A.   Background (BG)

This refers to the related Important TLQCs in trail, blue, italic and double line (a) 1220 of 4.11.20 about SST Procedure amendments (Transportation / Carriage of Petroleum Oils) (b) 740 of 9.5.19 about PST Input allowed to All Transport Service Provider and Recipient (c) 736 of 7.5.19 about Transportation Services issues

2.   We also refer to several Other TLQC627 of 6.11.18 about PST Transportation, Letting out, Life & Health insurance issues-PRA Ltr

B.   Updated Commentary

Further to KQU 3225, being an important matter, we would inform you about Intimation regarding amendments to the SST Special Procedure (Withholding) Rules, 2014 (Attachment 3043.1)  in the ensuing paragraph, in Italic with emphasis in bold & Underline for quick reading.

This is to inform you that the services provided or rendered by persons engaged in the transportation or carriage of goods by road or through pipeline or conduit, as covered under tariff heading 9836.0000 of the Second Schedule to the Sindh Sales Tax on Services Act, 2011 (the "Act, 2011") are taxable in accordance with the provisions of section 3 and 8 of the Act, 2011, read with rule 42G of the Sindh Sales Tax on Services Rules, 2011 (the "Rules, 2011").

2.   I would like to inform you that, through SRB Notification No. SRB-3-4/70/2024 dated 19.12.24, refers TLQC3000 of 16.1.25  the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014 (the "WHT-Rules, 2014") have been amended. As per the amendments, all persons engaged in providing the aforementioned services are now required to allow withholding up to one-fifth (1/5th) of the amount of tax, irrespective of the number of transport vehicles in their fleet (previously limited to 25 vehicles), hence the condition for withholding of 100% sales tax amount for owning not less than 25 vehicles has been withdrawn/omitted vide said notification and general rule for withholding of Sindh sales tax on service is applicable w-e-f 1.1.25

3.   It is the responsibility of the SRB-registered service provider to ensure that withholding of tax is allowed only for service recipients who qualify as withholding agents under sub-rule (2) of rule 1 of the WHT-Rules, 2014. Additionally, these service recipients (withholding agents) must provide the prescribed Form SSTW-05 and a certificate (Form SSTW-06) for the deduction/withholding of Sindh Sales Tax on services to the service provider (goods transporter) as proof and for record-keeping under the law. The withholding agents must deduct an amount equal to one-fifth (1/5th) of the total sales tax amount shown in the sales tax invoice issued by the registered service provider, subject to the status of the registered person as defined Active Taxpayer under section 2(1A) of the Act, 2011, and relevant rule 42G of the Rules, 2011.

4.   Please note that all persons engaged in providing or rendering the aforementioned taxable services are required to comply fully with the provisions of the Act, 2011, and the rules made thereunder. Non-compliance will result in strict action being taken in accordance with the law.

5.   For any queries or clarifications, please feel free to contact us via email at zaheer.hussain@srb.gos.pk. Alternatively, an authorized representative may visit our office located on the Second Floor (South Wing), Shaheen Complex, M.R. Kiyani Road, Karachi, at their convenience.

C.   Kasbati & Co Recommendations

Owing to the above and for Tax, Levies, Corportate Compliance & Savings, we recommend your team member to attend the following Workshop and Courses.

1.   Indirect Tax Workshops in April 

2.   Kasbati & Co Courses 

Moreover, we recommend for your Long-term Team Members to attend Certificate of Tax Management Courses, Physically at Karachi and Online for Karachi Lahore, Islamabad, etc. Click here for Flyers and Tentative Linkes for each of the following Courses.

3. More Details about Workshop & Courses

For more details, please contact Mr Abid or Moosa at UAN # 0331 1118 786 & Mobile no. 0335 2204 786 email TO: abid@professional-excellence.com With CC: amsal@kasbati.co, info.kasbati@professional-excellence.com.

D.   Further Details about other Services 

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Advisory, Statement or Return Filing or Review services, or related accounting matters like the above, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com. Your Goodself may continue to get other services from your current Tax & Legal Advisors.

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

Quick Commentary Service Provider and High Level 440+ Tax & Levies Laws Consultants) 

Head of Tax & Professional Excellence Services (Symbols of High Quality Practical Tax, Levies & Corporate Training for Beginners to High Levels' Professionals) 

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