The Sindh Revenue Board (SRB) has decided to collect federal excise duty on services (FEDoS) from all taxpayer companies and individuals, Business Recorder learnt on Wednesday. This decision was taken in the light of the advice furnished by Sindh Law Department.
Provincial Law Secretary Ghulam Nabi Shah has advised the authorities of SRB that Sindh tax collection body should start collection of FED on services because with passage of 18th constitutional amendment, collections of FED became the right of provinces while it was further unanimously endorsed as item No 8 of 7th NFC Award.
A meeting was held under Chairman Nazar Hussein Mahar, which was attended by all team members of provincial tax collection body. It was decided that SRB should start collection of FED on services without any delay. Chairman Nazar Hussain Mahar directed the concerned staff to issue letters to all taxpayer companies and individuals to pay FED in the account of SRB or taxes would be paid through online setup of SRB.
In this connection, talking to Business Recorder, Nazar Hussain Mahar said that collection of FED on services is the legitimate right of provinces after the 18th constitutional amendment but Federal Board of Revenue (FBR) is not issuing withdrawal notification in this regard despite issuance of a press release. He said that SRB was established in 2010, with the struggle of one year.
"We have established well-equipped set up in Karachi while more offices would also be established in Hyderabad and Sukkur soon so that we can do our work very well". He added that SRB has the well-experienced team of tax experts "and we are technically sound as well". He said that FBR has helped the SRB in many matters, "and we hope that their co-operation would also continue on many other issues in future".
He hinted that all the pending issues with the FBR would be resolved in meeting scheduled on 16th August 2011, in Islamabad. Mumtaz Ahmed, Member, SRB, told Business Recorder that a large number of tax payers related to all services including telecommunication, banking and others are co-operating with SRB which is very encouraging. He said that remaining all should also contact SRB and should file their returns as well other vice legal action would be taken against them according to the Sindh Sales Services Act 2011, he added.
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