ISLAMABAD: Punjab Revenue Authority (PRA) has made amendments to sales tax on services laws to recover arrears of tax against a taxpayer from third party, who has relation to the extent of transactions.
Punjab Finance Bill 2017 proposed amendment under which the PRA upon issuance of notice in writing would be authorized to recover the amount of tax payable by a taxpayer from any other person who owe any amount to the taxpayer under legally enforceable relation including purchase contracts, contracts with credit or financial institutions or banking companies, lease contracts, loan agreements, building loan contracts, life insurance contracts, employment or work contracts etc.
However, the Bill seeks to provide automatic stay against recovery of the disputed tax demand on payment of at least 25 percent of such demand during pendency of the appeal before the Commissioner (Appeals).
The experts said that the amendment will not infringe the right of the Commissioner (Appeals) to grant stay without payment of disputed tax.
The provincial Finance Bill 2017 also proposed amendment to the Punjab Sales Tax on Services Act, 2012 related to general and specific penalties under the specified circumstances.
The Bill seeks to amend Entry No. 10 of the Table to enhance the penalty imposed on any person who obstructs any officer to perform his official duties from Rs. 25,000 to Rs. 100,000. It is also proposed to insert reference of section 70 (recovery of arrears of tax) in the Entry to impose penalty on violation of said section.
