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  • Cable TV operators granted exemption of sales tax on services

    Cable TV operators granted exemption of sales tax on services

    KARACHI: The Sindh government has exempted sales tax on services for one year for cable TV operators within the jurisdiction of the province.

    The Sindh Revenue Board (SRB) has issued a notification to further exempt the sales tax on services rendered by cable TV operators till June 30, 2022.

    The Sindh government imposed sales tax on services rendered by cable TV operators through a notification issued on June 27, 2019. However, since then the levy has been exempted. Through a new notification the exemption is further extended for one more year till June 30, 2022.

    According to the amended notification:

    The provincial government has exempted Sindh sales tax on such of the services provided or rendered by Cable TV Operators, as are classified under tariff heading 9819.9000 of the Second Schedule to the said Act, subject to the conditions that such service provider:-

    (a) is registered with the Board in terms of section 24 of the Act and has shown the services of “Cable TV Operators” of tariff heading 9819.9000 as his “Principal Activity” in row No. 12 of the Registration Form SST-01:

    Provided that where the service provider also provides other taxable services including the services of “advertisement on Cable TV network” of tariff heading 9802.5000, he shall also inter-alia indicate the economic activity of such taxable services in the relevant column of Activity Code of “Other Business Activities” in row No. 19 of the Registration Form SST-01;

    (b) is a stand-alone service provider of the taxable service of “Cable TV Operators” of tariff heading 9819.9000.

    Explanation: For the purposes of this notification, a “stand-alone” service provider means a person whose principal activity is the provision of services of “Cable TV Operators” of tariff heading 9819.9000 and whose other service-related business activity, if any, is restricted to the provision of the taxable services of “advertisement on Cable TV network” of tariff heading 9802.5000. Persons providing or rendering taxable services of any of the tariff headings, other than those of tariff headings 9802.5000 and 9819.9000, shall not be eligible to the benefits of this notification:

    Provided that nothing contained in this notification shall be construed to be exempting the taxable services of “advertisement on Cable TV network” classified under tariff heading 9802.5000 even if provided or rendered by such a stand-alone service provider;

    (c) e-files his tax returns (Form SST-03) regularly in the prescribed manner, showing the details of his exempt services of Cable TV Operators (tariff heading 9819.9000) and also of other taxable services including the taxable services of advertisements on Cable TV (tariff heading 9802.5000) therein:

    Provided that the tax returns for the tax periods July, 2016 to June 2021, if not filed earlier, shall be e-filed by the stand-alone service provider on or before the 31st day of July, 2021;

    (d) e-deposits his tax liability on the taxable services, including the taxable services of “advertisement on Cable TV network” (tariff heading 9802.5000), regularly in the prescribed manner:

    Provided that the tax liability for the tax periods July, 2016 to June, 2021, if not paid earlier, shall be e-deposited by the stand-alone service provider in Sindh Government’s head of account “B-02384” in the prescribed manner by the 31st day of August, 2021; and

    (e) complies with the provisions of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, in relation to the taxable services, including the taxable service of advertisement on Cable TV network (tariff heading 9802.5000), as are provided or rendered by him and e-deposits the amounts of Sindh sales tax involved, in case such amounts are or were not deducted or withheld by the service recipient or the withholding agent in terms of the said Rules:

    Provided that the liability of Sindh sales tax under the aforesaid Sindh Sales

    Tax Special Procedure (Withholding) Rules, 2014, for the tax periods July, 2016 to June, 2021, if not paid earlier, shall also be e-deposited by the stand-alone service provider in Sindh Government’s head of account “B-02384” in the prescribed manner by the 31st day of August, 2021.

    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.

    This notification shall take effect from the 1st day of July, 2018, and, if not rescinded earlier, shall stand rescinded on the 30th day of June, 2022.

  • Sindh allows reduced rate of 5% sales tax on services to recruiting agencies

    Sindh allows reduced rate of 5% sales tax on services to recruiting agencies

    KARACHI: The Sindh government has allowed payment of sales tax on services at reduced rate of five per cent to recruiting agencies subject to terms and conditions.

    A notification issued by the Sindh Revenue Board (SRB) stated that the provincial government had allowed the sales tax on the services provided or rendered by the recruiting agents, as are classified under tariff heading 9805.6000 of the Second Schedule to the said Sales Tax on Services Act, 2011 and are also restricted to recruitment of persons or group of persons for employment outside Pakistan, shall be charged, levied and collected at a lower rate of 5% during the tax periods of the financial year 2021-22 subject to the conditions that such a service provider:-

    (a) is registered with the Board in terms of section 24 of the Act and has shown the services of “Recruiting agents” of tariff heading 9805.6000 as his Principal Activity in his Registration Form SST-01:

    Provided that where the service provider also provides any other taxable services as described in the Second Schedule to the Act, he shall inter-alia indicate the economic activity of such services in the relevant column of Activity Code of Other Business Activities, as provided in row number 19 of the Registration Form SST-01, read with the provisions of sub-rule (3) of rule 4 of the Sindh Sales Tax on Services Rules, 2011;

    (b) is a stand-alone service provider of the taxable service of “recruiting agents” of tariff heading 9805.6000.

    Explanation: For the purposes of this notification, a “standalone service provider” means a person whose principal economic activity is the provision of services of “Recruiting agents” of tariff heading 9805.6000, and such economic activity of the provision of the services of recruiting agency is related to recruitment of persons or group of persons for overseas employment in countries outside Pakistan:

    Provided that the services provided or rendered by such recruiting agents in relation to recruitment of persons or group of persons for employment in Pakistan shall continue to be levied to tax at the rate of 13 per cent:

    Provided further that where a recruiting agent provides or renders any of the taxable service not classified under the aforesaid tariff heading 9805.6000, he shall pay the tax relatable to such services (other than the services of tariff heading 9805.6000) at the rate(s) applicable to the tariff heading(s) relatable to such other services;

    (c) e-deposits his tax liability on the taxable services regularly in the prescribed manner:

    Provided that the tax liability for the tax periods upto June, 2021, if not paid earlier, shall be e-deposited by the service provider in Sindh Government’s head of account “B-02384” in the prescribed manner by the 15th day of July, 2021;

    (d) e-files his tax returns (Form SST-03) regularly, in the prescribed manner;

    (e) showing the details of his services liable to statutory rates of tax and also to reduced rates of tax, separately, in the same return:

    Provided that the tax returns for the tax periods prior to June, 2021, if not filed earlier, shall be e-filed by the service provider on or before the 20th day of July, 2021; and

    (f) complies with the provisions of the Sindh Sales Tax on Services Act, 2011, and the rules and notifications issued thereunder.

    This notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax.

    This notification, if not rescinded earlier, shall stand rescinded at 23:59 hours of the —30th day of June, 2022.

  • Sindh Revenue Board fails to achieve annual collection target

    Sindh Revenue Board fails to achieve annual collection target

    KARACHI: The Sindh Revenue Board (SRB) has missed the revenue collection target of Rs135 billion for fiscal year 2020/2021 and collected Rs128 billion during the year.

    However, the collection for 2020/2021 has registered an increase of 21 per cent in revenue collection for fiscal year 2020/2021 despite adverse economic environment due to coronavirus.

    The SRB collected Rs128 billion during fiscal year 2020/2021 as compared with Rs106 billion in the preceding fiscal year, a top official said on Thursday.

    The official said the growth in revenue collection is impressive considering the general economic slowdown and the resurgence of COVID during the year.

    The SRB however missed the revenue collection target of Rs135 billion for the fiscal year under review.

    The official that the collection of Rs128 billion includes record receipts of Rs121 billion of Sindh sales tax, representing a growth of 21 percent over the collection of Rs100 billion during 2019/2020.

    Collection of Sindh Workers Welfare Fund by SRB during 2020/2021 stood at Rs7 billion as compared to the collection of Rs6 billion during the preceding year, which also represents a growth of 17 per cent.

    The official said that the milestone that SRB had reached represented a consistency of achievement since organization’s inception since 2011, courtesy the hard work and steadfastness demonstrated by the workforce beyond the normal call of duty.

    The official said that no new tax was levied in the Sindh Budget 2020/2021. The business environment was also significantly unfavorable for the services sector which was hard hit by the COVID-19 throughout the year, forcing partial lockdowns.

  • SRB posts 52pc growth in May revenue collection

    SRB posts 52pc growth in May revenue collection

    KARACHI: The Sindh Revenue Board (SRB) has posted 52 percent growth in revenue collection during May 2021 as compared with same month of the last year, a statement said on Tuesday.


    The SRB collected Rs10.26 billion during May 2021 as compared with Rs6.734 billion in the corresponding month of the last year.


    The provincial revenue body collected Rs108.66 billion during 11 months (July – May2020/2021) as compared with Rs91.198billion in the corresponding months of the last fiscal year, showing a growth of 19 percent.


    The SRB attributed the significant growth of 52 percent in May 2021 to the continued trust and cooperation of the taxpayers, the support of Sindh government and the relentless efforts of the SRB officials.


    The provincial revenue authority said that it would continue to work hard to maximize the revenue collection during the last month of the current fiscal year, despite all adverse factors such as low economic growth and the resurgence of COVID-19, impacting the services sector.

  • SRB launches tax scheme for waiver of penalty, default surcharge

    SRB launches tax scheme for waiver of penalty, default surcharge

    KARACHI: The Sindh Revenue Board (SRB) on Monday launched a scheme to exempt whole of the amount of penalty and default surcharge on payment of principal amount by given date.

    Sindh Revenue Board (SRB) in this regard issued notification to exempt the whole of the amount of penalty and such of the amount of default surcharge as is in excess of the amount of default surcharge specified below, provided that the principal amount of tax and the following amounts of the default surcharge thereon are deposited in the prescribed manner in Sindh Government’s head of account “B-02384” during the periods as specified below:-

    (a) the principal amount of tax (as outstanding on 31st May, 2021) along with zero default surcharge thereon if deposited during the period from 1st June, 2021 to 12th June, 2021;

    (b) the principal amount of tax (as outstanding on the 31st May, 2021) along with 5 percent of the amount of default surcharge thereon if deposited during the period from 13th June, 2021 to 21st June, 2021; and

    (c) the principal amount of tax (as outstanding on the 31st May, 2021) along with 10 percent of the amount of default surcharge thereon if deposited during the period from 22’d June, 2021 to 30th June, 2021.

    Explanation: The word “deposited”, used in this notification, means deposited by means of the CPR (Computerized Payment Receipt) so generated.

    The benefits of exemption of penalty and default surcharge, as specified in this notification, shall also be available in relation to the arrears of the tax (as outstanding on the 31St May, 2021) payable under the Sindh Sales Tax Ordinance, 2000 and under the Sindh Sales Tax on Services Act, 2011, by.

    (i) persons who are liable to be registered under section 24 of the Act but were not registered, provided that:-

    (a) they get themselves registered with SRB in the prescribed manner during the aforementioned periods from 1st June, 2021 to the 30th June, 2021;

    (b) they deposit their tax liabilities for the principal amount of tax along with the aforementioned percentages of the amount of default surcharge thereon in relation to the tax periods from the date of the commencement of their economic activity to the tax period of May, 2021, in Sindh Government’s head of account “B-02384” in the prescribed manner by the due dates prescribed in clauses (a), (b) and (c) of paragraph 1 of this notification; and

    (c) they also e-file their tax returns, for the tax periods from date of commencement of their economic activity of taxable services to the tax period May, 2021, during the period from the date of this notification to the 30th June, 2021.

    Explanation: For the purpose of this sub-paragraph (i), the word “registered” in the case of withholding agents shall mean “e-Signed up” in terms of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014;

    (ii) persons who were registered but were non-filers or null-filers or nil-filers of their tax returns;

    (iii) persons who were late-registered with SRB and they did not file all of their tax returns for the tax periods from the date of commencement of their economic activity of taxable services;

    (iv) persons who withheld any amount of Sindh sales tax but have either not deposited the said withheld amount in Sindh Government’s head of account “B-02384” or have deposited the withheld amount in a head of account other than the Sindh Government’s head of account “B-02384”;

    (v) persons who determine the arrears through self-detection and selfassessment;

    (vi) persons who short-paid any amount of tax in their tax returns;

    (vii) persons against whom any arrears of tax were detected in SRB’s scrutiny of tax returns or in SRB’s audit of taxpayers’ record

    (viii) persons against whom any tax amount has been determined or assessed or adjudged, by an officer of the SRB, through an order or decision passed under the Sindh Sales Tax on Services Act, 2011, or the rules/notification issued thereunder;

    (ix) persons against whom any tax liability has been adjudged or confirmed by the Commissioner (Appeals) or the Appellate Tribunal;

    (x) persons whose cases are under assessment or under adjudication with any officer of the SRB or are pending, at the appellate stage with the Commissioner (Appeals) or with the Appellate Tribunal; and

    (xi) persons whose cases are under litigation in any court of law including the High Court and the Supreme Court.

    The SRB said that the benefits provided under this notification, to the extent as specified below, shall also be available in cases where a person has late paid the principal amount of tax prior to the date of this notification and/or has not yet discharged the liability of penalty (whether the prescribed amount of penalty or the adjudged amount of the penalty) and default surcharge on such late payment provided that he deposits an amount equal to:-

    (a) 5 percent of such amount of penalty and 10 percent of such amount of default surcharge (as outstanding on 31st May, 2021) in Sindh Government’s head of account “B-02384” during the period from 1st June, 2021 to 12th June, 2021;

    (b) 10 percent of such amount of penalty and 15 percent of such amount of default surcharge (as outstanding on 315t May, 2021) in Sindh Government’s head of account “B-02384” during the period from 13th June, 2021 to 21st June, 2021; and

    (c) 15 percent of such amount of penalty and 20% of such amount of default surcharge (as outstanding on 3151 May, 2021) in Sindh Government’s head of account “B-02384” during the period from 22nd June, 2021 to 30th June, 2021.

    If the whole of the dues of the principal amount of tax and the aforementioned prescribed percentage of the amount of default surcharge thereon are paid by a person in terms of this notification, such a person shall not be prosecuted under section 49 of the Act, and the offence, to the extent of the arrears of the tax paid under this notification, shall also be compounded under section 46 of the Act.

    If the principal amount of tax and the aforementioned percentages of the amount of the default surcharge thereon, as are paid in terms of this notification by the persons described in clauses (vi), (vii), (viii), (ix), (x) and (xi) of paragraph 2 of this notification, are held to be not payable in view of the order issued by the respective competent authority (i.e. the adjudicating officer or the Commissioner (Appeals) or the Appellate Tribunal or the Court of Law), the Officer of the SRB, not below the rank of an Assistant Commissioner, shall allow tax adjustment/credit of the amount or, alternatively, shall refund the amount, so paid, within 90 days from the date of receipt of the taxpayer’s application, for refund or for tax adjustment/credit, together with a copy of the order/judgment and also of the evidence that the incidence of the tax was not passed on to the service recipient.

    This notification shall not apply for refund or adjustment of any amount of tax or default surcharge or penalty as has already been paid or recovered on any date on or before the 31st May, 2021.

  • Date for filing Sindh sales tax return extended

    Date for filing Sindh sales tax return extended

    The Sindh Revenue Board (SRB) has extended the deadline for filing monthly sales tax returns for the month of April 2021. The decision comes in response to challenges faced by taxpayers who experienced difficulties in meeting compliance requirements during the weeklong Eid holidays.

    (more…)
  • SRB Appellate Tribunal issues Ramazan timings

    SRB Appellate Tribunal issues Ramazan timings

    KARACHI: Appellate Tribunal, Sindh Revenue Board (SRB) on Thursday issued timings during the holy month of Ramazan ul Mubarak 1442 Hijri.

    In pursuance of High Court of Sindh’s Notification issued April 03, 2021, the Apellate Tribunal, Sindh Revenue Board, Karachi will observe the following office timings during the holy month of Ramazan ul Mubarak 1442 Hijri:

    The court timings shall be from 09:00 am to 01:00 pm on Monday to Thursday. For Fridays the timings shall be from 09:00 am to 01:00 pm.

    The office timings shall be from 09:00 am to 02:00 pm on Monday to Thursday. For Fridays the timings shall be from 09:00 am to 01:00 pm.

  • SRB posts 22.7pc growth in March collection

    SRB posts 22.7pc growth in March collection

    KARACHI: Sindh Revenue Board (SRB) has registered 22.7 percent growth in collection of sales tax on services during the month of March 2021 despite adverse effect of coronavirus on businesses.

    According to data released by the provincial revenue authority, the collection was Rs11.46 billion in March 2021 as compared with Rs9.34 billion in the same month of the last year.

    “The growth in revenue is phenomenal when viewed in the context of coronavirus effect on the businesses and the general slowdown of economy,” according to a SRB statement.

    During first three quarters of fiscal year 2020/2021, the SRB collected an amount of Rs88.54 billion as compared with Rs77.9 billion in the first three quarters of 2019/2020, showing a growth of 13.66 percent.

    The SRB attributed the revenue growth of 22.7 percent during March 2021 to the continued trust and cooperation of taxpayers, the continuous support by the Sindh government and the relentless efforts of the SRB officers and the staff.

    The SRB is focusing on assigned revenue collection target of Rs135 billion for the current fiscal year, despite the adverse factors such as low economic growth and the resurge of COVID-19.

  • SRB website under cybersecurity threat

    SRB website under cybersecurity threat

    KARACHI: The official website of Sindh Revenue Board (SRB) has been identified as cyber-vulnerable and prone to citizen’s data leakage.

    National Telecom and Information Technology Security Board (NTISB) has issued an advisory through a notification dated March 03, 2021.

    It said that critical vulnerabilities had been identified in website of SRB (notification can be downloaded https://download1.fbr.gov.pk/Docs/202131115323494Advisory8.pdf) that may result in database access and manipulation, exfilteration of sensitive data, remote take-over of users’ sessions and website defacement.

    Identified vulnerabilities are as under:

    a. SQL injection in database

    b. Citizen’s data leakage

    c. Cross site scripting

    d. Unecrypted/plain text transfer of users’ credentials

    e. Cross site request forgery

    f. Microsoft IIS Tilde directory enumeration

    g. Internal IP addresses and server-side paths disclosure

    h. Session cookies lacking secure flags

    i. Server/ASP net version disclosure

    j. Stack traces and error messages on web pages

    k. Server-side technology stack documentation pages on public website.

    For impact of above mentioned vulnerabilities and guidelines for prevention can be downloaded https://download1.fbr.gov.pk/Docs/202131115323494Advisory8.pdf

  • SRB starts preparation for provincial budget 2021/2022; invites proposals

    SRB starts preparation for provincial budget 2021/2022; invites proposals

    KARACHI: Sindh Revenue Board (SRB) has started preparation for the provincial budget 2021/2022 and in this regard asked all the association and chambers and other stakeholders to submit their tax proposals by February 15, 2021.

    In a communication sent to all chambers, associations, tax bars, Institute of Chartered Accountants of Pakistan (ICAP), Institute of Cost and Management Accountants of Pakistan (ICMAP) and other stakeholders to submit their proposals in relation to the Sindh Sales Tax on Services Act, 2011 and the rules and notifications issued thereunder.

    The SRB said that it was in the process of formulating budgetary measures for Sindh Budget 2021/2022 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 (Transportation 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 owners or drivers of the motor vehicles using the cab aggregators services) Rules, 2019 and the various notifications issued under the said Act, 2011.

    The SRB further said it has been policy of the provincial revenue board to consult all chambers, associations, groups, stakeholders and taxpayers before finalizing the budget proposals.

    “With this end in view, the SRB requests all persons (including the chambers of commerce and industry, business councils, trade associations, tax bars, Institute of Chartered Accountants, Institute of Cost and Management Accountants, taxpayers, etc.) to send their written proposals in the prescribed format so as to reach latest by Monday, February 15, 2021.

    The SRB provided a format for proposals which included: name of the Act/Rules/Notification proposed to be amended; Section No., Schedule No., Tariff Heading No., Rule No., Para No., involved; existing provisions/rates of tax; proposed provisions/rates of tax; reasons and rationale for the proposal; revenue effect etc.