CIRCULAR No. 06/2024, Dated: 30th June, 2024

GOVERNMENT OF SINDHSINDH REVENUE BOARDCIRCULAR No. 06/2024(Sindh Sales Tax on Services)Dated: 30th June, 2024Subject: SINDH SALES TAX ON EDUCATION SERVICES (TARIFF HEADING 9857.0000) - BUDGETRY MEASURES EFFECTIVE FROM 1ST JULY 2024Through the budgetary measures taken in relation to Sindh Budget, 2024-25, “Education services'’ is described as a taxable service under tariff heading 9857.0000 of the Second Schedule to the Sindh Sales Tax on Services Act, 2011, read with definition as specified in clause (37A) of section 2 thereof. The said Education Services as arc provided or rendered by educational institutions against per annum per student fee/charges amounting to Rs. 500,000/- or less shall not be levied to Sindh Sales Tax (SST) in terms of the notification No. SRB-3-4/23/2024 dated 29th June, 2024. However, the said Education Services provided or rendered against per annum per student fee/charges exceeding gross amount of Rs. 500,000/- are liable to SST at the reduced rate of 3% (without input tax credit) in terms of the notification No. SRB-3-4/24/2024 dated 29th June, 2024.2. The procedure for collection and payment of sales tax on education services is specified in rule 42L of the Sindh Sales Tax on Services Rules, 2011 as added through notification No. SRB- 3-4/27/2024 dated 29th June, 2024. The said rule 42L, inter-cilia, prescribes that:-(i) In cases where the fee/charges are collected by persons/educational institutions on monthly basis or on…