SRB makes mandatory CNIC, NTN of service provider

KARACHI: The Sindh Revenue Board (SRB) has made mandatory the requirement of computerised national identity card (CNIC) number and national tax number (NTN) of a service provider at the time of withholding of tax by a registered person with the provincial revenue body, officials said on Monday.
In this regard, the provincial government approved Sindh Sales Tax Special Procedure (Withholding) Rules, 2014.
Under these rules, if a person receives taxable services from an unregistered person then the person ought to be responsible to obtain and keep in record a copy of CNIC of unregistered service provider.
In case of the company or Association of Persons (AOP) then the person is responsible to keep the national tax number of such taxpayer.
Officials in the SRB said that it would help identify the service providers within the territory of the provincial government.
The rules also explained regarding a person, who receives the services of advertisement provided or rendered by a person registered with the SRB or based outside Pakistan, is responsible to deduct the amount of sales tax as mentioned in the invoice or the bill issued by the service provider, from the payment due to the service provider.
“In case the sales tax amount is not indicated on the invoice, the recipient shall deduct the amount of sales tax at the applicable rate of tax from the payment or to be made to the service provider,” according to the rules.
Under the rules, the responsibilities have also been fixed upon officials of federal, provincial and local / district governments.
Under the withholding tax rules, in case services received by a federal government department, the office of the Accountant General of Pakistan Revenue or the District Account Officer or the office responsible to make the payment should deduct and withhold the tax amount and transfer the same to the SRB account.
Similarly, services received by departments or offices under the Sindh government or district or local governments, the Accountant General of Sindh or District Accounts Officer should be responsible to make the payment.
The rules said that in case services received by the departments and office falling in purview of the Military Accountant General (MAG), the MAG will deduct and withhold the amount of tax and the amount, so deducted at source during a month, would be transferred to Sindh government.
“The MAG shall send the intimation (of such deduction / withholding and its transfer to the Sindh government’s head of account) by 15th day of the following month. The amount, so deducted at source, shall simultaneously be reported by MAG office to accountant general Sindh through civil exchange accounts,” according to the rules.