THE PUNJAB SALES TAX ON SERVICES ACT 2012

(XLII OF 2012)

CONTENTS

1. Short title, extent and commencement

2. Definitions

3. Taxable service

4. Application of principles of origin and reverse charge in certain

situations

5. Amendment in Second Schedule

6. Economic activity

7. Value of a taxable service

8. Open market price

9. Provision of services over a period of time

10. Scope of tax and allied matters

11. Person liable to pay tax

12. Exemptions

13. Effect of change in the rate of tax

14. Special procedure and tax withholding provisions

15. Delegation of power to collect, administer and enforce tax on certain

services

16. Adjustments

17. Collection of excess tax

18. Time, manner and mode of payment

19. Joint and several liability of registered persons where tax unpaid

20. Sales of taxable activity or transfer of ownership

21. Estate of deceased person

22. Estate in bankruptcy

23. Liability for payment of tax in case of private companies or business

enterprises

24. Assessment of tax

25. Registration

26. Voluntary registration

27. Compulsory registration

28. Suspension of registration

29. De-registration

30. Issuance of tax invoices

31. Records

32. Retention and production of records and documents

33. Audit proceedings

34. Special audit by chartered accountants or cost accountants

35. Return

36. Special returns

37. Final return

38. Return deemed to have been made

39. Appointment of authorities

40. Powers

41. Distribution of powers

42. Special Judges

43. Cognizance of offence

44. Application of the Code of Criminal Procedure, 1898

45. Exclusive jurisdiction of Special Judge

46. Place of sitting

47. Persons who may conduct prosecution

48. Offences and penalties

49. Default surcharge

50. Exemption from penalty and default surcharge

51. Compounding of offences

52. Recovery of tax not levied or short-levied

53. Power to summon persons to give evidence and produce documents

54. Power to arrest and prosecute

55. Procedure to be followed on arrest of a person

56. Authorized officers to have access to premises, stocks, accounts and

records

57. Obligation to produce documents and provide information

58. Searches under warrants

59. Posting of an officer to business premises

60. Powers of adjudication

61. Revision by the Commissioner

62. Revision by the Authority

63. Appeals

64. Procedure in appeal

65. Decision in appeal

66. Appeal to the Appellate Tribunal

67. Disposal of appeals by the Appellate Tribunal

68. Deposit of the tax demand while appeal is pending

69. Alternate dispute resolution

70. Recovery of arrears of tax

71. Agent

72. Liability and obligations of agents

73. Liability of the registered person for the acts of his agent
74. Appearance by authorized representative

75. E-intermediaries to be appointed

76. Power to make rules

77. Computerized system

78. Service of orders and decisions

79. Correction of clerical errors

80. Issuance of duplicate of the tax documents

81. Power to issue orders, instructions and directions

82. Officers of the Authority to follow orders

83. Computation of limitation period

84. Condonation of time-limit

85. Bar of suits, prosecution and other legal proceedings

86. Removal of difficulties

87. Repeal and savings

FIRST SCHEDULE

SECOND SCHEDULE
 TEXT

1
THE PUNJAB SALES TAX ON SERVICES ACT 2012

(XLII of 2012)
[27th June, 2012]
An
Act
to provide for the levy of a tax on services provided, rendered, initiated, received,
originated, executed or consumed in the Punjab.

Preamble.– Whereas it is expedient to provide for the levy of a tax on

services provided, rendered, initiated, originated, executed, received or consumed in
the Punjab and to deal with ancillary matters;
It is enacted as follows:–

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement.– (1) This Act may be cited as the
Punjab Sales Tax on Services Act 2012.
(2) It shall extend to the whole of the Punjab.
(3) This Act shall come into force on and from such date as the
Government may, by a notification in the official Gazette, specify.
(4) Notwithstanding sub-section (3), the Government may, by notification
in the official Gazette, specify services or class or classes of services in respect of
which tax shall be collected and paid with effect from the date subsequent to and
different from the date of the commencement of this Act.

2. Definitions.– In this Act–

2
[(1) “Additional Commissioner” means a person appointed as Additional
Commissioner of the Authority;

(1A) “Appellate Tribunal” means the Appellate Tribunal established under the
Punjab Revenue Authority Act 2012 (XLIII of 2012);]

(2) “arrears”, in relation to a person, shall mean, on any day, the tax due
and payable by the person under the Act or the rules before that day
but which has not yet been paid;

1
This Act was passed by the Punjab Assembly on 21 June 2012; assented to by the Governor of the Punjab on 26 June 2012;
and published in the Punjab Gazette (Extraordinary), dated 27June 2012, pages 41901-41935.
2
Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
(3) “Assistant Commissioner” means a person appointed as an Assistant
Commissioner of the Authority;

(4) “associates” or “associated persons” refer to–

(a) two persons, where the relationship between them is such that
one may reasonably be expected to act in accordance with the
intentions of the other, or both persons may reasonably be
expected to act in accordance with the intentions of a third
person but two persons shall not be associates solely by reason
of the fact that one person is an employee of the other or both
persons are employees of a third person;
(b) without prejudice to the generality of paragraph (a) and subject
to paragraph (c), the following persons shall always be treated
as associates:–
(i) an individual and a relative of that individual;
(ii) members of an association of persons;
(iii) a member of an association of persons and the
association, where the member, either alone or together
with an associate or associates under another application
of this section controls fifty per cent or more of the rights
to income or capital of the association;
(iv) a shareholder in a company and the company, where the
shareholder, either alone or together with an associate or
associates under another application of this section,
controls either directly or through one or more interposed
persons–
a. fifty per cent or more of the voting power in the
company;
b. fifty per cent or more of the rights to dividends; or
c. fifty per cent or more of the rights to capital; and
(v) two companies, where a person, either alone or together
with an associate or associates under another application
of this section, controls either directly or through one or
more interposed persons–
a. fifty per cent or more of the voting power in both
companies;
b. fifty per cent or more of the rights to dividends in
both companies;
c. fifty per cent or more of the rights to capital in both
companies; and
(c) two persons shall not be associates under sub-paragraph (i) or
(ii) of paragraph (b) where the Commissioner is satisfied that
neither person may reasonably be expected to act in
accordance with the intentions of the other.
 Explanation.- The expression 'relative in relation to an individual’
means –
(i) an ancestor, a descendant of any of the grandparents, or
an adopted child of the individual or of a spouse of the
individual; or
(ii) a spouse of the individual or of any person specified at (i);

(5) “association of persons” includes a firm, any artificial or juridical person

and body of persons formed under a foreign law, but does not include a
company;
(6) “Authority” means Punjab Revenue Authority established under 3[the
Punjab Revenue Authority Act 2012 (XLIII of 2012)];

(7) “banking company” means a banking company as defined in the

Banking Companies Ordinance, 1962 (LVII of 1962) and includes any
body corporate which transacts the business of banking in the Punjab;

(8) “Commissioner” means a person appointed as Commissioner of the

Authority;

(9) “Commissioner (Appeals)” means a person appointed as

Commissioner (Appeals) of the Authority;

(10) “common taxpayer identification number” means the registration

number or any other number or identification code allocated to a
registered person;
(11) “company” means–
(a) a company as defined in the Companies Ordinance, 1984
(XLVII of 1984);
(b) a body corporate formed by or under any law;
(c) a modaraba and any other Islamic financial institution;
(d) a body incorporated outside Pakistan;
(e) a trust, a co-operative society or a finance society or any other
society established or constituted by or under any law; or
(f) a foreign association, whether incorporated or not, which the
Authority has, by general or special order, declared to be a
company for purposes of the Act;

(12) “computerized system” means any comprehensive information

technology system, including its development, upgradation or updation,
to be used by the Authority or any other office as may be notified by the
Authority, for carrying out the purposes of the Act;
(13) “default surcharge” means the default surcharge levied under the Act;

3
Substituted for the words “any law” by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the
Punjab Gazette (Extraordinary), dated 26.6.2014, pages 4169-4178.
 (14) “defaulter” means a person and, in the case of company or firm, every
director of the company or partner of the firm and includes guarantors
or successors, who fail to pay the arrears of tax under the Act and the
rules;
(15) “Deputy Commissioner” means a person appointed as a Deputy
Commissioner of the Authority;

(16) “document” includes any electronic data, computer programmes,

computer tapes, computer disks, micro-films or any other medium or
mode for the storage or conveyance of such data;
(17) “due date” in relation to the furnishing of a return under Chapter VI
means the 15th day of the month following the end of the tax period, or
such other date as the Authority may, by notification in the official
Gazette, specify;
(18) “economic activity” shall have the meaning given to it in section 6;
(19) “e-intermediary” means a person appointed as e-intermediary under
the Act;
(20) “exempt service” means a service which is exempt from the tax under
section 12;
(21) “FBR” means the Federal Board of Revenue established under the
Federal Board of Revenue Act, 2007;
(22) “financial year” means the period from 1st July of a year to 30th June of
the following year;
(23) “firm” means the relation between persons who have agreed to share
the profits of a business carried on by all or any of them acting for all;
(24) “goods” include every kind of movable property other than actionable
claims, money, stocks, shares and securities but does not include a
service defined under the Act;
(25) “Government” means Government of the Punjab;
(26) “inter-bank rate” means the Karachi inter-bank offered rate prevalent
on the first day of each quarter of a financial year;
4
[(26A) “non-banking financial institution” includes a company licensed by the
Securities and Exchange Commission of Pakistan to carry out any one or
more of the following forms of business:

(i) investment finance services;

(ii) leasing;
(iii) housing finance services;

(iv) venture capital investment;

(v) discounting services;

4
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
 (vi) investment advisory services;

(vii) asset management services; and

(viii) any other form of business which the Federal Government may,
from time to time, by notification in the official Gazette specify;]
(27) “officer of the Authority” means any officer of the Authority;
(28) “open market price” shall have the meaning as given to it in section 8;
(29) “person” means–
(a) an individual;
5
[(aa) an association of persons;]
(b) a company;
(c) Federal Government;
(d) a Provincial Government;
(e) a local authority or local government; or
(f) a foreign government, a political subdivision of a foreign
government, or public international organization;

Explanation.– The use of the word “he” in the Act shall be taken to
refer to any or all mentioned from (a) to (f) as required in the context of
the relevant provision;
(30) “place of business” means that a person–
(a) owns, rents, shares or in any other manner occupies a space in
the Punjab from where he carries on an economic activity
whether wholly or partially; or
(b) carries on an economic activity whether wholly or partially
through any other person such as an agent, associate,
franchise, branch, office, or otherwise in the Punjab but does not
include a liaison office;
(31) “prescribed” means prescribed by the rules;

(32) “registration number” means the number allocated to a registered

person for purposes of the Act;
(33) “registered person” means a person who is registered or is liable to be
registered under the Act but the person liable to be registered and has
not registered shall not be entitled to any benefit available to a
registered person under any of the provisions of the Act or the rules;
(34) “return” means any return required to be furnished under Chapter VI of
the Act;
(35) “resident” means–
(a) an individual who, in a financial year, has–
5
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 (i) a place of business, whole or part thereof, in the Punjab
in any mode, style or manner; or
(ii) his permanent address, as listed in the individual’s
national identity card, in the Punjab; or
(iii) a permanent representative to act on his behalf or to
provide service on his behalf in the Punjab.
(b) an association of persons or a company which, in a financial
year, has–
(i) its registered office in the Punjab; or

(ii) its place of business, whole or part thereof, in the Punjab

in any mode, style or manner;
(iii) a permanent representative to act on its behalf or to
provide service on its behalf in the Punjab; or
(iv) the control or management of the affairs of the
association of persons is situated in the Punjab at any
time during the financial year;
(36) “rules” means the rules made under the Act;
(37) “Schedule” means a Schedule appended to the Act;
(38) “service” or “services” means anything which is not goods or providing
of which is not a supply of goods and shall include but not limited to the
services listed in First Schedule;

Explanation.– A service shall remain and continue to be treated as

service regardless whether or not rendering thereof involves any use,
supply 6[, disposition] or consumption of any goods either as an
essential or as an incidental aspect of such rendering;
(39) “short-paid” means where a registered person pays an amount of tax
less than the tax due owing to miscalculation or incorrect assessment
of the tax amount due for a tax period;
(40) “similar service” means any other service which is the same as, or
closely resembles with, the other service in character, quality, quantity,
functionality, materials, or reputation;
(41) “Special Judge” means a Special Judge appointed under section 42;
(42) “tax” means and includes–
(a) the tax, additional tax, or default surcharge levied under the Act;
(b) a fine, penalty or fee imposed or charged under the Act; and

(c) any other sum payable or recoverable under the Act or rules;

6
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 7
[(42A) "taxpayer" means any person who, in the course of an economic
activity, provides taxable services for consideration;]
(43) “tax fraud” means knowingly, dishonestly or fraudulently and without
any lawful excuse–
(a) doing of any act or causing to do any act; or
(b) omitting to take any action or causing the omission of any
action, including providing of taxable services without being
registered under the Act; or
(c) falsifying or causing falsification of tax invoices or other tax
documents or records; or
(d) acting in contravention of the duties or obligations imposed
under the Act or rules or instructions issued thereunder–
with the intention of understating or suppressing the tax liability or
underpaying 8[or not paying] the tax liability;
(44) “tax period” means a period of one month or such other period as the
Authority may, by notification in the official Gazette, specify;
(45) “taxable service” shall have the meaning as given to it in section 3; and
(46) “value of a taxable service” shall have the meaning as given to it in
section 7.

3. Taxable service.– (1) Subject to such exclusion as mentioned in Second

Schedule, a taxable service is a service listed in Second Schedule, which is provided
by a person from his office or place of business in the Punjab in the course of an
economic activity, including the commencement or termination of the activity.

Explanation.– This sub-section deals with services provided by a person

regardless whether such services are provided to a resident person or a non-
resident person.
(2) If a service listed in Second Schedule is provided to a resident person
by a non-resident person in the course of an economic activity, including the
commencement or termination of the activity, it shall be treated as a taxable service.

Explanation.– This sub-section deals with services provided by a non-resident

person to a resident person whether or not the end consumers, if any, of such
services are identifiable for purposes of this Act or the rules.
(3) For purposes of sub-section (2), where a person has a registered office
or place of business in the Punjab and another outside the Punjab, the registered
office or place of business in the Punjab and that outside the Punjab shall be treated
as separate legal persons.
(4) The Authority may, with prior approval of the Government, by
notification in the official Gazette, prescribe rules for determining the conditions
7
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
8
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
under which a particular service or class of service shall be considered to have been
provided by a person from his registered office or place of business in the Punjab.
(5) For purposes of this Act and the rules, providing of service shall,
where the context so requires, include rendering, supply, initiation, origination,
execution, reception, consumption or termination of a service whether in whole or in
part.
[(6)
9
The services mentioned in the First Schedule are not exhaustive and
all the services mentioned in the Second Schedule, rules and circulars shall be
taxable services.]

4. Application of principles of origin and reverse charge in certain

situations.– (1) Where a person is providing taxable services in a Province other
than the Punjab but the recipient of such services is resident of the Punjab or is
otherwise availing such services in the Punjab and has charged tax accordingly, the
person providing such services shall pay the amount of tax so charged to the
Government.
(2) Where the recipient of a taxable service is a person registered under
the Act, he shall deduct the whole amount of tax in respect of the service received
and pay the same with the Government.
(3) Where a person is providing taxable services in more than one
Province or territory in Pakistan including the Punjab, such person shall be liable to
pay tax to the Government to the extent the tax is charged from a person resident in
the Punjab or from a person who is otherwise availing such services in the Punjab.
(4) Where rendering of a taxable service originates from the Punjab but
terminates outside Pakistan, such person shall be required to pay tax on such
service to the Government.
(5) Where a taxable service originates from outside Pakistan but is
received or terminates in the Punjab, the recipient of such service shall be liable to
pay the tax to the Government.
(6) The persons who are required to pay the tax to the Government in
terms of sub-sections (1), (2), (3), (4) and (5) shall be liable to registration for
purposes of this Act and the rules.
(7) All questions or disputes relating to the application of the principle of
origin given in this section shall be resolved in terms of the already recorded
understanding between the Federal Government and the Provincial Governments on
the implementation of reformed General Sales Tax provided that pendency of any
such question or dispute shall not absolve the concerned person from his obligation
to deposit the tax.
(8) The provisions of this section shall apply notwithstanding any other
provision of this Act or the rules and the Government may specify special procedure
to regulate the provisions of this section.

5. Amendment in Second Schedule.– (1) The Government may, by notification

in the official Gazette, make an amendment in Second Schedule by modifying,

9
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
adding or deleting any entry or entries with reference to the classification, if any,
description of any service or class of services and the rate or rates of tax chargeable
on any service or class of services not exceeding the maximum rate prescribed in
Second Schedule.
(2) A notification issued under sub-section (1) shall be effective from such
date as may be specified in the notification but such date shall not be prior to the
date on which the notification is published in the official Gazette.
(3) The Government shall at the time of presenting the Annual Budget
Statement for the next financial year, lay before the Provincial Assembly of the
Punjab all the notifications relating to the amendments in the Second Schedule
during the current financial year.

6. Economic activity.– (1) An economic activity means any activity carried on

whether continuously, regularly or otherwise by a person that involves or is intended
to involve the provision of services to another person and includes–
(a) an activity carried on in the form of a business, including a profession,
calling, trade, or undertaking of any kind, whether or not the activity is
undertaken for any consideration or profit;

(b) the supply of movable property by way of lease, license or such similar
arrangement; and

(c) a one-time transaction or concern in the nature of a business or trade.

(2) Anything done or undertaken during the commencement or termination
of an economic activity shall be construed as part of the economic activity.
(3) An economic activity does not include–
(a) the activities of an employee providing services in that capacity
to an employer; or
(b) a private recreational pursuit or hobby of an individual.

7. Value of a taxable service.– (1) The value of a taxable service is the 10[gross
amount of] consideration (by whatever name called such as charges or price) in
money including all the Federal and the Provincial duties, taxes or charges, if any,
which the person providing a service receives from the recipient of the service but
does not include the amount of the tax.
(2) In case the consideration for a service is in kind or is partly in kind and
partly in money, the value of the service shall mean the open market price of the
service as determined under section 8 excluding the amount of the tax.

(3) In case the person who provides the service and the recipient of the
service are associated persons and the service is supplied for no consideration or for
a consideration which is lower than the price at which the person provides the
service to other persons who are not associated persons, the value of the service
shall mean the price at which the service is provided to such other persons but does
not include the tax.

10
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 (4) In case a person provides a service for no consideration or for a
consideration which is lower than the price at which such a service is provided by
such person, the value of the service shall mean the open market price for such a
service.
(5) In case of trade discounts, the value of the service shall mean the
discounted price, excluding the amount of the tax, provided the invoice shows that
the discounted price and the related tax and the discount allowed is in conformity
with customary business practice.
(6) In case there is reason to believe that the value of a service has not
been correctly declared in the invoice or for any special nature of transaction it is
difficult to ascertain the value of a service, the value of the service shall be the open
market price.
(7) Notwithstanding anything in sub-sections (1) to (6), where the Authority
deems it necessary, it may, by notification in the official Gazette, fix the value of any
service or class of services and for that purpose fix different values for different
classes or descriptions of the same or similar types of services but if the value at
which the service is provided is higher than the value fixed by the Authority, the
value of the service shall, unless otherwise directed by the Authority, be the value at
which the service is provided.

Explanation.– For the purpose of this section, the value of the utilities or facilities, if
any, ancillary to providing of taxable services shall be included in the value of such
services.
(8) The Authority may, by notification in the official Gazette, issue valuation
rules for any service or class of services for purposes of assessment or
determination and payment of tax under this Act and prescribe threshold,
parameters, standards, methods, formula, criteria or bases for the determination of
value of any taxable service or class of taxable services and the assessment of the
tax on any service or class of services.

8. Open market price.–(1) The open market price of a service is–

(a) the price, the service would fetch in an open market transaction freely
entered into between persons who are not associated persons; or
(b) if it is not possible to determine an amount under paragraph (a), the
price a similar service would fetch in an open market transaction freely
made between persons who are not associated persons, adjusted to
take account of the differences between the similar service and the
actual service,
(c) determined on the basis of the market conditions prevailing at the time
and place at which the service is provided.

(2) If the open market price of a service cannot be determined under sub-
section (1), it may be determined by using any method or formula specified by the
Authority for calculating an objective approximation of the price, the service would
fetch in an open market transaction freely made between persons who are not
associates.
9. Provision of services over a period of time.– (1) Where a service is
provided over a period of time and payment for the same is made on a periodic
basis, the service shall be treated as comprising two or more separate and distinct
services each corresponding to the part of the service to which each separate part of
the consideration relates.

ILLUSTRATIONS

(a) Where services are provided for a two year period and payment is
made on a semi-annual basis, the provision of services for each six
month period constitutes a separate service.
(b) Where an insurance company provides an insurance policy over a five
year period and receives a premium on an annual basis, each premium
relates to a separate service.

Note: The above illustrations are merely explanatory and shall not be
construed as conclusive in any manner whatsoever.

(2) This section does not apply to services for which payment is made on
installments basis.

CHAPTER II

SCOPE OF TAX

10. Scope of tax and allied matters.– (1) Subject to the provisions of this Act
and the rules, there shall be charged, levied, collected and paid the tax on the value
of a taxable service at the rate or rates specified in the Second Schedule.

(2) The Government may, on the recommendation of the Authority and

subject to such conditions and restrictions as the Government may impose, by
notification in the official Gazette, declare that in respect of any taxable service
provided by a registered person or a class of registered persons, the tax shall be
charged, levied and collected at such higher, lower, fixed or specific rate or rates as
may be specified in the said notification.

(3) Notwithstanding other provisions of this Act, the Authority may, with the
prior approval of the Government and by notification in the official Gazette and
subject to the conditions, restrictions, limitations or otherwise, fix the limit or
threshold of annual turnover of any service or class of services provided by any
person or class of persons below which such person or class of persons shall be
exempt from payment of tax under the Act.
(4) A person required to pay tax under this Act shall be entitled to deduct
from the payable amount, the amount of tax already paid by him on the receipt of
taxable services used exclusively in connection with taxable services provided by
such person subject to the condition that he holds a true and valid tax invoice not
older than six tax periods, showing the amount of tax earlier charged and paid under
the Act on the services so received but the Authority may, by notification in the
official Gazette, disallow or restrict such deduction in case of any service or services
as it may deem appropriate.
 11
[(5) For purposes of subsection (4), the amount of tax entitled to be
deducted shall not include any amount of additional tax, default surcharge, fine,
penalty or fee imposed or charged under the Act.]

11. Person liable to pay tax.– (1) Where a service is taxable by virtue of sub-
section (1) of section 3, the liability to pay the tax shall be on the registered person
providing the service.
(2) Where a service is taxable by virtue of sub-section (2) of section 3, the
liability to pay the tax shall be on the person receiving the service.
(3) The Authority may, by notification in the official Gazette, specify the
service or services in respect of which the liability to pay tax shall be on any person,
other than the person providing the taxable service, or the person receiving the
taxable service.
(4) Nothing contained in this section shall prevent the collection of tax from
a different person if that person is made separately or jointly or severally liable for
the tax under section 19.

12. Exemptions.– (1) Notwithstanding the provisions of sections 3 and 10, the
Authority may, with the approval of the Government and subject to such conditions,
limitations or restrictions as it may impose, by notification 12 in the official Gazette,
exempt–

(a) taxable service or services from the whole or any part of the tax;

(b) taxable service or services provided by a person or class of persons

from the whole or any part of the tax;
(c) recipient or recipients of service or services, including international
organizations and institutions, from the payment of the whole or any
part of the tax; and
(d) a class of persons, any area or areas of the Punjab from the whole or
any part of the tax.
(2) The exemption under sub-section (1) may be allowed from any
previous date specified in the notification issued under sub-section (1).

13. Effect of change in the rate of tax.– If there is a change in the rate of tax,
the taxable services shall be charged to tax at such rate as is in force at the time the
service is provided.

14. Special procedure and tax withholding provisions.– (1) Notwithstanding

anything contained in this Act, the Authority may, by notification in the official
Gazette, prescribe a special procedure for the payment of tax, registration, book
keeping, invoicing or billing requirements, returns and other related matters in
respect of any service or class of services, as may be specified.

11
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
12
Franchise services in respect of education has been exempted from whole of the tax by the Notification
No.PRA/Franchise.53/2012, dated 1.7.2015 issued by the Punjab Revenue Authority; and published (Notification No.8 of 2015)
in the Punjab Gazette (Extraordinary), dated 1.7.2015, page 5 (w.e.f.1.7.2015).
 (2) Notwithstanding other provisions of this Act, the Authority may require
any person or class of persons whether registered or not for the purpose of this Act
to withhold full or part of the tax charged from such person or class of persons on the
provision of any taxable service or class of taxable services and to deposit the tax so
withheld, with the Government within such time and in such manner as it may, by
notification in the official Gazette, specify.

15. Delegation of power to collect, administer and enforce tax on certain

services.– (1) The Government may, in accordance with Article 147 of the
Constitution of the Islamic Republic of Pakistan, authorize the Federal Board of
Revenue or any other Federal agency or person to administer, collect and enforce
the levy of tax on such taxable services as it may notify and in such mode and
manner and for such period as may be prescribed and subject to such limitations,
restrictions and conditions as it may deem appropriate.
(2) The Government may, by notification in the official Gazette, authorize
any Provincial agency, department, organization or person to administer, collect and
enforce the levy of tax on such taxable services as it may notify in such mode and
manner and for such period as it may prescribe and subject to such restrictions and
conditions as it may impose.
(3) At the end of the period prescribed under sub-section (1), the tax on
taxable services notified under sub-section (1) shall be administered, collected and
enforced by the Authority in the same mode and manner as all other taxable
services.

16. Adjustments.– (1) The Authority may, subject to such conditions and
restrictions as it may specify, allow registered persons to claim adjustments or
deductions, including refunds arising as a result thereof, in respect of the tax paid
under any other law on any account in respect of any taxable service or goods or
class of taxable services or goods provided by them.
(2) For purposes of sub-section (1), the Authority may adopt the principles
or concepts laid down in such other law in respect of adjustments, deductions or
refunds including zero-rating principle.
(3) For the purpose of removal of any doubt it is clarified that no
adjustment or deduction of any tax payable under any other law shall be claimed by
any person except in the manner and to the extent specified in the notification issued
under sub-section (1).

CHAPTER III

PAYMENT AND COLLECTION OF TAX ON TAXABLE SERVICES

17. Collection of excess tax.– (1) Any person who has collected or collects the
tax or charge, whether under misapprehension of any provision of this Act or
otherwise, which was not payable as tax or charge or which was in excess of the tax
or charge actually payable and the incidence of which had been passed on to the
person to whom the service was provided, shall pay the amount of tax or charge so
collected to the Government.
(2) Any amount payable to the Government under sub-section (1) shall be
deemed to be an arrear payable under the Act and shall be recovered accordingly.
 (3) The burden of proof that the incidence of tax or charge referred to in
sub-section (1) has been or has not been passed to the person to whom the service
is provided shall be on the person collecting the tax or charge.

18. Time, manner and mode of payment.– (1) The tax in respect of a taxable
service provided during a tax period shall be paid by a person at the time of filing the
return in respect of that period under Chapter VI.

(2) For purposes of sub-section (1), a taxable service shall be considered

to have been provided in the tax period during which–
(a) it was provided to the recipient;
(b) an invoice for the value of the taxable service was issued or was due to
be issued or sent or due to be sent to the recipient; or
(c) consideration for the same was received–,
whichever is earlier.
(3) Notwithstanding anything contained in sub-section (1), the Authority
may, by a notification in the official Gazette, direct that the tax in respect of any
taxable service or such class of taxable services shall be charged, collected and paid
in any other way, mode, manner or time as may be specified in the notification.
(4) The tax due on taxable services shall be paid by any of the following
modes:–

(a) through deposit in a bank designated by the Authority; or

(b) through such other mode and manner as may be specified by the
Authority.

19. Joint and several liability of registered persons where tax unpaid.– (1)
Where a registered person receiving a taxable service from another registered
person is in the knowledge of or has reasonable grounds to suspect that some or all
of the tax payable in respect of that taxable service provided would go unpaid as
against the requirements of this Act, such person as well as the person providing the
taxable service shall be jointly and severally liable for payment of such unpaid
amount of the tax.

(2) The Authority may, by notification in the official Gazette, exempt any
person, service or transaction or class of persons, services or transactions from the
provision of sub-section (1).

20. Sales of taxable activity or transfer of ownership.– (1) Where the

ownership of any business providing taxable services is sold, transferred or
otherwise disposed of as an ongoing concern or activity, the fact of such sale,
transfer or other disposition shall be intimated to the Commissioner within one month
of the occurrence of such fact by the former owner.

(2) The tax chargeable on the taxable services provided in the business
referred to in sub-section (1) shall be accounted for and paid by the person to whom
sale or other disposition of such business is made or ownership thereof is transferred
and every such person shall be liable to registration under this Act.
21. Estate of deceased person.– The tax liability of a deceased registered
person under this Act shall be the first charge on his estate in the hands of his
successors.

22. Estate in bankruptcy.–(1) Where a registered person is declared bankrupt,

the tax liability under this Act shall pass on to the estate in bankruptcy if it continues
to operate the business.

(2) Where the tax liability is incurred by an estate in bankruptcy, the tax
shall be deemed to be a current expenditure in the operations of the estate in
bankruptcy and shall be paid before the claims of all other creditors are settled.

23. Liability for payment of tax in case of private companies or business

enterprises.– Where any private company or business enterprise is wound up and
any tax chargeable on or payable by the company or business enterprise, whether
before, or in the course, or after its liquidation, in respect of any tax period cannot be
recovered from the company or business enterprise, every person who was an
owner of, or partner in, or director of the company or business enterprise during the
relevant period shall, jointly and severally with such persons be liable for payment of
such tax.

24. Assessment of tax.– (1) Where on the basis of any information acquired
during an audit, inquiry, inspection or otherwise, an officer of the Authority is of the
opinion that a registered person has not paid the tax due on taxable services
provided by him or has made short payment, the officer shall make an assessment
of the tax actually payable by that person and shall impose a penalty and charge
default surcharge in accordance with sections 48 and 49.
(2) No order under sub-section (1) shall be made unless a notice to show
cause is given to the person in default within five years from the conclusion of the tax
period to which the assessment relates specifying the grounds on which it is
intended to proceed against him and the said officer shall take into consideration the
representation made by such person and provide him with an opportunity of being
heard if the person so desires.
(3) An order under sub-section (1) shall be made within one hundred and
twenty days of issuance of the show cause notice or within such extended period as
the officer may, for reasons to be recorded in writing, fix provided that such extended
period shall ordinarily not exceed sixty days.
(4) In computing the period specified in sub-section (3), any period during
which the proceedings are adjourned on account of a stay order or proceedings
under section 69 or the time taken through adjournments by the person shall be
excluded.
(5) An order passed by an officer under sub-section (1) may be further
amended as may be necessary when on the basis of any additional information
acquired during an audit, inquiry, inspection or otherwise, the officer is satisfied that
–
(a) any tax has been under-assessed or assessed at a low rate; or
(b) any taxable service provided by the person has escaped assessment.
 (6) The provisions of sub-sections (2), (3) and (4) shall be applicable to an
order passed under subsection (5).

CHAPTER IV

REGISTRATION

25. Registration.– (1) A person shall register under this Act, who–

(a) provides any taxable service from his office or place of business in the
Punjab; or
(b) is otherwise required to be registered under any of the provisions of the
Act or the rules; or
(c) fulfills any other criteria or requirements which the Authority may
prescribe under sub-section (2).
(2) The registration under this section will be regulated in such manner
and subject to such conditions and restrictions as the Authority may, by notification in
the official Gazette, prescribe.
(3) A person who receives a service, which is a taxable service by virtue of
sub-section (2) of section 3, and is not a registered person shall be deemed to be a
registered person for the purposes of the tax period in which –

(a) such person receives the service;

(b) an invoice for the value of the service is issued or sent to or received
by the person; or
(c) consideration for the service is paid by the person –
whichever is earlier and all the provisions of this Act and the rules shall
be applicable to such person for that particular tax period and any
matters relating to, arising out of, or concerning that tax period as if that
person had provided the service.
(4) The Authority may publish on its website a list of persons registered
under this Act.
(5) It shall be reasonable for a person to believe that another person is
registered under this Act if that other person is on the list placed on the website of
the Authority.
13
[Explanation.– Unless otherwise specified, no person shall be absolved of any tax liability
for want of registration under this Act or the rules.]

26. Voluntary registration.–(1) A person who carries on an economic activity but

is not required to be registered may apply for voluntary registration at any time.
(2) If a person who is not required to be registered applies for voluntary
registration, the Authority may register the person if the Authority is satisfied that –

13
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 (a) the person is providing, or shall provide a service that is taxable service
if the person was registered;
(b) the person has a place of business at which he carries on an economic
activity;
(c) there are reasonable grounds to believe that the person shall keep
proper records and file regular returns as prescribed under this Act and
the rules; and
(d) if the person has commenced carrying on an economic activity, the
person has–
(i) kept proper records in relation to his economic activity; and
(ii) complied with his obligations under other applicable taxation
laws.

27. Compulsory registration.– (1) If the Authority is satisfied that a person who
is required to be registered and has not applied for registration, the Authority shall
register the person and shall, not later than fifteen days before the day on which the
registration takes effect, notify the person of the registration, the day on which it
takes effect, and the registration number issued to the person.
(2) No person shall be registered compulsorily without being given an
advance notice and an opportunity of being heard in such manner as the Authority
may specify.
(3) The Authority may, by notification in the official Gazette, authorize any
officer to perform any of the functions under this section relating to compulsory
registration of a person for any of the taxable services.

28. Suspension of registration.– (1) Subject to sub-section (3), the Authority

may temporarily inactivate the registration of a person if it is satisfied that the
person–
(a) is not entitled to be registered; or
(b) has failed to comply with obligations under this Act or the rules.
(2) The Authority shall give notice to a registered person stating the
reasons for temporary inactivation of the person’s registration and the remedial
actions required to be taken by the person in such time as may be specified in the
notice.
(3) In case the Authority is not satisfied with the response of the person or
the remedial action taken by him or does not receive any response in the specified
time, the Authority may suspend that person’s registration.
(4) The suspension of registration shall be effected by removing the name
of the person from the list of registered persons published on the Authority’s website.
(5) At any time within a period of sixty days of suspension, the Authority
may withdraw the suspension if it is satisfied with the remedial actions taken by the
person.
(6) Where, after sixty days, the suspension has not been withdrawn, the
Authority may–
 (a) institute proceedings against the person in respect of the alleged non-
compliance under this Act;
(b) reinstate the person’s registration; or
(c) if neither of the actions in clauses (a) and (b) is done, cancel the
person’s registration.
(7) No registration shall be cancelled unless the Authority either through
enquiry, investigation or audit is satisfied that circumstances exist necessitating such
cancellation and under no circumstances, the cancellation of registration shall
absolve the person of his other obligations and liabilities under the Act or the rules.

29. De-registration.– (1) The Authority may de-register a registered person or

such class of registered persons not required to be registered under this Act.
(2) Where any person registered under this Act believes that he does not
satisfy the requirements for registration specified in section 25, he may make an
application to the Authority to be de-registered.
(3) If upon receiving such an application, the Authority is satisfied that the
person is not required to be registered under this Act and has fulfilled the obligations
under the Act, it shall de-register such person.
(4) Where the Authority receives an application under sub-section (2), it
shall dispose of the application within a period of three months from the date of the
receipt of the application, or within such extended period, not exceeding sixty days,
as the Authority may, for reasons to be recorded in writing, fix.
14
[29A. Restoration of registrations.– The Authority may, subject to conditions as may be
prescribed, reactivate, revive, reinstate or restore any registration which has been de-
activated, suspended or cancelled for any reason or under any circumstances.]

CHAPTER V

BOOK KEEPING AND AUDIT PROCEEDINGS

30. Issuance of tax invoices.– (1) A registered person providing a taxable

service shall issue a numbered and dated tax invoice containing the following
particulars:–
(a) name, address and registration number of the service provider;
(b) name, address and registration number, if any, of the service recipient;
(c) description of service or services;
(d) value exclusive of the tax;
(e) amount of the tax; and
(f) value inclusive of the tax.
(2) The Authority may, by notification in the official Gazette, specify such
modified invoices for different services or persons and prescribe the manner and
procedure for regulating the issuance and authentication of tax invoices.
14
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 (3) A registered person providing a taxable service may, subject to such
conditions and restrictions as the Authority may, by notification in the official Gazette,
specify, issue invoices to another registered person or other recipient of taxable
service electronically and transmit images or statements of such invoices to the
Authority as well as to the Commissioner, as may be specified.

31. Records.– (1) A registered person providing taxable service 15[or a person
required to pay tax under this Act or rules] shall maintain and keep at his business
premises or registered office in English or Urdu the following records of taxable
service (including exempt service) provided by him or by his agent acting on his
behalf in such form and manner as would permit ready ascertainment of his tax
liability during a tax period –
(a) records of taxable service provided indicating –
(i) the description and type of service;
(ii) the value of the service;
(iii) the particulars of the person to whom the service was provided;
and
(iv) any other information as may be specified by the Authority;
(b) records of exempt service; and
(c) such other records as may be specified by the Authority.
(2) The Authority may, by notification in the official Gazette, require a
registered person or class of registered persons to declare and use as many number
of business bank accounts as may be specified by the Authority in such notification
to make or receive payments on account of providing 16[or receiving] services for the
purpose of this Act and the rules and to make payment of due tax from such
accounts.

(3) The Authority may, by notification in the official Gazette, specify that
any person or class of persons registered under this Act shall use such electronic
fiscal cash registers in such manner as are approved by the Authority.
(4) The Authority may, by notification in the official Gazette, prescribe the
procedure or software for electronic invoicing or billing, maintenance of records, filing
of tax returns and for any other matter or approve any software for electronic
invoicing or billing, maintenance of records and filing of returns by a registered
person or class of such persons under this Act.
(5) The registered persons, whose accounts are subject to audit under the
Companies Ordinance, 1984 (XLVII of 1984), shall be required to submit a copy of
the annual audited accounts, along with a certificate by the auditors certifying the
payment of the tax due and any deficiency in the tax paid by the registered person.

32. Retention and production of records and documents.– (1) A person, who
is required to maintain any record or documents under this Act, shall retain the

15
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
16
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 record and documents for a period of 17[six] years after the end of the tax period to
which such record or documents relate or till the final decision in any proceedings
including proceedings for assessment, appeal, revision, reference or petition,
whichever is later.
(2) A person who is required to maintain any record or documents under
this Act or any other law shall, as and when required by an officer not below the rank
of the Assistant Commissioner, produce records or documents which are in his
possession or control or in the possession or control of his agent, and where such
records or documents have been stored as electronic data, he shall allow to such
officer full and free access to, and use of, such data of any machine.

33. Audit proceedings.– (1) An officer authorized by the Authority or the

Commissioner may, on the basis of the return or returns submitted by a registered
person or the records maintained 18[or obtained]under this Act and the rules, conduct
an audit of such person.
(2) In case the Authority or the Commissioner has any information showing
that any registered person is involved in tax fraud or evasion of tax, it or as the case
may be, he may authorize an officer not below the rank of the Assistant
Commissioner, to conduct an inquiry or investigation, which may or may not be in
addition to any audit carried out for the same period.
(3) Where the officer is to conduct an audit under sub-section (1), he shall
issue a notice of audit to the person informing him of the audit proceedings and
direct him to produce any records or documents which such officer may require for
conducting the audit.
(4) The officer shall conduct audit and issue an audit observation or
observations pointing out the contraventions of this Act or the rules and the amount
of the tax evaded or short paid, and the registered person may, within a period of
twenty one days of the receipt of the audit observation, submit his reply in writing.
(5) If no reply is received within the specified time or the reply furnished by
the registered person is found unsatisfactory, the officer shall issue an audit report
specifying the amount of the tax or charge that has not been levied or has been short
levied or any other violation of any provision of the Act or the rules.
(6) After completion of the audit under this section or any other provision of
this Act or the rules, an officer having pecuniary jurisdiction in terms of section 60
shall, if required, pass an order determining the correct amount of payable tax,
charging default surcharge and imposing a penalty.
(7) Notwithstanding the penalties prescribed in section 48 –
(a) if a registered person wishes to deposit the amount of the tax short
paid or evaded along with default surcharge voluntarily, whenever it comes to his
notice, he may, before receipt of notice of audit, file a revised return and may deposit
the amount of tax short paid or evaded along with default surcharge, in which case
no penalty shall be recovered from him;

17
Substituted for the word “five” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the
Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368.
18
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
(b) if a registered person wishes to deposit the amount of the tax short
paid or evaded along with default surcharge during the audit, or at any time before
issuance of show cause notice in lieu of the audit report, he may file a revised return
and may deposit the short paid or evaded amount of the tax, default surcharge under
section 49 and twenty per cent of the penalty payable under section 48, in which
case the show cause notice in lieu of the audit report shall not be issued in the
matter;
(c) if a registered person wishes to deposit the amount of tax short paid or
evaded along with default surcharge after issuance of show cause notice, he may file
a revised return and may deposit the short paid or evaded amount of the tax, default
surcharge under section 49, and fifty per cent of the penalty payable under section
48 and, thereafter, the show cause notice shall abate.
19
34. Special audit by chartered accountants or cost accountants.– [(1) The
Authority may, by notification in the official Gazette, appoint a Chartered Accountant as
defined under Chartered Accountants Ordinance, 1961 (X of 1961) or a firm of Chartered
Accountants or a Cost and Management Accountant within the meaning of the Cost and
Management Accountants Act, 1966 (XIV of 1966), or a firm of Cost and Management
Accountants or a person or a firm having expertise in forensic audit, for conducting a special
audit or forensic audit or both of the records of any registered person.]

(2) Notwithstanding that the records of a registered person have been

audited by an officer appointed under section 39, the Authority or a Commissioner
may direct an auditor appointed under sub-section (1) to audit the records of any
registered person for the same period.
(3) An auditor appointed under sub-section (1), shall have such powers of
an officer as may be conferred by the Authority to such auditor under any of the
provisions of this Act or the rules.
20
[(3A) The Authority may require that such officers of the Authority as the Authority
may nominate, shall be associated in the special audit or the forensic audit conducted under
subsection (1) and the Authority may also get the special audit or the forensic audit
conducted jointly with similar audit of a registered person being conducted by FBR or any
other provincial administrations of sales tax on services.]

(4) For purposes of this section or section 33, the audit of records includes
audit of the tax affairs of the registered person under this Act and the rules.

CHAPTER VI

RETURNS

35. Return.– (1) Every registered person shall furnish, not later than the due date,
a true, correct and properly filled-up return in the prescribed form to a designated
bank or any other office specified by the Authority, indicating the tax due and paid
during a tax period and such other information or particulars as may be prescribed
by the Authority.
19
Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
20
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
 (2) Notwithstanding anything in sub-section (1), the Authority may, by
notification in the official Gazette, require any registered person or class of registered
persons to submit returns on a quarterly, six monthly or annual basis in lieu of
monthly return.

(3) Notwithstanding anything in sub-section (1), the Authority may, by

notification in the official Gazette, require any registered person to submit such
returns, as may be prescribed, on any period basis in addition to other returns
required to be filed by such person.
(4) A return filed electronically on the web or any magnetic media or any
other computer readable media as may be specified by the Authority shall be
deemed to be a return for the purpose of sub-sections (1), (2) or (3) and the
Authority may, by notification in the official Gazette, prescribe the criteria for eligibility
of the data of such returns and e-intermediaries who shall digitize the data of such
returns and transmit the same electronically under their digital signatures.
(5) If there is a change in the rate of the tax during a tax period, a separate
return in respect of each portion of tax period showing the application of different
rates of tax shall be furnished.
21
(6) [Subject to rules, a registered person may], after prior permission
from the Commissioner, file a revised return within one hundred and twenty days of
filing a return under sub-sections (1), (2) or (3), to correct any omission or wrong
declaration made therein and to deposit any amount of the tax not paid or short paid.

36. Special returns.– In addition to the return or returns specified under section
35, the Commissioner may require any person, whether registered or not, to furnish
a return (whether on his own behalf or as an agent or trustee) in a prescribed form
and such person shall furnish the return not later than the date specified in this
regard.

37. Final return.– If a person applies for de-registration in terms of section 29, he
shall before such de-registration, furnish a final return to the Authority or the
Commissioner in the specified form in such manner and at such time as may be
directed by the Authority or the Commissioner.

38. Return deemed to have been made.– A return purporting to be made on

behalf of a person by his duly appointed representative or agent shall, for all
purposes of this Act or the rules, be deemed to have been made by such person or
under his authority unless proved to the contrary.

CHAPTER VII

APPOINTMENT OF AUTHORITIES AND THEIR POWERS

39. Appointment of authorities.– (1) For purposes of this Act and the rules, the
Authority may, in the prescribed manner and by notification in the official Gazette,
appoint in relation to any area or cases specified in the notification, any person to be
a–
21
Substituted for the words “A registered person may” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and
published in the Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368.
 (a) Commissioner;
(b) Commissioner (Appeals);
(c) Additional Commissioner of the Authority;
(d) Deputy Commissioner;
(e) Assistant Commissioner;
(f) Audit Officer of the Authority;
(g) Inspector of the Authority; or
(h) An officer of the Authority with any other designation.
(2) The Commissioner (Appeals) and the Commissioner shall be
subordinate to the Authority.
(3) The Additional Commissioners, Deputy Commissioners and the
Assistant Commissioners shall be subordinate to the Commissioner and unless
otherwise directed by the Authority or the Commissioner, both the Deputy
Commissioner and the Assistant Commissioner shall also be subordinate to the
Additional Commissioner.
(4) The Audit Officers and Inspectors and the officers of other such equal
or lower designations, if any, shall be subordinate to the Deputy Commissioner or to
the Assistant Commissioner.
(5) The Authority may designate any Deputy Commissioner supervisory
incharge of any Assistant Commissioner either by name or by designation in any of
its subordinate offices or formations.
(6) The Authority may distribute the work and related functions amongst
the above designations in a manner it deems appropriate and make changes in such
work distribution as and when deemed proper.
(7) The Authority may, by notification in the official Gazette, prescribe
uniform including shoulder strips and badges for different classes of the officers or
officials of the Authority.
(8) All jurisdictional and competency issues arising under this Act or the
rules shall be decided by the Authority in such manner as it thinks fit.

40. Powers.– (1) An officer appointed under section 39 shall exercise such
powers and discharge such duties as are conferred on him under this Act and the
rules and he shall also be empowered and competent to exercise all powers and
discharge all duties or functions conferred upon any officer subordinate to him.

(2) The Authority may, by general or special order, impose such

limitations, restrictions or conditions on the exercise of such powers and discharge of
such duties or functions as it deems fit.

41. Distribution of powers.– (1) The Authority may, by notification in the official
Gazette, and subject to such limitations or conditions, empower by name or by
designation–

(a) an Additional Commissioner to exercise or perform any of the powers

or functions of a Commissioner;
 (b) a Deputy Commissioner to exercise or perform any of the powers or
functions of an Additional Commissioner;
(c) an Assistant Commissioner to exercise or perform any of the powers or
functions of a Deputy Commissioner; and
(d) any other officer to exercise or perform any of the powers or functions
of an Assistant Commissioner.
(2) The Authority may confer powers and functions of any officer as
additional duties to any officer of the same rank or a step senior or junior in rank.

(3) An officer to whom any powers or functions are conferred under this
section shall not assign such powers or functions to any other officer except with the
prior permission of the Authority.

42. Special Judges.– (1) The Government may, by notification in the official
Gazette, appoint any person who is serving or has served as District and Sessions
Judge for a period of at least five years as Special Judge and, where it appoints
more than one Special Judge, it shall specify in the notification the headquarters of
each Special Judge and the territorial limits within which he shall exercise jurisdiction
under this Act and the rules.

(2) If a Special Judge is, for any reasons, unable to perform his duties
under this Act or the rules, the District and Sessions Judge of the District shall
perform the duties of the Special Judge for the District.

43. Cognizance of offence.– (1) The Special Judge may, within the limits of his
jurisdiction, take cognizance of any offence punishable by him upon –
(a) a report in writing made by an officer, not below the rank of Assistant
Commissioner with the approval of the Commissioner or by an officer especially
authorized in this behalf by the Authority;
(b) receiving a complaint or information of facts constituting such offence
made or communicated by any person; or
(c) his knowledge acquired during any proceedings before him.
(2) If the Special Judge receives a report under clause (a) of sub-section
(1), the Special Judge shall proceed with the trial of the accused.
(3) If the Special Judge receives a complaint or information under clause
(b) of sub-section (1), on the basis of his own knowledge, the Special Judge shall,
before issuing a summon or warrant for appearance of the person hold a preliminary
inquiry for purposes of ascertaining the truth or falsehood of the complaint,
information or knowledge or direct any Magistrate or any officer to hold such inquiry
and submit a report, and such Magistrate or officer, shall conduct such inquiry and
make a report accordingly.
(4) If, after conducting such an inquiry or after considering the report of
such Magistrate or officer, the Special Judge may dismiss the complaint if there are
no grounds to proceed further, or may decide to proceed against the person in
accordance with law.
 (5) A Special Judge or a Magistrate or an officer holding an inquiry under
sub-section (3) may hold such inquiry, as nearly as possible, in accordance with the
provisions of section 202 of the Code of Criminal Procedure, 1898 (V of 1898).

44. Application of the Code of Criminal Procedure, 1898.– (1) The provisions
of the Code of Criminal Procedure, 1898 (V of 1898), so far as they are not
inconsistent with the provisions of this Act, shall apply to all proceedings of the court
of a Special Judge and such court shall be deemed to be a Court of Session for the
purposes of the said Code and the provisions of Chapter XXII-A of the Code, so far
as applicable and with necessary modifications, shall apply to the trial of cases by
the Special Judge under the Act.
(2) For purposes of sub-section (1), the Code of Criminal Procedure, 1898
(V of 1898) shall have effect as if an offence punishable under this Act was one of
the offences referred to in sub-section (1) of section 337 of the Code.

45. Exclusive jurisdiction of Special Judge.– No court other than the Special
Judge having jurisdiction, shall try an offence punishable by the Special Judge under
this Act.

46. Place of sitting.– A Special Judge shall ordinarily hold sittings at his
headquarters provided that keeping in view the general convenience of the parties or
the witnesses, he may hold sittings at any other place.

47. Persons who may conduct prosecution.– (1) An officer not below the rank
of an Assistant Commissioner shall be competent to conduct prosecution before a
Special Judge for and on behalf of the Government.
(2) A prosecution conducted under this Act before the Special Judge may
only be withdrawn by the Authority on the direction or after concurrence of the
Government.

CHAPTER VIII

OFFENCES AND PENALTIES

48. Offences and penalties.– (1) If a person commits any offence described in
column 2 of the Table below shall, in addition to and not in derogation of any
punishment to which he may be liable under any other law, be liable to the penalty
mentioned against that offence in column 3.

(2) The sections referred to in column 4 of the said Table shall be deemed
to be meant for illustrative purposes only and the corresponding offence described in
column 2 may fall and be prosecuted under other sections of this Act as well.

TABLE

S. No. Offences Penalties Section

1 2 3 4
24
1. Any person who is Such person shall be liable to [25 and
 required to apply for pay a penalty of 22[fifty 27]
registration under this thousand] rupees or five per
Act fails to make an cent of the amount of the tax he
application for would have been liable to pay
registration before had he been registered,
providing any taxable whichever is higher.
services In the case of non-compliance of
compulsory registration, the
23
minimum penalty [for a
company shall be one hundred
thousand rupees and for a person,
other than a company, shall be fifty
thousand rupees]:
If such person who is required to
get himself registered under this
Act, fails to get registered within
ninety days of providing taxable
services, he shall be further
liable, upon conviction by a
Special Judge, to imprisonment
for a term which may extend to
one year, or with fine which may
extend to the amount of the tax
he would have been liable to
pay had he been registered, or
with both.
2. Where any person fails Such person shall be liable to 35
to furnish a return within pay a penalty of five thousand
the due date. rupees provided if a return is not
filed within fifteen days of the
due date, a penalty of hundred
rupees for each day of default
shall be levied.

22
Substituted for the words “ten thousand” by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in
the Punjab Gazette (Extraordinary), dated 26.6.2014, pages 4169-4178.
23
Substituted for the words “shall be ten thousand rupees” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5;
and published in the Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368.
24
Substituted for the figure “25” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the
Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368.
 3. Where any person fails (a) Such person shall be liable 3, 4, 10,
to deposit the amount to pay a penalty of ten thousand 11, 17,18
of the tax due or any rupees or five per cent of the tax and 68
part thereof in the time payable for that period,
or manner laid down whichever is higher.
under this Act or the (b) If the amount of the tax due is
rules. not paid even after the expiry of
a period of sixty days of issuance
of the notice for such payment by
an officer, not below the rank of
Assistant Commissioner, the
person shall be further liable,
upon conviction by a Special
Judge, to imprisonment for a
term which may extend to three
years, or with fine which may
extend to the amount of the
unpaid tax, or with both.
(c) No penalty shall be levied if
any miscalculation is made for
the first time during a year.
4. Any person who fails to Such person shall pay a penalty 30, 31 and
maintain records of ten thousand rupees or five 32
required under the Act per cent of the total tax payable
or the rules. for the tax period for which he
has failed to maintain the
required record, whichever is
higher.
25
[5. Where a person, without Such person shall pay a penalty of 30, 32, 53
any reasonable cause, twenty five thousand rupees for the and 57]
fails to produce the record first default and fifty thousand
or information despite rupees for each subsequent
receipt of a notice from default.
the Authority or any officer
of the Authority directing
him to produce such
record or information.

25
Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
6. Any person who Such person shall be liable General
knowingly or to pay a penalty of twenty five
fraudulently– thousand rupees or one
(a) submits a false or hundred per cent of the tax
forged document to any payable for the tax period to
officer of the Authority; which the offence relates,
or whichever is higher.
(b) destroys, alters, Such person shall further be
mutilates or falsifies the liable, upon conviction by a
records; or Special Judge, to imprisonment
for a term which may extend to
(c) makes a false
five years or with fine which may
statement, false
extend to an amount equal to
declaration, false
the tax payable for the tax
representation, false
period to which the offence
personification, or gives
relates, or with both.
any false information.
7. Where any person who Such person shall be liable to 31, 32 and
denies or obstructs the pay a penalty of twenty five 56
access of an authorized thousand rupees or one
officer to the business hundred per cent of the tax
premises, registered payable for the tax period to
office or to any other which the offence relates,
place where records whichever is higher.
are kept, or otherwise Such persons shall, further be
refuses access to liable, upon conviction by a
accounts or records. Special Judge, to imprisonment
for a term which may extend to
five years, or with a fine which
may extend to an amount equal
to the tax payable for the tax
period to which the offence
relates, or with both.
8. Where any person Such person shall be liable to 2(43)
commits, causes to pay a penalty of up to five
commit or attempts to hundred thousand rupees, but
commit tax fraud, or not less than twenty five
abets or connives in the thousand rupees, or one
commission of tax fraud hundred per cent of the tax
equal to twenty five payable for the tax period to
thousand rupees or which the offence relates,
more. whichever is higher.
Such person shall, further be
liable, upon conviction by a
Special Judge, to imprisonment
for a term which may extend to
five years, or with fine which
may extend to an amount equal
 to the tax payable for the tax
period to which the offence
relates, or with both.
9. Such person shall be liable to 70
Where any person pay a penalty of twenty five
violates any embargo thousand rupees or ten per cent
placed on providing of of the amount of the tax sought
service in connection to be recovered, whichever is
with recovery of the tax. higher.
Such person shall, further be
liable, upon conviction by a
Special Judge, to imprisonment
for a term which may extend to
one year, or with fine which may
extend to amount equal to the
amount of the tax sought to be
recovered, or with both.
10. Where any person Such person shall be liable to 28[General
obstructs any officer of pay a penalty of twenty five and
the Authority in the thousand rupees or one section 59]
performance of his hundred per cent of the tax
official duties under this payable for the tax period to
Act or the rules. which the offence relates,
whichever is higher.
Such person shall be further
liable, upon conviction by a
Special Judge, to imprisonment
for a term which may extend to
one year or with fine not
exceeding fifty thousand rupees
or with both26[:]
[Provided that where any
27

recipient of a service does not

pay the amount of tax due to be
paid to a service provider, such
recipient shall also be liable to
action for obstruction under this
provision.]

11. Where any person who Such person shall be liable to General
26
Substituted for the “full-stop” by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab
Gazette (Extraordinary), dated 26.6.2014, pages 4169-4178.
27
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
28
Substituted for the existing entry “General” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and
published in the Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368.
 fails to fulfill any of the pay a penalty of five thousand
conditions, limitations or rupees or three per cent of the
restrictions prescribed tax payable for the tax period to
in a notification issued which the offence relates,
under any of the whichever is higher.
provisions of the Act or
the rules.
12. Where any person who Such person shall be liable to General
contravenes any pay a penalty of ten thousand
provision of this Act or rupees or three per cent of the
the rules for which no tax payable for the tax period to
penalty has specifically which the offence relates,
been provided in this whichever is higher.
section.
13. Where any person Such person shall be liable to General
repeats an offence for pay twice the amount of penalty
which a penalty is provided under the Act for the
provided under this Act. said offence.
14. Where any person– Such person shall pay a penalty General
of twenty five thousand rupees
(a) knowingly and
or one hundred per cent of the
without lawful
amount equal to the loss caused
authority gains
to the tax revenue.
access to or
attempts to gain Such person shall further be
access to the liable, upon conviction by the
computerized Special Judge, to imprisonment
system; or for a term which may extend to
(b) unauthorizedly uses one year, or with fine which may
or discloses or extend to an amount equal to
publishes or the loss caused to the tax
revenue, or with both.
otherwise
disseminates
information obtained
from the
computerized
system; or
(c) falsifies any record
or information stored
in the computerized
system; or
(d) knowingly or
dishonestly
damages or impairs
the computerized
 system; or
(e) knowingly or
dishonestly
damages or impairs
any duplicate tape
or disc or other
medium on which
any information
obtained from the
computerized
system is kept or
stored; or
(f) unauthorizedly uses
unique user
identifier of any
other registered
user to authenticate
a transmission of
information to the
computerized
system; or
(g) fails to comply with
or contravenes any
of the conditions
prescribed for
security of unique
user identifier.

49. Default surcharge.– (1) Notwithstanding the provisions of section 24, if a

registered person does not pay the tax due or any part thereof, whether willfully or
otherwise, on time or in the manner specified under this Act, rules or notifications or
procedures issued thereunder, he shall, in addition to the tax due and any penalty
under section 48, pay default surcharge at the rate mentioned below :–
(a) the person liable to pay any amount of tax or charge shall pay default
surcharge at the rate of inter-bank rate plus three per cent per annum
of the amount of the tax due; and
(b) in case, the default is on account of tax fraud, the person who has
committed tax fraud shall pay default surcharge at the rate of two per
cent per month, of the amount of tax evaded, till such time the entire
liability including the amount of default surcharge is paid.
(2) For the purpose of calculation of default surcharge, the period of
default shall be reckoned from the sixteenth day following the due date of the tax
period to which the default relates, to the day preceding the date on which the tax
due is actually paid.

Explanation: For purposes of this section, the tax due does not include the amount
of penalty.
50. Exemption from penalty and default surcharge.– The Government may, by
a notification in the official Gazette, exempt any registered person or any taxable
service from payment of the whole or any part of the penalty and default surcharge
subject to such conditions and limitations as may be specified.

51. Compounding of offences.– Notwithstanding anything contained in any

other provision of this Act, where any person has committed any offence warranting
prosecution under the Act, the Authority may, either before or after the institution of
any proceedings for the prosecution of such offence, compound the offence and
terminate the proceedings if such person pays the amount of the tax due along with
such default surcharge and penalty as is determined by the Authority under the
provisions of this Act and the rules.

52. Recovery of tax not levied or short-levied.– (1) Where by reason of

inadvertence, error, misconstruction or for any other reason, any tax or charge has
not been levied or has been short levied, the person liable to pay such amount of the
tax or charge shall be served with a notice, within 29[five years] of the relevant tax
period requiring him to show cause for payment of the amount specified in the
notice.
(2) Where by reason of some collusion, abetment, deliberate attempt, mis-
statement, fraud, forgery, false or fake documents –
(a) any tax or charge has not been paid or is, short paid, the person liable
to pay such tax shall be served with a notice within five years of
relevant tax period, requiring him to show cause for non-payment of
such tax; and
(b) any amount of the tax is refunded which is not due, the person
obtaining such refund shall be served with a notice within five years of
the receipt of such refund to show cause for recovery of such refund.
(3) The officer shall, after considering the objections of the person served
with a notice under sub-sections (1) or (2) or if the objections are not received within
the stipulated period, determine the amount of the tax or charge payable by him and
such person shall pay the amount so determined.

(4) Any order under susection (3) shall be made within one hundred and
twenty days of issuance of the notice to show cause or within such extended period
as the officer may, for reasons to be recorded in writing, fix provided that such
extended period shall not ordinarily exceed sixty days.
(5) In computing the period specified in sub-section (4), any period during
which the proceedings are adjourned on account of a stay order or proceedings
under section 69 or the time taken through adjournments by the petitioner not
exceeding thirty days shall be excluded.

53. Power to summon persons to give evidence and produce documents.–

An officer may summon any person whose attendance he considers necessary
either to tender evidence or to produce documents or any other thing in any audit,

29
Substituted for the words “three years” by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in
the Punjab Gazette (Extraordinary), dated 26.6.2014, pages 4169-4178.
inquiry, investigation or proceedings which such officer is making for any of the
purposes of this Act and the rules.
(2) Any person summoned under sub-section (1) shall be bound to attend
either in person or by an authorized agent, as the officer may direct.
(3) Notwithstanding anything in sub-sections (1) and (2), a person who is
exempt from personal appearance in a Court under sections 132 and 133 of the
Code of Civil Procedure (V of 1908), shall not be required to appear in person.
(4) Any proceedings under this Act or the rules before an officer shall be
deemed to be judicial proceedings within the meaning of sections 193 and 228 of the
Pakistan Penal Code (XLV of 1860).

54. Power to arrest and prosecute.– (1) An officer authorized by the Authority
by notification in the official Gazette in this behalf, who on the basis of material
evidence has reasonable cause to believe that any person has committed a tax fraud
or any offence warranting prosecution under this Act, may cause arrest of such
person.
(2) All arrests made under this Act shall be carried out in accordance with
the relevant provisions of the Code of Criminal Procedure, 1898 (V of 1898).
(3) Where the person suspected of tax fraud or any offence warranting
prosecution under this Act is a company, every director or officer of that company
whom the officer has reason to believe is personally responsible for actions of the
company contributing to the tax fraud or any offence warranting prosecution under
this Act shall be liable to arrest provided that such arrest shall not absolve the
company from the liabilities of payment of the tax, default surcharge and any penalty
imposed or due under this Act.

55. Procedure to be followed on arrest of a person.– (1) When an officer

arrests a person under section 54, he shall immediately intimate the fact of arrest of
that person to the Special Judge who may direct such officer to produce that person
at such time and place and on such date as the Special Judge considers expedient.
(2) Notwithstanding anything contained in sub-section (1), any person
arrested under this Act shall be produced before the Special Judge or, if there is no
Special Judge within a reasonable distance, to the nearest Magistrate within twenty-
four hours of such arrest, excluding the time necessary for the journey from the place
of arrest to the court of the Special Judge or of the Magistrate.
(3) When any person is produced under sub-section (2) before the Special
Judge, the Special Judge may, on the request of such person, after perusing the
record, if any and after giving the prosecution an opportunity of being heard, admit
him to bail on his executing a bond, with or without sureties, or refuse to admit him to
bail and direct his detention at such place as he deems fit.
(4) Nothing contained herein shall preclude the Special Judge from
cancelling the bail of any such person at a subsequent stage if, for any reason, he
considers such cancellation necessary, but before passing such order he shall afford
such person an opportunity of being heard, unless for reasons to be recorded he
considers that the affording of such opportunity shall defeat the purpose of this Act.
 (5) When such person is produced under sub-section (2) before a
Magistrate, such Magistrate may, after authorizing his detention in such custody at
such place and for such period as he considers necessary or proper for facilitating
his earliest production before the Special Judge, direct his production before the
Special Judge on a date and time to be fixed by him or direct such person to be
forthwith taken to, and produced before the Special Judge and he shall be so taken
or produced.

(6) Nothing in sub-sections (2), (3) and (4) shall preclude the Special
Judge or the Magistrate from remanding any such person to the custody of the
officer holding an inquiry or investigation against that person if such officer makes a
request in writing to that effect, and the Special Judge or the Magistrate, after
perusing the record, if any, and hearing such person, is of the opinion that for the
completion of inquiry or investigation it is necessary to make such order but the total
period of such custody shall not exceed fourteen days.
(7) When any person is arrested under this Act, the arresting officer shall
record the fact of arrest and other relevant particulars in the register specified in sub-
section (11) and shall immediately proceed to inquire into the charge against such
person and if he completes the inquiry within twenty-four hours of his arrest, and he
may, after producing such person before the Special Judge or the Magistrate, make
a request for his further detention in his custody.
(8) While holding an inquiry under sub-section (7), the officer shall
exercise the same powers as are conferred upon or exercisable by an officer in
charge of a police station under the Code of Criminal Procedure, 1898 (V of 1898),
but such officer shall exercise such powers subject to the foregoing provisions of this
section while holding an inquiry under this Act.
(9) If the officer, after holding an inquiry, is of the opinion that there is no
sufficient evidence or reasonable ground for suspicion against such person, he shall
release him on his executing a bond, with or without sureties, and shall direct such
person to appear, as and when required, before the Special Judge, and make a
report to the Special Judge for the discharge of such person and shall make a full
report of the case to his immediate superior.
(10) The Special Judge to whom a report has been made under sub-section
(8) may, after the perusal of record of the inquiry, and hearing the prosecution, agree
with such report and discharge the accused or, if he is of the opinion that there is
sufficient ground for proceedings against such person, proceed with his trial and
direct the prosecution to produce evidence.

(11) The officer holding an inquiry under this section shall maintain a
register to be called register of arrests and detentions in the form prescribed by the
Government in which he shall enter the name and other particulars of every person
arrested under this Act, together with the time and date of arrest, the details of the
information received, the details of things, goods or documents, recovered from his
custody, the name of the witnesses and the explanation, if any, given by him and the
manner in which the inquiry has been conducted from day to day; and, such register
or authenticated copies of its entries shall be produced before the Special Judge,
whenever it is directed by the Special Judge.
 (12) After completing the inquiry, the officer shall, as early as possible,
submit to the Special Judge a complaint in the same form and manner in which the
officer in charge of a police station submits a report before a Court.
(13) Any Magistrate of the first class may record any statement or
confession during inquiry or investigations under this Act in accordance with the
provisions of section 164 of the Code of Criminal Procedure, 1898 (V of 1898).

56. Authorized officers to have access to premises, stocks, accounts and

records.– (1) Any officer, authorized in this behalf by the Authority by notification in
the official Gazette, shall have free and full access to the business premises,
registered office or any other place where any business records or documents
required under this Act and the rules are kept or maintained by any registered
person or a person liable for registration or whose business activities are covered
under this Act and the rules or who may be required for any inquiry or investigation in
any tax fraud committed by him or his agent or any other person; and such officer
may, at any time, inspect the records, data, documents, correspondence, accounts,
statements, utility bills, bank statements, information regarding nature and sources of
funds or assets with which his business is financed, and any other records or
documents, including those which are required under any other law maintained in
any form or mode and may take into his custody such records, statements, diskettes
or documents, in original or copies, in such form as the officer may deem fit against a
signed receipt.
(2) The registered person, his agent or any other person specified in sub-
section (1) shall answer any question or furnish such information or explanation as
may be asked by the authorized officer.
(3) All other Government departments, local bodies, autonomous bodies,
corporations or such other institutions shall supply requisite information and render
necessary assistance to the authorized officer in the course of inquiry or
investigation under this section.

57. Obligation to produce documents and provide information.– (1)

Notwithstanding anything contained in this Act or any other law, any person required
to maintain any record under this Act and the rules, shall, on demand by an officer,
not below the rank of an Assistant Commissioner, by notice in writing, as and when
specified in the notice–
(a) produce for examination, such documents or records which the officer
considers necessary or relevant to the audit, inquiry or investigation
under this Act;
(b) allow the officer to take extracts from or make copies of such
documents or records; and
(c) appear before the officer and answer any question put to him
concerning the documents and records relating to the audit, inquiry or
investigation referred to in clause (a).
30
[(2) An officer conducting an audit, enquiry, investigation or otherwise for the
purposes of the Act or the rules may require in writing any person to furnish any information

30
Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
as is held by the person.]
(3) The Authority may require, in writing, any person, department,
company or organization, to provide any information or data held by that person,
department, company or organization, which, in the opinion of the Authority 31[or an
officer authorized by the Authority], is required for purposes of formulation of policy
or administering or implementing this Act and the rules.
(4) Every person, department, company or organization shall furnish the
information requisitioned by the Authority or the officer under subsections (2) or (3),
within the time specified in the notice issued by the Authority.

58. Searches under warrants.–(1) Where any officer has reason to believe that
any documents or things which in his opinion, may be useful for, or relevant to, any
proceedings under this Act are kept in any place, he may after obtaining a warrant
from the Magistrate or from the Commissioner, enter that place and cause a search
to be made at any time.
(2) All searches made under sub-section (1) shall be carried out in
accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (V
of 1898).

59. Posting of an officer to business premises.– (1) Subject to such conditions

and restrictions as it deems fit to impose, the Authority may post an officer to the
premises of a registered person to monitor the provision of services by such
registered person.
(2) Notwithstanding anything contained in sub-section (1), if a
Commissioner, on the basis of material evidence, has reasonable cause to believe
that a registered person is involved in evasion of the tax or tax fraud, he may, by
recording the grounds in writing, post an officer of the Authority to the premises of
such registered person to monitor provision of services by such person.
(3) A person to whose premises, an officer of the Authority is posted under
this section, shall provide on his own cost, all facilities required to meet the
departmental requirements of such posting as determined by the Authority or the
Commissioner.

60. Powers of adjudication.– (1) In respect of cases involving determination of

tax liability, assessment of the tax, charging of default surcharge, imposition of
penalty and recovery of amount erroneously refunded or any other contravention or
violation including tax fraud under this Act or the rules, the jurisdiction and powers of
adjudication of the officers shall be as follows:–

(a) Additional Commissioner: Cases without any restriction as to the

amount of the tax involved or amount erroneously refunded;

(b) Deputy Commissioner: Cases where the amount of the tax involved
or the amount erroneously refunded exceeds one million rupees, but
does not exceed two and a half million rupees;

31
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
 (c) Assistant Commissioner: Cases where the amount of the tax
involved or the amount erroneously refunded does not exceed one
million rupees; and

(d) other officers of the Authority: such cases, other than those
mentioned above, as may be prescribed.
(2) The Commissioner may adjudicate any case falling in the jurisdiction
and powers of any officer subordinate to him and appeal against the order passed by
the Commissioner in such case shall lie to the Appellate Tribunal.
(3) The Authority may regulate the system of adjudication including
transfer of cases and extension of time limit.

Explanation: For purposes of this section, the tax means the principal amount of the
tax other than default surcharge and in case where only default surcharge is
involved, the amount of default surcharge.

61. Revision by the Commissioner.– (1) The Commissioner may, of his own
motion or on an application made in writing by a registered person for revision, call
for and examine the record of any proceedings under this Act in which an order has
been passed by an officer subordinate to him.
(2) If after examining the record under sub-section (1), the Commissioner
is not satisfied with the legality or propriety of any order passed by an officer, the
Commissioner may make such revision to the order as he may think fit.
(3) No order imposing or enhancing any penalty or fine requiring payment
of a greater amount of the tax than the originally levied amount shall be passed
unless the person affected by such order has been given an opportunity of showing
cause and of being heard.
(4) The Commissioner shall not revise any order under sub-section (2) if –

(a) an appeal under section 63 is pending or the matter has been referred
for resolution under section 69;
(b) where an appeal against the order lies under section 63, the time within
which such appeal can be made has not expired or the person has not
waived in writing his right of appeal;
(c) in the case of an application made by a person, the application has not
been made within ninety days of the date on which such order was
served on the person, unless the Commissioner is satisfied that the
person was prevented by sufficient cause from making the application
within the time allowed; and
(d) in the case where the Commissioner has on his own motion called for
and examined an order passed by a subordinate officer, more than five
years have lapsed from the date of the original order.
(5) No application for revision of an assessment shall be made under sub-
section (1) unless the amount of the tax due under the assessment, as is not in
dispute, has been paid by the taxpayer.
62. Revision by the Authority.– (1) The Authority may, of its own motion, call for
and examine the record of any departmental proceedings under this Act or the rules
for the purpose of satisfying itself as to the legality or propriety of any decision or
order passed therein by an officer.
(2) If after examining the record under sub-section (1), the Authority is not
satisfied with the legality or propriety of any decision or order passed by an officer, it
may pass such order as it may think fit.
(3) No order imposing or enhancing any penalty or fine requiring payment
of a greater amount of the tax than the originally levied amount shall be passed
unless the person affected by such order has been given an opportunity of showing
cause and of being heard.

(4) No proceeding under this section shall be initiated in a case where an

appeal under section 66 is pending or the matter has been referred for resolution
under section 69.
(5) No order shall be made under this section after the expiry of five years
from the date of the original decision or order of the subordinate officer referred to in
sub-section (1).

CHAPTER IX

APPEALS

63. Appeals.– (1) Any person, other than the Authority or any of its employees,
aggrieved by any decision or order passed under section 60 by an officer of the
Authority other than Commissioner may, within thirty days of the date of receipt of
such decision or order, prefer an appeal to the Commissioner (Appeals).
(2) An appeal under sub-section (1) shall–
(a) be in the prescribed form;
(b) be verified in the prescribed manner;
(c) state precisely the grounds upon which the appeal is made;
(d) be accompanied by the fee specified in sub-section (3); and
(e) be lodged with the Commissioner (Appeals) within the time set out in
sub-section (4).
(3) The prescribed fee shall be–
(a) where the appellant is a company, one thousand rupees; or
(b) where the appellant is not a company, two hundred rupees.
(4) An appeal shall be preferred to the Commissioner (Appeals) within
thirty days of the receipt of the decision or order passed under section 60.
(5) The Commissioner (Appeals) may, upon application in writing by the
appellant, admit an appeal after the expiration of the period specified in sub-section
(4) if the Commissioner (Appeals) is satisfied that the appellant was prevented by
sufficient cause from lodging the appeal within that period.
64. Procedure in appeal.– (1) The Commissioner (Appeals) shall give notice of
the day fixed for the hearing of the appeal to the appellant and to the officer of the
Authority against whose order the appeal has been made.
(2) The Commissioner (Appeals) may adjourn the hearing of the appeal
from time to time.
(3) The Commissioner (Appeals) may, before the hearing of an appeal,
allow the appellant to file any new ground of appeal not specified in the grounds of
appeal already filed by the appellant where the Commissioner (Appeals) is satisfied
that the omission of the ground from the form of the appeal was not willful or
unreasonable.
(4) The Commissioner (Appeals) may stay the recovery of any tax due by
virtue of the decision or order being appealed against and any such order made by
the Commissioner (Appeals) shall remain operative for not more than fifteen days
during which period a notice shall be issued to the respondent and after hearing the
parties, the order staying recovery may be confirmed, varied or vacated as the
Commissioner (Appeals) deems fit but the stay order so confirmed or varied shall
remain operative for not more than sixty days, including any period for which the
recovery may have been stayed prior to the confirmation or variation of the stay
order.
(5) The Commissioner (Appeals) may, before disposing of an appeal, call
for such particulars, documents, records or information as the Commissioner
(Appeals) may require respecting the matters arising in the appeal or cause further
inquiry to be made by the officer of the Authority.

65. Decision in appeal.– (1) In disposing of an appeal lodged under section 63,
the Commissioner (Appeals) may pass such order as he thinks fit, confirming,
varying, altering, setting aside or annulling the decision or order appealed against.
(2) In deciding an appeal, the Commissioner (Appeals) may make such
further inquiry as may be necessary provided that he shall not remand the case for
de novo consideration.
(3) The Commissioner (Appeals) shall not increase the amount of any tax
payable by the appellant unless the appellant has been given an opportunity of
showing cause against such increase.
(4) The Commissioner (Appeals) shall communicate his order to the
appellant and the Authority.
(5) An order passed by the Commissioner (Appeals) under sub-section (1)
shall be passed not later than one hundred and twenty days from the date of filing of
appeal or within such extended period, not exceeding sixty days, as the
Commissioner (Appeals) may, for reasons to be recorded in writing, fix.
(6) In computing the aforesaid time period, any period during which the
proceedings are adjourned on account of a stay order or proceedings under section
69 or the time taken through adjournments by the appellant shall be excluded.
(7) Where the Commissioner (Appeals) has not made an order under sub-
section (1) before the expiration of one hundred and eighty days from the end of the
month in which the appeal was lodged, the Commissioner (Appeals) shall transfer
his appeal to the Appellate Tribunal and the Tribunal shall decide the appeal under
this Act as if it has been filed against the order of the Commissioner (Appeals).

(8) While transferring the undecided appeal to the Appellate Tribunal, the
Commissioner (Appeals) shall attach his comprehensive report explaining the
circumstances and reasons due to which the appeal could not be decided within
time.
(9) For purposes of sub-section (5), any period during which the hearing of
an appeal is adjourned on the request of the appellant shall be excluded in the
computation of the period mentioned in the sub-section.

66. Appeal to the Appellate Tribunal.– (1) Where the taxpayer or the officer not
below the rank of Additional Commissioner objects to any order passed by the
Commissioner (Appeals), including an order under sub-section (4) of section 64, the
taxpayer or the officer may appeal to the Appellate Tribunal against such order.
(2) An appeal under sub-section (1) shall be –
(a) in the prescribed form;
(b) verified in the prescribed manner;
(c) accompanied, except in case of an appeal preferred by an officer by
the fee specified in sub-section (3); and
(d) preferred to the Appellate Tribunal within sixty days of the date of
receipt of the order of the Commissioner (Appeals) by the taxpayer or
the officer.
(3) The fee for an appeal shall be two thousand rupees.
(4) The Appellate Tribunal may, upon application in writing, admit an
appeal after the expiration of the period specified in clause (d) of sub-section (2) if it
is satisfied that the person appealing was prevented by sufficient cause from filing
the appeal within that period.

67. Disposal of appeals by the Appellate Tribunal.– (1) The Appellate Tribunal
may, before disposing of an appeal, call for such particulars, documents, records or
information as it may require in respect of the matters arising from the appeal or
cause further inquiry to be made by the officer of the Authority.
(2) The Appellate Tribunal shall afford an opportunity of being heard to the
parties to the appeal and, in case of default by any of the parties on the date of
hearing, the Tribunal may, if it deems fit, dismiss the appeal in default, or may
proceed ex-parte to decide the appeal on the basis of the available record but the
Appellate Tribunal shall decide the appeal within six months from the date of filing of
the appeal.
(3) The Appellate Tribunal may stay the recovery of any tax due by virtue
of the decision or order being appealed against and any such order made by the
Appellate Tribunal shall remain operative for no more than thirty days during which
period a notice shall be issued to the respondent and after hearing the parties, the
order staying recovery may be confirmed, varied or vacated as the Appellate
Tribunal deems fit but the stay order so confirmed or varied shall remain operative
for not more than ninety days including any period for which the recovery may have
been stayed prior to the confirmation or variation of the stay order.
(4) In deciding the appeal, the Appellate Tribunal may, without prejudice to
the powers specified in sub-section (2), make an order to –
(a) affirm, modify or annul the order being appealed against; or
(b) remand the case to the officer or the Commissioner (Appeals) for
making such inquiry or taking such action as the Tribunal may direct.
(5) The Appellate Tribunal shall not increase the amount of any tax
payable, penalty or default surcharge unless the taxpayer has been given a
reasonable opportunity of showing cause against such increase.
(6) The Appellate Tribunal shall communicate its order to the taxpayer and
the Commissioner.
(7) Save as provided in any other law, the decision of the Appellate
Tribunal on an appeal shall be final.

68. Deposit of the tax demand while appeal is pending.– Where in any appeal,
the decision or order appealed against relates to any tax demanded under this Act,
the person who has filed the appeal shall, pending the appeal, deposit the admitted
amount of the tax based on the return filed under section 35 or as may be
determined by the Commissioner (Appeals) or the Appellate Tribunal where such
return has not been filed.

69. Alternate dispute resolution.– (1) Notwithstanding any other provisions of

this Act or the rules, any registered person aggrieved in connection with any dispute
pertaining to–
(a) the liability of the tax against the registered person;
(b) the extent of waiver of default surcharge and penalty;
(c) relaxation of any procedural or technical irregularities and condonation of
any prescribed time limitation; and
(d) any other specific relief required to resolve the dispute, may apply to the
Authority for the appointment of a committee for the resolution of any
dispute mentioned in detail in the application.
(2) Notwithstanding anything contained in sub-section (1), the Authority
shall not accept an application under sub-section (1) where criminal proceedings
have been initiated or where the Authority is of the opinion that the interpretation of a
question of law having a larger impact on revenue or on a number of similar cases is
involved.
(3) The Authority may, after examination of the application of a registered
person, appoint a committee of not less than three persons within thirty days of
receipt of such application, consisting of an officer of the Authority not below the rank
of an Additional Commissioner and nominees from the notified panel consisting of
chartered or cost accountants, advocates, representatives of trade bodies or
associations, retired officers of the rank of not less than BS-20, retired judges, or any
other reputable taxpayers, for the resolution of the dispute.
 (4) The committee constituted under sub-section (3) shall examine the
issue and may, if it deems fit, conduct an inquiry, seek expert opinions, direct any
officer of the Authority or any other person to conduct an audit and shall make
recommendations to the Authority within ninety days of its constitution in respect of
the dispute.
(5) If the committee fails to make recommendations within the said period,
the Authority may dissolve the committee and constitute a new committee which
shall decide the matter within a further period of ninety days and even if after the
expiry of that period the dispute is not resolved, the matter shall be taken up before
the appropriate forum provided under this Act for decision.
(6) The Authority may, on the recommendation of the committee, pass
such order, as it may deem appropriate within forty-five days of the receipt of the
recommendations of the committee.
(7) The registered person may make payment of the tax as determined by
the Authority in its order under sub-section (6), and such order of the Authority shall
be submitted before the forum, Appellate Tribunal or the Court where the matter is
pending adjudication for consideration of orders as deemed appropriate.

CHAPTER X

RECOVERY OF ARREARS

70. Recovery of arrears of tax.– (1) Subject to sub-section (2), where any
amount of the tax is due from any person, the officer of the Authority may –
(a) deduct the amount from any money owing to the person from whom
such amount is recoverable and which may be at the disposal or in the
control of such officer or any officer of the Authority;
(b) require by a notice in writing any person who holds or may
subsequently hold any money for or on account of the person from
whom tax is recoverable to pay to such officer the amount specified in
the notice;
(c) require by a notice in writing any bank to attach that person’s bank
accounts;
(d) seal the person’s business premises till such time as the amount of the
tax is paid or recovered in full;
(e) attach and sell or sell without attachment any movable or immovable
property of the person from whom the tax is due; and
(f) recover such amount by attachment and sale of any movable or
immovable property of the guarantor, person, company, bank or
financial institution where a guarantor or any other person, company,
bank or financial institution fails to make payment under such
guarantee, bond or instrument.
(2) If any arrears of tax, default surcharge, penalty or any other amount
which is payable by any person cannot be recovered in any manner whatsoever, the
Authority or the Commissioner if so authorized by the Authority, may for reasons to
be recorded in writing write off the arrears or amount in the manner in the prescribed
manner.
32
[(3) For the purpose of recovery of tax, penalty or any other demand or
sum under this Act or the rules, the Authority or the officer of the Authority may
exercise the powers of a Civil Court under the Code of Civil Procedure, 1908 (V of
1908) for recovery of an amount due under a decree and, in such an eventuality, the
Authority or the officer of the Authority shall be deemed to be a Civil Court.]

CHAPTER XI

AGENTS, REPRESENTATIVES AND E-INTERMEDIARIES

71. Agent.– (1) For purposes of this Act and subject to sub-sections (2) and (3),
the expression ‘agent’ in respect of a registered person, means –
(a) where the person is an individual under a legal disability, the guardian
or manager who receives or is entitled to receive income, financial
gains or benefits, funds, money or property on behalf, or for the benefit
of, the individual;
(b) where the person is a company (other than a Trust, a Provincial
Government, or local authority in Pakistan), a director or a manager or
secretary or accountant or any similar officer of the company;
(c) where the person is a Trust declared by a duly executed instrument in
writing, whether testamentary or otherwise, any trustee of the trust;
(d) where the person is a Provincial Government, or local authority in
Pakistan, any individual responsible for accounting for the receipt and
payment of money or funds on behalf of the Provincial Government or
the local authority;
(e) where the person is an association of persons, a director or a manager
or secretary or accountant or any similar officer of the association or, in
the case of a firm, any partner in the firm;
(f) where the person is the Federal Government, any individual
responsible for accounting for the receipt and payment of moneys or
funds on behalf of the Federal Government; or
(g) where the person is a public international organization, or a foreign
government or political sub-division of a foreign government, any
individual responsible for accounting for the receipt and payment of
moneys or funds in Pakistan on behalf of the organization, government,
or political subdivision of the government; or
(h) when any person is expressly or impliedly authorized by a registered
person to be his agent for all or any of the purposes of this Act.
(2) Where Court of Wards, Administrator General, Official Trustee, or any
receiver or manager appointed by, or under any order of a Court receives or is
entitled to receive income on behalf, or for the benefit of any person, such Court of

32
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
Wards, Administrator General, Official Trustee, receiver or manager shall be the
agent of the person for purposes of this Act.
(3) Notwithstanding anything in this section, any registered person may
expressly or impliedly authorize another person to be his agent for all or any of the
purposes this Act.

72. Liability and obligations of agents.– (1) Every agent of a person shall be
responsible for performing any duties or obligations imposed by or under this Act and
the rules on the person, including the payment of the tax.
(2) Subject to sub-section (5) of this section, the tax that by virtue of sub-
section (1), is payable by an agent of a registered person shall be recoverable from
the agent only to the extent of any assets of the registered person that are in the
possession or under the control of the agent.
(3) Every agent of a registered person who pays any tax owing to the
registered person shall be entitled to recover the amount so paid from the registered
person or to retain the amount so paid out of any moneys of the registered person
that are in the agent’s possession or under the agent’s control.

(4) Any agent, or any person who apprehends that he may be assessed as
an agent, may retain out of any money payable by him to the person on whose
behalf he is liable to pay the tax (hereinafter in this section referred to as the
‘principal’), a sum equal to his estimated liability under this Act, and in the event of
disagreement between the principal and such an agent or a person as to the amount
to be so retained, such agent or person may obtain from the Commissioner a
certificate stating the amount to be so retained pending final determination of the tax
liability and the certificate so obtained shall be his conclusive authority for retaining
that amount.
(5) Every agent shall be personally liable for the payment of any tax due
by the agent if, while the amount remains unpaid, the agent –
(a) alienates, charges or disposes of any moneys received or accrued in
respect of which the tax is payable; or
(b) disposes of or parts with any moneys or funds belonging to the
registered person that is in the possession of the agent or which comes
to the agent after the tax is payable, if such tax could legally have been
paid from or out of such moneys or funds.
(6) Nothing in this section shall relieve any person from performing any
duties imposed by or under this Act on the person which the agent of the person has
failed to perform.

73. Liability of the registered person for the acts of his agent.– A registered
person shall be responsible for any and all acts done by his agent.

74. Appearance by authorized representative.– A registered person required to

appear before the Appellate Tribunal or an officer in connection with any
proceedings under this Act may, in writing, authorize any person having such
qualification as may be prescribed by the Authority, to represent him or appear on
his behalf.
75. E-intermediaries to be appointed.– (1) Subject to such conditions,
limitations and restrictions as the Authority may impose, the Authority may, by a
notification in the official Gazette, appoint a person as e-intermediary to electronically
file returns and other electronic documents under this Act and the rules on behalf of
a registered person.
(2) A registered person may authorize an e-intermediary to electronically
file returns or any other documents on his behalf as specified in sub-section (1).
(3) The return or such other documents filed by an e-intermediary on
behalf of a registered person shall be deemed to have been filed by that registered
person.
(4) Where this Act requires anything to be done by a registered person
and if such thing is done by an e-intermediary authorized by the registered person
under sub-section (2), unless the contrary is proved, such thing shall be deemed to
have been done with the knowledge and consent of the registered person so that in
any proceedings under this Act, the registered person shall be liable as if the thing
has been done by him.

(5) Where an e-intermediary, authorized by a registered person under sub-

section (2) to act on his behalf, knowingly or willfully submits false or incorrect
information or document or declaration with an intent to avoid payment of the tax due
or any part thereof, such e-intermediary shall be jointly and severally responsible for
recovery of the amount of tax short paid as a result of such incorrect or false
information or document or declaration, without prejudice to any other action that
may be taken against him or the registered person under the relevant provisions of
the law.

(6) The Authority may, by notification in the official Gazette, prescribe rules
for the conduct and transaction of business of e-intermediaries, including their
appointment, suspension and cancellation of appointment, subject to such conditions
and restrictions as specified in such rules.

CHAPTER XII

GENERAL ADMINISTRATION

76. Power to make rules.– (1) The Authority may, with the approval of the
Government and by notification in the official Gazette, make the rules for carrying out
the purposes of any of the provisions of this Act.
(2) All rules made under sub-section (1) during a financial year shall be
laid in Provincial Assembly of the Punjab at the time of presentation of the Annual
Budget for the next financial year.
(3) The rules made under this Act shall be collected, arranged and
published along with general orders and departmental instructions, directions,
notifications and rulings, if any, at appropriate intervals and sold to the public at a
reasonable price.

77. Computerized system.– (1) The Authority may prescribe the use of a
computerized system for carrying out the purposes of this Act and the rules including
the receipt of applications for registration, returns and such other declarations or
information required to be provided under this Act and the rules from such date and
for such registered persons or class of persons as the Authority may, by notification
in the official Gazette, specify.
(2) The Authority may regulate the conduct and transaction of business in
relation to the submission of returns or other information to the Authority by the
persons required to transmit or receive any information through the computerized
system, including matters such as the grant of authorization, suspension and
cancellation of authorization and for security of the information transmitted or
received through the computerized system.
(3) The information received in the computerized system from or on behalf
of any registered person shall, for all official and legal purposes, be deemed to have
been furnished by and received from such registered person.
(4) The business information gathered through computerized system shall
be confidential to be used only for official and legal purposes and no unauthorized
person shall claim or be provided any access to such information.

78. Service of orders and decisions.– (1) Subject to this Act, any notice, order
or requisition required to be served on an individual for the purposes of this Act shall
be treated as properly served on the individual if –
(a) personally served on the individual or, in the case of an individual
under a legal disability the agent of the individual;
(b) sent by registered post or courier service to the individual’s usual or
last known address in Pakistan; or
(c) served on the individual in the manner prescribed for service of a
summons under the Code of Civil Procedure, 1908 (V of 1908).
(2) Subject to this Act, any notice order or requisition required to be served
on any person, other than an individual to whom sub-section (1) applies, for the
purposes of this Act, shall be treated as properly served on the person if –
(a) personally served on the agent of the person;
(b) sent by registered post or courier service to the person’s registered
office or address for service of notices under this Act in Pakistan or
where the person does not have such office or address, the notice is
sent by registered post to any office or place of business of the person
in Pakistan; or
(c) served in the manner prescribed for service of a summons under the
Code of Civil Procedure, 1908 (V of 1908).
(3) Where an association of persons is dissolved, any notice, order or
requisition required to be served under this Act, on the association or a member of
the association may be served on any person who was the principal officer or a
member of the association immediately before such dissolution.
(4) Where a business stands discontinued, any notice order or requisition
required to be served under this Act, on the person discontinuing the business may
be served on the person personally or on any individual who was the person’s agent
at the time of discontinuance.
 (5) The validity of any notice issued under this Act or the validity of any
service of a notice shall not be called into question after the notice has been
complied with in any manner.
(6) Any registered person may indicate, in the manner prescribed by the
Authority, that he wishes to electronically receive all or specific communications,
including notifications, orders, assessments and requisitions from the Authority, the
Appellate Tribunal or any officer of the Authority.
(7) The Authority may, by notification in the official Gazette, direct that all
or specific communications, including notifications, orders, assessments and
requisitions from the Authority, the Appellate Tribunal or any officer to a specific
registered person or class of registered persons shall be made electronically.
(8) For purposes of sub-sections (6) and (7), a registered person shall be
considered to have received the electronic communication within seventy two hours
of the sending of the electronic communication by the Authority, Appellate Tribunal
or the officer of the Authority.
(9) For purposes of sub-sections (6), (7) and (8), an electronic
communication includes a communication sent by email.

79. Correction of clerical errors.– (1) Any clerical or arithmetical error in any
assessment, adjudication order or decision may, at any time, be corrected by the
officer of the Authority who made the assessment or adjudication or passed such
order or decision or by his successor in office, through an order made under this
section.
(2) Before any correction is made under sub-section (1), a notice shall be
given to the registered person likely to be affected by such correction.

80. Issuance of duplicate of the tax documents.– An officer of the Authority not
below the rank of the Assistant Commissioner may, on payment of one hundred
rupees, issue an attested copy of any document filed by a registered person with the
Authority.

81. Power to issue orders, instructions and directions.–The Authority may

issue such orders, instructions and directions, not inconsistent with this Act and the
rules, to all officers of the Authority, as it may deem necessary to implement,
administer or enforce the provisions of this Act and the rules.

82. Officers of the Authority to follow orders.– (1) All officers of the Authority
and other persons employed in the administration of this Act and the rules shall
observe and follow the orders, instructions and directions of the Authority.
(2) No such orders, instructions or directions shall be given so as to
interfere with the powers or discretion of officers of the Authority in the exercise of
their judicial or quasi-judicial functions.

CHAPTER XIII

MISCELLANEOUS
83. Computation of limitation period.– In computing the period of limitation
prescribed for any appeal or application under this Act, the day on which the order
complained of was served and, if the concerned person was not furnished with a
copy of the order, the time requisite for obtaining a copy of such order shall be
excluded.

84. Condonation of time-limit.– (1) Where any time or period has been specified
under any of the provisions of the Act or the rules within which any act or thing,
including submission of an application, filing of a return or payment of tax, is to be
done, the Authority may permit such application to be made or such act or thing to
be done within such time or period as it may consider appropriate.

(2) The Authority may, by notification in the official Gazette, and subject to
such limitations or conditions as may be specified therein, empower any
Commissioner or the officer of the Authority to exercise the powers under this
section in any case or class of cases.

85. Bar of suits, prosecution and other legal proceedings.– (1) No suit shall
be brought in any civil court to set aside or modify any order passed, any
assessment made, any tax levied, any penalty or default surcharge imposed or
collection of any tax made under this Act.
(2) No suit, prosecution or other legal proceeding shall lie against the
Government or against any public servant in respect of any order passed in good
faith under this Act.

(3) Notwithstanding anything in any other law, no investigation or inquiry

shall be undertaken or initiated by any government agency against any officer or
official for anything done in his official capacity under this Act, except with the
permission of the Authority.

86. Removal of difficulties.– (1) The Government may pass such order for
removing any difficulty or for bringing the provisions of this Act into effective
operation direct that provisions of this Act shall, during such period as may be
specified in the order, have effect subject to such adaptations whether by way of
modification or addition or omission as it may deem to be necessary or expedient.
(2) The power under this section shall not be exercised after the expiry of
two years from the commencement of this Act.

87. Repeal and savings.– (1) The Punjab Sales Tax Ordinance, 2000 (II of
2000) is hereby repealed.

(2) Any proceeding under the repealed Ordinance pending on the date
notified under sub-section (3) of section 1 before any authority, forum or any court by
way of adjudication, assessment, appeal, reference, revision or prosecution shall be
continued and disposed of as if this Act has not come into force.
(3) Where the Government or the Authority takes any action, makes any
decision or orders, issues any instructions, directions, clarifications or notifications in
pursuance of or in exercising of powers conferred under any provision of any law in
respect of any matter relating to the tax and allied issues covered under this Act or
the rules, such actions, decisions, orders, instructions, directions, clarifications and
notifications shall be deemed to have been validly issued to serve the purposes of
this Act and the rules.

(4) Where so directed by the Government, any tax payable but not paid
under the Punjab Sales Tax Ordinance, 2000 (II of 2000) may be recovered under
this Act, but without prejudice to any action already taken for the recovery of the
amount under the said Ordinance.
33
[88. Prize schemes to promote tax culture.– The Authority may, with the
approval of the Government, prescribe prize schemes to encourage the general
public to make purchases only from registered persons issuing tax invoices.

89. Reward to whistleblowers.– (1) The Authority may, with the approval of the
Government, sanction reward to a whistleblower.
(2) The Authority may, by notification, prescribe the procedure in this
behalf and also specify the apportionment of reward sanctioned under this section
for a whistleblower.

(3) The claim for reward by the whistleblower shall be rejected if–

(a) the information provided is of no value;

(b) the Authority already had the information;

(c) the information was available in public records; or

(d) no collection of tax is made from the information provided by a

whistleblower.

(4) Where, after providing an opportunity of being heard, it is found that a

whistleblower has provided false, misleading or frivolous information, he shall be
liable to a penalty of one hundred thousand rupees.

(5) In this section, ‘whistleblower’ means a person who reports

concealment or evasion of tax or tax fraud leading to detection or collection of the
tax.]

33
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
 FIRST SCHEDULE

(Classification of Services)
(see sub-section (38) of section 2)

Classification Description
(1)
(2)

98.01 Services provided by hotels, restaurants, marriage halls,

lawns, clubs and caterers.
9801.1000 Services provided by hotels
9801.2000 Services provided by restaurants
9801.3000 Services provided by marriage halls and lawns
9801.4000 Services provided by clubs
9801.5000 Services provided by caterers, suppliers of food and drinks
9801.6000 Ancillary services provided by hotels, restaurants, marriage
halls, lawns, caterers
9801.7000 Services provided by messes and hostels
9801.9000 Other

98.02 Advertisements
9802.1000 Advertisements on T.V.
9802.2000 Advertisements on radio
9802.3000 Advertisements on closed circuit T.V.
9802.4000 Advertisements in newspapers and periodicals
9802.5000 Advertisements on cable T.V. network
Advertisements on poles
Advertisements on bill boards
9802.9000 Other

98.03 Facilities for travel

9803.1000 Travel by air of passengers within the territorial jurisdiction of
Pakistan
9803.1100 Travel by air of passengers embarking on international
journey from Pakistan
9803.2000 Domestic travel by train
9803.2100 International travel by train
9803.9000 Other

98.04 Services provided for inland carriage of goods.

9804.1000 Carriage of goods by air
Carriage of goods by train
9804.2000
 Other
9804.9000

98.05 Services provided by persons authorized to transact

business on behalf of others.
9805.1000 Shipping agents
9805.2000 Stevedores
9805.2100 Ship management service
9805.3000 Freight forwarding agents
9805.4000 Customs agents
9805.5000 Travel agents
9805.5100 Tour operators
9805.6000 Recruiting agents
9805.7000 Advertising agents
9805.8000 Ship chandlers
9805.9000 Share transfer agent
9805.9100 Sponsorship services
9805.9200 Business support services
9805.9090 Other

98.06 Services provided in matters of hire.

9806.1000 Purchase or sale of moveable or immovable goods or
property
9806.2000 Property dealers
9806.3000 Car/automobiles dealers
9806.9000 Dealers of second hand goods other than automobiles other

9807.0000 Services provided by property developers and

promoters.

9808.0000 Courier services

9809.0000 Services provided by persons engaged in contractual

execution of work or furnishing supplies.

9810.0000 Services provided for personal care by beauty

parlors/clinics, slimming clinics and others.

9811.0000 Services provided by laundries, dry cleaners.

98.12 Telecommunication services.

9812.1000 Telephone services
9812.1100 Fixed line voice telephone service
9812.1200 Wireless telephone
9812.1210 Cellular telephone
9812.1220 Wireless Local Loop telephone
9812.1300 Video telephone
9812.1400 Payphone cards
9812.1500 Prepaid calling cards
9812.1600 Voice mail service
9812.1700 Messaging service
9812.1710 Short Message service (SMS)
9812.1720 Multimedia message service (MMS)
9812.1910 Shifting of telephone connection
9812.1920 Installation of telephone extension
9812.1930 Provision of telephone extension
9812.1940 Changing of telephone connection
9812.1950 Conversion of NWD connection to non NWD or vice versa
9812.1960 Cost of telephone set
9812.1970 Restoration of telephone connection
9812.1990 Others
9812.2000 Bandwidth services
9812.2100 Copper line based
9812.2200 Fibre-optic based
9812.2300 Co-axial cable based
9812.2400 Microwave based
9812.2500 Satellite based
9812.2900 Others
9812.3000 Telegraph
9812.4000 Telex
9812.5000 Telefax
9812.5010 Store and forward fax services
9812.5090 Others
9812.6000 Internet services
9812.6100 Internet services including email services
9812.6110 Dial-up internet services
9812.6120 Broadband services for DSL connection
9812.6121 Copper line based
9812.6122 Fibre-optic based
9812.6123 Co-axial cable based
9812.6124 Wireless based
9812.6125 Satellite based
9812.6129 Others
9812.6130 Internet/email/Data/SMS/MMS services on WLL networks
9812.6140 Internet/email/Data/SMS/MMS services on cellular mobile
networks
9812.6190 Others
9812.6200 Data Communication Network services (DCNS)
9812.6210 Copper Line based
9812.6220 Co-axial cable based
9812.6230 Fibre-optic based
9812.6240 Wireless/Radio based
9812.6250 Satellite based
9812.6290 Others
9812.6300 Value added data services
9812.6310 Virtual private Network services (VPN)
9812.6320 Digital Signature service
9812.6390 Others
9812.9000 Audiotext services
9812.9100 Tele-text services
9812.9200 Trunk radio services
9812.9300 Paging services
9812.9400 Voice paging services
9812.9410 Radio paging services
9812.9490 Vehicle tracking services
9812.9500 Burglar alarm services
9812.9090 Others

98.13 Services provided by banking companies, insurance

companies, cooperative financing societies modarabas,
musharikas, leasing companies, foreign

exchange dealers, non-banking financial institutions and

other persons dealing in any such services.
9813.1000 Services provided in respect of insurance to a policy holder
by an insurer, including a reinsure.
9813.1100 Goods insurance
9813.1200 Fire insurance
9813.1300 Theft insurance
9813.1400 Marine insurance
9813.1500 Life insurance
9813.1600 Other insurance
9813.2000 Services provided in respect of advances and loans

9813.3000 Services provided in respect of leasing

9813.3010 Financial leasing
9813.3020 Commodity or equipment leasing
9813.3030 Hire-purchase leasing
9813.3090 Other
9813.3900 Services provided in respect of musharika financing

9813.4000 Services provided by banking companies in

relation to:
9813.4100 Guarantee
9813.4200 Brokerage
9813.4300 Letter of credit
9813.4400 Issuance of pay order and demand draft
9813.4500 Bill of exchange
9813.4600 Transfer of money including telegraphic transfer, mail
transfer and electronic transfer
9813.4700 Bank guarantee
9813.4800 Bill discounting commission
9813.4900 Safe deposit lockers
9813.4910 Safe vaults
9813.5000 Issuance,, processing and operation of credit and debit cards
9813.6000 Commission and brokerage of foreign exchange dealings
9813.7000 Automated Teller Machine operations, maintenance and
management
9813.8000 Service provided as banker to an issue
9813.8100 Other
9813.9000 Service provided by a foreign exchange dealer or exchange
company or money changer

98.14 Services provided by architects, town planners,

contractors, property developers or promoters, interior
decorators.
9814.1000 Architects or town planners
9814.2000 Contractors of building (including water supply, gas supply
and sanitary works), roads and bridges, electrical and
mechanical works (including air conditioning), horticultural
works, multi-discipline works (including turn-key projects)
and similar other works.
9814.3000 Property developers or promoters
9814.4000 Landscape designers
9814.9000 Other

98.15 Services provided by professionals and consultants

etc.
9815.1000 Medical practitioners and consultants
9815.2000 Legal practitioners and consultants
9815.3000 Accountants and auditors
9815.4000 Management consultants
9815.5000 Technical, scientific, engineering consultants
9815.6000 Software or IT based system development consultants
9815.9000 Other consultants

9816.0000 Services provided by pathological laboratories.

98.17 Services provided by medical diagnostic laboratories

including X-Rays, CT Scan, M.R. Imaging etc.
9817.1000 Scientific laboratories
9817.2000 Mechanical laboratories
9817.3000 Chemical laboratories
9817.4000 Electrical or electronic laboratories
9817.9000 Other such laboratories

98.18 Services provided by specialized agencies.

9818.1000 Security agency
9818.2000 Credit rating agency
9818.3000 Market research agency
9818.9000 Other such agencies

98.19 Services provided by specified persons or businesses

9819.1000 Stockbrokers
9819.1100 Under writers
9819.1200 Indenters
9819.1300 Commission agents
9819.1400 Packers
9819.2000 Money exchanger
9819.3000 Rent a car
9819.4000 Prize bond dealers
9819.5000 Surveyors
9819.6000 Designers
9819.7000 Outdoor photographer
9819.8000 Art painter
9819.9000 Cable TV operators
9819.9100 Auctioneers
9819.9200 Public relations services
9819.9300 Management consultants
9819.9400 Technical testing and analysis service
9819.9500 Service provided by a registrar to an issue
9819.9090 Others

98.20 Services provided by specialized workshops or

undertakings
9820.1000 Auto-workshops
9820.2000 Workshops for industrial machinery construction and earth-
moving machinery or other special purpose machinery etc.
9820.3000 Workshops for electric or electronic equipments or
appliances etc including computer hardware
9820.4000 Car washing or similar service stations
9820.9000 Other workshops

98.21 Services provided in specified fields.

9821.1000 Healthcare center, gyms or physical fitness center etc.
9821.2000 Indoor sports and games center
9821.3000 Baby care center
9821.4000 Body massage center
9821.5000 Pedicure center

98.22 Services provided for specified purposes.

9822.1000 Fumigation services
9822.2000 Maintenance or cleaning services
9822.3000 Janitorial services
9822.4000 Dredging or desilting services
9822.9000 Other similar services
9823.0000 Franchise services

9824.0000 Construction services

9825.0000 Consultancy services

9826.0000 Management services including fund and asset

management services

9827.0000 Market research agencies

9828.0000 Program producers

9829.0000 Brokerage (other than stock) and indenting services

9830.0000 Race Clubs

9831.0000 General insurance agents

9832.0000 Exhibition or convention services

9833.0000 Data processing and provision of information, services

of engineers, handling and storage of goods

9834.0000 Fashion designers

9835.0000 Cable operators

9836.0000 Internet café

9837.0000 Pandal and shamiana service

9838.0000 Airport services

9839.0000 Intellectual property services

9840.0000 Forward contract services

9841.0000 Packaging services

9842.0000 Services provided in matters of hire

9843.0000 Purchase or sale of moveable or immovable goods or
property

9844.0000 Property dealers and realtors

9845.0000 Automobile dealers

9846.0000 Dealers of second hand goods other than automobiles

9847.0000 Cosmetic and plastic surgery

9848.0000 Beauty parlor and beauty clinics

9849.0000 HR consultants

9850.0000 Corporate law consultants

9851.0000 Tax consultants

9852.0000 Human resources & personnel development services

9853.0000 Coaching centers

9854.0000 Vocational centers

9855.0000 Actuarial services

9856.0000 Training services

9857.0000 Tracking services

9858.0000 Security alarm services

9859.0000 Human resource development

9860.0000 Building maintenance and service provider

9861.0000 Quality control services (ISO certification authority)

9862.0000 Services provided by motels, guest houses and farm

houses.
 9863.0000 Debt collection agencies

9864.0000 Amusement parks

9865.0000 Call centres

9866.0000 Film and drama studios including mobile stage shows

or cinemas

9867.0000 Entertainment services

9868.0000 Services provided in respect of manufacturing or

processing on toll basis.

SECOND SCHEDULE

(Taxable Services)
(see section 3)

34
S.No. Description [Classification, Rate of Tax
if applicable]
(1) (2) (4)
(3)
38
1 Services provided by hotels [9801.1000 Sixteen per
35
[motels, guest houses, marriage 9801.3000 cent
halls and lawns (by whatever name 9801.4000
called) including pandal and 9801.5000
shamiana services], clubs 9801.6000
36 39
[including race clubs] and caterers [9830.0000,]
37
[(including all ancillary or allied 9837.0000 40[,]
services such as floral or other 9862.0000 41[and

34
Substituted for the word “Classification” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in
the Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368.
35
Added by the Notification No.SO (TAX) 1-1/2013-14, dated 22.5.2013; issued by the Finance Department, Government of
the Punjab.
36
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
37
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
38
Substituted by the Notification No.SO (TAX) 1-1/2013-14, dated 22.5.2013; issued by the Finance Department, Government
of the Punjab.
39
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 decoration, furnishing of space whether respective
or not involving rental of equipment and headings] ]
accessories)].
2 Advertisement on television and 9802.1000 and Sixteen per
radio, excluding advertisements– 9802.2000 cent
(a) sponsored by an agency of the
Federal or Provincial Government for
health education;
42
[(b) financed out of funds provided
by a Government under an agreement
of foreign grant-in-aid;]
(c) conveying public service
message, if telecast on television by
the World Wide Fund for Nature
(WWF) or United Nations Children’s
Fund (UNICEF).
3 Services provided by persons 9805.4000 Sixteen per
authorized to transact business on 9805.8000 and cent
behalf of others– 9805.2000
(a) customs agents;
(b) ship chandlers; and
(c) stevedores.
4 Courier services 43[including 9808.0000 Sixteen per
44 45
[express cargo or logistic services or] [and cent
cargo services by road passenger 9804.9000]
transportation businesses and
transportation through pipeline and
conduit services].
5 Advertisement on a cable television. 9802.5000 Sixteen per
cent
49
6 Telecommunication services– [98.12 Nineteen and a
50
(a) telephone services; [(all sub- half per cent
fixed line voice telephone service; headings under
(c) wireless telephone; 98.12 of the First
(d) cellular telephone; Schedule)],
(e) wireless local loop telephone; 9857.0000
(f) video telephone; and
(g) payphone cards; 9858.0000]
40
Substituted for the word “and” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the
Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368.
41
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
42
Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
43
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
44
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
45
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 (h) pre-paid calling cards;
(i) voice mail service;
(j) messaging service;
(k) short message service (SMS);
(l) multimedia message service
(MMS);
(m) bandwidth services used for
voice and video
telecommunication services–
(i) copper line based;
(ii) fiber-optic based;
(iii) co-axial cable based;
(iv) microwave based;
(v) satellite based;
(n) telegraph;
(o) telex;
(p) telefax;
(q) store and forward fax
services;
(r) audio-text services;
(s) tele-text services;
(t) trunk radio services;
(u) paging services;
(v) voice paging services;
(w) radio paging services;
(x) vehicle 46[and other] tracking
services; and
(y) burglar 47[and security] alarm
services;

EXCLUDING:
48
[(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.
46
Added by the Notification No.SO (TAX) 1-1/2013-14, dated 22.5.2013; issued by the Finance Department, Government of
the Punjab.
47
Added by the Notification No.SO (TAX) 1-1/2013-14, dated 22.5.2013; issued by the Finance Department, Government of
the Punjab.
48
Substituted by the Notification No. SO(TAX) 1-1/2014-15 (Vol-I), dated 28.5.2015; and published (Notification No.6 of 2015)
in the Punjab Gazette (Extraordinary), dated 12.6.2015, pages 6859-6860.
50

49
Substituted by the Notification No.SO (TAX) 1-1/2013-14, dated 22.5.2013; issued by the Finance Department, Government
of the Punjab.
 (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.]
7 Services provided in respect of 98.13 Sixteen
insurance to a policy holder by an percent of the
insurer, including a re-insurer– gross premium
goods insurance; paid
fire insurance;
theft insurance;
(d) marine insurance; and
(e) other insurance.

EXCLUDING:
(a) Marine insurance for export;
(b) Life insurance;
(c) Health insurance; and
(d) Crop insurance.
51
8 [Services provided by banking 98.13 Sixteen per
companies, cooperative financing cent
societies, modarbas, musharikas,
ijarahs, leasing companies, non-
banking financial institutions and
other persons, businesses or
enterprises providing or dealing in
any such services.]
9 Services provided by the stock 9819.1000 Sixteen per
brokers. cent
10 Services provided by shipping 9805.1000 Sixteen per
agents cent

51
Substituted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 52
[11 Services provided by restaurants 9801.2000 54[and Sixteen per
53
[including cafes, food (including 9801.9000] cent
ice-cream) parlors, coffee houses,
coffee shops, deras, food huts,
eateries, resorts and similar cooked,
prepared or ready-to-eat food
service outlets etc].
55
[12 Advertisements on hoarding boards, -- Sixteen per
pole signs and sign boards and on cent]
closed circuit TV, Websites or
Internet]
56 58
13 Franchise Service [including [9823.0000, Sixteen per
intellectual property rights services 9839.0000 and cent]
57
[and licensing services] ]. respective
headings]
59 61
[14 Construction services 9824.0000 and [Sixteen per
9814.2000 cent]
EXCLUDING:
60
[(i)
Where the tax is otherwise paid
by registered persons as property
developers, builders or promoters for
building construction; or

(ii) Where the construction work is

funded under an agreement of foreign
grant-in-aid or involves construction of
consular buildings; or
(iii) Government civil works including

52
Inserted by Notification No.SO (TAX) 1-9/2011, dated 06.10.2012; issued by the Finance Department, Government of the
Punjab.
53
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
54
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
55
Substituted by Notification No. SO(TAX) 1-2/97 (Pt.VII) dated 16.01.2013; issued by the Finance Department, Government of
the Punjab.
56
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
57
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
58
Substituted for the existing entries “9823.0000 and 9839.0000” by the Punjab Finance Act 2015 (XXIX of 2015),
w.e.f.1.7.2015, s.5; and published in the Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368.
59
Added by the Notification No.SO (TAX) 1-1/2013-14, dated 22.5.2013; issued by the Finance Department, Government of
the Punjab.
60
Substituted for the existing entries by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the
Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368.
61
Substituted by Notification No.SO (TAX) 1-1/2013-14, dated 12.2.2014; issued by the Finance Department, Government of
the Punjab.
 those of Cantonment Boards; or

(iv) Residential construction projects

where the covered area does not
exceed 10,000 square feet for a house
and 20,000 square feet for an
apartment except where construction
services are provided to construct more
than one house or more than one
apartment building. ]
62 63
15 [Services provided by property 9807.0000 [(i) @ Rs. 100
developers, builders and promoters and per square
(including their allied services) respective sub- yard for land
excluding actual purchase value or headings of development;
documented cost of land.] heading 98.14 and
(ii) @ Rs. 50
per square feet
for building
construction.]
16 Services provided by persons 9809.0000 sixteen per
engaged in contractual execution of cent
work or furnishing supplies.

EXCLUDING:
(i) Annual total value of the
contractual works or supplies does
not exceed Rs. 50 million.
(ii) The contracts involving printing or
supplies of books.
64
[17 * * * * * * * * * * * * ** * -- --]
65
18 [Services provided for personal care 9810.0000 Sixteen per
by beauty parlors, salons, clinics, 9848.0000 cent
sliming clinics, spas (including saunas, 9847.0000
Turkish baths and Jacuzzi) and similar 9821.4000
other establishments including cosmetic and
and plastic surgery and hair transplants. 9821.5000
66
[and 9815.7000
EXCLUDING: and respective
headings]
Services provided in a parlour, salon or

62
Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
63
Substituted by Notification No.SO (TAX) 1-1/2013-14, dated 12.2.2014; issued by the Finance Department, Government of
the Punjab.
64
Deleted by the Notification No.SO (TAX) 1-1/2013-14, dated 13.5.2014; issued by the Finance Department, Government of
the Punjab.
65
Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
66
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
 clinic where the facility of air-
conditioning is not installed or is not
available in the premises on any day of
the financial year.]
19 Management consultancy services 9815.4000 Sixteen per
including fund and asset 67[(including and cent
investment)] managements services. 9826.0000
20 Services provided by port operators 9838.0000 Sixteen per
(including airports and dry ports) and and respective cent
allied services provided at ports and headings
services provided by terminal
operators including services in
respect of public bonded
warehouses.

EXCLUDING:
The amounts received by way of fee
under any law or by-law.
21 Freight forwarding agents. 9805.3000 Rs. 68[1000] per
bill of lading]

67
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
68
Substituted for the figure “400” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the
Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368.
 69 70
[22 [Information technology-enabled or 9815.6000 Sixteen per
71
information technology based services [and respective cent
including software development, headings]
software customization, software
maintenance, system support, system
assembly, system integration, system
designing and architecture, system
analysis, system development, system
operation, system maintenance, system
up-gradation and modification, data
warehousing or management, data
entry operations, data migration or
transfer, system security or protection,
web designing, web development, web
hosting, network designing, services
relating to enterprise resource or
management planning (including
marketing of products), development
and sale of smart phone applications or
games, graphics designing, medical
transcription, remote monitoring,
telemedicine, insurance claim
processing, online retrieval and
database access or retrieval service.]
23 Services provided by technical, 9815.5000 Sixteen per
scientific & engineering consultants 9819.9400 cent
72 73
[including technical inspection and [9861.0000,
certification services, quality control 9815.5000]
(standards’ certification), technical
analysis and testing, erection,
commissioning and installation
services].

69
Added by Notification No. SO(TAX) 1-2/97 (Pt.VIII), dated 01.07.2013; issued by the Finance Department, Government of
the Punjab.
70
Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
71
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
72
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
73
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 74
24 [Services provided by other 9815.9000 Sixteen per
75
consultants (by whatever name called [9832.0000, cent
or treated, whether as consultant or 9827.0000,
otherwise) including human resource 9818.3000,
and personnel development services, 9818.2000,
exhibition or convention services, event
9819.9300,
management services (whole range and
variety of their services regardless of
9852.0000 and
separate or individual classification 9859.0000]
76
thereof), valuation services, evaluation [,9825.0000,
services (including competency and 9819.5000,
eligibility testing services), certification, 9849.0000,
verification and equivalence services, 9818.9000,
market research services, marketing or 9853.0000,
sales services (including marketing 9856.0000 and
agencies and on line marketing or sales respective
services), surveyors services, training or headings]
coaching services (other than general
education services) and credit rating
services.]
25 Services provided by tour operators 9805.5100 Sixteen per
77 79
[and travel agents including all their [9805.5000 and cent
allied services or facilities] (other 9803.9000]
than Hajj and Umrah 78[including
Ziyarat]).
26 Manpower recruitment agents 9805.6000 Sixteen per
80
[including labour and manpower cent
supplies].
27 Services provided by security 9818.1000 Sixteen per
agency. cent
28 Services provided in respect of -- Sixteen per
mining of minerals, oil & gas cent
including related surveys and allied
activities.
29 Services provided by advertising 9805.7000 Sixteen per
agents. cent

74
Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
75
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
76
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
77
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
78
Inserted by the Notification No.SO (TAX) 1-9/2014(Exemption Ziyarat), dated 30.9.2014; issued by the Finance Department,
Government of the Punjab.
79
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
80
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 81 82
30 [Services provided by a registrar to an [ 9819.9500, Sixteen per
issue, share transfer or depository 9819.9090 and cent
services including services provided respective
through manual or electronic book-entry headings]
system used to record and maintain
securities and to register the transfer of
shares, securities and derivatives
(including investor account services,
trustee or custodial services, share
registrar services and their allied or
connected services).]

81
Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
82
Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
 31 Services provided by business 9805.9200 Sixteen per
support services. cent
32 Services provided by property 9806.2000 Sixteen per
dealers 83[and realtors]. 84
[and cent
9844.0000]
33 Services provided by fashion 9834.0000 Sixteen per
designers 85[including use of brand 87
[ and cent
name, logo or house mark (whether or 9819.6000]
not registered) in the manufacturing or 88
[, 9839.0000 and
trading of products] 86[whether relating respective
to textile, leather, jewellery or other headings]
product regimes including allied
services such as cutting, stitching,
printing, manufacturing, fabrication,
assembly, embellishment,

83
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
84
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
85
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
86
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
87
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
88
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
 adornments, display (including
marketing, packing and delivery
etc.)].
34 Services provided by architects, 9814.1000 Sixteen per
89
town planners [landscapers, 9814.9000 cent
90
landscape designers] and interior [, 9814.4000 and
decorators. respective
headings]
92
35 Services provided in respect of rent- [9819.3000 and Sixteen per
a-car 91[(including renting of all respective cent
categories of vehicles meant for headings]
transportation of persons)].
36 Services provided by car/automobile 9806.3000 Sixteen per
93
dealers. [ and cent
9845.0000]
37 Services provided in respect of 9868.0000 Sixteen per
95
manufacturing or processing on toll [9841.0000 and cent]
or job basis (against processing on 9819.1400]
conversion charges) 94[including
industrial and commercial packaging
services and similar outsourcing of
industrial or commercial processes].
96
[38 Services provided by specialized 98.20 Sixteen
workshops or undertakings (auto- percent
workshops; workshops for industrial
machinery, construction and earth-
moving machinery or other special

89
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
90
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
91
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
92
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
93
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
94
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
95
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
96
Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2014, pages 4169-4178.
 purpose machinery etc; workshops
for electric or electronic equipments
or appliances etc. including
computer hardware; car washing or
similar service stations and other
workshops).

39 Services provided for specified 98.22 and Sixteen

purposes including fumigation 9860.0000 percent
services, maintenance and repair
(including building and equipment
maintenance and repair including
after sale services) or cleaning
services, janitorial services, dredging
or desilting services and other
similar services etc.

40 Brokerage (other than stock) and 9829.0000, Sixteen

indenting services including 9819.1200, percent
commission agents, under-writers 9819.1100,
and auctioneers. 9819.1300 and
9819.9100

41 Call centres. 9865.0000 Nineteen and a

half percent

42 Services provided by laboratories 9816.0000 and Sixteen

other than services relating to 98.17 percent
pathological or diagnostic tests
97
[exclusively for medical treatment
purposes].

43 Services provided in specified fields 9821.1000 and Sixteen

such as health care, gym, physical 9821.2000 percent
fitness, indoor sports, games and 9821.4000
body or sauna massage etc.

44 Services provided by laundries and 9811.0000 Sixteen

dry cleaners. percent

45 Services provided by cable TV 9819.9000 Sixteen

97
Substituted for the words “for patients” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in
the Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368.
 operators. percent

46 Services provided by TV or radio 9828.0000 Sixteen

program producers or production percent
houses.
98
[47 Services in relation to transport of Respective Sixteen percent
goods other than water, through headings
pipeline, conduit or any other medium
(other than inland carriage of goods by
road otherwise taxable or chargeable to
tax as such).

48 Services provided by persons for inter- 98.04, 9804.2000, Sixteen percent

city carriage of goods by rail or road. 9804.9000 and
respective
EXCLUDING: headings

Services provided by an individual

owner of a vehicle for carriage of goods.
49 Visa processing services including Respective Sixteen percent
advisory or consultancy services for headings
foreign education or for migration, visa
application filing, services provided by
document collection centres and
subsequent assistance in visa
processing (including all ancillary
services).

50 Services in relation to supply of tangible Respective Sixteen percent

goods including machinery, equipment headings
and appliances for use, without
transferring right of possession and
effective control of such machinery,
equipment and appliances.

51 Public relation services including 9819.9200 and Sixteen percent

communication services and services respective
provided by public relations or media headings
management businesses,
communication specialists, media
researchers, and services provided by
opinion poll agencies.

52 Services provided by accountants 9815.2000 Sixteen percent

(including practicing chartered or cost
accountants), auditors, actuaries, tax

98
Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette
(Extraordinary), dated 26.6.2015, pages 7361-7368.
 consultants (by whatever name called), 9815.3000
practicing company secretaries,
receivers, liquidators, auctioneers and 9850.0000
corporate law consultants, whether 9851.0000
individual or otherwise.
9855.0000 and
respective
headings

53 Domestic transportation of goods by air Respective Sixteen percent

(other than courier services otherwise headings
taxable or chargeable to tax as such)
99
[.]

54 Facilities for travel (by air): 9803.1000 Rs.2500 per

ticket
(a) services provided or rendered in 9803.1100
respect of travel by air of passengers Rs.1500 per
embarking from the Punjab for air travel ticket
or journey within the territorial
jurisdiction of Pakistan: Rs.5000 per
ticket
(i) long routes
Rs.10,000 per
(ii) short routes ticket

Explanation.- For the purpose of this

entry, “long routes” means journeys
exceeding 500 kilometres, and “short
routes” means the remaining journeys.

(b) Services provided or rendered in

respect of travel by air of passengers
embarking from the Punjab for
international air travel or journey:

(i) economy and economy plus

(ii) club, business and first class.

EXCLUDING:
Air travel services provided to Hajj or
Umrah passengers, diplomats and
supernumerary crew.

55 Chartered flight services within or 9803.1000 Sixteen percent

originating from the Punjab.

99
Misprinted in the Gazette.
 9803.9000

56 Debt collection and similar other 9863.0000 Sixteen percent

recovery services.

57 Supply chain management or Respective Sixteen percent

distribution (including delivery) services. headings

58 Services provided by photography 9819.7000 and Sixteen percent

studios and event or occasion respective
photographers/film-makers headings

EXCLUDING:
Non-corporate (individual)
photographers operating from small
road-side shops declared as such by
the Authority.

59 Sponsorship services. 9805.9100 Sixteen percent]