LAHORE - The Punjab Revenue Authority has served notice to recover sales tax of Rs14.3 million from Punjab Land Development Company(PLDC) on default of withholding rules 2012 and 2015.

According to PRA, the proceedings of a show-cause notice issued to PLDC has been finalised by issuing an assessment order under section 52 of the Punjab Sales Tax on Services Act 2012. As per assessment order, PLDC failed to comply with the provisions of Punjab Sales tax on services withholding rules while making payments of Rs 899,244,786 to different contactors providing construction and other services for its different projects. On default, tax amounting Rs 143,545,399 has been imposed on PLDC with penalty of Rs 7,177,269 in addition to amount of tax, after providing several opportunities of being heard following the due process of law. Default surcharge is also imposed which shall be calculated separately. However, appeal against the assessment order can be preferred to Commissioner Appeal of PRA within 30 days. Recovery proceedings shall be initiated accordingly.