In exercise of the powers conferred by sub-section (1) of section-10 of Sindh Sales Tax on Services Act 2011, the Sindh Revenue Board (SRB) with approval of Government of Sindh, is pleased to direct the following amendments relating to exemption from Sales Tax, on below mentioned items shall be made in its notification No SRB.Leg (1)/2011.
According to notification, in the table, a) after S.No-2 in column (1) and the entries relating there to in columns (2), (3) and (4), the following new entry shall be added, namely Services provided or rendered by persons engaged in contractual execution of work or furnishing the supplies where the total value of such work or supplies does not exceed Rs 50 million in a financial year subject to the condition of the value component of services in such contractual execution of work or furnishing supplies also does not exceed Rs 10 million.
After S.No-8 in column (1) and the entries relating thereto in columns (2), (3) and (4), the following new entry shall be added, namely Construction services related to projects of commercial and industrial nature, where the value of construction does not exceed Rs 50 million subject to condition that the value component of service in such a project also does not exceed Rs 10 million.
Projects of developing or promoting the conversion of land into residential or commercial plots or construction of residential or commercial buildings which pay tax on the services of property developers or promoters. Construction and repair of roads, ports, airports, railways, transport terminals, bridges, and Government (including Local Government and Cantonment Board) buildings as are not meant for commercial purposes or for commercial letting out on rent.
Construction and development of EPZ, SEZ, diplomatic and counsellor buildings and such other buildings and structures of the organisations as are exempt from application of the Income Tax Ordinance, 2001; construction work completed against international tenders funded out of the foreign exchange allocations given by international donor agencies; and construction of independent projects of private residential houses and apartments where the covered area does not exceed 10,000 square feet in respect of houses, and 20,000 square feet in respect of apartment complexes. This notification shall take effect from 1st July 2011.
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