption on services provided by restaurants, marriage halls

KARACHI: Sindh Revenue Board (SRB) has notified exemption of 13 percent sales tax on services rendered by restaurants and marriage halls.

The SRB issued working tariff applicable from January 01, 2020.

The service provided or rendered by restaurants and marriage halls are subject to 13 percent sales tax.

The SRB said that services provided or rendered by restaurants shall be exempted from sales tax whose turnover does not exceeds Rs4 million in a financial year:

Provided that the exemption shall not apply in case of restaurants:-

(i) which are air-conditioned on any day in a financial year and which are located within the building or premises of air-conditioned shopping malls or shopping plazas;

The SRB further said that the marriage halls and lawns are also exempt from sales tax at 13 percent, which are located on plots measuring 800 square yards or less.

Provided that the exemption shall not apply in case of marriage halls and lawns:

(i). which are air-conditioned on any day in a financial year;

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

(iii). as are owned, managed or operated by caterers whose services are liable to tax;’

(iv). which are franchisers or franchisees; and

(v). marriage halls and lawns having branches or more than one hall or lawn in Sindh.

(ii) located within the building, premises or precincts of any hotel, motel, guest house or club whose services are liable to sales tax;

(iii) providing or rendering services in the building, premises, precincts, hall or lawn of any hotel, motel, guest house, marriage hall or lawn or club whose services are liable to sales tax;

(iv) which are franchisers or franchisees;

(v) having branches or more than one outlet in Sindh; and

(vi) whose total utility bills (gas, electricity and telephone) exceed Rs. 40,000/- in any month during a financial year.

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