KARACHI: The Sindh Revenue Board (SRB) has asked the telecom companies to provide details of the revenue which has been collected as federal excise duty and sales tax on services across the country.
According to amendments made through Notification SRB-3-4/2/2016 dated January 27, 2016, the SRB directed the telecom companies to provide region-wise break-up of sales of pre-paid cards, easy loads and top ups.
The provincial revenue authority has also sought value of sales, including federal excise duty and sales tax collected in Sindh, Balochistan, Punjab, Khyber Pakhtunkhwa, Islamabad Capital Territory, Gilgit-Baltistan, FATA, PATA and Azad Jammu and Kashmir. These requirements are mandatory from February 2016.
The SRB has also amended Sales Tax on Services Rules, 2011, making it mandatory for the companies to deposit sales tax by 15th day of the following month instead of 21st day of of the second month.
Rule 35 of the Sales Tax on Services Rules, 2011 explains procedure for collection of sales tax on telecommunication services. Under this rule, ever person, firm or company, herein after referred to as the person, engaged in providing or rendering telecommunication services as mentioned in the Second Schedule to the Act, if not already registered shall obtain sales tax registratioin from the Sindh Revenue Board as provided under chapter II of these rules.
The sub-rule 2 of rule 35 requires persons to pay sales tax on post paid telephone services, pre-paid telephone services and in case of other telecommunication services.
