The Sindh High Court has set aside the sales tax on gross amount of manpower supply services imposed by the Sindh Revenue Board (SRB) and restored it to its original form, according to which the tax is applicable only to service charges and not on the gross amount. As a consequence, the companies were required to pay sales tax on the gross amount paid to the manpower supplier effective from July 1, 2017. He added that the profit of the contractor was normally around 5-7% of the total amount and that was why the court scrapped sales tax on the gross amount of manpower supply services. According to a statement issued by the Employers Federation of Pakistan (EFP), the forum filed a large number of constitutional petitions in the Sindh High Court through Zaheer Minhas. As a result, the sales tax payable to SRB on manpower supply has been restored to its original form ie only on service charges and not on the gross amount.

Source: The Express Tribune November 18, 2020 03:00 UTC