KARACHI: Sindh Revenue Board (SRB) has explained tax payable on services rendered by franchise and in this regard the provincial revenue authority amended the Sndh Sales Tax on Services Rules, 2011.
In a notification issued, the SRB explained that in cases where franchise services are provided or rendered by a franchiser to franchisee and the agreement does not provide specifically for franchise and the consideration is paid as a consideration other than franchise fee, royalty, technical fee, or fee for transfer, usage, enjoyment of intellectual property, the value of the services shall be an amount equal to 10 percent of the turnover of the franchisee or the recipient of the intellectual property services, as the case may be, for the tax periods for which the tax is payable.
