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Tag: Sindh Revenue Board

  • SRB collects Rs153.5 billion tax in FY22

    SRB collects Rs153.5 billion tax in FY22

    KARACHI: The Sindh Revenue Board (SRB) has collected Rs153.5 billion tax for the fiscal year 2021-22. The growth of collection stands at 20% from the last year’s collection of Rs128.1 billion.

    SRB collected the excess amount of Rs3.5 billion as the assigned target was collection of Rs150 billion

    READ MORE: SRB collects Rs132 billion as services tax in 11 months

    The said amount comprises of Rs145.3 billion collected under the head of Sindh Sales Tax on Services whereas Rs8.2 billion under the Sindh Workers Welfare Fund / Sindh Workers Profit Participation Fund.

    Thus, SRB exceeded the assigned target of Rs150 billion by Rs3.5 billion. Moreover, the growth over last year’s collection of Rs128.1 billion stands at 20%.

    READ MORE: Sindh integrates 56 restaurants for online tax monitoring

    The growth achieved by SRB is significant keeping in the view the fact that in the year 2021-22 no amnesty scheme was announced in order to establish a robust culture of tax compliance. Whereas in the past such schemes resulted in an additional revenue of approx. 2 to 3 billion.

    READ MORE: Tax officials barred from direct freezing bank accounts

    The Chairman Sindh Revenue Board appreciated the exemplary performance shown SRB employees, the cooperation extended by the taxpayers their representatives bodies and the unabated support of the Chief Minister and Government of Sindh.

    READ MORE: SRB implements verification system for utility invoices

  • Sindh integrates 56 restaurants for online tax monitoring

    Sindh integrates 56 restaurants for online tax monitoring

    KARACHI: Sindh Revenue Board (SRB) on Tuesday said it integrated around 56 restaurants through installation of Point of Sales (POS) for online monitoring of sales tax on services.

    The SRB issued a statement regarding distribution of certificate of appreciation to SRB POS integrated persons by its chairman.

    READ MORE: SRB collects Rs132 billion as services tax in 11 months

    It said SRB Chairman Dr. Wasif Ali Memon, in appreciation of compliant taxpayers of the restaurant sector, who were amongst the first to integrate with SRB’s POS system, distributed certificates of appreciation and thanked them for their compliance and support with regards to SRB’s flagship project i.e. the POS initiative.

    READ MORE: Tax officials barred from direct freezing bank accounts

    The SRB is successfully implementing the POS integration system in Karachi and Hyderabad with provision of real-time monitoring of business activities of the integrated persons and round the clock facility / support through SRB’s POS control room.

    READ MORE: SRB implements verification system for utility invoices

    “So far 56 restaurants have integrated their point of sales with the SRB,” it said.

    The SRB is committed to achieve continuous growth and implementing measures for maximizing revenue collection. “SRB thanks all integrated persons for their support in making SRB’s POS a success, a system based on mutual trust and coordination,” it added.

    READ MORE: KTBA identifies anomaly in SRB’s appellate system

  • SRB collects Rs132 billion as services tax in 11 months

    SRB collects Rs132 billion as services tax in 11 months

    KARACHI: The collection of sales tax on services by Sindh Revenue Board (SRB) has increased by 21 per cent to Rs132 billion during first 11 months (July – May) 2021/2022.

    According to official data released on Wednesday, the SRB collected Rs132 billion during first eleven months of the current fiscal year as compared with Rs109 billion in the corresponding period of the last fiscal year.

    READ MORE: Tax officials barred from direct freezing bank accounts

    The provincial revenue authority still needs tax collection of around Rs18 billion in the last month i.e. June 2022 in order to achieve Rs150 billion collection target for the fiscal year 2021/2022.

    READ MORE: SRB implements verification system for utility invoices

    The SRB likely to surpass the revenue collection target for the outgoing fiscal year as its monthly collection witnessed an impressive growth.

    The provincial revenue authority collected Rs14.05 billion in the month of May 2022 as compared with Rs10.26 billion in the corresponding month of the last year, showing an increase of 37 per cent.

    READ MORE: KTBA identifies anomaly in SRB’s appellate system

    The Sindh province was the first to start the collection of sales tax on services by legislating Sindh Sales Tax on Services Act, 2011.

    READ MORE: SRB extends last date for payment, filing return

  • Sindh extends date for filing sales tax return

    Sindh extends date for filing sales tax return

    KARACHI: Sindh Revenue Board (SRB) on Wednesday extended the last date for making deposit and filing monthly sales tax return for January 2022.

    The SRB issued Circular No. 02/2022 for extension in the last date for e-deposit of Sindh sales tax for the tax period January 2022 and for e-filing of tax return for the tax period January 2022.

    The provincial revenue body allowed the registered persons, including the withholding agents covered by the provisions of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, to:

    READ MORE: Tax officials barred from direct freezing bank accounts

    — e-deposit the amounts of Sindh sales tax for the tax period January 2022 on or before Monday February 21, 2022

    — e-file their tax returns for the tax period January 2022 on or before Thursday February 24, 2022.

    READ MORE: SRB implements verification system for utility invoices

    The SRB also intimated the taxpayers that the Federal Board of Revenue (FBR) has developed a National Sales Tax return which is in the process of implementation.

    As agreed by FBR, this return is only applicable to FBR registered persons at this stage. FBR is in the process of consultation with the provinces for extension of the National Sales Tax Return to the Provinces.

    In view of above, in order to avoid any problem, all persons registered with SRB are requested to continue filing their Sindh sales tax returns in the form SST-03 on SRB portal i.e. http://e.srb.gos.pk in accordance with the provisions of the Sindh Sales Tax on Services Act, 2011, and the rules made thereunder.

    SRB shall advise SRB-registered persons when Single National Sales tax Return is fully developed by FBR / PRAL in consultation with the provinces and after proper user acceptance tests are carried out.

    Any departure from above advice may entail contravention proceedings by officers of SRB for non-filing of the prescribed return with SRB, which may lead to imposition of penalty and other related consequences.

  • Tax officials barred from direct freezing bank accounts

    Tax officials barred from direct freezing bank accounts

    KARACHI: The Sindh government has barred the officials of provincial tax authorities from freezing bank accounts for making tax recovery without approval.

    The Sindh government issued a standing order dated February 10, 2022 regarding recovery of tax due through bank attachment under section 66 of the Sindh Sales Tax on Services Act, 2011.

    READ MORE: SRB implements verification system for utility invoices

    The standing order stated that to regulate the recovery of tax due in terms of proviso to Section 66(1) of the Act read with the Sindh High Court dated January 31, 2020, in CP No. D-1882 of 2017 and others, various instructions were issued vide standing order No. 01/2020 vide No. SRB/TP/13/2020 dated July 30, 2020.

    READ MORE: KTBA identifies anomaly in SRB’s appellate system

    In order to further regulate the recovery through bank attachment of any registered person under Section 66(1), it is decided that the attachment of any bank account of the registered person in future be made with prior approval of the respective Senior Member/Member (Operations), who will grant approval of the respective relevant facts (verified and recommended after due diligence) by the commissioner and submitted through dedicated recovery note sheet, for justification thereof.

    READ MORE: SRB extends last date for payment, filing return

    “Any departure from or non-compliance with the directions in the standing order shall be viewed seriously,” the provincial government warned the officials of Sindh Revenue Board (SRB).

    READ MORE: Dr. Wasif Memon appointed as SRB chairman

  • SRB implements verification system for utility invoices

    SRB implements verification system for utility invoices

    KARACHI: The Sindh Revenue Board (SRB) has implemented online verification system for invoices issued by utility companies.

    The SRB in a communication issued on Monday stated that STRIVe (Sales Tax Real-time Invoice Verification) System has been implemented for Sindh Sales Tax return filing since July, 2019.

    READ MORE: KTBA identifies anomaly in SRB’s appellate system

    However, keeping in view taxpayers’ demand, the system was not made applicable to the invoices issued by utility companies such as electricity / gas distribution companies and telephone / telecom companies.

    Since, considerable time has elapsed and other tax administrations such as FBR and other provincial sales tax authorities have long ago implemented STRIVe for utility invoices, SRB has decided to discontinue the practice of allowing input tax adjustment against manual entry of utility invoices.

    READ MORE: SRB extends last date for payment, filing return

    Accordingly, it is intimated that starting from Sindh sales tax returns for the tax period February, 2022, to be filed in March 2022, the input tax against utility invoices (i.e. electricity, gas and phone / telecom services) shall only be allowed if the supplier / utility company has declared such supplies / services specifically in the name of Sindh registered person in the respective monthly tax returns submitted with Federal Board of Revenue.

    READ MORE: Dr. Wasif Memon appointed as SRB chairman

    It is added that the input tax deduction / adjustment, so availed, shall be subject to admissibility criteria as laid down in or under the Sindh Sales Tax on Services Act, 2011.

    READ MORE: SRB invites proposals for Budget 2022-2023

  • KTBA identifies anomaly in SRB’s appellate system

    KTBA identifies anomaly in SRB’s appellate system

    Karachi Tax Bar Association (KTBA) has identified a sheer violation of the constitution by the Sindh Revenue Board (SRB) regarding appointments in appellate system.

    KTBA President Muhammad Zeeshan Merchant in a letter to SRB Chairman Wasif Ali Memon pointed out the irregularities in appointments of provincial tax officials in first appellate forum available to taxpayers i.e. Appeals.

    READ MORE: KTBA highlights anomalies in single sales tax return

    Merchant referred to the Constitution of Islamic Republic of Pakistan which is coined on the trichotomy of power.

    The Article 175 of the Constitution envisages separation of powers between legislature, executive and judiciary ostensibly to prevent the concentration of power and to check transgression.

    The Supreme Court of Pakistan in the case of Government of Baluchistan Vs. Azizullah Memon reported as PLD 1993 SC 31 has seconded the above analogy.

    READ MORE: KTBA passes resolution against FTO Asif Jah

    With the given methodology, it needs to be appreciated that the Notification No. SRB 3-4/34/2021 dated December 20, 2021 issued by the Member (Operations) Sindh Revenue Board (“SRB”), infringes upon the structure of trichotomy and separation of power in so far as following situations are concerned: 

    Zamir A. Khalid, presently posted as the Commissioner (Legal) is also given the additional charge of the Commissioner (Appeals – I)

    Muhammad Iqbal Lakho, presently posted as Commissioner-III is also given the additional charge of the Commissioner (Appeals – II).

    READ MORE: KTBA highlights issues in implementing digital payments

    The KTBA expressed the surprise to see such a belligerent offensive on the constitutional methodology by a distinguished institution like SRB.

    “We believe this prima facie is a travesty of justice as no one can be judge of his own cause. Please subscribe that this is further likely to shake the confidence of litigants (taxpayers) on the SRB as an independent appellate forum with the dedicated Commissioner (Appeals) is the only solution.”

    READ MORE: KTBA submits recommendations for e-filing of appeals

  • SRB extends last date for payment, filing return

    SRB extends last date for payment, filing return

    KARACHI: Sindh Revenue Board (SRB) on Tuesday extended the last date for electronic filing of sales tax return for the period of December 2021 up to January 25, 2022.

    The SRB issued Circular No. 01 / 2022 for extension in the last date for e-deposit of Sindh Sales Tax for the tax period December 2021 and for e-filing of tax return for the tax period December 2021.

    Through the circular 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-deposit the amount of Sindh sales tax for the tax period December 2021 on or before Friday, January 21, 2022; and e-file their tax returns for the tax period December 2021 on or before Tuesday January 25, 2022.

    The SRB extended the last date for electronic filing of sales tax returns following the date extension announced by the Federal Board of Revenue (FBR) a day earlier.

    READ MORE: FBR extends date for filing sales tax return

    Previously, the SRB advised the taxpayers registered with the provincial tax authorities to file their monthly sales tax return on the SRB portal.

    The SRB said that the FBR had developed a National Sales Tax return which is in the process of implementation.

    As agreed by FBR, this return is only applicable to FBR registered persons at this stage. FBR is in the process of consultation with the provinces for extension of the National Sales Tax Return to the Provinces.

    READ MORE: FBR launches sales tax return filing through single portal

    In view of above, in order to avoid any problem, all persons registered with SRB are requested to continue filing their Sindh sales tax returns in the form SST-03 on SRB portal i.e. http://e.srb.gos.pk in accordance with the provisions of the Sindh Sales Tax on Services Act, 2011, and the rules made thereunder.

    SRB shall advise SRB-registered persons when Single National Sales tax Return is fully developed by FBR / PRAL in consultation with the provinces and after proper user acceptance tests are carried out.

    Any departure from above advice may entail contravention proceedings by officers of SRB for non-filing of the prescribed return with SRB, which may lead to imposition of penalty and other related consequences, the SRB added.

  • Exchange rate declaration must for services exports

    Exchange rate declaration must for services exports

    KARACHI: The Sindh government has made mandatory the requirement of exchange rate declaration to avail sales tax concessions on export of services.

    In this regard, the Sindh Revenue Board (SRB) issued a notification to amend Sales Tax on Services Rules, 2011.

    The provincial revenue board amended the changes in Annex-D of the Sindh Sales Tax on Services Return in Form SST-03.

    The decision to amend the rules has been taken considering the high volatility in exchange rate as the Pak Rupee hit record low at Rs178.04 on December 17, 2021 and lost around 13 per cent against the dollar since start of the current fiscal year.

    READ MORE: Dollar hits record high of Rs178.04 at interbank closing

    As per the amended sales tax on service return form, an exporter is required to provide name of the foreign buyer or the non-resident service recipient. The other details shall be provided by the exporters, included: country to which service exported; description of the service exported; tariff heading of the service exported; 4-digit code as per State Bank of Pakistan (SBP) Code List; Invoice No.; Invoice Date etc.

    The exporters are also required to value of the service exported, included: in foreign exchange (with currency name); exchange rate; in Pak Rupee.

    The exporters further required to provide details, included: amount of sales tax involved being claimed to be exempt (in Pak Rupee); Reference No. of the notification / authority for exemption; and actual/estimated date for receipt of sale value in foreign exchange.

  • SRB invites proposals for Budget 2022-2023

    SRB invites proposals for Budget 2022-2023

    KARACHI: Sindh Revenue Board (SRB) has invited proposals for budget 2022/2023 from stakeholders by January 21, 2022.

    The SRB said it was in process of formulating budgetary proposals for provincial budget 2022-2023 in relation to taxation and procedural provisions of Sindh Sales Tax on Services Act, 2011, the Sindh Sales Tax on Services Rules, 2011, the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, the Sindh Sales Tax Special Procedure (Transport or Carriage of Petroleum Oil through Oil Tankers) Rules, 2018 and the Sindh Sales Tax Special Procedure (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 service) Rules, 2019 and the various notifications issued under the Act 2011.

    READ MORE: Sindh Revenue Board announces tax incentive package

    The SRB said that it was policy of the board to consult all chambers, associations, groups, stakeholders and taxpayers before finalizing the budget proposals.

    “With this end in view, SRB requests all persons (including the chambers of commerce and industry, business councils, trade associations, tax bars, Institution of Chartered Accountants, Institute of Cost and Management Accountants, taxpayers, etc.) to send their written proposals latest by Friday, January 21, 2022.