SRB to issue notification tomorrow: FBR to collect services ST for Sindh government

Sindh Revenue Board (SRB) will issue a notification on Monday to delegate powers to the Federal Board of Revenue (FBR) for collecting sales tax on five services. Sources in the Sindh government told Business Recorder here on Saturday that the Sindh government would authorise the FBR to collect sales tax on financial services, including banking, insurance, advertising services, construction services and franchising services.
In this connection, the notification would be issued on Monday (July 4) by the Sindh government to authorise the FBR to collect sales tax on the said five services. The authorisation to the FBR for collection of sales tax on these five services would be applicable from July 1, 2011 to ensure smooth filing of returns by the concerned registered persons. The Sindh government has already given intimation to the FBR about the collection of sales tax on banking, insurance, advertising services, construction services and franchising services by the federal tax authorities.
It is important to mention that the effective date for collection of sales tax on these services by the FBR would be July 1, 2011, officials in Sindh government added. Under the ''Sindh Sales Tax on Services Act, 2011'', SRB is legally empowered to delegate powers to the FBR for collection of sales tax on services.