Pkrevenue.com

Tag: Sindh Revenue Board

  • Sales tax exempted on services provided by marriage halls on area up to 800 square yards

    Sales tax exempted on services provided by marriage halls on area up to 800 square yards

    KARACHI: Sindh Revenue Board (SRB) has said that marriage halls and laws are exempted from payment of 13 percent sales tax on services, which are located on plots measuring 800 square yards.

    The SRB issued working tariff updated up to November 01, 2020.

    The provincial revenue authority said that services provided or rendered by marriage halls and laws are subject to 13 percent sales tax.

    However, the exemption from whole of sales tax on services provided by marriage halls and laws which are located on plot measuring 800 square yards or less.

    The exemption is not available in case of marriage halls and laws:

    (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) having branches or more than one hall or lawn in Sindh.

  • Sales tax rates for construction services updated

    Sales tax rates for construction services updated

    KARACHI: Sindh Revenue Board (SRB) has issued updated rates of sales tax on construction services. The SRB explained the rate of sales tax at normal, concessionary and exempted on construction services.

    The SRB issued working tariff updated up to November 01, 2020.

    Following are the rate of sales tax on construction services:

    The SRB said that a general rate of 13 percent is applicable on the construction services.

    However, a reduced rate at 8 percent is also available on following conditions:

    (i) The benefit of this reduced rate is not available to persons, engaged in providing or rendering the construction services, who elect or opt to pay the statutory rate of tax at 13 per cent under the Special Procedure prescribed by the Board and avail of the input tax credit/adjustment facility as prescribed in the Act and rules

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

    Another reduced rate at 5 percent is also available on following conditions:

    (i) Construction service in relation to Government Civil Works for which expenditure is paid out of the expenditure budget of the Federal Government or the Local Government or the Cantonment Board.

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

    The SRB said that sales tax on service is exempted on construction services related to:

    (i) Construction work undertaken by a person whose annual turnover does not exceed 4 million rupees in a financial year;

    (ii) Construction and development of EPZ, SEZ and diplomatic and counselor buildings; and

    (iii) Construction of an independent private residential house, other than residential unit covered by tariff headings 9807.0000 or 9814.3000, having total covered area not exceeding 10,000 square feet.

  • Sales tax rates updated on services provided by restaurants

    Sales tax rates updated on services provided by restaurants

    KARACHI: Sindh Revenue Board (SRB) has notified sales tax rates on services rendered by restaurants in the province.

    The SRB issued working tariff on November 01, 2020 updating rates of sales tax on services.

    The SRB said that the sales tax rate shall be 13 percent on services provided or rendered by restaurants.

    The provincial revenue authority said that services provided or rendered by restaurants whose turnover does not exceeds 4 million rupees in a financial year shall be exempted from the levy of 13 percent sales tax.

    However, 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;

    (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.

  • SRB issues sales tax rates on banking services

    SRB issues sales tax rates on banking services

    The Sindh Revenue Board (SRB) has announced a 13% sales tax rate on services provided by banking companies within the province. This update, effective from November 1, 2020, clarifies the applicable sales tax on a wide range of banking services.

    (more…)
  • SRB issues sales tax rate on telecom services

    SRB issues sales tax rate on telecom services

    KARACHI: Sindh Revenue Board (SRB) on Tuesday updated working tariff up to November 01, 2020 for levy of sales tax on telecommunication services.

    The sales tax on services are exempt on telecommunication services involving charges payable on the international leased lines or bandwidth services used by the software exporting firms registered with the Pakistan Software Export Board.

    Following is the table for the application of sales tax on telecommunication services along with tariff headings:

    9812.1000Telephone services19.5%
    9812.1100Fixed line voice telephone service19.5%
    9812.1200Wireless telephone19.5%
    9812.1210Cellular telephone19.5%
    9812.1220Wireless Local Loop telephone19.5%
    9812.1300Video telephone19.5%
    9812.1400Payphone cards19.5%
    9812.1500Prepaid calling cards19.5%
    9812.1600Voice mail service19.5%
    9812.1700Messaging service19.5%
    9812.1710Short Message service (SMS)19.5%
    9812.1720Multimedia message service (MMS)19.5%
    9812.1910Shifting of telephone connection19.5%
    9812.1920Installation of telephone19.5%
    9812.1930Provision of telephone extension19.5%
    9812.1940Changing of telephone connection19.5%
    9812.1950Conversion of NWD connection to non NWD or vice versa19.5%
    9812.1960Cost of telephone set19.5%
    9812.1970Restoration of telephone connection19.5%
    9812.1990Others19.5%
    9812.2000Bandwidth services19.5%
    9812.2100Copper line based19.5%
    9812.2200Fibre-optic based19.5%
    9812.2300Co-axial cable based19.5%
    9812.2400Microwave based19.5%
    9812.2500Satellite based19.5%
    9812.2900Others19.5%
    9812.3000Telegraph19.5%
    9812.4000Telex19.5%
    9812.5000Telefax19.5%
    9812.5010Store and forward fax services19.5%
    9812.5090Others19.5%
    9812.6000Internet services19.5%
    9812.6100Internet services including email services19.5%
    9812.6110Dial-up internet services19.5%
    9812.6120Broadband services for DSL connection19.5%
    9812.6121Copper line based19.5%
    9812.6122Fibre-optic based19.5%
    9812.6123Co-axial cable based19.5%
    9812.6124Wireless based19.5%
    9812.6125Satellite based19.5%
    9812.6129Others19.5%
    9812.6130Internet/email/Data/SMS/MMS services on WLL networks19.5%
    9812.6140Internet/email/Data/SMS/MMS services on cellular mobile networks19.5%
    9812.6190Others19.5%
    9812.6200Data Communication Network services (DCNS)19.5%
    9812.6210Copper Line based19.5%
    9812.6220Co-axial cable based19.5%
    9812.6230Fibre-optic based19.5%
    9812.6240Wireless/Radio based19.5%
    9812.6250Satellite based19.5%
    9812.6290Others19.5%
    9812.6300Value added data services19.5%
    9812.6310Virtual private Network services (VPN)19.5%
    9812.6320Digital Signature service19.5%
    9812.6390Others19.5%
    1[9812.7000Other specified telecommunication services19.5%
    9812.7100Audio Text Services19.5%
    9812.7200Teletext services19.5%
    9812.7300Trunk radio services19.5%
    9812.7400Paging services including voice paging services and radio paging services19.5%
    9812.7900Others19.5%
    9812.8000Tracking and alarm service19.5%
    9812.8100Vehicle tracking and other tracking services19.5%
    9812.8200Burglar and security alarm services19.5%
    9812.8900Others19.5%
    9812.9000Telecommunication services not elsewhere specified]19.5%
  • SRB exempts sales tax on services for USAID funded programs

    SRB exempts sales tax on services for USAID funded programs

    KARACHI: Sindh Revenue Board (SRB) on Thursday granted exemption from sales tax on services for projects funded by United States Agency for International Development (USAID).

    The SRB in a statement said that with approval of the Sindh government it had exempted from the whole of the sales tax payable on such taxable services and are received or procured by the USAID or the Implementing Partners of the USAID under the Sindh Basic Education Program (SBEP) funded by way of grant-in-aid provided by the USAID under the framework of the Pakistan Enhanced Partnership Agreement (PEPA) of 2010 signed between the United States of America and the Islamic Republic of Pakistan.

    The SRB through another notification to grant exemption from the whole of the sales tax payable on such taxable services and are received or procured by the Municipal Delivery Service Program- Sindh (MSDP) funded by way of grant-in-aid provided by the USAID under the framework of the Pakistan Enhanced Partnership Agreement (PEPA) of 2010 signed between the United States of America and the Islamic Republic of Pakistan.

  • SRB suspends sales tax registration of seven taxpayers

    SRB suspends sales tax registration of seven taxpayers

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of seven taxpayers who failed to comply with filing of returns for four consecutive tax periods.

    The SRB in a letter sent to Pakistan Automation Revenue (Pvt) Limited (PRAL) informed that the seven taxpayers had been suspended with immediate effect.

    The SRB said that under Section 25(1)(a)(ii) of the Sindh Sales Tax on Services Act, 2011 provides that registration of a registered person can be suspended where registered person ‘has failed to comply with its obligation under the Act.’

    Further, Rule 10 of the Sindh Sales Tax on Services Rules, 2011 also provides that where a registered person commits any act of fraud or deliberate and intentional non-payment, short payment or evasion of tax or non-filing of returns for four consecutive tax periods, the SRB or an officer of SRB authorized by the board in this behalf may suspend the registration of such person.

    The SRB said that during scrutiny of tax profiles of the taxpayers, that SRB’s registered persons had failed to file their Sindh sales tax monthly returns for the last four consecutive tax periods i.e. May 2020 to July 2020.

    This behavior of non-filing is in violation of the provincial tax laws.

  • SRB collects Rs26.38 billion in July – September

    SRB collects Rs26.38 billion in July – September

    KARACHI: Sindh Revenue Board (SRB) has collected Rs26.38 billion in July – September of the current fiscal year as compared with Rs22.89 billion in the same period of the last fiscal year, showing a growth of 15.2 percent.

    A statement on Thursday said that heavy rains in the month of August 2020 severely compounded the woes of service sector businesses, already immensely high by COVID-19. Had that not been the case, the quarterly growth achieved by the SRB would have been better, it added.

    During the month of September 2020, SRB collected Rs10.43 billion as compared to the collection of Rs8.9 billion during September 2019, showing a growth of 16.4 percent.

    The SRB said that it acknowledged the support of the provincial government and dedication of its officials for realizing the revenue growth during the month and on the quarterly basis.

    The SRB is focusing to achieve the assigned revenue collection target of Rs135 billion during the current fiscal year, although, the target is ambitious with a growth of 27 percent as compared to the collection of Rs106 billion during the last fiscal year.

  • Input tax credit against services provided by non-resident available with conditions: SRB

    Input tax credit against services provided by non-resident available with conditions: SRB

    KARACHI: Sindh Revenue Board (SRB) on Friday said that input tax credit for resident taxpayers receiving services from resident outside is available with certain condition.

    The provincial revenue body said that the SRB-registered service recipients who receive taxable services from a foreign service provider (not registered with SRB) shall be entitled to claim input tax credit if:

    (i) such SRB-registered person receives the taxable services against an invoice issued by that foreign service provider;

    (ii) pays, to the foreign service provider, the consideration for the services so received by the resident service recipient; and

    (iii) e-deposits the amount of Sindh sales tax, on such services in Sindh Government’s head of account “B-02384” in the prescribed manner.

    The entitlement of input tax credit shall be in terms of the provisions of section 15 of the Act-2011, subject to the conditions, limitations and restrictions prescribed under the Act-2011 and the rules or notifications made thereunder (including the provisions of sections 15A and 15B of the Act-2011, rules 21, 22 and 22A of the Sindh Sales Tax on Services Rules, 2011(Rules-2011) and other provisions of various rules and notification issued thereunder).

    The SBP said that a question had arisen whether input tax credits were admissible [where not otherwise inadmissible under the provisions of the Sindh Sales Tax on Services Act, 2011(Act-2011) or the rules/notifications issued thereunder] against an invoice issued by such a non-resident service provider who is resident outside Pakistan and does not hold Sindh Sales Tax Registration Number (SNTN). Also, in case it is admissible, the question is that what shall be the procedure in this regard.

    The SBP further said that as regards the procedure for input tax credit claims, the resident SRB-registered person (service recipient, in this case) shall e-deposit (in Sindh Government head of account “B-02384” in the prescribed manner) the amounts of Sindh sales tax on such services as are received by him from a foreign service provider (not registered with SRB) against the SNTN of the service recipient himself.

    Thereafter, the resident SRB-registered service recipient shall declare:

    (i) his own (resident SRB-registered service recipient) name and SNTN in the column “Particulars of Buyer”; and

    (ii) the date and number of the invoice issued by the foreign service provider in the column “Document/invoice” of Annex-C of his return SST-

    For claiming input tax credit, he shall enter corresponding entries in Annex-A of his Form SST-03 and shall also declare the “Non-creditable input”, if any, in the relevant column of such Annex-`A’.

    The invoice of the foreign service provider and the associated documents, including the document of evidence of payment of consideration through banking channel, shall form a part of the prescribed records for the purposes of section 26(1) of the Act-2011 and the rules made thereunder including rule 29 of the Rules-2011.

  • SRB revises sales tax jurisdiction of commissioners

    SRB revises sales tax jurisdiction of commissioners

    KARACHI: Sindh Revenue Board (SRB) on Monday revised jurisdiction of commissioners with effect from July 06, 2020.

    Following is the revised jurisdiction of commissioners:

    Commissioner-I

    Unit 2: Hotels, motels and Guest Houses; restaurants; marriage halls and lawns; caterers; clubs and race clubs; event management services and exhibition services; out-door photographers and videographers; indoor sports and game center: vehicle parking and valet services.

    Unit 4: Business support services; supply chain management or distribution (including delivery) services; call centers; visa processing services including advisory and consultancy services for migration or visa application filing services.

    Unit 5: Ship management services; shipping agents; freight forwarding agents.

    Unit 6: Ship chandlers; stevedores.

    Unit 7: Customs agents.

    Unit 8: Public bonded warehouses; warehouses and depots for storage or cold storage.

    Unit 9: Banks; debt collection services and other debt recovery services provided or rendered by debt collection agencies or recovery agencies or other persons.

    Unit 10: Insurance and re-insurance; insurance agents.

    Unit 11: Non-banking financial institutions and companies; investment banks; investment advisory; fund and asset management; foreign exchange dealer, exchange company, money changer and money exchanger; commission and brokerage on foreign exchange dealings; issuance, processing and operation of credit and debit cards; ATM operations, maintenance and management services.

    Unit 12: stockbrokers, futures brokers and commodity brokers; leasing; modaraba and musharika; share transfer agents; services provided’ or rendered by a registrar to an issue underwriters; credit rating agency.

    Unit 13: Beauty parlors, beauty clinics, smiling clinics or centers and others; healthcare; gyms; physical fitness centers, body massage center; cosmetic and plastic surgery and transplantation; fashion designers; laundries and dry cleaners.

    Unit 32: Terminal operators and port operators; dredging and desilting services.

    Commissioner-II

    Unit 1: telecommunication.

    Unit 15: Security agencies.

    Unit 23: Inter-city transportation or carriage of goods by road or through pipeline or conduit; packers and movers; electric power transmission services.

    Unit 26: Fumigation services; janitorial services; waste collection, transportation, processing and management services, maintenance and cleaning services.

    Unit 28: Legal practitioners and consultants and accountants and auditors; management consultants; software or IT based system development consultants; corporate law consultants; technical, scientific and engineering consultants; other consultants, including tax consultants, human resources and personnel development consultants.

    Unit 29: Auto workshops and authorized service stations; workshop for machinery; workshop for electric or electronic equipment or appliances, etc, including computer hardware; car or automobile washing or similar services stations; car or automobile dealers; services provided or rendered by cab aggregator and services provided and rendered by the owners or drivers of the motor vehicles using the cab aggregator services; rent a car and automobile rental services.

    Commissioner-III

    Unit 3: Contact execution; erection, commissioning and installation services; construction services; ready mix concrete service; contractor of buildings; property developers or promoters; services of mining of minerals and allied and ancillary services in relation thereto; site preparation and clearance, excavation, earth moving and demolition services; architects or town planners; interior decorators.

    Unit 14: Labour and manpower supply services; recruiting agents.

    Unit 19: Advertisement on TV; advertisement on Radio; advertisement on billboards, signboards or digital boards; advertisement on poles; advertising agencies; public relation services.

    Unit 20; Advertising on Cable TV and CCTV; cable TV Operators; other advertisements, including those on Web, Internet, etc.

    Unit 21: Franchise services; intellectual property services.

    Unit 22: Market Research Agency; sponsorship services; Programme producers and production houses.

    Unit 24: Withholding of Sindh Sales Tax.

    Unit 24A: Withholding of Sindh Sales Tax of all offices and departments of Federal, provincial and local or district governments.

    Unit 27: Auctioneers; renting of immovable property services; purchase or sale or hire of immovable property; property dealers; renting of machinery, equipment, appliance and other tangible goods.

    Unit 30: Toll manufacturing or processing; commission agents; indenters’ services.

    Commissioner-IV

    Unit 16: Surveyors; actuarial services; Technical inspection and certification services, including quality control certification services and ISO certification; valuation services, including competency and eligibility testing services.

    Unit 17: Courier services.

    Unit 18: Travel agents; tour operators.

    Unit 25: Technical testing and analysis service; training services; services provided or rendered by laboratories, other than the services relating to pathological, radiological or diagnostic test of patients.

    Unit 31: Airport services, airport operators, chartered flights services.

    Commissioner-V

    Unit 37: All matters related to SWWF and SWPF and other such matters as may be assigned by the Chairman/ Member/ Senior Advisor.

    Commissioner (Sukkur)

    Unit 33: Services provided or rendered in the Civil Division of Sukkur and Larkana.

    Commissioner (Hyderabad)

    Unit 34: Services provided or rendered in the Civil Division of Hyderabad, Shaheed Banazirabad and Mirpurkhas.

    Commissioner (Appeals-I)

    Unit 35: Appeals under sections 57, 58, 59 and 64 of the Sindh Sales Tax on Services Act, 2011, in relation to the orders passed or decisions made by the officers of the SRB in the matters and jurisdiction of the units under Commissioners-I, III, V and Hyderabad.

    Commissioner (Appeals-II)

    Unit 35A: made Appeals under sections 57, 58, 59 and 64 of the Sindh Sales Tax on Services Act, 2011, in relation to the orders passed or decisions by the officers of the SRB in the matters and jurisdiction of the units under Commissioners-II, IV, VI and Sukkur.

    Commissioner (Audit)

    Unit 36: Audit functions under the Sindh Sales on Services Act, 2011, and the rules and notifications issued thereunder. Matters relating to Revenue Receipt Audit, DAC and PAC and jurisdiction of the units under Commissioner-I, III, V & Hyderabad, Revenue reconciliation work and other such matters as may be assigned by the Chairman / Member.

    Unit 36A: Audit functions under the Sindh Sales on Services Act, 2011, and the rules and notifications issued thereunder. Matters relating to Revenue Receipt Audit, DAC and PAC and jurisdiction of the units under Commissioner-II, IV & Sukkur, Revenue reconciliation work and other such matters as may be assigned by the Chairman / Member.

    Where a service provider is engaged in the economic activity of providing or rendering more than one taxable service, as specified in column (3) of the above Table against Unit Nos. 1 to 32 (except Unit 24 and Unit No.24A), as specified in column (2), he shall be placed in the jurisdiction of the Unit, specified in column (2), relatable to the service which is his principal activity as per his registration particulars.

    Where a service provider is engaged in an economic activity in the territorial jurisdiction specified against Unit Nos.33 and 34 but it has its place of business outside such territorial jurisdiction, the officers of the SRB in Unit Nos. 33 and 34, as the case may be, shall exercise concurrent powers and functions with the respective officers of the SRB in Unit Nos.1 to 32 (except Unit No.24 and Unit No.24A).

    Where a service provider is also a withholding agent, the officers of the SRB in Unit No.24 and Unit No.24A shall exercise concurrent powers and functions with the respective officers of the SRB in Unit Nos. 1 to 23 and 25 and 34 in relation to the amounts of Sindh sales tax withheld or liable to be withheld under the provisions of the Sindh Sales Tax Special Procedure (Withholding) Rules of the years 2011 and 2014.

    All the officers of the SRB in Unit Nos. 1 to 34 shall exercise the powers and functions in relation to audit under the Sindh Sales Tax on Services Act, 2011, and rules and notifications issued thereunder, concurrently with the officers of the SRB in Unit No.36 and 36A.

    This issues in supersession of Notification No.SRB-3-4/36/2019 dated 26th November, 2019 and also all other previous notifications / amendments issued in relation thereto.

    This notification shall take effect on and from the 6th July, 2020.