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Tag: Sindh Revenue Board

  • Sindh exempts sales tax on insurance services

    Sindh exempts sales tax on insurance services

    KARACHI: The Sindh government has exempted the insurance services from payment of sales tax up to June 30, 2019.


    Sindh Revenue Board (SRB) on Wednesday issued a notification stating that with the approval of the provincial government it had exempted the insurance services (other than its related re-insurance services) from the whole of the sales tax payable.


    The SRB said that the exemption is available with the condition that the amount of sales tax already charged, received or collected by the service provider shall be deposited by such service provider to the provincial exchequer.


    The following services have been exempted from sales tax:
    9813.1500 Life Insurance from July 01, 2018 to June 30, 2019
    9813.1600 Health Insurance from July 01, 2016 to June 30, 2019.


    The SRB said that the notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax.
    The notification, if not rescinded earlier, shall stand rescinded at 2359 hours of the 30th day of June 2019.

  • SRB extends return filing date for telecom service providers

    SRB extends return filing date for telecom service providers

    KARACHI: The Sindh Revenue Board (SRB) has announced an extension for the filing of returns. The revised deadline, now set for May 3, 2019, pertains specifically to the tax period of March 2019.

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  • SRB suspends registration of IT firm for unrealistic input tax adjustment

    SRB suspends registration of IT firm for unrealistic input tax adjustment

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of an information technology (IT) firm for unrealistic adjustment of input tax adjustment.

    According to a notice, the SRB suspended sales tax registration of M/s. Cube XS Weatherly (Pvt) Limited. The SRB said that the taxpayer had filed nil return for the tax periods from October 2013 to January 2019 and claimed / adjusted heavy amount of input tax wherein the input-to-output tax ratio is as much as 2,573 percent, which is neither economically possible nor is allowed under provision of Sindh Sales Tax Act, 2011.

    The SRB further said that the taxpayer had adjusted/claimed full amount of input tax without apportioning the same which was tantamount to tax fraud and was also contravention under provincial tax laws.

    The taxpayers had been asked in hearing on February 14, 2019 to furnish the copies of audited financial statements along with bifurcation of revenues/sales but registered person failed to do so.

    “The registered person has neither deposited the Sindh sales tax nor e-filed the returns for the tax period of February 2019,” the SRB said.

    The SRB directed the taxpayer to take remedial actions by April 25, 2019 to revoke the suspension.

    In case of non-satisfactory response or failure to take remedial measures on or before April 25, 2019 the case would be further proceeded for cancellation of the taxpayer’s registration with SRB, the notice said.

  • SRB suspends sales tax registration of two goods transport companies

    SRB suspends sales tax registration of two goods transport companies

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of two goods transport companies for defaulting payment and non-compliance of monthly returns, officials said on Friday.

    The SRB suspended sales tax registration of M/s. Sheikh Zahoor Goods and M/s. New Darwesh Goods Transport for violating provincial tax laws.

    The SRB suspended registration of Sheikh Zahoor Goods for filing to file monthly Sindh Sales Tax returns for the consecutive seven tax periods from August 2018 to February 2019, despite issuance of notices on January 04, 2019, January 25, 2019 and March 13, 2019.

    Furthermore, it is observed that the company had received revenue consideration of Rs72.05 million during the tax period from January 2018 to February 2019 but the taxpayer declared the sales of Rs16.89 million during the tax periods leading to short declaration of sales Rs55.15 million.

    The SRB directed the company to take remedial action by April 04, 2019 for paying dues along with surcharges and e-file true and correct monthly sales tax returns.

    In the case of New Darwesh Goods Transport Company, the SRB said that the taxpayer had failed to declare any sales during the tax period from March 2018 to February 2019, despite the fact that it had received consideration of Rs13.66 million during January 2018 up to December 2018, which revealed short declaration of sales by it.

    The SRB had directed the company to submit a copy of income tax return of tax year 2017/2018 along with summary list of invoices in order to ascertain their Sindh sales tax dues, but it failed to make compliance.

    The SRB asked the company to take remedial action by April 04, 2019 of paying outstanding dues along with default surcharge and e-file true and correct monthly sales tax returns.

    The provincial revenue authority warned both the companies that if they failed to take remedial actions then the SRB would take necessary action under the law.

  • SRB suspends registration of ZY & Co. Bulk Terminals

    SRB suspends registration of ZY & Co. Bulk Terminals

    KARACHI: Sindh Revenue Board (SRB) has suspended the sales tax registration of M/s. Z.Y. & Co. Bulk Terminals (Private) Limited for defaulting payment and e-filing of monthly sales tax returns.

    The SRB said that the scrutiny of tax profile revealed that the company failed:

    — To make payment of Sindh sales tax on services pertaining to the tax period from December 2018 to February 2019.

    — to e-file the Sindh sales tax return in the time limitation and the manner for the aforesaid period.

    The SRB said that non-payment of SST and non-filing of SST returns within the time and manner prescribed under the law is contravention of Sindh Sales Tax Act, 2011 and the rules made thereunder.

    The SRB suspended the sales tax registration of the company with immediate effect. However, it directed the company that the suspension would be revoked if following remedial measures are taken:

    — To discharge all sales tax liability

    — To e-file the true and correct monthly Sindh sales tax returns for the said tax periods.

    In case of non-satisfactory response or failure to take remedial measures as suggested on or before April 04, 2019, the case would be further proceeded for cancellation the registration with the SRB.

  • SRB suspends registration of ZY & Co. Bulk Terminals

    SRB suspends registration of ZY & Co. Bulk Terminals

    KARACHI: Sindh Revenue Board (SRB) has suspended the sales tax registration of M/s. Z.Y. & Co. Bulk Terminals (Private) Limited for defaulting payment and e-filing of monthly sales tax returns.

    The SRB said that the scrutiny of tax profile revealed that the company failed:

    — To make payment of Sindh sales tax on services pertaining to the tax period from December 2018 to February 2019.

    — to e-file the Sindh sales tax return in the time limitation and the manner for the aforesaid period.

    The SRB said that non-payment of SST and non-filing of SST returns within the time and manner prescribed under the law is contravention of Sindh Sales Tax Act, 2011 and the rules made thereunder.

    The SRB suspended the sales tax registration of the company with immediate effect. However, it directed the company that the suspension would be revoked if following remedial measures are taken:

    — To discharge all sales tax liability

    — To e-file the true and correct monthly Sindh sales tax returns for the said tax periods.

    In case of non-satisfactory response or failure to take remedial measures as suggested on or before April 04, 2019, the case would be further proceeded for cancellation the registration with the SRB.

  • SRB suspends tax registration of Cyber Internet Services

    SRB suspends tax registration of Cyber Internet Services

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Cyber Internet Services (Private) Limited for making short payment on telecom services.

    The SRB on Tuesday said that the services provided or rendered in respect of telecommunication including internet and bandwidth services are chargeable to the sales tax under the provincial law.

    M/s. Cyber Internet Services (Private) Limited is registered with the SRB since August 04, 2011.

    The SRB said that as per invoices services provided to end consumers of internet services from registered person, it has been observed that the registered person is charging/collecting/depositing Sindh sales tax at lower rate of tax or inappropriate rate of tax i.e. 15.6 percent despite the fact that internet or bandwidth services are chargeable to the Sindh sales tax at 19.5 percent.

    As per the description given on one of the invoice, the registered person has billed the consumer for 10 Mbps internet services package for the month of March 2019 but has charged sales tax of Rs312 on value of taxable services of Rs1.999 (sales tax at 15.6 percent) whereas the applicable rate of tax is 19.50 percent.

    “This is serious violation of provisions of Sindh Sales Tax Act, 2011.”

    Considering the violation, the SRB suspended the sales tax registration of the company with immediate effect.

    However, the provincial revenue authority has given opportunity to the company to take remedial action by April 02, 2019 including submitting the summary of tax collected and charged lower than applicable tax rate in case of telecommunication services from July 2011 till February 2019.

    In case of non-satisfactory response or failure to take remedial measures as suggested on or before April 02, 2019, the case would be further proceeded for cancellation of registration with SRB, the board warned.

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  • SRB suspends registration of logistic company on tax evasion

    SRB suspends registration of logistic company on tax evasion

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of a logistic service provider based in Islamabad for alleged tax evasion.

    Sources in SRB said that the provincial revenue authority had suspended sales tax registration of M/s. Capital Marketing Services for suppressing sales for evading tax payment for the period July 2014 to June 2018.

    The SRB said that short declaration of sales and non-payment of Sindh Sales Tax is contravention of Sales Tax Act, 2011 and the rules made thereunder.

    Record available shows that M/s. Wazir Ali Industries Limited, M/s. Dalda Foods Limited, M/s. Engro Food Limited and M/s. Engro Polymer & Chemical Limited have declared purchases of Rs 329.78 million (including sales tax of Rs27.68 million from M/s. Capital Marketing Services during July 2014 to June 2018, and have also paid sales tax amount of Rs5.09 million to M/s. Capital Marketing Services for onward payment in SRB’s head of account.

    However, M/s. Capital Marketing Services have declared sales of Rs90.38 million during July 2014 to June 2018 with SRB leading to sales suppression of Rs239.39 million and short payment of sales tax of Rs5.09 million.

    “This is serious violation of provisions of the Act 2011 and the rules made thereunder,” the SRB said.

    The SRB suspended the sales tax registration of the company with immediate effect and directed the company that the suspension would only be revoked if remedial measures are taken by March 26, 2019.

    The SRB directed the company to declare all sales and discharge all Sindh Sales Tax dues along with default surcharge under section 44 of the Act, 2011 for the tax period. Further the company has been directed to e-file the true and correct monthly Sindh 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 March 26, 2019, further necessary action would be taken as envisaged under the Act.

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  • SRB suspends sales tax registration of Baba Farid Carriage

    SRB suspends sales tax registration of Baba Farid Carriage

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Baba Farid Carriage Company for default payment related to period January 2017 to August 2018.

    The SRB said that non-payment of Sindh sales tax on services is contravention of provincial tax laws. It said that record showed that M/s. Fauji Fertilizer Company Limited, M/s. Engro Fertilizers Limited and M/s. Efert Agritrade (Private) Limited have declared purchases of Rs211 million (including sales tax of Rs33.46 million) from M/s. Baba Farid Carriage Company during January 2017 to August 2018.

    However, M/s. Baba Farid Carriage Company have declared sales of Rs192.78 million during November 2016 to August 2018 with SRB leading to sales suppression of Rs18.62 million and short payment of Sindh Sales Tax of Rs5.98 million.

    The SRB suspended the sales tax registration of the company and directed to make remedial actions by March 18, 2019, including declaration of correct monthly sales tax returns and submit all sales and purchase record for the tax periods with income tax returns for the period of 2016/2017, 2017/2018 and copies of sales tax return filed with other provincial sales tax authorities.

    “In case of non-satisfactory response or failure to take remedial measures as suggested on or before March 18, 2019, further necessary action shall be taken under the law,” the SRB warned.

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  • SRB suspends sales tax registration of Sharp Telecom

    SRB suspends sales tax registration of Sharp Telecom

    The Sindh Revenue Board (SRB) has taken decisive action against M/s. Sharp Telecom (Pvt) Limited, suspending its sales tax registration due to failure in making timely payments and filing monthly returns, as per an official notice issued on Friday.

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