ISLAMABAD: Punjab Revenue Authority (PRA), through Punjab Finance Bill 2017, has brought virtual businesses into the regime of sales tax on services.
According to interpretation of EY Ford Rhodes Chartered Accountants, the proposed amendment, the activities performed through ecommerce or virtual presence including web portals shall now be treated as place of business for levy of the Punjab sales tax on the activities carried out through e-commerce, web-portals, etc.
It said that in the current age, significant economic activities are performed virtually in the form of IT applications etc.
It seems that such activities shall now be subject to the Punjab sales tax in the hands of the owner of the application or persons having a virtual presence in the Punjab and shall also be liable to get registration with the authority.
