KARACHI: Sindh Revenue Board (SRB) has granted sales tax exemption on telecommunication services availed by various sectors with effective from September 01, 2016.
As per the latest tariff, telecommunication services involving charges payable on the international leased lines or bandwidth services used by software exporting firms registered with the Pakistan Software Exporting Board.
Similarly, the exemption is available to internet services, whether dial up or broadband, including email services and data communication network services up to 2 mbps speed valued at not more than Rs1,500 per month per service recipient and of more than 2 mbps speed but not more than 4 mbps speed valued at not more than Rs2,500 per month per service recipient.
The SRB also announced reduced rate of 19 percent instead actual rate of 19.5 percent on the telecommunication services that is available subject to the condition that the persons providing telecommunication services shall pass on the full benefit of the reduced rate of tax to the service recipient and shall neither invoice/bill nor collect any extra charge/amount or surcharge on the value of the services.
The board said that persons not complying with the condition shall charge, collect and pay tax at the statutory rate of 19.5 percent. Similar reduced rate is available to telephone services subject to condition mentioned above.
