Tag: Sindh Revenue Board

  • Reverse charge should only be levied on service providers located outside Pakistan

    Reverse charge should only be levied on service providers located outside Pakistan

    KARACHI: Sindh Revenue Board (SRB) has been advised that reverse charge should be restricted to such cases where service providers are located outside Pakistan.

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  • Federal, provincial tax conflict hampers FDI

    Federal, provincial tax conflict hampers FDI

    KARACHI: Foreign investors have said that duplication of taxes due to lack of coordination between federal and provincial tax authorities are hampering foreign direct investment (FDI) into Pakistan.

    The Overseas Investors Chamber of Commerce and Industry (OICCI), the representative body of foreign investors in Pakistan, said that duplicate taxation is causing hardships to taxpayers and has given rise to unnecessary litigations and is one of the deterrents in attracting FDI in Pakistan.

    The OICCI in its budget proposals for 2020/2021 submitted to Sindh Revenue Board (SRB) said that all the four provinces and the federal government have introduced distinct sales/service tax laws for their respective jurisdictions, with some of the clauses in clear conflict with each other resulting in foreign investors being pursued and harassed by the federal and provincial revenue collectors (FBR, PRA, SRB, KPRA and BRA) demanding tax on the same transactions creating undue hardship and double taxation claims for taxpayers.

    “This situation is highly undesirable and creates complexities for investors,” the OICCI said.

    Giving an example, the OICCI said that a service provider registered in Sindh providing taxable services to recipient in Punjab is liable to pay sales tax in Sindh whereas the withholding agent (recipient of service) is registered in Punjab and is liable to withhold sales tax and pay the same to Government of Punjab.

    Although, some improvements have been noted in the coordination between the revenue authorities, investors’ concerns continue, for e.g. the issue of levy of sales tax at ‘origination’ and ‘termination’ of service in both the provincial legislations on services has still not been resolved.

    Section 60A and 60B of the Income Tax Ordinance, 2001 has not been amended to allow contribution to Provinces in respect of WWF and WPPF.

    The OICCI recommended:

    In line with International and Regional practices a uniform service tax law may be drafted and agreed upon by the tax authorities of the Provinces and Federal Government, for implementation in their respective jurisdiction. Furthermore, a uniform tax return may also be introduced for the taxpayers.

    The above points can be addressed by taking the following steps which will lead to effective management and expansion of the tax base:

    i. A policy board comprising of the Chairmen of the Federal and Provincial revenue authorities (FBR, PRA, KPRA, BRA and SRB) should be formed to ensure synchronization of the policies, standard tax rates, basis of apportionment of revenues and removal of all anomalies/ conflicts between the laws of the different revenue boards (for example issues of jurisdiction, sales tax on toll manufacturing, clarity on jurisdiction and deductibility of WPPF/WWF expenses paid to the provinces).

    ii. Revenue authorities should decide the basis of levy of indirect tax, which can be origination or termination, to establish jurisdiction of taxation of services;

    iii. To promote transparency and uniform interpretation, a ‘Standard schedule’ should be introduced covering all services along with standard Tariff Headings and Standard definitions. The standard schedule should be adopted by all provinces and Islamabad Capital Territory while levying sales tax on services in their respective jurisdictions

    iv. One return may be filed with identification of provincial head of account and direct deposit of share of tax of each province.

    v. SRB to resolve with FBR for appropriate amendment in IT Ordinance, 2001 to ensure that payments made to the provincial tax authorities on account of WWF and WPPF are allowed as tax deductible expense.

    vi. SRB should take up the matter with FBR for the proper mechanism for adjustment of input tax on franchise service payable in reverse charge mode.

  • SRB extends return filing date up to June 01

    SRB extends return filing date up to June 01

    KARACHI: Sindh Revenue Board (SRB) has extended the date for filing monthly sales tax return for April 2020 up to June 01, 2020.

    In a circular issued on Thursday, the SRB permitted the registered persons, including the withholding agents covered by the provisions of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, to:-

    (i) e-deposit the amounts of Sindh sales tax for the tax period April, 2020, on or before Friday, the May 29, 2020, in Sindh Government’s head of account “B-02384” in the prescribed manner; and

    (ii) e-file their tax returns (in Form SST-03 or Form SSTW-03, as the case may be) for the tax period April, 2020, on or before Monday, the 1st June, 2020, in the prescribed manner.

  • Sindh exempts sales tax on Ehsaas Emergency cash transfer

    Sindh exempts sales tax on Ehsaas Emergency cash transfer

    KARACHI: Sindh Revenue Board (SRB) on Wednesday exempted sales tax on services to banking transfers made to Ehsaas Emergency Program.

    In a notification, the SRB said that the Sindh government had exempted the sales tax on the amount of commission (tariff heading 9819.1300) paid by the banks to their branchless banking retailers in Sindh on account of disbursement of financial assistance under the Ehsaas Emergency Cash Transfer Program of the government of Pakistan, subject to the conditions that the amount on account of such commission or service fee is not deducted from the amount of the financial assistance so transferred to the beneficiary, receiving the financial assistance, is paid the full amount of the assistance transfer.

    The SRB said that the exemption has been granted till 23:59 hours on June 30, 2020.

  • SRB extends date for filing sales tax return up to April 30

    SRB extends date for filing sales tax return up to April 30

    KARACHI: Sindh Revenue Board (SRB) on Thursday extended the last date for filing sales tax returns for the month of March up to April 30, 2010 to facilitate taxpayers in the wake of ongoing lockdown to prevent coronavirus outbreak.

    The SRB issued a circular to extend the date for filing sales tax return for month of March 2020 up to April 30, 2020 from the exiting due date of April 18, 2020.

    The SRB also extended the date for payment of sales tax on services for the month of March 2020 up to April 27, 2020 from April 15, 2020,

    The Karachi Tax Bar Association (KTBA) requested the provincial tax authority to extend the date for filing monthly returns.

    The tax bar said that due to ongoing lockdown for prevention of coronavirus outbreak, the grant of date extension would help the taxpayers in discharging their liabilities.

  • SRB tribunal suspends hearing till April 14

    SRB tribunal suspends hearing till April 14

    KARACHI: Appellate Tribunal, Sindh Revenue Board, has announced that hearing in sales tax matters within provincial jurisdictions will remain suspended up to April 14, 2020.

    The chairman of appellate tribunal SRB issued directives on Thursday in the wake of extension in lockdown by the Sindh government to prevent recent outbreak of COVID-19 and its further eruption.

    The circular said that the regular work of the tribunal such as hearing of appeals would remain suspended for further seven days with effect from April 08 to April 14.

    It said that the appeals will be received daily during days from 9:00AM to 02:00PM. However, the chairman/technical member of the tribunal would be available in the office for attending urgent work from 10:00AM to 02:00PM.

    It further said that the appeals would be taken up during the suspended period on the basis of urgent application which would be enclosed with affidavit disclosing the reason for urgency.

  • SRB extends date for payment, filing returns

    SRB extends date for payment, filing returns

    The Sindh Revenue Board (SRB) has announced an extension for the payment of sales tax and the filing of monthly sales tax returns for the tax period of February 2020. This move aims to provide relief to taxpayers amid various operational challenges.

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  • Sindh Revenue Board suspends sales tax registration of 18 construction companies

    Sindh Revenue Board suspends sales tax registration of 18 construction companies

    KARACHI: Sindh Revenue Board (SRB) has suspended registration of 18 construction companies for defaulting tax payments and failure to file monthly sales tax returns.

    The SRB has directed the companies to make compliance with the provincial tax laws by March 12, 2020 otherwise their cases would be proceeded for cancellation.

    Following companies have been suspended for non-compliance:

    01. M/S CATALYST ENGINEERING SERVICES

    02. M/S START CONSTRUNCTION COMPANY

    03. M/S. A.H BUILDERS & CONSTRUCTION COMPANY

    04. M/S. ROCCRETE CONSTRUCTION & CO

    05. M/S. GUL MEMON CONSTRUCTION COMPANY (GOVERNMENT CONTRACTOR)

    06. M/S. JD BUILDERS

    07. M/S ABDULLAH RAHOO & COMPANY

    08. M/S MUHAMMAD AYOOB ENTERPRISES

    09. M/S MALIK NAVEED CONSTRUCTION COMPANY

    10. M/S SHOUKAT ALI & COMPANY

    11. M/S MUMTAZ ALI KHUSKH (GOVERNMENT CONTRACTOR)

    12. M/S JUMAN S/O ALLAH BACHAIO SHEEDI

    13. M/S RAMEEZ RAJA CONSTRUCTION COMPANY

    14. M/S A.KAREEM & SONS

    15. M/S MALIK MUHAMMAD SAEED GOVT & CIVIL CONTRACTOR

    16. M/S REMIX CONSTRUCTION

    17. M/S BISMILL CONSTRUCTION CONTRACTING COMPANY

    18. M/S MEHRAJ COMPANY

    During suspension period the companies are unable to deal with registered persons and also not able to get government contracts.

  • SRB suspends sales tax registration of shipping company

    SRB suspends sales tax registration of shipping company

    KARACHI: The Sindh Revenue Board (SRB) has taken decisive action by suspending the sales tax registration of M/s. Adam Shipping (Private) Limited, a shipping company, due to default in payment and failure to file monthly returns.

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  • SRB probes foreign transactions of goods carrier, suspends sales tax registration

    SRB probes foreign transactions of goods carrier, suspends sales tax registration

    KARACHI: Sindh Revenue Board (SRB) has launched investigation into identifying source of foreign transactions by a goods carrier company. Further the SRB suspended the sales tax registration of the company for filing untrue monthly statement.

    The SRB on Monday said that it had suspended sales tax registration of M/s. 3 Unicorns Private Limited for concealing facts in its monthly statements.

    The SRB said that available records of the company revealed that it had declared foreign income of around Rs37 million (in its income tax return) for the tax periods from July 2016 to June 2017, and has received consideration of Rs109 million for the tax periods from July 2016 up to February 2019 in his business bank account maintained under the title of ‘3 Unicorns Pvt Ltd’ in Bank Al Habib Limited, as declared in his registration profile.

    Furthermore, the official website of the company revealed that the registered person also provides customs brokerage and customs clearance services and transportation services from Karachi to Afghanistan.

    However, t is observed that the registered person has continuously filed Null sales tax return with the SRB during the aforementioned tax periods i.e. July 2016 to February 2019 despite receiving aforementioned huge consideration in his bank account which was voluntarily declared in registration form.

    “The registered person has failed to justify the aforesaid Null declarations and has failed to provide details of sales and purchases till date which shows mala fide intention on part of the registered person towards short payment of SST and violation of Section 8, 9 and 30 of the Act.”

    The SRB said that non-payment of Sindh sales tax and non-filing of true and correct sales tax return within the time and manner prescribed under the law is contravention of provisions of the Act and rules made thereunder.

    Therefore, this notice is being issued under Section 25 of the Act, 2011 to the effect that registration status of M/s. 3 Unicorns Pvt Ltd is hereby temporary suspended with immediate effect, which shall be revoked if he takes remedial actions by February 14, 2020.

    The SRB directed the company to submit copies of complete annual accounts statement for the financial year 2016/2017, 2017/2018 and 2018/2019 with details of sales and purchases.

    The company has been asked to provide details of transactions with sources of amounts received for the tax periods from July 2016 up to January 2020.

    Reconcile all Sindh sales tax dues of the aforementioned tax periods and deposit along with default surcharge. Further, the company also has been directed to provide copies of rent agreements for the periods.

    “In case of non-satisfactory response or failure to take remedial measures as suggested above on or before aforementioned date, further necessary action shall be taken as envisaged under the Act,” the SRB said.