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SHC suspends show-cause notice issued by SRB over tax collection

SHC suspends show-cause notice issued by SRB over tax collection

KARACHI: The Sindh High Court (SHC) on Monday suspended the show cause notice issued by the Sindh Revenue Board over tax collation to ” Legal Practitioners and Consultants ” under Sindh Sales Tax on Services Act, 2011.

While hearing the application filed by Khursheed Khan and Associates, a two-member bench, headed by Justice Munib Akhter issued notices to the secretary finance, chairman Sindh Revenue Board, assistant commissioner -unit -5, Sindh Revenue Board and deputy attorney general directing them to file their respective comments on April 21, 2016.

Earlier, the counsel for the petitioner stated that the respondents issued a notification on July 1, 2013, in purported exercise of powers under Sindh Sales Tax on Services Act, 2011. In a notification it was stated that the tax collected from ” Legal Practitioners and Consultants ” will be at the rate of 4 percent and input tax credit / adjustments shall not be admissible.

The counsel argued that the issues, which were raised, in the petition are already before the court in other matter and interim order have been granted. The petitioner’s counsel prayed to the SHC to declare said notification as illegal and malafide.