KARACHI: Sindh Revenue Board (SRB) has directed taxpayers to maintain record of unregistered persons or companies at the time of receiving services within the province.
The SRB in its updated Sindh Sales Tax on Services Withholding Procedure, said that in case a withholding agent receives taxable services from an un-registered person, he shall be responsible to obtain and keep in record a copy of the CNIC of the un-registered service provider if he is an individual and a copy of the NTN certificate of the un-registered service provider if he is an Association of Person (AOP) or a company.
“The withholding agent shall also be responsible to enter the name, CNIC and NTN of the un-registered service provider correctly in the prescribed return form.”
The SRB further said that a withholding agent, having Free Tax Number (FTN) or NTN or Sindh sales tax registration number and falling under prevailing rules, on receipt of taxable services from unregistered persons, deducted the amount of sales tax, at the tax rate applicable to the taxable services provided or rendered to him, from the amount invoiced or billed or demanded or charged by such un-registered service provider and, unless otherwise specified in the contract between the service recipient and the service provider, the amount of sales tax for the purpose of the rules, shall be worked out on the basis of gross value of taxable services.
