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Tag: Sindh Revenue Board

  • SRB suspends sales tax registration of Burshane Petroleum

    SRB suspends sales tax registration of Burshane Petroleum

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Burshane Petroleum Private Limited for defaulting payments for eight months and non-compliance of return filing for the same period.

    The SRB in a notice of suspension, said that short declaration of sales and non-payment of sales tax on services is contravention of Sales Tax on Services Act, 2011.

    The board said that record of the company revealed that it had M/s. Hascol Petroleum Limited declared purchases of Rs310.95 million including sales tax of Rs40.42 million from Burshane Petroleum Pvt. Ltd during February 2019 to September 2019, and had also paid sales tax on services amount of Rs32.339 million to M/s. Burshane Petroleum Pvt Limited for onward payment to SRB.

    However, Burshane Petroleum Pvt Limited have not filed their monthly sales tax return during February 2019 to September 2019 leading to sales suppression of Rs310.95 million and short payment of sales tax of Rs32.34 million.

    The SRB said that the suspension would only be revoked if the company takes following remedial action by November 28, 2019:

    To declare all sales and discharge all Sindh sales tax dues along with default surcharge.

    To e-file the true and correct monthly Sindh sales tax return for the tax periods.

    Further, the company has been directed to submit summary list along with copies of all invoices issued during January 2019 up to September 2019, copies of sales tax returns filed with other provincial sales tax authorities and copies of withholding certificates alongwith payment proofs.

    The SRB warned that in case of non-satisfactory response for failure to take remedial measures on or before November 28, 2019, further necessary action would be taken as envisaged under the Act.

  • Sindh Revenue Board collects Rs23 billion in first quarter

    Sindh Revenue Board collects Rs23 billion in first quarter

    KARACHI: Sindh Revenue Board (SRB) has collected Rs23 billion during first quarter (July – September) of current fiscal year 2019/2020 as compared with Rs20.3 billion in the corresponding quarter of the last fiscal year, showing growth of 13.3 percent.

    The success in achieving the growth in revenue during the first quarter of 2019/2020 has been made possible because of the continued trust and cooperation of SRB taxpayers, the continuous support by the government of Sindh and the restless efforts made by SRB employees, said a statement issued by the SRB on Wednesday.

    The SRB said that during the month of September 2019 it collected Rs9 billion as compared to Rs7.5 billion during the same month of the last year, registering growth of 20 percent.

  • SRB suspends sales tax registration of Wateen Telecom

    SRB suspends sales tax registration of Wateen Telecom

    The Sindh Revenue Board (SRB) has suspended the sales tax registration of Wateen Telecom Limited due to the company’s failure to remit collected sales tax to the provincial treasury. The decision came after an audit revealed significant lapses in tax payments by the telecom provider.

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  • SRB suspends sales tax registration of Chinese sanitation firm

    SRB suspends sales tax registration of Chinese sanitation firm

    KARACHI: Sindh Revenue Board (SRB) on Tuesday suspended sales tax registration of a Chinese sanitation firm for defaulting sales tax payment and failure to file monthly sales tax returns.

    The SRB issued notice on August 20, 2019 to suspend registration of M/s. Hangzhou Jinjiang Group Sanitation Services Co. Pakistan (Private) Limited.

    The provincial revenue body said that the company had failed to make payment of sales tax on services for the four consecutive months i.e. April, May, June and July 2019. Similarly, the company has also failed to comply with mandatory filing of monthly returns for the same months.

    The SRB in its notice informed the company that its sales tax registration had been suspended with immediate effect. However, suspension would be revoked if the company takes remedial measures of depositing outstanding amount and file all pending returns on or before August 26, 2019.

    The SRB warned that in case of non-satisfactory response or failure to take remedial measures as advised above on or before August 26, the matter shall be further proceeded for further necessary penal action under the Act, 2011.

  • Sales tax registration number is mandatory on invoices: SRB

    Sales tax registration number is mandatory on invoices: SRB

    KARACHI: Sindh Revenue Board (SRB) has said that mentioning Sindh Sales Tax Registration Number (SNTN) on sales invoices is mandatory for persons registered with the provincial revenue body.

    The SRB issued Circular No. 4/2019 on Tuesday and said it had received several enquiries from the taxpayers, registered with Sindh Revenue Board as service providers in terms of the provisions of sections 24, 24A and 24B of the Sindh Sales Tax on Services Act, 2011, about the requirement to mention Sales Tax Registration Number (STRN) on the sales tax invoices issued by the service providers to their customers/clients/service recipients.

    The levy, payment and collection of Sindh sales tax on services in Sindh Province is governed by the provisions of the Sindh Sales Tax on Services Act, 2011 and the rules and notification issued thereunder.

    Under rule 29(1) of the Sindh Sales Tax on Services Rules, 2011, all SRB-registered taxpayers/service providers are required to issue serially-numbered sales tax invoices to its customers/clients/service recipients containing the following particulars:-

    (i) Name, address and SNTN (Sindh Sales Tax Registration Number) of the service provider;

    (ii) Name, address and NTN or SNTN or CNIC number of the service recipient;

    (iii) Serial number and date of issue of the tax invoice;

    (iv) Description, tariff heading and other details of the service provided;

    (v) Value exclusive of Sindh sales tax;

    (vi) Rate of Sindh sales tax;

    (vii) Amount of Sindh sales tax; and

    (viii) Value inclusive of Sindh sales tax

    For the purposes of registration under the Sindh Sales Tax on Services Act, 2011, Sindh Revenue Board issues a SNTN (by prefixing alphabet “S” to the NTN of the person/business enterprise) which is the unique identification of every SRB-registered taxpayer/service provider. Neither the Sindh Sales Tax on Services Act, 2011 nor the rules made thereunder recognize any sales tax registration other than SNTN.

    No other registration number is issued/generated by the Sindh Revenue Board either. In compliance with the requirement of the aforesaid rule 29(1), all sales tax invoices issued in relation to the provision of taxable services have to mention the “SNTN”, as issued by the SRB.

  • General education not taxable under training services: SRB

    General education not taxable under training services: SRB

    KARACHI: Sindh Revenue Board (SRB) on Monday said that general education services are not taxable under ‘training services’ which is introduced through Sindh Finance Act, 2019.

    The provincial revenue authority issued clarification on the issued after receiving objections from the stakeholders for explaining the training services.

    The SRB said; “The general education services like pre-primary, primary, elementary, secondary (matric), higher secondary (intermediate), general certificate of secondary education, international general certificate of secondary education, college or university education (leading to degrees like BA, BSC, B.S, B.Com, BBA, BE, Bed, B Tech, LLB, MBBS, MA, MSc, MS, MCS, M Com, MBA, M Ed, LLM, M Phil, MCPS, FCPS, PhD, special education for handicapped children and education under the adult literacy program are not taxable as training services of tariff heading 9848.000 of the Second Schedule to the Sindh Sales Tax on Services Act, 2011.”

    Earlier, Deloitte Yousf Adil, Chartered Accountants urged the SRB for clarification regarding applicability of Sindh Sales Tax on education related activity under Tariff Heading 9848.000 (training services).

    The chartered accountants firm said that through the Sindh Finance Act, 2019, the training services had been brought to tax net under the tariff heading of 9848.000 with effect from July 01, 2019.

    Through notification issued July 01, 2019, the rate of Sindh Sales Tax on training services had been reduced to five percent with not input tax adjustment.

    The chartered accountants firm pointed out that there was confusion regarding chargeability of SST on education related services provided or rendered by schools, colleges, institutes and universities as chartered by the government or related bodes such as Higher Education Commission etc.

    The chartered accountants firm had urged the provincial revenue authority to clarify the scope of tariff heading specifically keeping the scenario of general education services.

  • SRB extends date for payment, e-filing

    SRB extends date for payment, e-filing

    KARACHI: Sindh Revenue Board (SRB) on Friday extended last date for payment of sales tax on services and filing of tax return for tax period of July 2019.

    The SRB issued Circular No. 03/2019 to extend the last date for e-deposit of Sindh sales tax and for e-filing of tax return for the tax period of July 2019.

    The SRB extended the date for withholding agents covered under Sindh Sales Tax Special Procedure (Withholding) Rules, 2011, to:

    i. e-deposit the amounts of Sindh sales tax for the tax period July 2019, on or before Monday, August 19, 2019; and

    ii. e-file their tax returns on or before Thursday, August 22, 2019.

  • SRB suspends sales tax registration of stock broker firm

    SRB suspends sales tax registration of stock broker firm

    The Sindh Revenue Board (SRB) has taken stringent action against a stock broker firm M/s. Reliance Securities Limited, suspending its sales tax registration due to a failure to fulfill tax payment obligations and non-compliance with filing monthly returns.

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  • Sales tax imposed on banking services of cheque books, lockers

    Sales tax imposed on banking services of cheque books, lockers

    KARACHI: SIndh government has imposed sales tax on services on cheque book issuance and maintaining locker vaults by a banking company to its customer.

    According to amendment made to Sindh Sales Tax on Services Act, 2011 through provincial Finance Act, 2019, the tax has been imposed on non-fund based banking services.

    The banking services have been included for tax purposes, included: bank guarantee; issuance of cheque book, payorder and demand draft; safe deposit lockers and safe vault. Besides, tax is also imposed on those services provided by banks that are not specified in the Act.

    According to tax experts with the amendments to the Finance Act, 2019 following services are become taxable: Issuance of cheque book; and commission of all sorts including ‘Banca assurance’.

    Tax experts at PwC A F Ferguson Chartered Accountants said that the taxability of banca assurance was contested by the Sindh Revenue Board as falling under tariff 9813.4990, which was rejected in a decision of the SRB Tribunal by majority.

    Through the amendment more services have been added for tax purposes, included:

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

    Warehouses or depots for storage or cold storage.

    Services of mining of minerals and allied and ancillary services in relation thereto.

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

    Waste collection, transportation, processing and management services.

    Vehicle parking and valet services.

    Electric power transmission services.

  • SRB allows reduced rate of 3pc for outstanding payments by indenters

    SRB allows reduced rate of 3pc for outstanding payments by indenters

    KARACHI: Sindh Revenue Board (SRB) has allowed a reduced rate of 3 percent sales tax for payment of past four years on services rendered by indenters.

    The SRB issued notification SRB-3-4/17/2019 on Thursday to declare that sales tax on the services provided or rendered by an indenter (described against tariff heading 9819.1200) from a place of business in Sindh during the tax periods from July, 2015 to June, 2019 shall, if not yet deposited by the indenter in Sindh Government’s head of account “B-02384”, be charged, levied and collected at the reduced rate of 3 percent subject to the conditions that:-

    (a) such indenter received or intends to receive the value of such indenter services from a place outside Pakistan in foreign exchange through banking channels in the indenter’s business bank account in the manner prescribed by the State Bank of Pakistan;

    (b) such indenter, if not yet a person actually registered under section 24 of the Act, gets himself registered in accordance with the provisions of the said section 24, read with rules prescribed under the Act, on or before the 31st day of July, 2019;

    (c) such indenter deposits the arrears of the amounts of Sindh sales tax, as involved, for the tax periods from July, 2015 to July, 2019, at the rate prescribed in this notification, in Sindh Government’s head of account “B- 02384” in the prescribed manner on or before the 31St day of August, 2019; and

    (d) such indenter does not claim any input tax credit/adjustments against the output tax payable under this notification.

    The SRB said that this notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax already paid or deposited by him in Sindh Government’s head of account “B-02384” on any day prior to the date of this notification.