Khyber Pakhtunkhwa Revenue Authority (KPRA), launched on Thursday, would charge 19.5 percent Sales Tax on telecommunication services. It is learnt on Thursday that the KPRA has started functioning from August 1. According to the KPKA, the standard rate of sales tax is 16% of the value of services. However, telecommunication services are liable to sales tax @ 19.5%.
Sources said that the sales tax return can be filed either electronically or manually by the service providers operating in Khyber Pakhtunkhwa. A complete procedure for filing of a return is prescribed under the Khyber Pakhtunkhwa Sales Tax on Services (Filing of Returns) Rules, 2013.
Sales tax registration number may be obtained from the Khyber Pakhtunkhwa Revenue Authority either through electronic request or manually. There is no fee or any charge on obtaining sales tax registration from KPRA. A complete procedure for obtaining sales tax registration along with relevant forms is available in the Khyber Pakhtunkhwa Sales Tax on Services (Registration & Deregistration) Rules 2013. In case service provider is already registered with the Federal Board of Revenue, the taxpayer need not to obtain a separate or additional registration for KPRA. The system will automatically prefix the letter "K" with previous registration number and include service provider in the registration data base (population of registered persons) of KPRA. Service provider will get intimation about such change, whereupon the Peron will be entitled to refer such registration number in all your references, documents, returns, declarations and statements filed with or sent to KPRA, sources added.
Taxpayer is issued a User ID, Password and PIN Code upon completion of successful enrolment process after due verifications and security checks of enrolment procedure. Taxpayer is required to submit all of his requests / filings / payments by entering his PIN Code for authorisation purposes.