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 stated by Chairman PRA, Iftikhar Qutab, at a seminar on "Punjab Sales Tax Laws 2012" organized by Terrabiz here in Karachi. He said the top sales tax official of Punjab Government dealt at length about the discussions and agreements reached among provinces and federal government 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. He was optimistic that sales tax will yield much fiscal space to the province and bring prosperity for the masses.
During a daylong seminar, Adnan Mufti, FCA of Shekha & 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, would cause the tax authorities to 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.-PR
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