LAHORE: The Punjab Revenue Authority (PRA) has issued a notification under the Punjab Sales Tax on Services Act, 2012, declaring all withholding agents as ‘collecting agents’ for tax collection and depositing it into the government treasury.

This move affects various taxable services, including advertisement services on television, radio, and other media, which will be taxed at a rate of 16 percent.

Franchise services, including intellectual property rights and licensing services will be taxed at varying rates - zero percent without input tax adjustment for services related to educational institutions for information technology, five percent without input tax adjustment for services related to other educational institutions, and 16 percent for all other services.

Consulting services, such as human resource, exhibition, event management, valuation, and marketing services will also be taxed at varying rates - zero percent without input tax adjustment for training services related to information technology and 16 percent for all other services.

Other services impacted by the notification include advertising agents, brokerage services, healthcare and recreation services, debt collection services, and parking services, with tax rates ranging from five to 16 percent.

The notification specifies that the tax rates are as per the Second Schedule of the Act XLII of 2012 and outlines the procedures for payment, assessment, and recovery of taxes. Any changes or amendments to the affected services will be communicated to the collecting agents at the earliest.

This development aims to streamline tax collection and enhance revenue generation for the provincial government. The notification is expected to have significant implications for businesses operating within Punjab, emphasising the need for compliance with the specified tax rates and regulations.

Copyright Business Recorder, 2024