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Punjab Sales Tax on Services Act 2012

Punjab Sales Tax Law to bring prosperity in the Provinces: Qutab, Chairman PRA

The Punjab Assembly has finally established Punjab Revenue Authority (PRA) which will start collecting sales tax on services rendered or acquired in Punjab in line with the framework laid down under newly enacted Punjab Sales Tax on Services Act 2012 (PSTSA). This was announced by Iftikhar Qutab, Chairperson PRA while addressing a seminar on Punjab Sales Tax Laws 2012 organised by Terrabiz here at Karachi and on 5th July 2012 in Lahore.

OICCI supported these events which were arranged by Terrabiz in both the cities and healthy discussions came across professionals of Accounts and Tax fraternity.

In his concluding address, the top sales tax official of Punjab Government dealt at length about the discussions and agreements reached among Provinces and Federal Govt. for imposition of sales tax rendered in Provinces. However, he lamented what he termed was the one sided decision of Sindh Government to collect sales tax at its own without addressing genuine concerns of other Provinces. Qutab informed the participants that after waiting for 1 year with no resolution of its concerns via.a.vis share of Punjab in service tax, the Government of Punjab has now followed suit w.e.f. 1 July 2012. He was optimistic that sales tax will yield the much fiscal space to the Province and bring prosperity for the masses.

During the day long seminars in Karachi and Lahore, Adnan Mufti FCA of Shekha & Mufti deliberated upon the newly enacted PSTSA and especially focused on allied rules and issues likely to be emanating there from. Mufti presented a comparison of Federal, Punjab and Sindh sales tax laws through examples. He informed the participants that the principles of origin laid down in PSTSA need to be resolved among FBR, SRB and PRA failing which he cautioned the tax authorities would be standing before Court of Law. He also deliberated upon specific provisions introduced in Punjab Sales Tax Laws in respect of taxable services.

The seminar was well attended by representatives of banking and non banking financial institutions, telecommunication, FMCGs, construction, textiles and allied sectors.

Mr. Moin Muhajir presented the Momento to Mr. Qutab and also appreciated Terrabiz for said efforts and showed interest to support future events  of this nature.

Source: TerraBiz Training|Conferences|Exhibitions

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The Overseas Investors Chamber of Commerce & Industry (OICCI) serves as the national point of reference for foreign investors in Pakistan. Established in 1860 as the Karachi Chamber of Commerce, it is the oldest of the existing chambers.