The Punjab Revenue Authority (PRA) was established under the Punjab Revenue Authority Act 2012 to collect sales tax on services in the Punjab province. Understanding PRA compliance is essential for any service provider operating within the region.
Who needs to register under PRA?
Under the Punjab Sales Tax on Services Act 2012, businesses offering taxable services—ranging from IT consultancy, construction, legal advisors, advertising agencies, to hotels and restaurants—must register with the PRA and obtain a Sales Tax Registration Number (STRN).
Monthly Filing Obligations
Once registered, taxpayers must file monthly sales tax returns on the PRA portal:
- Return Deadline: The monthly return must be filed by the 15th of each month, following the tax period.
- Tax Payment: The calculated sales tax payable must be deposited in the Government Treasury by the 18th of the month.
- Withholding Agent Check: Keep track of withholding agents who deduct tax at source on your service invoices.
Penalties for Non-Compliance
Failure to register or file monthly returns on time results in immediate automated penalties from the PRA portal, starting at PKR 5,000 for late return filing, and can escalate to the suspension of your STRN. Let our experts at Pak Tax Law audit your PRA records and file monthly returns securely.