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
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.