The Sindh government has taken a significant step in supporting flood relief operations by exempting sales tax on services provided by customs agents and terminal operators.
(more…)Tag: SRB
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Dental practitioners directed to get sales tax registration
KARACHI: Sindh Revenue Board (SRB) has directed dental practitioners to get registered for sales tax to avoid penal action.
The SRB in a circular issued September 21, 2022, said that the services of cosmetic dental surgery, orthodontics, aesthetic dentistry and such other cosmetic and aesthetic dental procedures are taxable services under tariff heading 9842.0000 of the Second Schedule to the Sindh Sales Tax on Services Act 2011 as per the definition provided under section 2 (29A) of the Act, 2011.
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All Dental Practitioners providing the aforesaid taxable services are therefore advised to get e-registered with SRB by visiting www.e.srb.gos.pk and following the step by step procedure after entering the SNTN.
The service providers are also directed to charge, levy, and collect due Sindh sales tax at 13 per cent on the aforesaid taxable services and deposit the same in Sindh Government’s head of account “B-02384” in the prescribed manner.
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It further said that e-deposit the due amount of SST in any SRB-authorized branch of NBP by 15th of the month following the tax period to which it relates.
The dental practitioners are also advised e-file true and correct Sindh sales tax returns in Form SST-03 as prescribed under section 30 of the Act, 2011 by 18th of the month following the tax period to which it relates.
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For Example: Return filing and SST payment for the month of September is due on 15th and 18th of October, respectively.
The SRB said that full and timely compliance of above provision of law is expected and will be appreciated to avoid any penal action and legal consequences by the board.
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Sindh exempts tax on services provided for flood relief
KARACHI: Sindh government has allowed whole of sales tax on services provided or rendered for flood relief operations.
In this regard, Sindh Revenue Board (SRB) issued a notification dated September 13, 2022, stated that the government of Sindh exempted the whole of sales tax payable on such taxable services as are certified by the National Disaster Management Authority (NDMA) or Provincial Disaster Management Authority (PDMA), Sindh to be meant for flood relief operations carried out in Sindh Province.
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The province allowed sales tax exemption on the following services:
01. Services provided or rendered by restaurants for free distribution as donation or charity.
02. Services provided or rendered by caterers, suppliers of food and drinks for free distribution as donation or charity.
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03. Advertisements for charity and donations in the Prime Minister’s Flood Relief Fund or in the Chief Minister Sindh’s Flood Relief Fund.
04. Renting of machinery, equipment, appliances and other tangible goods acquired and used for rehabilitation and reconstruction.
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05. Labor and manpower supply services provided in the course of flood relief operations.
06. Services provided or rendered by persons engaged in inter-city transportation or carriage of flood relief goods by road.
The SRB said that the notification, if not rescinded earlier, shall stand rescinded on and from January 01, 2023.
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Sindh reduces sales tax on services for IT sector: SRB
KARACHI: Dr. Wasif Ali Memon, Chairman, Sindh Revenue Board (SRB) has said that as the Sindh Government has drastically reduced Sindh Sales Tax on IT, Software Businesses and Call Centers from 13 percent to just 3 percent, all relevant businesses which moved to other provinces, should come back to Karachi where they will enjoy the lowest sales tax as compared to other provinces.
“IT related businessmen from Karachi Chamber whose peer businessmen moved to Lahore or any other city, must advise them to get back to Karachi where they will be charged a mere 3 percent ST without input tax whereas large establishments which prefer standard rate with input tax credit, have the option of to opt 13 percent with input tax credit facilities”, he added while exchanging views at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI).
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The meeting was also attended by Chairman Businessmen Group Zubair Motiwala (Via Zoom), Vice Chairman BMG Jawed Bilwani, General Secretary BMG AQ Khalil, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi, Vice President Qazi Zahid Hussain, Former President Younus Bashir, Advisor SRB Mushtaq Kazmi and KCCI Managing Committee Members along with senior SRB officials.
Dr. Wasif stated that SRB performed exceptionally well during the last fiscal year wherein record-breaking Rs153 billion tax was collected therefore, the government has given an ambitious tax collection target of Rs180 billion for current fiscal year which can only be achieved through the support and cooperation of Karachi’s business community which was highly tax-compliant. “Despite the outbreak of COVID pandemic and extraordinary spells of rainfalls which terribly affected many businesses, the business community of Karachi has been regularly and sincerely paying taxes to SRB which we greatly acknowledge”, he added.
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He said that although Karachi contributes highest taxes to SRB but the activities of SRB were not confined to this city only as SRB’s Regional Offices have also been opened in Hyderabad, Benazirabad, Larkana, Sukkur and Mirpurkhas while an SRB Office in Ghotki will also be inaugurated soon.
In response to President KCCI’s suggestion, Chairman SRB agreed to form a joint SRB-KCCI Committee along with provision of direct helpline to KCCI members so that all their taxation issues could be promptly resolved.
Chairman BMG, in his remarks, pointed out that although Karachi contributes 94 percent taxes to SRB but it was really unfortunate that this city was not receiving sufficient development funds according to its matchless contribution which has resulted in miserably bringing down the standards of living and doing business in Karachi. “What we contribute to provincial kitty is always being highlighted and appreciated but what we get in return never comes into limelight which is very disturbing. Neither from federal government nor from provincial government, Karachi receives its due share”, he noted, adding that the injustices with this city must and brought to an end now.
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He stressed that keeping in view Karachi’s contribution of more than 70 percent to national exchequer and 95 percent to provincial kitty, it was high time that Karachi must receive what it deserves. Due to lack to development funds, Karachi’s infrastructure was in awful state and the same has been witnessed by the entire world during the current Monsoon season. “SRB should also have access to information about the expenditure of revenue so that we could compare revenue generation with expenditure”, he added.
Earlier, President KCCI Muhammad Idrees, while welcoming Chairman SRB, appreciated SRB’s all-time seriousness towards resolving issues being highlighted by KCCI which were promptly being responded and amicably resolved by SRB officials. “However, there are several pending taxation issues related to indenting businesses, travel agents and other businesses along with anomalies in SRB laws which also need to be extensively discussed and resolved in light of ground realities.”
To efficiently deal with all the SRB related taxation issues and revision in relevant laws, it was very crucial to form a joint committee between KCCI and SRB so these could be discussed and resolved in such a manner that the measures agreed upon result in bringing down the tax rates which would not bring down but in fact increase the provincial revenue as large number of taxpayers will certainly prefer to get registered in Sindh.
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He said that thanks to KCCI’s rigorous efforts, the federal government has finally realized and agreed to treat the income of indenters as exports proceeds hence, the same must also be announced by SRB which would help minimizing the hardships being faced by indenters who were being charged heavy taxes on marginal commissions.
He appreciated the Sindh Government for paying attention to KCCI’s demand to reduce Sindh ST on IT, Software Businesses and Call Centers which would encourage a large segment of businesses to register the businesses in Sindh.
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SBR extends date for e-filing tax return
KARACHI: The Sindh Revenue Board (SRB) has extended the date for e-filing (electronic filing) of sales tax return and payment of sales tax on services for the month of June 2022.
The provincial revenue authority on Monday issued a circular for extension in the last date for e-deposit of Sindh Sales Tax for the tax period June 2022 and for e-filing of tax return for the tax period June 2022.
READ MORE: SRB collects Rs153.5 billion tax in FY22
According the circular, the SRB permitted the registered persons, including the withholding agents covered by the provisions of the Sindh Sales Tax Procedure (Withholding) Rules, 2014, to:
READ MORE: SRB collects Rs132 billion as services tax in 11 months
i. e-deposit the amounts of Sindh Sales Tax for the tax period June 2022 on or before Thursday July 21, 2022;
ii. e-file their returns for the tax period June 2022 on or before Monday July 25, 2022.
Sources said that the SRB extended the date for making payment of sales tax on services and for filing return in order to facilitate the taxpayers.
READ MORE: Sindh integrates 56 restaurants for online tax monitoring
They said that stakeholders approached the SRB for giving reasonable time to make compliance the mandatory requirement.
The stakeholders were of the view that due to long holidays on account of Eid ul Adha, very few days were left to comply with the statutory requirement.
It is important to note that the government had announced holidays from July 8, 2022 to July 12, 2022 on account of Eid ul Adha.
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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.
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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.
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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.
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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.
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“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.
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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.
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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.
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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.
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The Sindh province was the first to start the collection of sales tax on services by legislating Sindh Sales Tax on Services Act, 2011.
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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:
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— 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.
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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.
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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.
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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.
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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.
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“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).