Business & Corporate · Provincial · Tax Year 2026-2027
Provincial Sales Tax on Services Calculator
Sales tax on services is provincial, not federal. Pick your authority, add or extract the tax, and account for any withholding.
Reference
Standard rates by authority
| Jurisdiction | Authority | Standard rate |
|---|---|---|
| Punjab | Punjab Revenue Authority (PRA) | 16% |
| Sindh | Sindh Revenue Board (SRB) | 15% |
| Khyber Pakhtunkhwa | KP Revenue Authority (KPRA) | 15% |
| Balochistan | Balochistan Revenue Authority (BRA) | 15% |
| Islamabad Capital Territory | Administered federally (FBR) | 15% |
Headline standard rates, shown for orientation. Reduced rates apply to many specific services and change with each provincial finance act — always check the current schedule.
Reading the result
Which province taxes the service is a real question
With five separate authorities, the same service can be claimed by more than one. A consultancy registered in Lahore doing work for a Karachi client, delivered remotely, has a genuine question about where the tax belongs — and both authorities have views.
The usual approaches look to where the service is rendered or where it is consumed, and those do not always point the same way. Businesses operating across provincial lines often end up registered in more than one.
Federal GST is a different tax
Sales tax on goods goes to FBR under the Sales Tax Act 1990. Sales tax on services goes to the province. They are separate registrations, separate returns and separate authorities, and input tax adjustment between them is not automatic — it depends on arrangements between the jurisdictions.
A business supplying both goods and services is dealing with two regimes at once, not one with two rates.
The client may withhold
Where the recipient is a withholding agent under provincial rules, part of the tax on your invoice is kept back and deposited by them rather than by you. Invoicing the full amount and expecting the full amount is how the shortfall appears.
Where this stops
Rates and the list of taxable services differ between the authorities and are revised by provincial finance act. Use the current schedule from the authority you are registered with.
FAQs
Provincial services tax FAQs
Why is sales tax on services provincial?
Under the 18th Amendment, sales tax on services was devolved to the provinces. Each province now runs its own authority and its own law — the Punjab Revenue Authority, Sindh Revenue Board, KP Revenue Authority and Balochistan Revenue Authority. Islamabad Capital Territory is administered federally. Federal sales tax (FBR) still applies to goods, which is a separate calculation.
Which province's tax do I charge?
Broadly, the province where the service is rendered or consumed — but the authorities do not always agree on cross-province services, and disputes over the same transaction being claimed by two provinces are common. If you invoice across provinces, take advice rather than guessing.
Why can I edit the rate?
The rate filled in is each authority's standard headline rate. Many services carry reduced or sector-specific rates — construction, restaurants, telecom, advertising and IT-enabled services are frequently rated differently, and some are exempt. Check your service's entry in the relevant provincial schedule and enter the rate that actually applies.
What is the withholding field for?
Provincial rules require some recipients of services — typically government bodies, companies and withholding agents — to withhold a share of the sales tax and pay it directly to the authority rather than to the service provider. Enter that share to see what you actually remit to the provider and what you hold back.
How is extraction different from just subtracting the rate?
If a total already includes tax, the tax portion is the total divided by (1 + rate), not the total reduced by the rate. On a Rs 116,000 tax-inclusive invoice at 16%, the tax is Rs 16,000 and the service value Rs 100,000 — subtracting 16% would have wrongly given Rs 18,560.
Can I claim this against my federal sales tax?
Input adjustment between federal sales tax on goods and provincial sales tax on services is possible in some circumstances but is restricted and has been a recurring source of dispute. Confirm your entitlement with a tax advisor before claiming it in a return.
Related tools
Selling goods rather than services?
Federal sales tax on goods is a separate, FBR-administered calculation.
Open Sales Tax (GST) Calculator