Sindh Sales Tax on Services Rule, 2011

Chapter-VI

PART-IX

From: 2023-09-01 - To: 0000-00-00 42. Services provided or rendered by 1[hotels, motels, guest houses, clubs, restaurants, 2[, marriage halls and lawns] caterers, etc.].- (1) Services relating to food items, drinks and eatables: The provisions of this part shall apply for collection and payment of sales tax on services in the matter of food, drinks *(water soft drinks and other) and other eatables served by hotels 3[, motels, guest houses], Restaurants, Marriage Halls, Lawns, Clubs And Caterers, whether for consumption inside the premises of the referred establishment or for supply or delivery for outside consumption. (a) 4[Every such restaurants or caterer who are not located in the premises of a hotel, motel, guest house, marriage lawn, or club, but] whose total annual turnover 5[***] exceeds rupees 6[2.5] million per annum of all the outlets of such registered person in the Province of Sindh, shall, if not already registered, obtain registration in the manner as specified in chapter II of these rules. The determination of the turnover will be made on monthly turnover basis, keeping in view area, location, city, menu served, capacity and by delivery and sale/ supply, if not otherwise determinable 7[:] 8[Provided that the aforesaid threshold of total annual turnover exceeding rupees 6[2.5] million per annum shall not apply in case of following categories of restaurants and caterers:- (i) restaurants which are air-conditioned on any day in a financial year 9[and restaurants which are located within the building or premises of air-conditioned shopping malls or shopping plazas]; (ii) restaurants and caterers located within the building, premises or precincts of any hotel, motel, guest house or club whose services are liable to sales tax; (iii) restaurants and caterers providing or rendering services in the building, premises, precincts, hall or lawn of any hotel, motel, guesthouse or club whose services are liable to sales tax; (iv) restaurants and caterers which are franchisers or franchisees; (v) restaurants and caterers having branches or more than one outlet in Sindh; or (vi) restaurants and caterers whose total utility bills (gas, electricity and telephone)…