SRB Registration — Sindh Sales Tax On Services

SRB Registration for Sales Tax On Services In Sindh

SRB registration is required for every person who provides a taxable service from an office or place of business in Sindh, under the Sindh Sales Tax on Services Act, 2011. The Sindh Revenue Board (SRB) — not FBR — collects sales tax on services in Karachi, Hyderabad, Sukkur and the rest of Sindh. A Karachi software house, advertising agency, courier, restaurant, contractor or consultant therefore needs SRB registration even if it already has an NTN and an FBR sales tax number for goods.

The standard rate of Sindh sales tax on services is 15%. Some services are charged at reduced rates, and some reduced rates are available only on conditions such as filing returns electronically. The rate is fixed by the service's entry in the Sindh schedule, so identifying the right entry is the first step of any SRB registration.

Which Karachi Businesses Need SRB Registration

• Software houses, IT service companies, call centres and digital agencies serving clients in Pakistan.
• Advertising, marketing, media and event management companies.
• Restaurants, caterers, banquet and marriage halls, hotels and guest houses.
• Couriers, freight forwarders, clearing agents, transporters and logistics companies.
• Construction contractors, builders and developers, architects and engineering consultants.
• Consultants, auditors, security companies, manpower and facility management firms.
• Beauty salons, gyms, training institutes and other services listed in the Sindh schedule.

Exported Services and The SRB Profile

Services exported from Sindh are treated differently from services provided to local clients. An IT company with both export and local clients still needs SRB registration for the local work, and should keep export proceeds and local invoices clearly separated in its records.

Documents for SRB Registration

The SRB Registration Process Step By Step

1. Identify the taxable service and its entry and rate in the Sindh schedule.
2. Confirm the NTN and FBR profile are active and match the business name and address.
3. Apply online to SRB with the business, bank and authorised-person details.
4. Upload documents and answer any SRB query or premises verification.
5. Receive registration and start issuing invoices showing Sindh sales tax.
6. Pay the tax and file the monthly SRB e-return.

Monthly Returns and Withholding After SRB Registration

Once registered, the business charges Sindh sales tax on each invoice, deposits it and files a monthly e-return. Tax is normally paid by the 15th and the return filed by the 18th of the following month, subject to any extension notified by SRB. Many companies and government departments in Karachi are withholding agents under the Sindh withholding rules and deduct part of the tax from payments; that deduction must be reconciled in the return, or the business ends up paying the same tax twice.

De-Registration and Inactive Profiles

A business that stops providing taxable services must apply for de-registration rather than simply stopping returns. Under the current Sindh rules, de-registration is processed within 180 days. Until then, monthly returns — including nil returns — remain due.

What Happens Without SRB Registration

Providing a taxable service in Sindh without SRB registration exposes the business to assessment of the tax that should have been charged, default surcharge and penalties, and it stops large clients from doing business with an unregistered supplier. Registering voluntarily before SRB issues a notice is the cheaper route.

Fees for SRB Registration

Our fee for SRB registration depends on the number of services and branches and on whether earlier unregistered periods have to be regularised.

How Taxocrate Handles Your SRB Registration

1. We identify your service's entry and rate in the Sindh schedule.
2. We correct the NTN and FBR profile where needed.
3. We file the SRB application from our Karachi office and follow it to approval.
4. We set up invoices and file your monthly SRB e-returns.

Related Taxocrate Guides

• Sales Tax Registration in Karachi
• Sales Tax Return Filing in Karachi
• Sales Tax Registration in Pakistan
• PRA Registration

Who Needs SRB Registration?

Any person providing a taxable service from an office or place of business in Sindh under the Sindh Sales Tax on Services Act, 2011.

What Is The SRB Sales Tax Rate?

The standard rate is 15%. Some services carry reduced rates, some only on conditions such as electronic filing.

Is SRB Registration Different From FBR Sales Tax Registration?

Yes. SRB taxes services in Sindh; FBR taxes goods. A business providing both may need both registrations.

Do I Need An NTN for SRB Registration?

Yes. The SRB profile is created against the taxpayer's NTN.

Is There A Fee for SRB Registration?

No government fee is charged for registration. Professional fees apply if you use a consultant.

When Is The SRB Return Due?

Monthly. Tax is normally paid by the 15th and the e-return filed by the 18th of the following month, subject to SRB extensions.

How Do I Close My SRB Registration?

Apply for de-registration. It is processed within 180 days, and returns remain due until it is granted.