Tag: Sindh Revenue Board

  • Sindh introduces 5% sales tax reduced rate for healthcare services

    Sindh introduces 5% sales tax reduced rate for healthcare services

    KARACHI: Sindh Revenue Board (SRB) on Thursday introduced a reduced rate sales tax at five percent for various healthcare services with compliance of certain conditions.

    The provincial revenue body issued notification SRB-3-4/7/2020 to announce the reduced rate at five percent instead of 10 percent. The normal sales tax rate on services prevailed in Sindh province is 13 percent.

    The SRB said that the reduced rate of five percent shall be available on the services provided or rendered by healthcare centers, gym or physical fitness centers, etc., who have submitted their option or election on Form G as prescribed under rule 42CC of the Sindh Sales Tax on Services Rules, 2011 and fulfill the limitation, conditions and restrictions prescribed in the provisos to sub-rules (4), (5) and (6) thereof.

    The SRB said that the reduced rate at five percent is to those services on compliance of conditions, included:

    01. The registered person electronically submits his election or option in Form G by the prescribed due date;

    02. The registered person installs Point of Sale (POS) machine for electronic issuance of the invoices or receipts and gets all such machines linked up with SRB web portal to the satisfaction of SRB;

    03. The registered person issues his tax invoices/bills of charges or receipts electronically and no tax invoice/bill of charges or receipts is issued otherwise except through the POS of the registered person; and

    04. Input tax credit/adjustment shall not be admissible.

  • SRB announces 5% sales tax reduced rate for personal care services

    SRB announces 5% sales tax reduced rate for personal care services

    KARACHI: Sindh Revenue Board (SRB) on Thursday announced a reduced rate sales tax at five percent for various personal care services with compliance of certain conditions.

    The provincial revenue body issued notification SRB-3-4/7/2020 to announce the reduced rate at five percent instead of 10 percent. The normal sales tax rate on services prevailed in Sindh province is 13 percent.

    The SRB said that the reduced rate of five percent shall be available on the services provided or rendered by such beauty parlours, beauty clinics, slimming clinics, body massage centers, pedicure centers etc. who have submitted their option or election on Form B as prescribed under rule 42C of the Sindh Sales Tax on Services Rules, 2011, and fulfill the limitations, conditions prescribed in the proviso to sub-rules (3A), (3B) and (4) thereof.

    The SRB said that the reduced rate at five percent is to those services on compliance of conditions, included:

    01. The registered person electronically submits his election or option in Form B by the prescribed due date;

    02. The registered person installs Point of Sale (POS) machine for electronic issuance of the invoices or receipts and gets all such machines linked up with SRB web portal to the satisfaction of SRB;

    03. The registered person issues his tax invoices/bills of charges or receipts electronically and no tax invoice/bill of charges or receipts is issued otherwise except through the POS of the registered person; and

    04. Input tax credit/adjustment shall not be admissible.

  • SRB exempts sales tax on low cost housing projects

    SRB exempts sales tax on low cost housing projects

    KARACHI: The Sindh government has exempted sales tax on services provided or rendered to low cost housing projects funded by the federal government or Sindh government.

    Sindh Revenue Board (SRB) issued notification No. 3-4/04/2020 dated January 21, 2020.

    According to the notification: “construction relating to such of the low cost affordable public housing projects as are sponsored and funded by the federal government or by the government of Sindh subject to the condition that the houses are built or constructed on plots of up to 125 square yards or the covered area of each of the apartments and flats, so built or constructed under the project, does not exceed 900 square feet.”

  • SRB suspends sales tax registration of M/s. Ability Logistics International

    SRB suspends sales tax registration of M/s. Ability Logistics International

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Ability Logistics International for failure to pay taxes and non-compliance of filing monthly returns.

    The SRB said that scrutiny of tax profile of the taxpayers showed that, it had failed to electronically file true and correct Sindh Sales Tax Return for the period October 2012 to December 2019.

    The provincial revenue authority said that the sales tax registration of the company had been suspended with immediate effect.

    The sales tax registration shall be revoked if the taxpayer takes remedial action by January 30, 2020. The remedial action should include to discharge sales tax liability along with default surcharge for the aforementioned periods and shall also deposit the same with the government of Sindh.

    Further, the logistic company is also required to electronically file true and correct monthly sales tax returns for the said tax periods.

    The provincial revenue body said that in case of non-satisfactory response or failure to take remedial measures on or before January 30, 2020, the case shall be further proceeding for cancellation of the registration with the SRB.

  • SRB suspends sales tax registration of Arabia Sea Country Club

    SRB suspends sales tax registration of Arabia Sea Country Club

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of Arabian Sea Country Club for tax fraud.

    In a notice for suspension of registration of M/s. Arabia Sea Country Club, the SRB said that the taxpayer had collected the amount of tax on services provided but did not deposit to the provincial exchequer.

    The SRB said that the taxpayer provided services to M/s. Aisha Steel Mills Limited, M/s. Master Motors, M/s. Novartis Pharma (Pakistan) Limited, M/s. Naveena Steel Mills (Pvt) Limited, M/s. Yamaha Motor Pakistan (Pvt) Limited, M/s. L’oreal Pakistan Pvt Limited amounting to Rs11,615,885 involving Sindh sales tax of Rs1,510,067 for the tax period January 2019 to October 2019.

    “It is inform you that the aforesaid act of non-payment/short payment of Sindh sales tax is covered under the ‘tax fraud’ as defined under the provision of Section 2(94) of the Act, 2011.”

    The SRB has given deadline of January 28, 2020 to the taxpayer:

    To discharge all the due Sindh sales tax liability along with default surcharge; and

    To e-file the true and correct monthly Sales Tax return for the said tax periods.

    “In case of non-satisfactory response or failure to take remedial measures as suggested above on or before January 28, 2020, the case shall be processed for cancellation of registration.”

  • Insurance agents liable to pay 13% sales tax on services

    Insurance agents liable to pay 13% sales tax on services

    KARACHI: Sindh Revenue Board (SRB) has said that insurance agents are liable to pay 13 percent sales tax on services provided or rendered to their clients.

    The SRB issued updated working tariff for tax year 2020 and notified sales tax rate for various services. According to the working tariff the insurance agents are liable to pay 13 percent sales tax on services provided or rendered.

    However, a reduced rate of five percent is available to insurance agents with condition that input tax credit shall not be admissible.

    The SBR also notified sales tax rate for other services such as electric power transmission services liable to 13 percent sales tax on services.

    The provincial revenue body said that vehicle parking and valet services liable to 13 percent sales tax on services. However, a reduced rate of five percent also available with condition that input tax credit shall not be admissible.

    The rate of 13 percent sales tax applicable on: actuarial services; services of mining of mineral and allied and ancillary services in relation thereto; site preparation and clearance, excavation and earth moving and demolition services; waste collection and management services; warehouse or depots for storage or cold storages; supply chain management or distribution, including delivery) services.

    The services provided or rendered by cab aggregator and the services provided or rendered by the owners of drivers of the vehicles using the can aggregator services are liable to 13 percent sales tax. A reduced rate of 5 percent of such services is also available with condition that the input tax credit shall not be admissible.

  • Sales tax rates on services provided by goods transportation

    Sales tax rates on services provided by goods transportation

    KARACHI: Sindh Revenue Board (SRB) has issued updated working tariff for tax year 2020 and notified sales tax rates on services provided or rendered by persons engaged in inter-city transportation.

    According to the SRB, the sales tax shall be 13 percent on services provided or rendered by persons engaged in inter-city transportation or carriage of goods by road or through pipeline or conduit.

    However, this rate shall be reduced at 8 percent with the condition that input tax credit/adjustment shall not be admissible.

    The sales tax rate shall be 13 percent on services provided or rendered by persons engaged in inter-city transportation or carriage of goods by road through truck addas or through bus/wagon stands excluding road transportation or carriage of goods through addas or through bus/wagon stands excluding road transportation of

    (i) petroleum oils through oil tankers;

    (ii) automotive vehicles, classified under tariff headings of Chapter 87 of the First Schedule to the Customs Act, 1969, as are transported or carried through specialized vehicle carriers; and

    (iii) Goods and cargo through vehicles operated by Fleet Logistic Companies having not less than 25 vehicles in its fleet

    The reduced rate of three percent is allowed with condition that input tax credit shall not be admissible.

    These services are also exempt from sales tax on following:

    Services provided or rendered by persons engaged in inter-city transportation of goods by road during the period from July 01, 2014 to the June 30 ,2015, provided that :

    (a) Such person has neither billed /involved/ charged the service recipient any amount of tax nor collected or received any amount of tax from the service recipient on account of such transportation or carriage services as were provided during the said Period;

    Provided further that the amounts of tax billed or invoiced or charged or received or collected, if any, by the such person for the services provided or rendered during the period from the 1st July,2014 to the 30th June, 2015, are e-deposited in Sindh, Government’s head of account “B-02384” in the prescribed manner on or before the 15th day of July, 2015.

    (b) Such person gets e-registered with the SRB on or before 25th day of July, 2015, in accordance with the provisions of section 24 of the Act, read with the rules prescribed thereunder; and

    (c) this exemption shall not entitle any exemption benefit or any claim for refund of the amount of tax already deducted or withheld or paid or deposited by any person in relation to the services provided or rendered or received or procured during the period from 01st day of July, 2014 to the 30th day of June, 2015. Such amount shall be deemed to be the tax under section 16 of the Act and shall be e-deposited in Sindh Government head of account “B-02384” in the prescribed manner on before the 15th day of July, 2015, failing which it shall be recovered alongwith penalty and surcharge as prescribed in the Act.

  • Sales tax rate on services provided by laundries, dry cleaners

    Sales tax rate on services provided by laundries, dry cleaners

    KARACHI: Sindh Revenue Board (SRB) has issued updated working tariff for tax year 2020 and notified sales tax rate on services provided by laundries and dry cleaners.

    According to the working tariff the sales tax rate is 13 percent on services provided by laundering and dry cleaners.

    However, a reduced rate of five percent also allowed on services provided or rendered by stand-alone laundries and dry cleaners.

    Explanation: For the purpose of this notification, “Stand-alone laundries and dry cleaners” means a laundry and dry cleaner:-

    (a) which does not provide any taxable service other than the services described against tariff heading No. 9811.0000;and

    (b) which or any outlet/branch of which is not located with the building premises or precincts of a hotel, motel, guest house or club whose service are liable to tax.

    Input tax credit adjustment shall not be admissible against reduced rate of sales tax.

    The SRB also exempted the sales tax on services provided or rendered by laundries or dry cleaners for following categories:

    (a) laundries and dry cleaners located within the building premises and premises of a hotel, motel, guest house or club whose services are liable to tax;

    (b) laundries and dry cleaners which have franchisers or franchisees;

    (c) laundries and dry cleaners having any branch or more than one outlet in Sindh;

    (d) laundries and dry cleaners whose turnover exceeds 2.5 million rupees in a financial year; and

    (e) laundries and dry cleaners whose total utility (electric, gas and telephone) bills does not exceed Rs. 25,000/- in any month during a financial year.

  • Sales tax rate on services provided by fashion designers

    Sales tax rate on services provided by fashion designers

    KARACHI: Sindh Revenue Board (SRB) issued updated working tariff for tax year 2020 and notified sales tax rate on fashion designers.

    The services provided or rendered by fashion designers shall be 13 percent. The SRB does not provide any reduced rate for this service category.

    The FBR said the services provided by race club shall be subject to 13 percent sales tax. However, the services of entry/admission the sales tax shall be charged at Rs200 per entry ticker or entry pass of the person visiting the race event.

    The SRB said that services provided or rendered by program producers and production houses shall be 13 percent. However, reduced rate of eight percent with condition that the input tax adjustment shall not be admissible.

    Similarly, service provided or rendered by corporate law consultants the tax rate shall be 13 percent. However, the reduced tax rate of eight percent is available with condition that the input tax credit shall not be admissible.

    The tax rate is 13 percent for services provided or rendered by call centers.

    The reduced rate at 3 percent is available on:

    1. Services provided or rendered by a call center from a place of business in Sindh for which the registered person receives the value of the services from a place outside Pakistan in foreign exchange through banking channels in the business bank account of the registered person in the manner prescribed by the State Bank of Pakistan.

    2. Input tax credit shall not be admissible.

  • Sales tax rate on services provided by stock brokers

    Sales tax rate on services provided by stock brokers

    KARACHI: Sindh Revenue Board (SRB) has updated working tariff for tax year and notified tax rates for services provided or rendered by specified persons or businesses.

    According to updated working tariff, the sales tax rates shall be applicable for following services:

    Stock brokers and commodity brokers shall pay sales tax at 13 percent on services provided or rendered by them.

    Underwriters shall be sales tax at the rate of 13 percent on services.

    Indenters are also required to pay 13 percent sales tax on services. However, services provided by indenters are subject to reduced rate of three percent sales tax on:

    1. Services provided or rendered by an indenter from a place of business in Sindh for which the registered person receives the value of the services from a place outside Pakistan in foreign exchange through banking channels in the business bank account of the registered person in the manner prescribed by the State Bank of Pakistan.

    2. Input tax credit/adjustment shall not be admissible.

    The sales tax rate shall be 13 percent on services provided by commission agents.

    Similarly, the rate of sales tax shall e 13 percent on services provided or rendered by packers and movers.

    Money changers are required to pay 13 percent sales tax on services However, there is exemption available on service provided or rendered by money changers in consideration of ‘spread’ charges as permitted by the State Bank of Pakistan in relation to the buying and selling of foreign currencies.