How to Register an IT Business With SRB in Sindh
Register your IT business or software house with SRB in Sindh. See the 3% rate for IT services, the six eSRB steps, the NTN rule and the penalties for delay.
If you sell IT services from Sindh, the Sindh Revenue Board (SRB) expects you to register for Sindh sales tax on services at e.srb.gos.pk. Software development, IT consulting, IT support and hosting are taxed at a reduced 3% if you opt for it, against a standard rate of 15%. We found no registration fee, but you need an NTN first.
A software house in Karachi can have its FBR papers in perfect order and still be outside the law. Sales tax on services is a provincial tax, collected in Sindh by SRB under the Sindh Sales Tax on Services Act, 2011. FBR registration does not cover it.
We read the current Act as published by SRB on 3 October 2026, including its Second Schedule of rates, its registration chapter and its penalty table. We also read SRB's own "How to e-Register" and "How to e-Enroll" guides and its FAQs. We did not register a business ourselves.
Who has to register with SRB
Section 24 of the Act says every resident who provides a taxable service must register. IT services listed in the Second Schedule are taxable. So a Sindh based software house, digital agency, hosting firm or IT support company must register, and a freelancer selling the same services is in the same position.
The law counts individuals, firms and companies alike as a "person". SRB's FAQ says even clubs and trade bodies are treated as engaged in economic activity unless exempted. It also says a threshold "may apply", but we could not find a turnover threshold on SRB's site for IT services. Do not assume you are too small.
Federal tax is separate. Your income tax still goes to FBR, and an IT exporter's reduced income tax rate depends on PSEB registration. SRB registration sits alongside both and does not replace either.
Sindh sales tax rates for IT services in 2026
The standard Sindh rate is 15% under section 8. The Second Schedule lists IT services at a reduced 3%, but only if you e-file an option to pay the reduced rate. In return, you cannot claim input tax on what you buy. Collocation hosting does not qualify.
| Service (CPC code) | Rate | Condition |
|---|---|---|
| Licensing the right to use software and databases (7331) | 3% | Option e-filed, no input tax |
| IT consulting (83131) | 3% | Option e-filed, no input tax |
| IT support (83132) | 3% | Option e-filed, no input tax |
| IT design and development (8314) | 3% | Option e-filed, no input tax |
| Hosting and IT infrastructure (8315), network management (8316), online content (843) | 3% | Not for collocation hosting (83159) |
| Standard rate for other taxable services | 15% | Input tax allowed |
For most small IT firms, 3% with no input claim beats 15% with input claims. Your main costs are salaries, and salaries carry no sales tax to claim back. A firm that buys a lot of taxed services may want an accountant to run both numbers first.
CPC stands for Central Product Classification, the United Nations coding system the current Sindh schedule uses. Find your code in the table before you choose a service category on eSRB.
Register on eSRB in six steps
Go to e.srb.gos.pk, choose e-Registration, enter your NTN and fill the form. Your FBR details load on their own. Add directors, branches and a bank account, verify, and submit. SRB sends a user ID and password by email and SMS, and you then e-enroll to activate the account.
- Open e.srb.gos.pk, click "e-Registration", then "New e-Registration".
- Pick Individual, AOP or Company, and enter your NTN. The form fills in from FBR's records.
- Complete the sections: Registry, agent details, directors or shareholders, other activities, branches and your business bank account.
- Tick the declaration, save, and click "Verify Application" with your CNIC or NTN.
- Click "Submit Application". Your user ID and password arrive by email and SMS.
- Choose e-Enrolment, log in to FBR's IRIS when redirected, approve the transfer, and enter the activation code SRB sends you.
Keep your IRIS login, PIN, email and mobile number handy before step six. SRB's guide says the email and phone recorded at FBR must be working, because the activation code goes there. If your FBR mobile number is old, fix it on IRIS first.
SRB's FAQ says the provisional certificate is issued promptly online and the final certificate within 30 days. You can pay tax and file returns as soon as you apply.
Register even before your NTN arrives
If you do not have an NTN yet, SRB gives a provisional registration certificate valid for 30 days or until FBR issues one. If the NTN does not come within 30 days, SRB cancels the registration. If your NTN exists but is not found, email SRB support.
The fastest route is still to get the NTN first. A sole trader can follow the steps for registering as a sole proprietor with FBR, and a company gets its NTN through SECP. Then verify the NTN online and make sure the check digit is right before you type it into eSRB.
When eSRB says "No Taxpayer Found" for a correct NTN, SRB asks you to email support@srb.gos.pk with the subject "Add NTN in database". Include the NTN, business name and service category. SRB replies by email when the record is added.
Penalties for not registering or filing late
Providing taxable services without applying to register costs Rs 10,000 or 5% of the tax due, whichever is higher. Ignoring a compulsory registration notice means a minimum of Rs 100,000. Each day a monthly return is late costs Rs 100. These figures come from section 43.
| Offence | Penalty under section 43 |
|---|---|
| Providing taxable services without applying to register | Rs 10,000 or 5% of the tax due, whichever is higher |
| Ignoring a compulsory registration notice | Minimum Rs 100,000 |
| Still unregistered 90 days after starting taxable services | On conviction, up to one year in prison, a fine up to the tax due, or both |
| Not reporting a change in particulars within 15 days | Up to Rs 100,000, minimum Rs 10,000 |
| Filing a return late | Rs 100 for each day of default |
| Not issuing a tax invoice | Rs 20,000 first time, Rs 50,000 each time after |
One line in the table matters to software houses for a different reason. Anyone who designs or supplies invoicing software that does not meet SRB's invoice rule faces a penalty of up to Rs 1 million, and not less than Rs 100,000. If you build billing systems for Sindh clients, read rule 29 of the Sindh Sales Tax on Services Rules, 2011 before you ship.
Returns are monthly, because the Act defines a tax period as one month. The eSRB return has a separate annex for services exported. SRB's pages we read do not spell out how foreign client income is treated, so ask SRB on its helpline, (021) 111-778-000, before you leave it out.
Common questions
Is there a fee to register with SRB?
We found no registration fee in SRB's guides or the Act. The cost is the sales tax you collect and pay each month.
What is the SRB tax rate on software development?
3%, under serial 20 of the reduced rate table, if you e-file the option for it. Otherwise the standard 15% applies.
Can I register with SRB without an NTN?
Yes, for a short time. SRB issues a provisional certificate valid for 30 days or until FBR issues your NTN, and cancels it if no NTN arrives.
Does a freelancer in Karachi need SRB registration?
The Act requires every resident providing a taxable service to register, and IT services are taxable. We found no IT turnover threshold, so check with SRB before deciding you are exempt.
How do I get my eSRB password?
SRB sends your user ID and password by email and SMS when you submit. You then e-enroll through FBR's IRIS to activate the account.
Where is the SRB head office?
Shaheen Complex, M. R. Kiyani Road, Karachi. SRB also lists regional offices, including Hyderabad and Larkana.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked on 3 October 2026. The 15% standard rate (section 8, as substituted by the Sindh Finance Act, 2025), the duty to register in section 24, the 3% rate for IT services at serial 20 of the reduced rate list in the Second Schedule, the option and no input tax conditions, the exclusion of CPC 83159, the one month tax period and the penalties in section 43 are read in the Sindh Sales Tax on Services Act, 2011, in the updated text published on SRB's website after the Sindh Finance Act, 2026. The registration steps, the provisional certificate, the missing NTN email and the e-enrolment steps are read in SRB's "How to e-Register" and "How to e-Enroll" guides on e.srb.gos.pk. The 30 day final certificate and the right to file after applying are read in SRB's FAQs. The export annex is read in SRB's "How to e-File" guide. We did not register a business on eSRB.
About the author
Tax, Bills and Technology Writer
Ali Akhtar is a young and curious voice here at Pakistan Era. He is currently pursuing his A-Levels and has a growing interest in Pakistan’s changing industrial landscape and educational trends. Ali likes to write in a way that helps him explain and explore the world around him. His writing reflects the perspective of the new generation navigating the evolving trends of Pakistan where technology, youth innovation, and shifting opportunities are reshaping the country’s future.
