SRO No.SO(TAX)101/2014-15 (Vol-I) dated 28.05.2015 — PRA

The following changes have been made by Punjab Revenue Authority in the taxation regime of services:-

1)                Vide S.No.6 of the Second Schedule to the Punjab Sales Tax on Services Act, 2012, internet services were exempt from sales tax. These have now been subjected to sales tax vide SRO No.SO(TAX)101/2014-15 (Vol-I) dated 28.05.2015, except the following:-

(a)              Internet (including broadband) services provided exclusively to educational institutions through dedicated lines or connections for the use solely in education and research activities within the specified premises of such institutions.

(b)             Student package of internet services meant exclusively for students of educational institutions verifiable in the manner prescribed, whether dialup or broadband including email services and data communication network of upto 2 mbps speed valued at not more than Rs.1500 per month per service recipient.

(c)              Such charges payable on the international leased lines used by software exporting firms registered with the Pakistan Software Export Board for software exports.

2)                Vide SRO PRA/STE.4/2012 dated 25.05.2015, exemption of provincial sales tax has been granted to consultancy services for the feasibility study of public sector projects of the Government to the extent of grant-in-aid funds financed by an International Financial Institution under an agreement subject to the following conditions:-

(i)                The Planning & Development Board of Government of the Punjab shall issue a certificate to the concerned consultants that the payments are being made out of the grant-in-aid funds; and

(ii)             copy of the said certificate issued will be endorsed and furnished to the Punjab Revenue Authority.

The exemption shall continue only till the completion of the process of payment to the consultants out of the said grant-in-aid funds.