SRB Sales Tax on Services 2026: Sindh Rates and Registration

Quick answer: SRB sales tax on services is Sindh's provincial sales tax, collected by the Sindh Revenue Board under the Sindh Sales Tax on Services Act, 2011. The standard rate is 15%, with reduced rates for listed services. Service providers in Sindh register online with SRB, charge tax on invoices and file monthly returns.

For agencies, consultants, contractors, salons and other service businesses in Karachi, Hyderabad and the rest of Sindh, SRB sales tax on services is a monthly fact of life. The Sindh Finance Act 2026, in force from 1 July 2026, moved several services from reduced rates to the 15% standard rate and added new penalties linked to invoicing software. This guide covers SRB registration, current rates, the 2026 changes, returns, invoice requirements and a worked example. You can build a Sindh-ready invoice with our free invoice generator in a few minutes.

Important: This is general information, not tax advice. Rates come from the Sindh Finance Act 2026 and KPMG's 2026 brief on provincial tax laws. Check SRB's current notifications and consult a tax practitioner for your specific case.

What is SRB sales tax on services?

Sales tax on services is a provincial subject in Pakistan. Sindh was the first province to set up its own authority, the Sindh Revenue Board (SRB), which administers the Sindh Sales Tax on Services Act, 2011 and its rules. Federal sales tax on goods remains with FBR; see our STRN registration guide for that side.

Each province taxes services provided within its territory. If you also operate in Punjab, read our companion guide to PRA sales tax on services.

SRB registration: who needs it

If you provide a taxable service in or from Sindh, you are generally required to register with SRB. Services are taxable unless they appear in the exempt list (the First Schedule) or another exemption applies. Examples of commonly taxable services include advertising, consultancy, IT services delivered locally, construction, accounting, repair and maintenance, beauty services and event management.

How to register with SRB

1. Get an NTN. Your federal NTN is the starting point. See how to get an NTN number in Pakistan.
2. Open SRB's online registration. Use SRB's e-registration system on its website and create an account.
3. Enter business and owner details. Provide legal name, CNIC or company details, business address in Sindh, bank account and contacts.
4. Select your services. Choose the categories you provide, which determine the rate.
5. Upload documents. Attach the documents SRB requests for your type of person, such as CNIC copies, proof of premises and incorporation papers for companies.
6. Complete verification. SRB may verify your premises or details before activating your registration.
7. Start invoicing with tax. Once registered, charge Sindh sales tax and file monthly.

Exempt services and services across provinces

The First Schedule lists exempt services. The 2026 Act adjusted several entries: for example, life insurance for individuals is exempt for policy cover up to Rs 3,500,000 (up from Rs 500,000), and school and university education is exempt where fees do not exceed Rs 500,000 per student per year. Storage and warehousing exemption is now limited to food grains and fresh fruit and vegetables not further processed.

If you provide services in more than one province, each authority taxes the services provided in its territory. A Karachi agency running a campaign for a Lahore client, or a firm with branches in both cities, needs to work out which province's tax applies to each service and may need registration with both SRB and PRA. Keep the place of service clear on each invoice and get advice if the split is not obvious.

If you stop providing taxable services, you can apply to de-register. The Sindh Finance Act 2026 extended SRB's time to dispose of a de-registration application from three months to 180 days, and confirmed that liabilities for past periods remain.

Sindh sales tax on services rates for 2026-27

The standard rate is 15%. KPMG's summary of the Sindh Finance Act 2026 lists these changes to reduced rates:

Service	Before 1 July 2026	From 1 July 2026
Accounting, auditing and bookkeeping	8% reduced	15% standard
Maintenance and repair of machinery and equipment	8% reduced	15% standard
Construction services (most)	15%, or 8% by option	15%, no reduced option
Ready-mix concrete; dredging and silt removal	15%, or 8% by option	8%
Property developers and promoters	Fixed amounts	Rs 100 per sq yd of land plus Rs 50 per sq ft covered area
Insurance agents / insurance brokers	5%	2% / 3%
Beauty and physical well-being services	8%	8%, or 5% if integrated with SRB
Education (fees above Rs 500,000 per student per year)	3%	3%

Reduced rates often come with conditions, such as filing through SRB's e-filing option or integrating sales with SRB's computerised system, as with the 5% rate for integrated beauty services. If you do not meet the condition, the higher rate applies, so read the conditions column, not just the percentage. For rates not listed, check the current Second Schedule or ask SRB. Use our sales tax calculator to work out tax at 15%, 8% or any other rate.

Worked example: a Karachi bookkeeping firm

A small Karachi bookkeeping firm bills a client Rs 200,000 a month. Before 1 July 2026, bookkeeping was taxed at the 8% reduced rate. From July, it falls under the 15% standard rate.

Line	Before (8%)	2026-27 (15%)
Monthly fee	Rs 200,000	Rs 200,000
Sindh sales tax	Rs 16,000	Rs 30,000
Invoice total	Rs 216,000	Rs 230,000
Tax over 12 months	Rs 192,000	Rs 360,000

The client pays Rs 14,000 more tax each month (Rs 30,000 minus Rs 16,000), or Rs 168,000 a year. Because the firm now charges the standard rate, it may be able to adjust input tax on its own business purchases, such as software and office services, subject to the rules. Firms in this position should update price lists and engagement letters so clients are not surprised by the higher total.

The same arithmetic applies to repair and maintenance workshops and most construction contractors that lost the reduced rate. A workshop billing Rs 80,000 for machinery repair now adds Rs 12,000 of Sindh sales tax (15%) instead of Rs 6,400 (8%), a difference of Rs 5,600 per job. If your contracts quote prices "inclusive of all taxes", the higher rate comes out of your margin, so review long-running contracts signed before July 2026 and agree how the change will be handled.

Input tax and switching rates

Under the standard rate, registered persons can generally adjust input tax paid on purchases used for taxable services, subject to conditions. Reduced rates often come without input tax. The 2026 Act clarified the rules for companies that opted out of a reduced rate to claim input tax and later want to switch back, allowing this subject to the general permission conditions. Before choosing, compare your likely input tax with the difference between the two rates.

SRB returns and payments

SRB returns are monthly. Tax is deposited electronically and the return is e-filed through SRB's system, each with its own deadline, and SRB often announces extensions. A practical routine:

1. Close the month's invoice register and check every invoice shows the correct rate.
2. Gather purchase invoices for input tax and confirm suppliers are registered and active.
3. Calculate output tax, admissible input tax and net payable.
4. Generate the payment challan and deposit tax by SRB's due date.
5. E-file the return and keep the acknowledgment with your records.

What happens if you file or pay late

Late deposit of tax generally attracts default surcharge on the unpaid amount, and late or missing returns can lead to penalties and, eventually, assessment by SRB. The 2026 Act also changed the appeal process: to get an automatic stay on recovery while an appeal is pending, a taxpayer now generally pays 20% of the tax demanded instead of 10%. Disputes are cheaper to avoid than to fight, so file on time even if you cannot pay the full amount, and talk to SRB or an adviser early.

Many service businesses in Sindh also deal with FBR for income tax. Staying on both lists matters: see how to become filer in Pakistan for the income tax side.

SRB invoice requirements and software

A Sindh sales tax invoice should include:

• Supplier's name, address and SRB registration number.
• Buyer's name, address and registration number if registered.
• A unique serial number and date; our invoice number generator keeps your sequence consistent.
• Description of the service, value excluding tax, rate and Sindh sales tax amount.
• Total payable, plus payment terms.

Sectors that SRB requires to integrate with its systems must issue invoices through conforming software. The 2026 Act introduced a penalty of Rs 100,000 to Rs 1,000,000 on anyone who designs, develops or supplies invoicing software that does not meet SRB's invoice and online integration rules, so check that any POS or billing software you buy is approved. For FBR's parallel system, see our guide to FBR e-invoicing in Pakistan.

Sample invoice layout

Here is how the bookkeeping firm from the example above might lay out its monthly invoice:

• Header: firm name, Karachi address, NTN and SRB registration number.
• Invoice details: invoice number KHI-2026-0112, date 30 November 2026, due date 15 December 2026.
• Client: client company name, address and registration number.
• Line item: "Monthly bookkeeping services, November 2026": Rs 200,000.
• Tax: Sindh sales tax at 15%: Rs 30,000.
• Total: Rs 230,000, with IBAN and payment terms.

Our guide to what makes a valid tax invoice explains why each field matters.

Sindh vs Punjab at a glance

Item	Sindh (SRB)	Punjab (PRA)
Law	Sindh Sales Tax on Services Act, 2011	Punjab Sales Tax on Services Act, 2012
Standard rate	15%	16%
Accounting and bookkeeping	15% from July 2026	8% reduced (qualifying services) from July 2026
Returns	Monthly e-filing	Monthly, typically pay by 15th, file by 18th
Exports of services	Generally zero-rated or exempt, conditions apply	Not taxable, conditions apply

Exports and Karachi freelancers

Exports of services are generally zero-rated or exempt under provincial laws, subject to conditions such as consumption outside Pakistan and receipt of foreign exchange through banks. If you are a Karachi freelancer billing only overseas clients, Sindh sales tax usually does not appear on those invoices. Income tax on export proceeds is handled by your bank under FBR's regime; see PSEB registration for freelancers to cut that rate to 0.25%. If you also invoice local companies, our guide to sales tax invoices in Pakistan shows how to lay out the tax lines.

Create SRB-compliant invoices

SRB sales tax on services in 2026-27 means a 15% standard rate for most services, higher rates for several previously reduced categories, and stricter software rules. Register with SRB, charge the right rate, and file every month on time. Our free invoice generator lets you add your SRB number, a 15% tax line and your bank details, then download a PDF. For a professional look, try the slate invoice template.