No.PRAY 22477 PUNJAB REVENUE AU} FINANCE DEPART! a GOVERNMENT OF THE PUNJAB 3——e ©. 5-B, DANEPUR ROAD, GOR-I, ae eh meee . LAHORE Dated:25" April, 2014 ENGR. CH. GHULAM HUSSAIN, President, Association of Consulting Engineers Pakistan (AECP)/ Chief Executive, National Development Consultants (Pvt) Ltd, 4" Floor, IEP Building, 177/2, Liaquat Barracks, Shahrah-e-Faisal, Karachi, abject:- PAYMENT OF SALES TAX ON ENGINEERING CONSULTANTS IMPLEMENTATION, ERVICES PROVIDED _BY CLARIFICATIONS FOR I am directed to refer to ACEP’s letter No.ACEP-NDC/LC/349 dated 19- j-2014 on the above subject and to state that Punjab sales tax is chargeable #16% on services provided by technical, scientific and engineering consultants since 1* July, 2013 under the Punjab Sales Tax on Services Act, 2012. Several questions have since been raised as to how Punjab sales tax would be charged, collected and paid on these services. PRA has examined all these questions and is pleased to clarify as follows: (i) Punjab sales tax on services provided by technical, scientific and engineering consultants has been levied with effect from July 01, 2013. All such services that are rendered on or after 1* July, 2013 have become liable to Punjab sales tax regardless of the fact that whether or not these are provided under a contractual engagement entered into before or after July 01, 2013. (ii) Thelservicesithat haveybeen provided, rendered and completed prior to 1 juy.o1, 2013 are not liable to Punjab sales tax. Any payment for such services if made after 1* July, 2013 Is also not’ liable to charging/withholding/deduction of Punjab sales tax. D iii A registered person providing taxable services and paying tax is required and entitled under Punjab sales tax law to issue tax invoice and shift/transfer the incidence of tax on to the service recipient. (iv)__In the light of provisions of Punjab Sales Tax on Services (Withholding Rules), 2012, Punjab sales tax shall not be withheld by the recipient of services at the time of making payment if services have been provided by @ corporate sector person duly registereg’ wit PRA as service provider. o ~ SHEHZAD MEHMOOD GONDAL ( Additional Commissioner (Enforcement) Copy alongwith the enclosure of the above Deputy Secretary (Resources), quoted letter to: Finance Department, Civil Secretariat, Lahore. Scanned with CamScanner