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Tag: SRB

  • SRB collects Rs57 billion in first half

    SRB collects Rs57 billion in first half

    KARACHI: Sindh Revenue Board (SRB) has collected Rs57.02 billion during first half (July – December) of the current fiscal year as compared with Rs49 billion in the same half of the last fiscal year, showing an increase of 16 percent.

    The SRB has been assigned Rs135 billion collection target for the current fiscal year, which means the revenue body needs another Rs78 billion during the remaining half to achieve the target.

    However, the SRB said that it was focusing focused to achieve the assigned revenue target of Rs135 billion for the current fiscal year, despite all the adverse factors such as low economic growth and the resurgence of COVID-19.

    During the month of December 2020, the SRB posted 25 percent growth in revenue collection for the month and the collection is record high in a month during the first half since SRB started collection in 2011/2012.

    The SRB said that during the month of December 2020, the board made a record revenue collection of Rs11.75 billion as compared to Rs9.39 billion collected during December 2019 thus registering a growth of 25 percent.

    The revenue collection during December 2020 is the highest ever collection in any of the months in the first half of the financial year, since SRB started collecting sales tax on services in 2011/2012.

    The SRB said that the success in achieving the phenomenal revenue growth of 25 percent during December 2020, has been attributed to the conducted trust and cooperation of the SRB taxpayers, the continuous support by the government of Sindh and the restless efforts of the SRB officers and staff.

  • Sales tax exempted on services provided by beauty parlors

    Sales tax exempted on services provided by beauty parlors

    KARACHI: Sales tax has been exempted on services provided by beauty parlors or beauty clinics within the province of Sindh if their annual turnover is below Rs2.5 million.

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  • Sales tax rates on services provided by freight forwarders, customs agents, others

    Sales tax rates on services provided by freight forwarders, customs agents, others

    KARACHI: Sindh Revenue Board (SRB) has issued updated rate of sales tax on services provided by customs agents, freight forwarders and persons authorized to transact business on behalf of others.

    The SRB issued working tariff updated on November 01, 2020 for implementation of sales tax rates on services rendered or provided within Sindh province.

    Following are the services and rate of sales tax:

    Shipping agents: 13 percent

    Stevedores: 13 percent

    Ship management service: 13 percent

    Freight forwarders: 13 percent

    However, a fixed rate of Rs500 per bill of lading or house bill of lading is also available on:

    (i) services provided by freight forwarding agents in respect of issuance of bills of lading or house bills of lading.

    (ii) input tax credit shall not be admissible.

    Customs agents: 13 percent

    Travel agents: 13 percent;

    A reduced rate of five percent is also available with condition that input tax credit shall not be admissible.

    Tour operators: 13 percent;

    A reduced rate of five percent is available with condition that input tax credit adjustment shall not be allowed;

    Further services provided or rendered by tour operators in relation to Hajj and Umrah tour services are exempted from the levy.

    Recruiting agents: 13 percent;

    A reduced rate of 8 percent is available on:

    (i) recruiting agents who is stand-alone service provider and whose principal economic activity is related to recruitment of individuals or group of individuals for overseas employment in countries outside Pakistan.

    (ii) Input tax credit adjustment shall not be admissible.

    Advertising agents: 13 percent

    Ship chandlers: 13 percent

    Share transfer agents: 13 percent

    Sponsorship services: 13 percent

    Business support services: 13 percent

  • Reduced rate of sales tax granted on services for sale, purchase of immovable properties

    Reduced rate of sales tax granted on services for sale, purchase of immovable properties

    KARACHI: A reduced sales tax rate of 10 percent is granted on service provided or rendered by persons engaged in sale and purchase of immovable properties.

    The Sindh Revenue Board (SRB) issued working tariff updated up to November 01, 2020.

    The SRB issued the rate of sales tax on services provided or rendered in the matter of sale, purchase or hire.

    The SRB said that the sales tax rate shall be 13 percent on services provided for purchase or sale or hire of immovable properties. However, reduced rate of 10 percent is allow with condition that input tax credit adjustment shall not be admissible.

    Similarly, the rate of sales tax is 13 percent on services provided by property dealers. A reduced rate of 10 percent is available with condition that input tax credit adjustment shall not be admissible.

    The rate of sales tax shall be 13 percent on renting of immovable property services. However, a reduced rate of three percent is available with condition that input tax credit adjustment shall not be admissible. The SRB said that the tax shall be exempted on renting of immovable property services provided or rendered to an individual person whose income does not exceed the maximum amount that is not chargeable to tax under the Income Tax Ordinance, 2001.

    The rate of sales tax is 13 percent on services provided by car or automobile dealers. A reduced rate of 10 percent is available with condition that input tax credit adjustment shall not be admissible.

    The SRB said that sales tax rate shall be 13 percent on renting of machinery equipment, appliances and other tangible goods. However, a reduced rate of 5 percent is available with condition that input tax credit adjustment shall not be admissible.

  • Sales tax exempted on services provided by marriage halls on area up to 800 square yards

    Sales tax exempted on services provided by marriage halls on area up to 800 square yards

    KARACHI: Sindh Revenue Board (SRB) has said that marriage halls and laws are exempted from payment of 13 percent sales tax on services, which are located on plots measuring 800 square yards.

    The SRB issued working tariff updated up to November 01, 2020.

    The provincial revenue authority said that services provided or rendered by marriage halls and laws are subject to 13 percent sales tax.

    However, the exemption from whole of sales tax on services provided by marriage halls and laws which are located on plot measuring 800 square yards or less.

    The exemption is not available in case of marriage halls and laws:

    (i). which are air-conditioned on any day in a financial year;

    (ii). located within the building, premises or precincts of a hotel, motel, guest house, restaurant or club whose services are liable to tax;

    (iii). as are owned, managed or operated by caterers whose services are liable to tax;

    (iv). which are franchisers or franchisees; and

    (v) having branches or more than one hall or lawn in Sindh.

  • Sales tax rates for construction services updated

    Sales tax rates for construction services updated

    KARACHI: Sindh Revenue Board (SRB) has issued updated rates of sales tax on construction services. The SRB explained the rate of sales tax at normal, concessionary and exempted on construction services.

    The SRB issued working tariff updated up to November 01, 2020.

    Following are the rate of sales tax on construction services:

    The SRB said that a general rate of 13 percent is applicable on the construction services.

    However, a reduced rate at 8 percent is also available on following conditions:

    (i) The benefit of this reduced rate is not available to persons, engaged in providing or rendering the construction services, who elect or opt to pay the statutory rate of tax at 13 per cent under the Special Procedure prescribed by the Board and avail of the input tax credit/adjustment facility as prescribed in the Act and rules

    (ii) Input tax credit/adjustment shall not be admissible.

    Another reduced rate at 5 percent is also available on following conditions:

    (i) Construction service in relation to Government Civil Works for which expenditure is paid out of the expenditure budget of the Federal Government or the Local Government or the Cantonment Board.

    (ii) Input tax credit/adjustment shall not be admissible.

    The SRB said that sales tax on service is exempted on construction services related to:

    (i) Construction work undertaken by a person whose annual turnover does not exceed 4 million rupees in a financial year;

    (ii) Construction and development of EPZ, SEZ and diplomatic and counselor buildings; and

    (iii) Construction of an independent private residential house, other than residential unit covered by tariff headings 9807.0000 or 9814.3000, having total covered area not exceeding 10,000 square feet.

  • Sales tax rates updated on services provided by restaurants

    Sales tax rates updated on services provided by restaurants

    KARACHI: Sindh Revenue Board (SRB) has notified sales tax rates on services rendered by restaurants in the province.

    The SRB issued working tariff on November 01, 2020 updating rates of sales tax on services.

    The SRB said that the sales tax rate shall be 13 percent on services provided or rendered by restaurants.

    The provincial revenue authority said that services provided or rendered by restaurants whose turnover does not exceeds 4 million rupees in a financial year shall be exempted from the levy of 13 percent sales tax.

    However, the exemption shall not apply in case of restaurants:-

    (i) which are air-conditioned on any day in a financial year and which are located within the building or premises of air-conditioned shopping malls or shopping plazas;

    (ii) located within the building, premises or precincts of any hotel, motel, guest house or club whose services are liable to sales tax;

    (iii) providing or rendering services in the building, premises, precincts, hall or lawn of any hotel, motel, guest house, marriage hall or lawn or club whose services are liable to sales tax;

    (iv) which are franchisers or franchisees;

    (v) having branches or more than one outlet in Sindh; and

    (vi) whose total utility bills (gas, electricity and telephone) exceed Rs. 40,000/- in any month during a financial year.

  • SRB issues sales tax rates on banking services

    SRB issues sales tax rates on banking services

    The Sindh Revenue Board (SRB) has announced a 13% sales tax rate on services provided by banking companies within the province. This update, effective from November 1, 2020, clarifies the applicable sales tax on a wide range of banking services.

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  • SRB issues sales tax rate on telecom services

    SRB issues sales tax rate on telecom services

    KARACHI: Sindh Revenue Board (SRB) on Tuesday updated working tariff up to November 01, 2020 for levy of sales tax on telecommunication services.

    The sales tax on services are exempt on telecommunication services involving charges payable on the international leased lines or bandwidth services used by the software exporting firms registered with the Pakistan Software Export Board.

    Following is the table for the application of sales tax on telecommunication services along with tariff headings:

    9812.1000Telephone services19.5%
    9812.1100Fixed line voice telephone service19.5%
    9812.1200Wireless telephone19.5%
    9812.1210Cellular telephone19.5%
    9812.1220Wireless Local Loop telephone19.5%
    9812.1300Video telephone19.5%
    9812.1400Payphone cards19.5%
    9812.1500Prepaid calling cards19.5%
    9812.1600Voice mail service19.5%
    9812.1700Messaging service19.5%
    9812.1710Short Message service (SMS)19.5%
    9812.1720Multimedia message service (MMS)19.5%
    9812.1910Shifting of telephone connection19.5%
    9812.1920Installation of telephone19.5%
    9812.1930Provision of telephone extension19.5%
    9812.1940Changing of telephone connection19.5%
    9812.1950Conversion of NWD connection to non NWD or vice versa19.5%
    9812.1960Cost of telephone set19.5%
    9812.1970Restoration of telephone connection19.5%
    9812.1990Others19.5%
    9812.2000Bandwidth services19.5%
    9812.2100Copper line based19.5%
    9812.2200Fibre-optic based19.5%
    9812.2300Co-axial cable based19.5%
    9812.2400Microwave based19.5%
    9812.2500Satellite based19.5%
    9812.2900Others19.5%
    9812.3000Telegraph19.5%
    9812.4000Telex19.5%
    9812.5000Telefax19.5%
    9812.5010Store and forward fax services19.5%
    9812.5090Others19.5%
    9812.6000Internet services19.5%
    9812.6100Internet services including email services19.5%
    9812.6110Dial-up internet services19.5%
    9812.6120Broadband services for DSL connection19.5%
    9812.6121Copper line based19.5%
    9812.6122Fibre-optic based19.5%
    9812.6123Co-axial cable based19.5%
    9812.6124Wireless based19.5%
    9812.6125Satellite based19.5%
    9812.6129Others19.5%
    9812.6130Internet/email/Data/SMS/MMS services on WLL networks19.5%
    9812.6140Internet/email/Data/SMS/MMS services on cellular mobile networks19.5%
    9812.6190Others19.5%
    9812.6200Data Communication Network services (DCNS)19.5%
    9812.6210Copper Line based19.5%
    9812.6220Co-axial cable based19.5%
    9812.6230Fibre-optic based19.5%
    9812.6240Wireless/Radio based19.5%
    9812.6250Satellite based19.5%
    9812.6290Others19.5%
    9812.6300Value added data services19.5%
    9812.6310Virtual private Network services (VPN)19.5%
    9812.6320Digital Signature service19.5%
    9812.6390Others19.5%
    1[9812.7000Other specified telecommunication services19.5%
    9812.7100Audio Text Services19.5%
    9812.7200Teletext services19.5%
    9812.7300Trunk radio services19.5%
    9812.7400Paging services including voice paging services and radio paging services19.5%
    9812.7900Others19.5%
    9812.8000Tracking and alarm service19.5%
    9812.8100Vehicle tracking and other tracking services19.5%
    9812.8200Burglar and security alarm services19.5%
    9812.8900Others19.5%
    9812.9000Telecommunication services not elsewhere specified]19.5%
  • SRB exempts sales tax on services for USAID funded programs

    SRB exempts sales tax on services for USAID funded programs

    KARACHI: Sindh Revenue Board (SRB) on Thursday granted exemption from sales tax on services for projects funded by United States Agency for International Development (USAID).

    The SRB in a statement said that with approval of the Sindh government it had exempted from the whole of the sales tax payable on such taxable services and are received or procured by the USAID or the Implementing Partners of the USAID under the Sindh Basic Education Program (SBEP) funded by way of grant-in-aid provided by the USAID under the framework of the Pakistan Enhanced Partnership Agreement (PEPA) of 2010 signed between the United States of America and the Islamic Republic of Pakistan.

    The SRB through another notification to grant exemption from the whole of the sales tax payable on such taxable services and are received or procured by the Municipal Delivery Service Program- Sindh (MSDP) funded by way of grant-in-aid provided by the USAID under the framework of the Pakistan Enhanced Partnership Agreement (PEPA) of 2010 signed between the United States of America and the Islamic Republic of Pakistan.