LAHORE: The Punjab Revenue Authority (PRA) has issued a notice to Pakistan Railways on alleged tax evasion of Rs 46.92 million from July 2015 to January 2017.
Under the Punjab Sales Tax on Services Act 2012, the intercity carriage of goods by rail services are chargeable to sales tax, while the Pakistan Railways has provided taxable services worth Rs 46.924 million which was not declared to the tax authority nor deposited to the provincial exchequer.
According to the notice, the Pakistan Railways provided the taxable services to M/s Fauji Fertilizer Company and M/s Engro Fertilizer Limited. The PR is bound to file monthly sales tax returns along with deposit of the due amounts of the Punjab sales tax on taxable services under section 3, 10 ,11, 18, and 25 of Punjab sales tax act 2012.
The Railways has provided Rs 124.047 undeclared value of taxable services to the Fauji Fertilizer Company Ltd and Rs 169.229 million undeclared value of taxable services to Engro Fertilizers Ltd against which Rs 19.847 million and Rs 27.076 million taxes, respectively are owed by the Railways.
