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Tag: sales tax on services

  • Sindh adds 13 new services to provincial sales tax

    Sindh adds 13 new services to provincial sales tax

    KARACHI: The Sindh government has included 13 new services for the collection of sales tax from July 01, 2019.

    According to PwC A F Ferguson Chartered Accountants following services are proposed to trigger Sindh Sales Tax (SST) effective July 1, 2019:

    1. Renting of machinery, equipment, appliances and other tangible goods.

    2. Indoor sports and games center.

    3. Services provided or rendered by cab aggregator and owners or drivers of motor vehicles using the cab aggregator services.

    4. Warehouses or depots for storage or cold storages.

    5. Training services.

    6. Actuarial services.

    7. Services of mining of minerals and allied ancillary services

    8. Site preparation and clearance, excavation and earth moving and demolition services

    9. Waste collection, transportation, processing and management services

    10. Vehicle parking and valet services

    11. Electric power transmission services

    12. Insurance agents

    13. Tailoring and stitching services by fashion designers.

    For the purpose of taxing new services, certain definitions are proposed in the Finance Bill 2019.

    The chartered accountants said that no definitions have been proposed for ‘services of mining of mineral and allied & ancillary services in relation thereto’ and ‘electric power transmission services’.

    In the definition of training services, exclusion is proposed for ‘coaching or training of sports’ which is apparently for promotion of sports.

  • FBR plans prizes to encourage public take invoices from restaurants, hotels

    FBR plans prizes to encourage public take invoices from restaurants, hotels

    ISLAMABAD: Federal Board of Revenue (FBR) is planning to introduce prize scheme through draw against invoices of restaurants submitted by customers.

    Sources in FBR on Monday said that the plan was under consideration after identification of huge tax evasion by restaurants in Islamabad Capital Territory.

    The sources said that the FBR would announce different prizes through a draw of invoices. The purpose of this prize scheme is to encourage people to take their invoices for food purchased from restaurants and hotels.

    Few months back the FBR installed Restaurants Information Management System (RIMS) at top restaurants and hotels located in Islamabad to monitor their sales for collection of sales tax on services.

    The RIMS is installed at the restaurants and directly connected with FBR online system for real-time data sharing of sales invoices.

    However, it was identified that the most of the restaurants were found in suppressing sales through switching off the online system. The FBR sources said that it was detected that the restaurants were declaring less than half of their sales.

    The FBR has launched penal action against non-compliant restaurants.

    On the other side the owners of restaurants and hotels had announced shut down protest. However, this protest was called back after discussion with State Minister Hammad Azhar a day earlier.

    The owners of hotels and restaurants would again hold talks with FBR officials today to resolve the matter.