Professional Documents
Culture Documents
Chartered Accountants
SALES TAX
15 JUNE 2015
Con tents
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Significant Amendments
Significant Amendments
This Memorandum contains a summary of changes proposed in the Sindh Sales Tax
Act and Punjab Sales Tax Act through the Provincial Finance Bills for 2015-16.
The Memorandum contains the comments, which represent our interpretation of the
legislation, and we recommend that while considering their application to any
particular case, reference be made to the specific wordings of the relevant statutes.
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2015 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member
firm of the KPMG network of independent member firms affiliated with KPMG International
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Description
Existing
Proposed
19.5%
18%
10%
6%
Proposed
Corporate law
consultants
5%
6%
Services of inter-city
transportation or
carriage of goods by
road, pipeline or
conduit
5%
6%
Existing
Existing
Proposed
15%
18%
15%
18%
5%
6%
Accountant and
auditors
5%
6%
Tax consultants
5%
6%
Construction services
5%
6%
Rate
14%
14%
Futures brokers *
14%
Underwriter *
14%
Indenters *
14%
Commission agents *
14%
14%
14%
14%
2015 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member
firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
Description
Rate
Description
Description
Rate
Travel agents *
10%
6%
10%
6%
14%
Rate
Auctioneers *
10%
10%
2015 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member
firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
Chartered Accountants
Penalties enhanced
Following penalties are proposed to be
introduced:
Offences
Penalties
Higher of Rs.
100,000 or double
the amount of tax
sought
Higher of Rs.
50,000 or double
the amount of tax
sought
Penalties
Higher of Rs.
100,000 or twice
the amount of
minimum tax
Higher of Rs.
100,000 or an
amount of the tax
sought
Offences
2015 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member
firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
Rate
16%
16%
16%
16%
Description
Rate
16%
16%
16%
16%
16%
16%
16%
2015 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member
firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
Description
Rate
Sponsorship services
16%
Rate
Long routes
2,500/ti
cket
Short routes
1,500/ti
cket
Franchise services
Construction services
The exclusions available to the following are
proposed to be abolished:
10,000
/ ticket
5,000/
ticket
Courier services
Exclusion:
Advertisement services
The exclusion of advertisement services on
television and radio financed out of funds
provided by Government under an
agreement of foreign grant-in-and is
proposed by substitution.
Catering services
2015 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member
firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
Property developers/promoters
Personal care
IT services
The scope of IT services is proposed to be
massively enhanced to include Information
technology-enabled or information
technology based services including
software development, software
customization, software maintenance,
system support, system assembly, system
integration, system designing and
architecture, system analysis, system
development, system operation, system
maintenance, system up-gradation and
modification, data warehousing or
management, data entry operations, data
migration or transfer, system security or
protection, web designing, web
development, web hosting, network
designing, services relating to enterprise
resource or management planning (including
marketing of products}, development and
sale of smart phone applications or games,
graphics designing, medical transcription,
remote monitoring, telemedicine, insurance
Share registrar
The scope of services provided by share
registrars is proposed to be enhanced to
include services pertaining to issuance of
shares. Furthermore, investor account
services, trustee or custodial, share registrar
services and their allied or connected
services pertaining to transfer of shares,
securities and derivatives have also been
brought into the tax ambit.
Other consultants
Fashion designer
The scope of services provided by fashion
designers is proposed to be enhanced to
include use of brand name, logo or house
mark (whether or not registered in the
manufacturing or trading of products)
Rent-a-Car
The scope of services provided in respect of
rent a car is proposed to be enhanced to
2015 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member
firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
57
Medical laboratories
The bill proposes to restrict the exclusion
provided in respect of services relating to
pathological or diagnostics tests done by
laboratories only to tests specifically
pertaining to medical treatment purposes.
Penalties enhanced
The bills proposes to change the penalty as
follows:
Under Sr. No. 5 following penalties are proposed
to be introduced in case a person fails to
produce record or information despite receipt of
notice.
Rs. 25,000 First default
2015 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member
firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
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2015 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member
firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
The information contained herein is of a general nature and is not intended to address the
circumstances of any particular individual or entity. Although we endeavour to provide
accurate and timely information, there can be no guarantee that such information is
accurate as of the date it is received or that it will continue to be accurate in the future. No
one should act on such information without appropriate professional advice after a thorough
examination of the particular situation.
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