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How to e-File your Sales Tax on Services Return
 
 

STEP 01: Login at eSRB

Enter USER ID & PASSWORD and click on "login" button

  • You should have USER ID & PASSWORD to login at eSRB portal.
  • If you do not have USER ID & PASSWORD, please enroll yourself at eSRB.
    ("How to get Enrolled": a separate guideline is given in User Guides)

 

Upon successful login, you will directed to "your account at eSRB"

 

STEP 02: PREPARATION OF SALES TAX ON SERVICES RETURN

2.0 Please click on "Declaration", the declaration menu will show filing options.

2.1 Select "Sales Tax on Services Return"
2.1.1 A form will appear (Figure 03)
2.1.2 Fill the tabs applicable to you.
2.1.3 The form will be displayed into "Sections"

(Figure 03)

 

 

2.2 First section is "Registry":
  • This section shows your registration particulars i.e. SNTN, NTN, Name, & CNIC etc.
  • This section is pre-filled.

 

2.3 Please select "Tax Period" from left side of form:
  • Select "Tax year" & "Month"

 

2.4 Click on Sales Tax Return if you have any tax payable

 

2.5 Click on File Null Return, if nothing is due to pay.

 

2.6 If you have click on "Sales Tax Return" the Return Form SST-03, will appear, fill its sections as follow:

2.6.1 "Sales Tax Credit" Section:

This section Accumulates input tax paid i.e. "Sales Tax Credit". Details of items is given below.

 

2.6.1.1 Domestic Purchases excluding fixed assets for Providing/Rendering of Services
  • The Annex-A, will open as you click on it for entering your domestic purchases to claim input tax adjustment. Notes are given at the end of Annex for help.
  • An auto generated summary is given at end showing status of suppliers' as a taxpayer.

 

 

2.6.1.2 Imports excluding Fixed Assets (Including Value Addition Tax on Commercial Imports:
  • Please click on Annex B, if you have any Imports as your input to claim input tax adjustment.

 

2.6.1.3 Capital / Fixed Assets (Domestic Purchases & Imports)
  • Please enter your Purchases of Capital / Fixed Assets and Sales Tax on there.

 

2.6.1.4 (-) Non Creditable inputs (relating to exempt, non-taxed supplies/ rendering of services and services provided in other jurisdiction and taxed there.)
  • Please enter the Tax paid there, to adjust the claim.

 

2.6.1.5 Input Tax for the Month: Formula: [(1+2+3)-4]
  • This will be auto calculated amount from given input information.

 

2.6.1.6 Credit carried forward from previous tax period(s) (determined by the department where applicable)
  • Please enter any credit as determined by the department.

 

2.6.1.7 Sales Tax withheld by the buyer as withholding agent
  • Enter the amount of sales tax deducted by the buyer of your service as withholding agent.

 

2.6.1.8 Accumulated Credit (Sr. 8) Formula [(5+6+7)]
  • Accumulated input tax credit will be automatically calculated.

 

2.6.2 Sales Tax Debits:

  • This section calculates total output tax for the tax period. Details of each item is given below:

 

2.6.2.1 Service Provided / Rendered (Annex-C)
  • This section is about domestic sales; enter the particulars of sales made in Annex-C.

 

2.6.2.2 Services Exported
  • Enter the particulars of any exports made during the tax period in Annex-D.

 

2.6.2.3 Output Tax For the Month = (9)
  • Auto calculated amount is shown in the main page.

 

2.6.3 Determination of Tax Liability:

 

2.6.3.1 Input for the month (admissible under the Rules) Formula [3+6+admissible inputs 1& 2] see notes in annex-A. (Sr. 12)
  • This shows accumulated tax credit admitted during the period. (Auto calculated figure)

 

2.6.3.2. Available Balance (Dr. or Cr) (Sr. 13) [Formula : (11-(7+12)]
  • Output-admissible during the period-withheld by buyer
  • This is auto calculated figure, shows net tax Payable/Refund

 

2.6.3.3 Do you want to Carry Forward the Inputs of Capital/ Fixed Assets declared at Sr. 3 above Y/N (Sr. 14)
  • The rules have given option to taxpayer to claim refund and carry forward it to adjust in future periods.

 

2.6.3.4 Sales Tax Payable: Formula [if Sr. 13>0 then Sr. 15= Sr. 13 otherwise Sr.15=0.

 

2.6.3.5 Refund Claim on Capital / Fixed Assets : Formula [if 14=No, then "Minimum of Fixed Assets and Available Balance" otherwise zero. (Sr.16)
  • If a taxpayer wants to claim refund (Yes on Sr.14) then that amount or the net refund of inputs whichever is minimum will be refunded. Auto calculated.

 

2.6.3.6 Credit to be Carried forward: formula [if 13<0 (available balance is Credit side) and (13+16)<0 then –(13+16) otherwise zero] (Sr. 17)

 

2.6.3.7 End of Year Refund Claim (as determined periodically) formula: [if Tax Month = JUN and Sr 17 > 0 then 17 otherwise zero. (Sr. 18)
  • Auto generated amounts showing your refund claim if any at the year end.

 

2.6.3.8 Net Credit Carried Forward formula [if tax month = JUN then Zero otherwise zero]
  • If the tax year ends then no carry forward otherwise as per periodical carried forward if any.

 

2.6.4.1 Fine/Penalty/Additional Tax/Default Surcharge [a+b+c]
  • Please enter amounts of fine/penalty/additional tax/default surcharge, if any.

 

2.6.5.1 Total amount to be paid (Sr.24) Formula : [15+20]
  • Sales Tax Payable + any additional as in Sr.20
  • This figure is auto-calculated.

 

2.6.5.2. Tax paid on normal/previous return

(Applicable in case of amended return)

 

2.6.6.1 Balance tax payable / (Refundable) Formula : [24-25]
  • Auto calculated, shows net tax payable/refundable

 

2.6.7 Select Bank Account for receipt of Refund (Sr. 27)
  • In case if Sr. 26 shows a refund then please select an account for refunds.

 

2.8 Head-wise Payable

  • This is last section of form and required Payment Receipts numbers and shows a summary of Head-wise payment. Enter CPR No. and Amount in paid section.

 

STEP 03: E-FILING THE RETURN

 

 

3.1 Save.

  • Fill and Save the Returns Form, to prepare your Return. Click "Save" button to do so.
  • Save will only be available before verification. Once the return is verified / submitted, the save button will be disabled.

 

3.2 Verify & Unverify.

  • When you have "Saved/Prepared" your Return, verify it by clicking the "Verify" button.
  • You have to save the return once, in order to verify it.
  • After verification, the Return can either be Submitted or Unverified by clicking "Unverify" button.
  • You cannot edit/update the return in Verified mode.

 

3.3 E-Payment & Enter CPR No.

  • If there is some amount in the "Net Tax Payable" field (Code: 99991), you will need to pay this amount before submitting your return.
  • There are two ways to make the payment against the return.
    • e-Payment: If there is some Net Tax Payable against your return, the button "e-Payment" will be enabled. Click the button and follow the instructions to create an e-Payment. A PSID (Payment Slip ID) is generated by the system. Take the Payment Slip (Print) to the bank and make payment against it. A CPR Number will be issued by the bank, against the payment. Until the payment is cleared by the Bank, all the buttons remain disabled except the Print Return button. Once the payment is cleared by the bank, the button "Enter CPR No." is enabled
    • Manual Payment: Pay the Net Tax Payable amount in the bank, against your Income Tax Return. A CPR Number will be issued by the bank, against the payment.
  • After you have been issued a CPR Number by the bank, against the payment, enter the CPR No. issued and the amount paid against the CPR, by clicking "Enter CPR No." button. Now the Submit button will be enabled.

 

3.4 Submit.

  • Submit button is enabled after you have entered the CPR No.
  • You can submit the Return only after you have VERIFIED the return.
  • Submit the IT Return by clicking the "Submit" button. You will receive an Acknowledgment Slip. Now the return is locked for any editing. To change anything in the return, you will have to revise it and work on the revised return.

 

3.5 Revise

  • Revise button is enabled only after you have submitted the Return..
  • By clicking the "Revise" button you can revise the Return.
  • When you click the Revise button, you have to follow the above mentioned steps to submit the Revised Return.

 

3.6 Print Return

  • Print Return button is used to print the Income Tax Return.
  • After clicking this "Print Return" button the Return you have submitted will be opened in Acrobat Reader.
  • You must have Acrobat Reader to get print of the Return.

    NOTE : Make sure Pop-ups are enabled in your Internet Explorer, before clicking the Print Return button

 

3.7 Acknowledgment

  • On clicking the "Acknowledgement" button, a web-based acknowledgement slip is displayed which may be printed by clicking the print button:

* The Return is filed after you have submitted the Return.

Thank You.
 
 
 
Q: 1 What is the effective date of the enforcement of the Act?

Ans: Provision of Sales Tax on Services Act applies from July1, 2011.

Q: 2 Who is authorized to administer the Service Tax in Province?

Ans: "Sindh Revenue Board" is authorized to administer the Sales Tax on Services.

Q: 3 What is Sales Tax on Service? Is it an indirect Tax?

Ans: Service Tax is an indirect levy. The tax is applicable to services specified in schedule II on "taxable service".

Q: 4 What is the rate of Sales Tax on Services?

Ans: Rate of service Tax is 16% except telecommunication where it is 19.5% on the "value of taxable services".

Q: 5 Who is liable to pay service tax to the Government?

Ans: The person who provides the taxable service is responsible for collection and paying the service tax to the Government.

Q: 6 Is there a concept of resident and non-resident under the Act?

Ans: Concept of resident is given in Sub section (2) of Section 33. It is different from the definition given in Income Tax Ordinance, 2001.

Q: 7 How do you describe the expression, "person" appearing in the definitions of taxable service?

Ans: The expression refers to any natural, legal or juristic person and includes individuals, firms, companies, trusts and societies among others.

Q: 8 What is the procedure for registration?

Ans: A prospective taxable service provider seeking registration should file an application in a prescribed form (online) within thirty days from the date of notification of the taxable service. Board is required to issue the Provisional Registration Certificate promptly online. However, final Certificate would be issued not later than 30 days of application.

Q: 9 Would nonprofit organizations and association of persons like clubs, provincial bodies, trade associations qualify as persons not engaged in carrying out any economic activity and therefore not be required to register for sales tax purposes?

Ans: No. All such organizations or associations will qualify as persons engaged in economic activities unless specifically exempted.

Q: 10 Whether a service provider can make payment of Service Tax and file returns before the grant of registration by the proper officer?

Ans: Yes. A service provider can pay tax and file returns immediately after applying for registration.

Q: 11 Would a service provided in Sindh by a Foreign Service Provider in Sindh be liable for payment of tax under the Act?

Ans: Yes, tax is payable on all taxable services rendered in Sindh, whether rendered/provided by a person resident in Sindh or otherwise.

Q: 12 Is there any penal provision for non-registration?

Ans: Yes. Any offence for non-registration will attract a mandatory penalty under sub section (1) of section 43.

Q: 13 How and where to pay Sales Tax on Services?

Ans: The Sales Tax on Services amount is required to be paid in Challan Form in the branches of National Bank. The list of such National Bank Branches is placed on the website of SRB. Head of account – B-02384 has been specified for service by the Government under which payment has to be made. While making the payment of service tax to the credit of Provincial Government, head of account should be correctly and properly indicated under major and minor heads and sub-heads to avoid misclassification.

Q: 14 Whether service tax deposited by the assessee in non-designated bank will amount to non-payment of Sales Tax on Services?

Ans: Yes. For payment of service tax, specific National Bank branches will receive the tax. If service tax amount is deposited in a branch of Bank other than National Bank, it amounts to non-payment of Service Tax.

Q: 15 What is the date of payment of Sales Tax on Services? Is it the date on which the cheque for the same is deposited /tendered in the designated Bank or the date on which the amount is credited?

Ans: The date on which tax is credited shall be the date of payment. If the cheque bounces, it would mean as if the tax has not been paid and the necessary penal consequences would follow.

Q: 16 Is the amount for the Sales Tax on Services charged from the client compulsorily to be indicated separately in the Bills/Invoices raised on him?

Ans: The service provider has to separately show the billing amount of Sales Tax on Services in the Invoice/Bill on the basis of taxable value of services rendered, especially so, if he requires to avail the input credit scheme.

Q: 17 Can the Board or authorized Officer ask for more information than what assessee is submitting to it in the return or a tax invoice?

Ans: Yes, if required. The Board or authorized officer can always ask for additional information.

Q: 18 What are the precautions to be taken by the assessee while depositing the Sales Tax?

Ans: The following measures should be taken by the assessee Service Provider at the time of paying the Service Tax.

  • Service Tax should be paid within the time limit laid down in this regard.
  • It should be deposited in the specified branches of the National Bank designated for this purpose
  • The major head and sub-head relating to the service provided by the assesee should be correctly filled in the Challan.
  • In case of delay in making payment of service tax in time, the default surcharge is also required to be paid.

Q: 19 Will the existing Sales Tax law on Services under the Sindh Sales Tax Ordinance, 2000 and Federal Excise Duty under the Federal Excise Act, 2005 be repealed?

Ans: For Sindh, Sales Tax on Services Ordinance 2000 will be repealed. The services being taxed under FED mode should now be taxed under Sindh Sales Tax Act 2011,to the extent of Sindh's jurisdiction.

Q: 20 Are the sales charged on services adjustable against sales tax suffered on the acquisition of goods and services?

Ans: Provision in terms of section 15 and rules made thereunder provided for input adjustment, where such services are used in providing taxable services, subject to restrictions provided or adjustment mechanism.

Q: 21 What is the point of taxation i.e. is the advance received for services taxable although no services have yet been rendered? If advance has been received prior to the services rendered the law requires taxability in evidence of three activities enforcement of the Act, but services are rendered subsequent to the enforcement of the Act, would such services be taxable?

Ans: Sub Section (2) of Section 17discusses three events and the one which occurs first determines payablity.

Q: 22 Are there any zero rated services?

Ans: No zero rating is provided on the services.

Q: 23 Is there an exemption threshold?

Ans: Threshold may apply for Registration of persons. Exclusions of certain items of expense from tax invoices have also been provided in the rules.

Q: 24 Are there any exempt services?

Ans: All services outside of Schedule II are exempt.

Q: 25 Services often include charges for reimbursement of expenses incurred on behalf of the recipient (like custom duties and other charges paid by customs agent, out of pocket expenses incurred on behalf of the clients by professionals , cost of materials paid by an advertizing agent, cost of airline ticket paid by a travel agent etc.), would these be subject to Sales tax ?

Ans: The expense payable to others acting as an agent of the principal would not generally form subject matter of tax. The details are provided in the rules.

Q: 26 Is the Sales Tax based on self assessment?

Ans: Yes.

Q: 27 Will a separate return required to be filled for the Provincial Sales tax purposes?

Ans: Yes.

Q: 28 How often a Sales Tax audit be conducted ?

Ans: Ordinarily, once in a year.

Q: 29 What is appellate procedure?

Ans: Same as in the Federal Fiscal Laws or in Sales Tax Act, 1990 relating to Sales Tax on goods i.e., Commissioner of appeals, Tribunal and on question of Law, the High Court. Provision of the Alternate Dispute Resolution and establishment of the institution of ombudsman is provided.

Q: 30 Will we have to re-register ourselves under the new Act, or the existing registration under the Sales Tax Act 1990 is valid under the new Act?

Ans: There would be no need to re-register as all existing registered persons shall be deemed to be registered under the Sindh Sales Tax Act, 2011 and R.Ps Registrations is NTN with prefix "S" and is communicated to them.

Q:31 Will there be any change in the manner and mode of monthly payment of tax?

Ans: There will be no change in manner and mode of payment except the new declaration form pertaining to Sindh Sales Tax on services is to be filled and tax to be paid in head account of B-02384 Sindh Government and tax payer has to file and pay sales tax return through SRB portal.

Q: 32 Where we can find list of authorized bank branches?

Ans: The list is displayed on website of SRB.

Q: 33 Will we continue to claim the input tax adjustment as per past practice? This question is based on the fact that section 15 of the Act leaves it on "Government's approval."

Ans: The registered persons will continue to claim the input tax adjustments. Please see the Rules 21 to 23 Chapter V.

Q: 34 How can Federal Excise duty and sales tax be imposed simultaneously on a service?

Ans: Sindh Sales Tax on services stand effective from 1st July, 2011.There shall be no duplication of taxes.

Q: 35 Have the rules under the above Act been promulgated? If yes, from where can we get a copy?

Ans: Rules have been promulgated and are available on website of Sindh Revenue Board.

Q: 36 Are Mudarabas, Musharikas and other financial institution exempt from tax?

Ans: As per Schedule II of the Act, mudarbas, musharika and other financial institutions are liable to pay sales tax under the law, however financing provided to such companies by the banking and non-financial institutions is exempt from sales tax.

If you have any further queries, please feel free to call (021) 111-778-000
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