The Federal Board of Revenue (FBR) has exempted sales tax chargeable under Islamabad Capital Territory (Tax on Services) Ordinance, 2001 on export of IT services and IT-enabled services. The FBR's budget instructions (2017-18) issued here on Wednesday revealed that through SRO 590(1)/2017, dated 01.07.2017, exemption from sales tax chargeable under Islamabad Capital Territory (Tax on Services) Ordinance, 2001 has been provided on export of IT services and IT-enabled services.

Sales tax on certain services under Islamabad Capital Territory (Tax on Services) Ordinance, 2001: Certain services under Islamabad Capital Territory (Tax on Services) Ordinance, 2001 are chargeable to sales tax @ 5% without any input tax adjustment. Scope of such services has been extended to include "services provided or rendered by marriage halls and lawns, by whatever name called, including "pandal" and "shamiana" services and caterers" without any input tax adjustment or refund, the FBR added.

Copyright Business Recorder, 2017