- The Sindh Revenue Board (SRB) has issued updated guidelines to banks regarding the payment of sales tax on services in the province.
- The new guidelines aim to streamline and clarify the process for the collection and remittance of Sindh sales tax on specified services.
- Previously, scheduled banks were designated as collection agents responsible for collecting and remitting taxes on specified services.
- The SRB received requests from banks for additional guidelines, leading to the issuance of fresh guidelines to complement the existing procedure.
- The new guidelines specify tax rates for different types of services, including debit card and credit card payments, advertisement services, and software or IT-based system development services.
- Banks are required to collect tax amounts at the prescribed rates, even if the payment falls under merchant category codes or State Bank of Pakistan (SBP) outward remittance codes not explicitly mentioned in the guidelines.
- The collected sales tax is to be deposited into the provincial treasury by the 15th day of the following month.
- The issuance of these guidelines aims to enhance transparency, compliance, and efficiency in the collection and remittance of sales tax on services.
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
