Sales Tax Registration (Sindh Revenue Board)

The Sindh Revenue Board (SRB) is the provincial tax authority responsible for the administration and collection of sales tax on services within the Sindh province of Pakistan. Businesses engaged in the provision of taxable services in Sindh are required to register with the SRB for Sales Tax on Services (STS).

SRB registration is required if your business:

  • Provides services that are subject to sales tax under the Sindh Sales Tax on Services Act, 2011.
  • Is engaged in any activity or service that falls under the taxable services as per the SRB’s schedule of taxable services.

Taxable Services under SRB:

  • Telecommunications
  • Advertising services
  • Consulting services
  • Construction services
  • Banking and financial services
  • Hotel and restaurant services
  • Information technology and software development
  • Transportation
  • Courier services
  • Shipping/Customs/Freight agents, Stevedores/Ship Chandlers, etc.

Required Documents for SRB Registration:

Registration of Sole Proprietorship:

Scanned copies of:

  • Business NTN
  • Owner’s CNIC (Both sides)
  • Business Bank Account Maintenance Certificate
  • Rent Agreement/ownership documents
  • Utility Bill
  • Letterhead

Registration of Partnership Firm:

 Scanned copies of:

  • NTN
  • Partners’ CNICs (Both sides)
  • Partnership Deed
  • Business Bank Account Maintenance Certificate
  • Rent Agreement/ownership documents
  • Utility Bill
  • Letterhead

Registration of Company:

Scanned copies of:

  • Business NTN
  • CNIC of all Directors (Both sides)
  • Passports of Directors (for foreign nationals only)
  • Memorandum and Articles of Association (for SECP registered companies only)
  • Form 29 (for SECP registered companies only)
  • Incorporation certificate (for SECP registered companies only)
  • Business Bank Account Maintenance Certificate (In case of new account)
  • Rent Agreement/ownership documents
  • Utility Bill
  • Letterhead

Frequently Asked Questions (FAQs)

Q.  What is the Sindh Revenue Board (SRB)?

A.  SRB is a provincial tax authority responsible for collecting sales tax on services in Sindh, Pakistan.

Q.  What is Sindh Sales Tax Registration?

A.  Sindh Sales Tax Registration is the process by which a business is formally registered with the Sindh Revenue Board (SRB) to collect and remit sales tax on taxable goods and services. Businesses engaged in taxable activities are required to obtain this registration to operate legally in the province of Sindh, Pakistan.

Q.  Who is required to register for Sindh Sales Tax?

A.  You must register for Sindh Sales Tax if your business meets any of the following criteria:

  • You are providing taxable services in Sindh.
  • Your turnover exceeds the prescribed threshold limit for sales tax registration.
  • Your business deals with goods or services specified in the relevant sales tax laws or notifications.

Q.  How do I register for Sindh Sales Tax?

A.  The registration process for Sindh Sales Tax is as follows:

  1. Obtain a National Tax Number (NTN) from the Federal Board of Revenue (FBR).
  2. Create an account on the SRB’s official portal.
  3. Submit the required documents such as NTN, proof of business, copies of CNIC, utility bills, etc.
  4. Complete the application form and submit it electronically via the SRB website.
  5. Wait for the SRB to process the application and issue the Sales Tax Registration Number (STRN).

Q.  How do I file Sindh sales tax returns?

A.  You can file Sindh sales tax returns online through the Sindh Revenue Board (SRB) website, e.srb.gos.pk.

Q.  What is the deadline for filing Sindh sales tax returns?

A. The deadline for filing Sindh sales tax returns is the 18th day of the following month.

Q.  What is the Sindh Sales Tax rate?

A. The general Sindh Sales Tax rate is 15% on taxable services. However, the rate may vary based on the nature of the product or service.

Q.  Are there any zero rated services?

A. No zero rating is provided on the services

Q.  Are there any exempt services?

A. All services outside of Schedule II are exempt.

Q.  What is the purpose of an SRB audit?

A. The purpose of an SRB audit is to verify the accuracy of tax returns and ensure compliance with tax laws.

Q.  How often can SRB conduct audits?

A. SRB can conduct audits as often as necessary, but typically not more than once a year.

Q.  What are the consequences of non-compliance with SRB audits?

A. Non-compliance with SRB audits can result in penalties, fines, and even prosecution.

Q.  What are offences and penalties?

A. All penalties that includes penalties for non-registration, penalties for late filing of returns, penalties for non-payment of tax, penalties for incorrect or incomplete returns, penalties for failure to maintain records, other penalties are defined in section 43 of Sindh Sales Tax on Services Act, 2011 and default surcharge is defined in section 44 of Sindh Sales Tax on Services Act, 2011.

How to Avoid Penalties:

  • File Returns on Time: Always ensure to file your returns on or before the due date.
  • Pay Taxes Promptly: Make timely payments to avoid interest and late payment penalties.
  • Keep Accurate Records: Maintain accurate records of sales, purchases, and tax liabilities to avoid discrepancies in the returns.
  • Monitor Tax Compliance: Set reminders to avoid missing filing deadlines, and regularly check for any updates or changes to tax rules.

Q.  Is there any exemption from penalty and default surcharge?

A.  Yes, in accordance with section 45. The Board may allow to any person from whole or partial payment of penalty and default surcharge.

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