Services under ICT (Tax on Services) Ord: FBR rescinds 6 notifications on GST levy

ISLAMABAD: The Federal Board of Revenue (FBR) has rescinded six notifications related to the levy of sales tax on different services under the ICT (Tax on Services) Ordinance, 2001.

The FBR has rescinded these services-related SROs because the same services have been transposed to the Finance (Supplementary) Act, 2022 for the purpose of sales tax.

The FBR has issued SRO 231 (1)/2022 to rescind six notifications, Thursday.

Under the SRO 231 (1)/2022, the FBR has rescinded SRO 495(1)/2016 (construction services); SRO 589(1)/2017 (services provided by marriage halls/lawns); SRO 590(1)/2017; SRO 781(1)/2018 (IT services and IT-enabled services); SRO 326(1)/2020 (Services provided by property developers and promoters),and SRO 77(1)/2021 (definition of IT services and IT-enabled services).

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The services liable to tax under ICT (Tax on Services) Ordinance, 2001, are specified in the Schedule to the Ordinance ibid, along with the applicable rates.

However, there were a number of notifications in the field, wherein, subject to certain conditions, reduced rates were provided in respect of some services.

In order to streamline and consolidate the taxable services and their chargeable rates under the ICT (Tax on Services) Ordinance, 2001, the existing Schedule was substituted as Table1 and a second Table was inserted incorporating the rates earlier notified through SROs at different timings, the FBR added.

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