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Sales Tax Rates Updated on Services Provided by Restaurants

Sindh Revenue Board (SRB) has notified sales tax rates on services rendered by restaurants in the province.

The SRB issued working tariff on November 01, 2020 updating rates of sales tax on services.

The SRB said that the sales tax rate shall be 13 percent on services provided or rendered by restaurants.

The provincial revenue authority said that services provided or rendered by restaurants whose turnover does not exceeds 4 million rupees in a financial year shall be exempted from the levy of 13 percent sales tax.

However, the exemption shall not apply in case of restaurants:-

  1. which are air-conditioned on any day in a financial year and which are located within the building or premises of air-conditioned shopping malls or shopping plazas;
  2. located within the building, premises or precincts of any hotel, motel, guest house or club whose services are liable to sales tax;
  3. providing or rendering services in the building, premises, precincts, hall or lawn of any hotel, motel, guest house, marriage hall or lawn or club whose services are liable to sales tax;
  4. which are franchisers or franchisees;
  5. having branches or more than one outlet in Sindh; and
  6. whose total utility bills (gas, electricity and telephone) exceed Rs. 40,000/- in any month during a financial year.

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