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Tag: Sindh Revenue Board

  • Sales tax rate on services provided by property developers

    Sales tax rate on services provided by property developers

    KARACHI: Sindh Revenue Board (SRB) has issued updated working tariff for tax year 2020 under which 13 percent sales tax is applicable on services rendered by property developers.

    According to the working tariff the tax rate shall be 13 percent on services provided or rendered by property developers or promoters for:

    a. development of purchased or leased land for conversion into residential or commercial plots.

    b. construction of residential or commercial units.

    However, reduced rates are available at Rs100 per square yard of land in case of (a) and Rs50 per square foot of constructed covered area in case of (b). However, on availing reduced rate of sales tax the input tax credit adjustment shall not be admissible.

    The SRB said that services provided or rendered by persons engaged in contractual engaged execution of work of furnishing supplies, the sales tax shall be 13 percent.

    However, this rate is exempted on services provided or rendered by persons engaged in contractual execution of work of furnishing supplies:

    i) whose annual turnover does not exceed 4 million rupees in a financial year; and

    (ii) in relation to the text books, published for free distribution amongst students free of cost, against the order of Sindh Textbook Board subject to the conditions that the Sindh Textbook Board:-

    (a) assigns the work to a person duly registered under the Sindh Sales Tax on Services Act, 2011; and

    (b) Furnishes, to the Sindh Revenue Board, statement on quarterly basis, showing name of person/contractor, SNTN, value of such contract, alongwith certificate about the free of cost distribution of such textbooks amongst the students.

  • Sales tax exemption allowed to certain personal care services

    Sales tax exemption allowed to certain personal care services

    KARACHI: Sindh Revenue Board (SRB) has issued updated working tariff for tax year 2020, which showed certain sales tax exemptions are available on personal care services.

    According to the working tariff, services provided or rendered for personal care by beauty parlors, beauty clinics, slimming clinics or centers and other are subject to sales tax at 13 percent.

    However, such services are available at reduced rate of 10 percent but with condition that input tax adjustment shall nto be allowed.

    The provincial revenue authority, however, allowed exemption with conditions:

    01. Persons providing the services of hair cutting, hair dressing and hair dyeing and shaving provided that they do not provide any other beauty treatment, beauty care, beauty parlour or beauty clinic service.

    2. Services provided or rendered by beauty parlors/clinics and slimming clinics whose turn over does not exceed Rs2.5 million in a financial year:

    Provided that the exemption shall not apply in case of the beauty parlour/clinics and sliming centers:-

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

    (ii) which are franchisers or franchisees;

    (iii) which have any branch or have more than one outlet in Sindh; and

    (iv) whose total utility (electricity, gas & telephone) bill exceeds Rs25,000/- in any month during a financial year.

    Provided that the exemption shall not apply in case of the beauty parlor/clinics and sliming centers:-

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

    (vi) which are franchisers or franchisees;

    (vii) which have any branch or have more than one outlet in Sindh; and

    (viii) whose total utility (electricity, gas & telephone) bill exceeds Rs25,000/- in any month during a financial year.

  • Sales tax rates on professional services issued

    Sales tax rates on professional services issued

    KARACHI: Sindh Revenue Board (SRB) has issued amended working tariff for tax year 2020 under which the tax rate for rendering professional services shall be at 13 percent.

    The SRB also notified reduced rate for professional services with condition of not allowing input tax adjustment.

    According to SRB working tariff chart updated till December 31, 2019, legal practitioners and consultants are required to pay sales tax on services t 13 percent.

    However, legal practitioners have option to pay reduced rate of 8 percent sales tax on services but input tax credit/adjustment shall not be adjustable.

    Similarly the sales tax rate is 13 percent for services rendered by accountants and auditors.

    The services rendered by accountant and auditors’ are exempted from sales tax if it services are exported, by registered persons, outside Pakistan, to such of the service recipients as are not located and not resident in Pakistan, subject to the condition that the value of export of the services is received in foreign exchange through banking channels in the business bank accounts of the registered person exporting the services and is also reported to the State Bank of Pakistan in the manner prescribed by the State Bank of Pakistan.

    However, the accountants and auditors have been given option to pay reduced tax rate of 8 percent on which input tax adjustment shall not be allowed.

    The SRB said that the sales tax rate of 13 percent is applicable on management consultants, technical, scientific and engineering consultants.

    The sales tax on services is also at 13 percent for software or IT based system development consultants. However, the services are exempt in case software or IT-based system development consultants’ services exported, by registered persons, outside Pakistan subject to the condition that the value of export of the services is received in foreign exchange through banking channels in the business bank accounts of the registered person exporting the services and is also reported to the State Bank of Pakistan in the manner prescribed by the State Bank of Pakistan.

    Other consultants including tax consultants, human resources and personnel development consultants are subject to 13 percent sales tax on services rendered by them.

    The SRB allowed reduced rate of tax at 8 percent on these consultants with condition that input tax adjustment will not be allowed.

  • Sales tax rates for services rendered on immovable properties

    Sales tax rates for services rendered on immovable properties

    The Sindh Revenue Board (SRB) has recently announced the sales tax rates applicable to services related to the sale and purchase of immovable properties within the province for the tax year 2020.

    (more…)
  • Advertisement published in Sindh exempted from sales tax

    Advertisement published in Sindh exempted from sales tax

    KARACHI: The Sindh Revenue Board (SRB) has announced an exemption on the 13 percent sales tax applicable to advertisement services rendered in Sindh, as per the working tariff for 2020.

    (more…)
  • SRB notifies sales tax exemption on services provided by restaurants, marriage halls

    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.

  • Telecom services to pay 19.5 percent as per SRB working tariff

    Telecom services to pay 19.5 percent as per SRB working tariff

    KARACHI: Sindh Revenue Board (SRB) issued working tariff updated up to December 31, 2019 under which the sales tax on services will be 19.5 percent on telecommunication services. (more…)

  • SRB extends sales tax return filing up to December 28

    SRB extends sales tax return filing up to December 28

    KARACHI: Sindh Revenue Board (SRB) has extended the last date for filing sales tax return for the month of November 2019 up to December 28, 2019 in order to facilitate taxpayers.

    A circular issued by the SRB on Thursday extended the last date for e-filing of tax return for the tax period of November 2019.

    The provincial tax authority said that in order to facilitate registered persons in adopting the newly introduced STRIVe system, the SRB allowed the registered persons, including the withholding agents covered by the provisions of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, to e-file their tax returns for the tax period November 2019, on or before Saturday December 28, 2019.

    However, the due date for e-deposit of the amount of Sindh sales tax for the tax period November 2019 would remain unchanged.

  • SRB suspends sales tax registration of Pak Tractors

    SRB suspends sales tax registration of Pak Tractors

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s Pak Tractors for defaulting tax payment and failure to comply with return filing.

    In a notice for suspension of registration, the SRB said that M/s. Pak Tractors failed to make the payment of Sindh Sales Tax on Service to the tune of Rs3.45 million for the period of February 2016 to October 2019.

    Similarly, the company also failed to file monthly sales tax returns for the period of February 2016 to October 2019.

    The provincial tax authority directed the company to take remedial actions by December 20, 2019 in order to revoke the suspension.

    In case of non-satisfactory response or failure to take remedial measures as suggested on or above before December 20, 2019, the case would be further proceeded for cancellation of the registration, the SRB said.

  • SRB suspends sales tax registration of rice mill

    SRB suspends sales tax registration of rice mill

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of a rice mill for defaulting payment and non-compliance of return filing.

    The SRB through a notice suspended the registration of sales tax of M/s. Abdullah Lakhair Rice Mill for failure to deposit due amount of Sindh Sales Tax of Rs502,400.

    Besides, the rice mill also failed to file its monthly returns for the tax periods from August 2017 to December 2017 and from January 2019 to October 2019.

    The SRB asked the mill that the suspension of the registration would only be revoked if it ensures compliance by December 03, 2019.

    The SRB said that in case of non-satisfactory response to take remedial measures the case would be further proceeded for cancellation of registration with SRB.