PDA spearheads successful sales tax negotiations with SRB for the services rendered by dental practitioners
Karachi: The Sindh Revenue Board has responded positively to the meetings held with Pakistan Dental Association (PDA) on behalf of the entire dental fraternity in Sindh.
During their previous meeting, it was discussed that dentists shall be liable to charge and collect Sindh sales tax on the procedures of teeth whitening, teeth polishing, dental veneering, smile design procedures and any other such cosmetic or aesthetic procedures taken to enhance physical beauty or appearance. Earlier, SRB had imposed sales tax on Teeth Whitening, Veneers, Invisalign, Placement of Diamonds or Dental Jewellery, Gold Teeth, Smile Enhancement Procedures/ Hollywood Smile and any other Cosmetic/ Aesthetic Treatment falling under grade 1 ‘No Need’ according to IOTN Index.
After a round of meetings SRB agreed that these procedures are to be on a self-assessment basis by the individual dental practitioners/ surgeons.
PDA had also proposed the submission of Bi-annual tax returns instead of a monthly submission as the latter would be difficult to track and account for, on a monthly basis. On this particular matter, SRB states that it is not possible as it does not fall under the Sindh Sales Tax on Services Act 2011, however, the request for quarterly return filing and sales tax payments is under consideration and the proposal shall be forwarded to the Government of Sindh, after approval from SRB’s senior management.
Furthermore, bleaching of teeth and dental veneers for smile designing are to be considered cosmetic treatments, chargeable to SST at 13%.
Regarding imperative oral surgeries, SRB has agreed, that as per their notification no. SRB-3-4/7/2013 dated 18th June, 2013, the procedures undertaken to restore or reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, degenerative disease, injury or trauma of individual persons, including acid or burn victims, are exempt from Sindh sales tax.
PDA shall act as a facilitator in terms of enhancing sales tax compliance within the profession and ensure that maximum number of dental practitioners/ surgeons, providing the aforesaid services, obtain registration with SRB.