Issuance of Punjab Sales Tax on Services (Withholding) Rules, 2015

Punjab Revenue Authority has issued new withholding rules. By virtue of new rules certain features have been changed including withholding agents. These changes are as under:

1- Following persons are also declared as withholding agent in addition to earlier categories:

a- All companies

b- Registered persons receiving taxable services from unregistered persons.

2- Insurance services which are provided by insurance companies based outside the Punjab but insuring risk in Punjab.

3- Time of payment of withholding for registered persons will be earlier of the following:

i) at the time of making payment to the service provider,

ii) at the time of claiming invoice in ST return of Punjab or FBR

iii) Within four months of issuance of invoice.

3- Exclusion to services provided by companies will be restricted to the companies which are included in “ATL” as maintained by PRA. Services of advertisement will remain liable to withholding even in case of companies falling in the ‘ATL’ list