KARACHI: Sindh Revenue Board (SRB) has brought virtual business in the definition of sales tax of services.
As per changes introduced through provincial finance bill 2017, the scope of the expression ‘place of business’ is proposed to be broadened to include persons carrying on economic activity in Sindh through virtual presence, website, web portal or any other form of E-commerce.
According to tax experts at A F Ferguson Chartered Accountants, through such amendment, responsibility to pay tax is seemingly intended to be shifted on the provider of service.
It is worth mentioning here that similar amendment to expand the definition of ‘place of business’ has also been proposed in the Punjab Sales Tax on Services Act, 2012 (‘PSTSA 2012’) through the Punjab Finance Bill, 2017.
“The only difference is that in Punjab, the exclusion presently available in the definition in respect of liaison offices is also proposed to be withdrawn whereas in Sindh Finance Bill, the exclusion for liaison offices is proposed to remain intact,” the experts said.
