Restaurants and cafes: SRB carries out surprise snap checking, awareness exercise

KARACHI: In the recent wake of social media posts and online complaints lodged at various portals from customers and consumers pertaining to the non-compliance of Sindh Sales Tax on Services Act, 2011, including non-issuance of proper tax invoices, by the restaurants and cafes, the SRB team carried out surprise snap checking and awareness exercise at various restaurants and cafes located at Sehar Commercial, Khayaban-e-Sehar, DHA, Karachi on 21st September, 2024.

The officers ensured that restaurants were implementing the Point of Sale (POS) invoicing system and complying with Sindh Sales Tax (SST) rates applicable on restaurant services as also mentioned in SRB Circular No. 04/2024 dated 30th June, 2024 whereby the sales tax on restaurant services is 15% for cash transactions and reduced rate of 8% for digital payments made by customers through debit cards, credit cards, mobile wallets or QR scanning except where SRB has allowed charging 15% SST even on digital payments.

Reduced rate SST facility on restaurant not withdrawn: SRB

SRB shall take strict legal action against restaurants and cafes found suppressing their sales, failing to charge prescribed SST rates or avoiding integration of their POS system with the SRB online system.

Moreover, such surprise checks by SRB shall continue, and offenders shall not be spared. SRB will also ensure the resolution of complaints lodged by taxpayers and will bring to book any restaurant or café which deviates from the procedures to evade the legitimate tax payments to the government.

Copyright Business Recorder, 2024