Thursday, 22 February 2024
Trending
Sales Tax on Toll Manufacturing
TAXATION

Sales Tax on Toll Manufacturing Who will collect? FBR or SRB?

Sindh Revenue Board (SRB) has categorically conveyed to the Federal Board of Revenue (FBR) that it would continue to collect sales tax on Toll Manufacturing, despite National Tax Council’s (NTC) decision allowing FBR to collect sales tax on “Toll Manufacturing”.

National Tax Council, in its meeting held on September 16, 2021, had decided that provinces shall not tax “Toll Manufacturing”, which will rest with the FBR.

If you want to become active tax filer or want to get tax, accounting and corporate services in Pakistan then we are here to provide you professional services! Call: 0092-3334875413 | www.globaltaxconsultants.pk

The FBR had issued a letter to its field formations dated October 28, 2021, in which the FBR had directed its field formations to start collecting sales tax on toll manufacturing.

As the sales tax on toll manufacturing falls under the domain of the FBR, it is, therefore, requested that necessary action may be taken for the guidance of the taxpayers falling under respective field formations’ jurisdiction, the FBR’s instructions added.

Now, the Sindh Revenue Board has demanded the FBR immediately withdraw the letter dated October 28, 2021, on toll manufacturing.

According to ProPakistani.pk, FBR has been informed that the provinces shall continue to levy and collect the sales tax on the services provided in the matters of manufacturing for others on a toll basis, in accordance with the respective provincial laws and rules until the decision about the non-levy of federal sales tax on the food/beverages served in hotels and restaurants located in the provinces is simultaneously and explicitly endorsed by the FBR, SRB stated.

See also  Legal and Operational Issues with National Single Sales Tax Return

In the NTC meeting held on September 16, 2021, it was agreed that provinces shall not levy/collect sales tax on toll manufacturing services and the federation shall, likewise, not levy/collect sales tax on the food/beverages served in hotels and restaurants located in the provinces.

The decision had an element of quid pro quo. However, the FBR’s aforesaid letter dated 28th October 2021 does not mention the agreed decision about the non-levy of federal sales tax on the food/beverages served in provincial jurisdictions, SRB letter added.

tax accounting services top tax consultants lahore pakistan
Ads:
Newsletter
Subscribe Now

Sign up for  Daily Digest and get the best of News for you.

[contact-form-7 id="11414" title="Contact form 1"]

Tax.net.pk - Your Tax Experts and Consultants

Welcome to Tax.net.pk

Providing Expert Tax Services for Individuals and Businesses

About Us

At Tax.net.pk, we are dedicated to providing comprehensive tax solutions tailored to meet the needs of individuals and businesses. With years of experience in the industry, our team of tax experts is equipped to handle various tax matters, including tax planning, preparation of tax returns, and compliance.

We strive to stay up-to-date with the latest tax laws and regulations, ensuring that our clients receive accurate and reliable advice. Our commitment to client satisfaction and our in-depth knowledge of the tax landscape make us the trusted choice for all your tax-related needs.

Contact Us

For inquiries or to schedule a consultation, please reach out to us: