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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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.
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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.
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Sales tax rate on services provided by stock brokers
KARACHI: Sindh Revenue Board (SRB) has updated working tariff for tax year and notified tax rates for services provided or rendered by specified persons or businesses.
According to updated working tariff, the sales tax rates shall be applicable for following services:
Stock brokers and commodity brokers shall pay sales tax at 13 percent on services provided or rendered by them.
Underwriters shall be sales tax at the rate of 13 percent on services.
Indenters are also required to pay 13 percent sales tax on services. However, services provided by indenters are subject to reduced rate of three percent sales tax on:
1. Services provided or rendered by an indenter from a place of business in Sindh for which the registered person receives the value of the services from a place outside Pakistan in foreign exchange through banking channels in the business bank account of the registered person in the manner prescribed by the State Bank of Pakistan.
2. Input tax credit/adjustment shall not be admissible.
The sales tax rate shall be 13 percent on services provided by commission agents.
Similarly, the rate of sales tax shall e 13 percent on services provided or rendered by packers and movers.
Money changers are required to pay 13 percent sales tax on services However, there is exemption available on service provided or rendered by money changers in consideration of ‘spread’ charges as permitted by the State Bank of Pakistan in relation to the buying and selling of foreign currencies.
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Advertisement published in Sindh exempted from sales tax
KARACHI: The Sindh Revenue Board (SRB) has announced an exemption on the 13 percent sales tax applicable to advertisement services rendered in Sindh, as per the working tariff for 2020.
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Telecom services to pay 19.5 percent as per SRB working tariff
KARACHI: Sindh Revenue Board (SRB) issued working tariff updated up to December 31, 2019 under which the sales tax on services will be 19.5 percent on telecommunication services. (more…)