For the first time in the history, Sindh would get Rs 604 million directly in the head of sales tax on services (SToS) of July 2011, within next couple of days, while Rs 240m out of Rs 604m have been deposited in kitty of Sindh Government within short period of 46 days, official sources told Business Recorder on Monday.
With the passage of the 18th constitutional amendment, collection of sales tax on services has become the prerogative of provinces. The Sindh Government had established its own tax-collection body with the name of Sindh Revenue Board (SRB) in 2010, in this regard.
While FBR is still collecting STOS on behalf of Punjab, KhyberPakhtunkhuwah and Balochistan because these three provinces have not established their own tax collection bodies yet. SRB started its work from 1st July of 2011, when Sindh Assembly passed the Sindh Sales tax on Services Act 2011, and SRB has collected Rs 240 million in the head of sales tax on various services of July 2011, within the short period of 46 days.
Sources said that 1441 taxpaying companies and individuals participated in the exercise of paying the taxes and transaction of Rs 604 million has been done within the 46 days. They said that as transaction of Rs 604 million has been done, it could be said that big amount would come in the account of SRB within the next couple of days.
SRB officially announced target collection of SToS of FY2011-12 is the Rs 25 billion so the amount of recovery of July 2011 would have more than Rs 2 billion, sources said. In this connection, an official of SRB told Business Recorder that Sindh would get major chunk of SToS which would be about Rs 15 billion from telecommunication, banks, insurance, advertisement and franchise but a large number of companies and individuals from said services have not paid SToS to SRB due to the non-issuance of notification of withdrawal from Federal Excise Duty on services (FEDoS) by the Federal Board of Revenue (FBR), he added.