SINDH SALES TAX ON SERVICES (AMENDMENT) ACT, 2011.

PROVINCIAL ASSEMBLY OF SINDH
 NOTIFICATION

KARACHI, THE 27TH JANUARY, 2012.

NO.PAS/Legis-B-35/2011- The Sindh Sales Tax on Services (Amendment) Bill, 2011 having been passed by the Provincial Assembly of Sindh on 7th  January, 2012 and assented to by the Governor of Sindh on 26th January, 2012 is hereby published as an Act of the Legislature of Sindh.

THE SINDH SALES TAX ON SERVICES (AMENDMENT) ACT, 2011.

SINDH ACT NO. II OF 2012.

AN ACT

to amend the Sindh Sales Tax on Services Act, 2011.

Preamble. WHEREAS it is expedient to amend the Sindh Sales Tax on Services

Act, 2011, in the manner hereinafter appearing;

It is hereby enacted as follows:-

1.Short title and commencement.    (1)  This Act may be called the Sindh Sales Tax on Services (Amendment) Act, 2011.

(2) It shall come into force at once.

2.Amendment of section 4 of Sindh Act No.XII of 2011.         In the Sindh Sales Tax on Services Act, 2011 hereinafter referred to as the said Act, in section 4, in sub-section (3)-

(i)  in clause (a), after the semicolon, the word “or” shall be added; (ii) in clause (b), for the semi colon at the end, a full stop shall be

substituted; and

(iii) clauses (c)and (d) shall be omitted.

3.  Amendment of section11 of Sindh Act No.XII of 2011.       In the said Act, in section 11, the words “or to increase or decrease the rate of tax applicable to any taxable service” shall be omitted.

4.  Amendment of section 43 of Sindh Act No.XII of 2011.       In the said Act, in section 43, in the Table, against S.No.6, in column (1), the full-stop at the end of item “(c)”, shall be replaced by a semicolon and the word “or” and thereafter the following shall be added:-

“(d) fails to pay, recover or deposit the actual amount of tax, or claims inadmissible tax credit or adjustment or deduction or refund.”.

5. Amendment of section 45 of Sindh Act No.XII of 2011.          In the said Act, in section 45, for the figures and the word “34 and 35”, the figures and the word “43 and 44” shall be substituted.

6.          In the said Act, in section 47 -

(i)      after sub-section (1), the following shall be added:-

“(1A) Where by reason of some collusion, abetment, deliberate attempt, mis-statement, fraud,      forgery or false or fake documents-

(a)  any tax or charge has not been paid or is, short paid, assessed or collected, the person liable to pay such tax shall be served with a notice within five years of such tax period, requiring him to show cause for non-payment of such tax;

(b) any amount of tax is refunded which is not due, the person obtaining such refund shall be served with a notice  within  five  years  of  the  receipt  of  such refund to show cause for such refund.”;

(ii)      in sub-section (2), after the bracket and figure “(1)”, the word, bracket and figure “or (1A)” shall be added.

7.  Amendment of section 57 of Sindh Act No.XII of 2011.       In the said Act, in section 57,in  sub-section(1), for the figures, commas and word “13,  18, 19 or 38”, the figures, commas and word “22, 23,

24B, 43, 44, 47, 68 or 76” shall be substituted.

8. Amendment of First Schedule of Sindh Act No.XII of 2011.       In the said Act, in First Schedule -

(i)      in column (1), in the heading, for the word “Number”, the words “Tariff heading” shall be substituted;

(ii)    against Tariff heading “9813.3900”, in column (2), for the word “musharika”, the words “modarba and musharika” shall be substituted;

(iii)   after  Tariff  heading  “9813.4910”  and  entries  thereagainst  in columns (2) and (3) the following shall be added:-

“9813.4990           other    service    not    specified elsewhere

(iv)    against Tariff heading “9813.8100”, in column (2),  for the word “Other”, the words and commas “Others, including the services provided or rendered by non-banking finance companies, modaraba and musharika companies and other financial institutions” shall be substituted; and

(v)     against Tariff heading “9819.9090”, in column (2), for the word “Others”, the words and commas “Others, including the services provided by port operators, airport operators, airport ground service providers and terminal operators” shall be substituted.

9. Amendment of Second Schedule of Sindh Act No.XII of 2011.         In the said Act, in Second Schedule –

(a)      after the words “Part A”, the following shall be added:- “Tariff heading           Description          Rate of tax

(1)                            (2)                      (3)”;

(b)      after the words “Part B”, the following shall be substituted for the existing column titles:-

“Tariff heading           Description        Rate of tax

(1)                            (2)                     (3)”;

(c)      in Part B –

(i)   for the Tariff heading ”9813.1600” and entries thereagainst in columns (2) and (3),the following shall be substituted:-

“9813.1600	Other   insurance    including reinsurance	16%
“9813.3000	Services provided or rendered in respect of leasing	16%
9813.3010	Financial leasing	16%
9813.3020	Commodity  or      equipment leasing	16%
9813.3030	Hire purchase leasing	16%
9813.3900	Services provided or rendered in respect of modaraba and musharika financing	16%”;

(ii) after Tariff heading “9813.4910”  and entries thereagainst in columns (2) and (3), the following shall be added:-

“9813.4990            Other  services  not  specified elsewhere

16%”;

(iii) in Tariff heading “9813.8100” in column (2), for the word “Other”, the words and commas “Others, including the services provided or rendered by   non-banking, finance companies, modaraba and musharika companies and other financial institutions” shall be substituted;

(iv) after the Tariff heading “9813.9000” the following shall be added:-

“9814.2000      Contractor   of   building (including water  supply, gas supply and sanitary works), electrical and mechanical works                 (including        air conditioning), multi- disciplinary works (including turn-key projects) and similar other works.

16%

9814.3000              Property      developers      or promoters

16%”;

(v)  after the Tariff heading “9819.2000”, the following shall be added:-

“9819.9090               Services provided or rendered by port operators, airport operators,     airport     ground service        providers       and terminal operators.

16%”;

(vi) for the Tariff heading “9824.0000” and entries thereagainst in columns (2) and (3), the following shall be substituted:-

“9824.0000                 Construction services                 16%

Management Services including fund and assets management services

16%

Airport services                          16%

Tracking services                       16% Security alarm services              16%

Services provided by motels and guest houses

16%.”.

10.Repeal.              The Sindh Sales Tax on Services (Amendment) Ordinance, 2011 is hereby repealed.

BY ORDER OF THE SPEAKER PROVINCIAL ASSEMBLY OF SINDH

HADI BUX BURIRO SECRETARY

PROVINCIAL ASSEMBLY OF SINDH