Sales Tax Exemption on Services Provided by Beauty Parlors

Sales tax has been exempted on services provided by beauty parlors or beauty clinics within the province of Sindh if their annual turnover is below Rs2.5 million. According to Working Tariff for Sindh Sales Tax on Services, the normal sales tax is 13 percent on service provided for personal care by beauty parlors, beauty clinics, slimming clinics or centers and others.

However, Sindh government granted exemption from sales tax to persons providing the services of hair cutting, hair dressing and hair dyeing and shaving with the condition they are not providing any other beauty treatment, beauty care, beauty parlor or beauty clinic services.

Furthermore, sales tax has been exempted on services provided or rendered by beauty parlors or clinics and slimming clinics whose turn over does not exceed Rs2.5 million in a financial year. However, this exemption is nullified in case of the beauty parlor/clinic/slimming center;

• which are located within the building premises of a hotel, motel, guest house or club whose services are liable to tax;
• which are franchisers or franchisees;
• which have any branch or have more than one outlet in Sindh; and
• whose total utility (electricity, gas & telephone bill exceeds Rs. 25,000/- in any month during a financial year.