MR JUSTICE SYED MANSOOR ALI SHAH.--(1). The question of law before us is whether the mere renting out of immovable property by a landlord to a tenant on rent is a "taxable service" as defined under the Sindh Sales Tax on Services Act, 2011 ("Act"). Leave was granted in this case to consider the scope of "services" under the Act.
2. Learned counsel for the appellant argued that renting of immovable property per se is a "taxable service" under section 3 of the Act and, therefore, liable to sales tax on services under section 8 of the Act. We have examined the impugned judgment in detail. The High Court, after an elaborate discussion, held that a cumulative reading of sections 2(72B), 2(72C), 3, 4, 5 and 8 of the Act shows that "taxable service" is that which is provided by a registered person in the course of an economic activity from his registered office or place of business in Sindh. What the appellants want to tax is not taxable service liable to taxation under the Act.
The mere renting out of property by a landlord to a tenant is not taxable as it is not a taxable service.
3. The grounds raised by the appellants have been convincingly answered in the impugned judgment. We are in complete agreement with the learned Judges of the High Court and see no reason to take a view different from the one taken by the High Court in its well-reasoned judgment or the necessity to further elaborate on any aspect of the matter. The listed appeals are, therefore, dismissed.
4. In view of the dismissal of the main appeals the 'listed C.M.A seeking impleadment as a party has become infructuous and is disposed of accordingly.