Revenue Authority (PRA) Services with Aims Associates

The Revenue Authority (PRA) is the official body managing sales tax on services within Punjab. Service taxes are indirect taxes applied to specified services in Schedule II, known as “taxable services.” The service provider is responsible for paying this tax to the PRA.

Sales Tax Registration with Revenue Authority (PRA)

Registration with PRA for Sales Tax on Services is conducted through either electronic submission or manual application. Businesses already registered with the Federal Board of Revenue (FBR) do not need additional registration with PRA.

Steps for PRA Registration

Businesses involved in providing any kind of taxable service are required to register with the PRA. Exemptions are generally not applicable under the Sales Tax on Services Act, 2012, although tax rates vary based on service types.

Key types of services under the Act include hotels, catering, advertisement, telecommunications, banking, insurance, stock broking, and construction, among others, as listed in the Second Schedule.

PRA Registration Methods

1. Voluntary Registration: Optional enrolment for eligible service providers.

2. Compulsory Registration: Mandatory registration initiated by PRA if the provider has not registered voluntarily.

PRA E-Enrolment and Registration Process

1. PST-01 Application: Submission of the PRA registration application, either manually or electronically.

2. Document Verification: PRA verifies the provided documents for accuracy.

3. Issuance of Registration Certificate: Once verified, PRA issues a registration certificate.

4. Rejection Notice: If the application is rejected, PRA informs the applicant within 30 days, providing the reason for rejection.

In cases of compulsory registration, PRA provides a fifteen-day notice to the service provider and issues a registration number following verification.

Required Documents for PRA Registration

Depending on the type of business, the following documents are required:

• Individual Business: PST-01 form, NTN copy, CNIC, contact details, recent electricity bill, tenancy agreement (if applicable), and bank maintenance certificate.
• Partnership Firm: PST-01 form, firm’s NTN, partners’ CNICs, Form C, partnership deed, electricity bill, tenancy agreement, and bank certificate.
• Company: PST-01 form, company’s NTN, partners’ CNICs, Form II, incorporation certificate, MOA and AOA, electricity bill, tenancy agreement, and bank certificate.

PRA registration suspension and de-registration

PRA may suspend registration if it determines that the taxpayer is non-compliant or ineligible under the Punjab Sales Tax on Services Act. De-registration can also occur if the business ceases to provide taxable services.

Filing Sales Tax Returns with the Revenue Authority

Service providers registered with PRA must file monthly sales tax returns, typically by the 15th of each month, to declare sales and tax deductions. Late filing incurs a penalty of PKR 5,000.

PRA requires taxpayers to maintain records of services, exempt services, and any other information as specified under the Punjab Sales Tax on Services Act 2012. PRA also maintains an Active Taxpayer List based on return filings, with non-filing businesses marked inactive.

Aims Associates Services for PRA Registration and Sales Tax

At Aims Associates, we offer a comprehensive suite of services to help individuals, firms, and companies with PRA and FBR tax requirements:

• PRA and FBR Sales Tax Registration and De-Registration
• Guidance on Suitable Sales Tax Options Tailored to Business Needs
• Dispute Negotiation and Representation in Tax Tribunals
• Sales Tax Return Filing and general tax advisory services
• Financial planning and invoice preparation
• Annual Filing Assistance

Our team ensures that businesses avoid penalties, streamline tax processes, and maximise cost-saving opportunities in compliance with PRA and FBR requirements.