Punjab Revenue Authority (PRA) has requested the Pakistan Revenue Automation Limited (PRAL) to provide it data of customs agents, shipping agents, importers and exporters who have dealt with or imported or exported cargo for or from Punjab through customs stations outside Punjab during July 2012 but have not made payments of Punjab Sales Tax either as registered service provider or as registered service recipient.
The Authority asked the PRAL to submit the required data immediately after 31st August to identify the defaulters of the Punjab Sales Tax and take an appropriate action against them, sources in the Authority told Business Recorder here on Thursday.
Sources said that top PRA officials wrote a letter to the PRAL officials to provide them with full data to help the Authority in collection of Punjab Sales Tax on services under Section-4. The letter stated that under section 4 of the Punjab Sales Tax on Services Act, 2012, the taxable services provided in Punjab and consumed, used or effectively enjoyed in Punjab are chargeable to Punjab sales tax.
In this regard, the registered recipients of services are required to deduct the amount of provincial sales tax from sales tax invoices issued by the service providers and deposit the same directly to the Punjab government. However, in case of non-registered recipients, service providers are required to collect Punjab sales tax for onward deposit with the Punjab government.
The letter stated that the PRA also wanted to bring in customs and shipping agents under its tax net as services provided by them in respect of imports destined to Punjab and exports originating from Punjab but ship-handled and customs-cleared outside Punjab are also liable to Punjab sales tax.
The letter demanding the data of such service providers from PRAL said that accurate data with details of all those registered with any tax authority ie, Sindh Revenue Board (SRB), FBR or PRA should be provided to identify the defaulters so that PRA could recover Punjab sales tax demand from the defaulters with out any loss of time.
The letter also made it clear that the PRA has extended due date of payment of tax and filing of returns up to 25th and 28th August respectively for the tax period of July 2012. Since return for the tax period July 2012 is the first return under the Punjab Sales Tax on Services law, taxpayers may make delayed tax payments. PRA would take one-time lenient view for unintentional delays in this regard, the letter said. PRAL should, the letter said, furnish the requisite data to PRA well in time so that non-payments of tax may be recovered without any undue loss of time.