Amendment in the Punjab Sales Tax on Services (Definitions) Rules, 2012 vide Notification No. PRA/Orders.06/2012 dated 03.01.2014:
Punjab Revenue Authority vide its Notification No. PRA/Orders.06/2012 dated 03.01.2014 has inserted Rule (4A) in the Punjab Sales Tax on Services (Definitions) Rules, 2012 which states that if any service(s) is mentioned in the definition of any taxable service and has also been defined separately in the said Rules, such service shall be liable to sales tax regardless of its status in the Second Schedule of the Punjab Sales Tax on Services Act, 2012
For example: Courier services are defined under Rule 37 of the said Rules as under:
‘37. Courier services mean the transmission, transportation or conveyance, whether door-to-door or not of time sensitive documents, goods, articles or cargo whether or not utilizing the services of a person either directly or indirectly to accompany such documents, goods, articles or cargo and includes speed post, express cargo service and similar fast services of transmission, transportation and conveyance of documents, goods, articles or cargo.’
The above mentioned definition includes transmission, transportation or conveyance of cargo however, ‘Cargo handling services’ have clearly been defined under Rule 30 of the said Rules. Therefore, in view of the insertion of Rule 4A, cargo handling services will be liable to sales tax at the rate of 16% regardless of the fact that these are not included in the Second Schedule of the Act.