Sindh Revenue Board (SBR) has denied contents of a news story published in a local daily on Wednesday wherein banks have been advised to postpone their payments for Sindh Sales Tax on services for the month of July. “Such advice is contrary to law and rules,” said the SBR spokesman in a press statement issued on Wednesday. He said the last date of payment of Sindh Sales Tax on Services for the month of July is August 25, 2011.
All service providers including banks, telecommunications, non-banking financial institutions, insurance and re-insurance companies and others are legally required to pay their monthly sales tax, from July 2011 to Sindh Revenue Board. He warned that service providers failing to pay their tax to SBR and violating provincial law and rules would be liable for penal action. About delegation of power to the federal government regarding five identified services, he said the matter is under consideration of the Sindh government and so far no decision has been made. “Any decision as and when is made will be officially notified,” he said.
The spokesman also made it clear that decision of delegation if made will be applicable from the month of August 2011 and due payments of Sindh Sales Tax on Services for July 2011 will not be affected. “It has to be paid by all Service Providers directly to the Sindh Government by August 25,” said the spokesman. He said that as per decisions of the 7th NFC Award and rules and laws enacted by the Sindh Government, after passage of the bill unanimously adopted by the Sindh Assembly, the tax on services is a provincial domain as per article 142 (c) and entry 49 of federal legislative list of the constitution.
He said that after enactment of the Sindh Sales Tax on Services Law and Rules, that has taken effect from July 1, it is binding and mandatory upon all service providers, who have provided and rendered taxable services in the province during July, 2011, to enroll, file returns and pay Sindh Sales Tax on services. Under the law, it is the duty of the service providers to abide by provisions of law and rules, he said. The spokesman regretted the floating rumours, which unnecessarily create uncertainty among service providers.
He made it clear that all necessary arrangements, including online facility of enrollment, filing of returns and computerised Payment Challan and receipt, are in place. There is no ambiguity on any account, he said. Sindh Revenue Board has also framed the procedure of input tax adjustment and tax payers will be facilitated according to the law and rules, he informed.