Rate of sales tax on banking services

KARACHI: Sindh Revenue Board (SRB) has issued updated working tariff for tax year 2020 which showed banks to pay 13 percent on sales tax regarding various services provided to customers.

According to working tariff the sales tax shall be charged at 13 percent on services provided or rendered by banking companies in relations:

Guarantee including bank guarantee

Brokerage

Letter of credit

Issuance of cheque books, pay order and demand draft

Bill of exchange

Transfer of money including telegraphic transfer, mail transfer and electronic transfer

Commission including bill discounting commission

Safe deposit lockers and safe vaults

Other services not elsewhere specified

Issuance, processing and operation of credit and debit cards

Commission and brokerage of foreign exchange dealings

Automated Teller Machine operations, maintenance and management

Service provided as banker to an issue

Others, including the services provided or rendered by non banking, finance companies, modaraba and musharika companies and other financial institutions.

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