LAHORE - The Punjab Revenue Authority has served notices to recover sales tax of millions of rupees on different companies and clubs for not paying sales tax timely.
The PRA issued notices to Gymkhana Club for not paying sales tax of Rs4.5 million for the month of April. The authority has also asked another Sukh Chen Club to present sales tax record which has not been paying for the long time.
The sources said that Sukh Chen Club might be sealed for non-payment of its sales tax for the period of more than seven months. The club has to pay more than Rs10 million of sales tax to the authority.
Sources said that The Turkish company Alburrak, which has the contract of cleaning the city, has also been served notices for non-payment of sales tax for the last over one year. The foreign company is defaulter of over Rs30.50 million of the PRA.
According to PRA, the proceedings of a show-cause notice issued to various companies was finalized by issuing an assessment order under section 52 of the Punjab Sales Tax on Services Act 2012. As per assessment order, the companies failed to comply with the provisions of Punjab Sales tax on services withholding rules. 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.
The officials said that the PRA had served notice to recover sales tax of Rs14.3 million from Punjab Land Development Company (PLDC) on default of withholding rules 2012 and 2015 last week.
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. They said that last month the authority imposed Rs9.49 billion sales tax on the National Highway Authority in two cases.
The PRA levied Rs8.13 billion tax in one case and Rs1.36 billion in another case after the NHA failed to comply with the withholding rules of the PRA on construction, contractual execution of works and repair and maintenance services.
The projects in which the NHA didn't deduct tax on services included 10 contracts of Lahore-Islamabad Motorway, Pindi Bhattian-Faisalabad Motorway, Faisalabad-Gojra, Faisalabad-Khanewal section, Khanewal-Multan, Shaheed Benzair Bhutto over-river bridge, Gillani Road (Multan), NH&MP building works, toll plazas, periodic maintenance, Sultan Bahoo Bridge, Shorkot and Garh Maharaja road etc.
They said that provincial government had strived to make Punjab self-sufficient on all fronts, while mobilizing all available resources and managed to ensure unprecedented increase of 345 percent in its resources
They said that Punjab has significant un-taped potential to increase revenues from a few key taxes, including GST on services, urban immoveable property tax, stamp duty, capital value tax, agriculture income tax, and professional tax for service delivery financing.
