KARACHI: The Sindh Revenue Board (SRB) has exempted hotels and restaurants whose annual turnover was below Rs4 million from sales tax on services.
According to latest working tariff issued by SRB, the services provided or rendered by hotels, motels, guest houses, restaurants, marriage halls, lawns, clubs and caterers are subject to 13 percent sales tax.
The SRB said that services provided or rendered by restaurants shall be exempted from sales tax whose turnover does not exceed Rs4 million in a financial year:
Provided that 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 Rs40,000/ in any month during a financial year.
