The Federal Board of Revenue (FBR) for the first time has compiled a province-wise data of over 25-30 key services to know about the exact sales tax payments and input tax adjustment claimed by the service providers for smooth enforcement of the 'reformed general sales tax' (RGST).
Sources told Business Recorder here on Saturday that the FBR has compiled a national database of services with the bifurcation of province-wise information about the sales tax payments, registrations and input tax payments during 2009-10. The database of services for 2009-10 has been compiled to know about tax payments of service providers in each province. With the help of FBR, provinces would be in a position to know about the potential of each service, taking into account input output ratio.
The FBR data further disclose about the persons registered as service providers in each provinces and level of compliance by the service providers. Under the plan to implement the RGST, the province-wise data of major services has been finalised to share this information with the provinces during meeting to develop consensus on tax adjustments, origin of service and tax credit claimed by service providers. The potential of each service at provincial level and input output ratio has also been compiled under the services database.
During the ongoing negotiations between the centre and provinces on RGST on services, the FBR data would play a vital role in determining the actual potential of services. This would enable the provinces to decide about the chargeability and right of services under the RGST.
The FBR for the first time compiled province-wise of services including beauty parlours, clinics, slimming clinics, brokerage, inland carriage of goods by air, cateress, suppliers of food/drinks, clubs, carriers, customs agents, hotels, restaurants, fast food, catering, laundering/dry cleaners, marriage halls/lawns, service rendered by foreign exchange companies, services provided by person for business, service provided by inland ship chandlers, shipping agents, stevedores and travel agents. The FBR has also compiled a list of separate services which have not been mentioned above.
The FBR database of above-mentioned services shows that total number of persons registered as service providers stood at 3666 in 2009-10. The output of services was Rs 8272.10 million; input Rs 2065.11 million, sales tax paid Rs 6223.70 million, number of purchasers claiming input 17196 and input tax claimed during 2009-10 by the said service providers stood at Rs 2412.55 million.
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