Provincial Sales Tax On Services

PROVINCIAL SALES TAX ON SERVICES

The determination and collection of sales tax on services has been awarded to provinces through 18th Amendment in the Constitution of Islamic Republic of Pakistan, 1973 and separate independent “Revenue Authorities” has been established by all four provinces in pursuant to Articles 8 and 9(2) of the 7th NFC Award for the levy and collection of sales tax on services.

  1. The Sindh Revenue Board (SRB)
  2. The Punjab Revenue Authority (PRA)
  3. The KPK Revenue Authority (KPRA)
  4. The Balochistan Revenue Authority (BRA)

Persons who are engaged in providing services of any kind are liable to get registered with the relevant provincial revenue authority. No exemption is applicable in case of “taxable services” under Provincial Sales Tax on Services laws, however sales tax rates differ based on services provided by the Taxpayers.

IBI provides sales tax on services consultancy and assist its clients in all related matters including voluntarily sales tax registration, compulsory sales tax registration, de-registration sales tax on services, filing of sales tax on services returns with PRA, SRB, BRA and KPRA, withholding sales tax on services, invoice preparation assistance, annual filing, general advice and assistance etc.