ISLAMABAD: Punjab Revenue Authority (PRA), though Punjab Finance Bill 2017, will recovery unpaid amount from both service provider and recipient in case of default.
The Punjab Finance Bill 2017 will insert a new section 11A whereby, in case the recipient of taxable service being withholding agent fails to make the payment of tax to the service provider within one hundred and eighty days and the service provider has also not made payment of tax within the due date, the recipient and the provider of services shall jointly and severally be liable for payment of tax.
According to explanation of EY Ford Rhodes Chartered Accountants, currently the service providers do not bother to take the responsibility of making payment of the sales tax where their services are subject to withholding of tax by the recipient of their services, especially in the case of advertisement services. “The proposed amendment is expected to curb this practice,” it said.
