LAHORE: The Punjab Revenue Authority (PRA) has detected massive ‘tax evasion’ by the Pakistan State Oil (PSO) and issued a show-cause notice to the national entity.
According to the notice, the petroleum dealers paid Rs 14.113 billion total commission from July 2015 to June 2016, while Rs 2.258 billion sales tax on service is outstanding.
The petroleum dealers are registered as commission agents with the Federal Board of Revenue (FBR), while the commission agents are liable to pay the Punjab Sales Tax on service.
As per provisions of the sections 14 and 19 of the Punjab Sales Tax on Service Act 2012, the PSO was legally bound to withhold/deduct and deposit the due amount of Punjab sales tax on the taxable services but has failed to comply with the statutory obligations.
