Detailed Guide to Sales Tax Requirements in SRB (Sind Revenue Board)

Operating a company in Sindh requires strict adherence to the regulations set forth by the Sindh Revenue Board (SRB), particularly concerning Sales Tax. This guide provides essential information on Sales Tax registration, the significance of tax invoices, the process for deregistration, the procedure for correcting payment errors, and how to verify your active taxpayer status. By understanding these critical aspects, businesses can ensure compliance and avoid penalties.

Sales Tax Registration for Companies in Sindh

Registering your company for Sales Tax with the SRB is a mandatory requirement for businesses providing taxable services in Sindh. Below is a breakdown of the necessary documents to streamline the registration process:

Essential Documents:

Company Identification:

• Company NTN: A copy of your company’s National Tax Number (NTN) issued by the Federal Board of Revenue (FBR).
• Directors’/Members’ CNIC and NTN Copies: Copies of the Computerized National Identity Card (CNIC) and NTN of all directors or members.

Business Proof:

• Electricity Bill: A recent (within 3 months) electricity bill reflecting the registered business address.
• Alternative Proof: If no utility connection is available, an affidavit on stamp paper explaining the situation.

Business Stationery:

• Business Letterhead: A single page of the official business letterhead pad with a diagonal cross across it.

Financial Documentation:

• Bank Account Statement or Certificate: A recent statement of the company’s business account or an Account Maintaining Certificate from the bank.

Company Registration:

• Incorporation Certificate: Issued by the Securities and Exchange Commission of Pakistan (SECP).
• Form-29: Details of Directors/Promoters issued by SECP.

Property Documents:

• Ownership Deed: If the business premises are owned.
• Rent Agreement/Lease Deed: If the premises are rented.

Ensure all documents are clear and legible. The business address on the electricity bill should match your application.

Understanding and Utilizing Tax Invoices in Sindh

Tax invoices are essential documents that facilitate transparency and accountability. These invoices serve multiple purposes:

Essential Information on a Tax Invoice:

• Provider Details: Business name, address, and registration number.
• Recipient Details: Name, address, and registration number (if applicable) of the service recipient.
• Service Description: Clear and concise explanation of the service provided.
• Value Breakdown: Service value (excluding Sales Tax), applied Sales Tax amount, and total amount including tax.

Importance of Tax Invoices:

• For Businesses: Helps with compliance, input tax adjustments, and maintaining transparency with clients.
• For the Government: Enables tax collection, combats tax evasion, and provides data for policymaking.

Proper invoice management is a legal obligation and a critical step toward a transparent economic environment.

Deregistration from Sales Tax in Sindh

Businesses may need to deregister due to changes in operations or no longer meeting mandatory registration criteria.

Ways to Deregister:

1. Automatic Deregistration: The SRB may deregister businesses that no longer meet registration requirements.
2. Voluntary Deregistration: Businesses can apply for deregistration.

Required Documents for Voluntary Deregistration:

• Application Form: Obtain from the SRB website.
• Proof of Identity: CNIC copy.
• Business Details:
  • Company registration certificate (if applicable).
  • Business address proof (utility bill, rent agreement).
  • Proof of business closure (if applicable).
• Financial Documents:
  • Latest bank statement.
  • Sales Tax returns filed for the past year.
  • Clearance certificate from SRB confirming no outstanding taxes.
• Reason for Deregistration: Clear justification.

Correcting Errors in Computerized Payment Receipts (CPRs)

Under Rule 17A of the Sindh Sales Tax on Services Rules, 2011, businesses can correct genuine errors in CPRs.

When a Correction is Necessary:

• Incorrect Tax Period.
• Factual errors in details on the CPR.

Correction Process:

1. Formal Application: Submit a request on company letterhead, explaining the correction.
2. Supporting Documentation:
   • Copy of verified tax return.
   • Copy of the original CPR with the error.
   • Bank error documentation (if applicable).
   • Depositor affidavit (for NTN corrections).
3. Verification & Approval:
   • Scrutiny by the concerned Commissioner.
   • Final approval by SRB Board member.
4. Notification & Record Keeping:
   • Written notification of approval or rejection.
   • Record maintenance by SRB and PRAL.

This process improves accuracy, prevents fraud, and ensures compliance.

Verifying Active Taxpayer Status with SRB

For businesses providing taxable services in Sindh, verifying Active Taxpayer status is crucial.

How to Verify:

1. Visit the SRB Website: Go to https://e.srb.gos.pk.
2. Access ‘Search Taxpayer’ Section: Locate on the homepage.
3. Select ‘Active Taxpayer List’: Choose from the dropdown menu.
4. Enter Details: Input your NTN or Sales Tax Registration Number (STRN).
5. Click ‘Search’.
6. Check Your Status: Displays registration details and Active/Inactive status.

Regular status verification ensures compliance with the SST Act 2011, avoiding penalties and business disruptions.

This comprehensive guide provides businesses in Sindh with the necessary steps to ensure Sales Tax compliance with the SRB. By following these regulations, companies can operate smoothly, avoid penalties, and contribute to a transparent tax system.