Taxes not deposited: PRA issues show cause notices to LDA, PMTA

Both prescribed withholding agents of PRA, for not withholding, depositing due sales tax from May '16 to June '18

The Punjab Revenue Authority has issued show cause notices to the Lahore Development Authority (LDA) and Punjab Mass Transit Authority (PMTA), both prescribed withholding agents of PRA, for not withholding and depositing the due sales tax from May 2016 to June 2018.

The PMTA has been issued notices for not withholding and depositing a taxable amount of Rs12.9 billion against services received from China Railway Corporation during the said period. Meanwhile, LDA has been asked to present its reply for not withholding and depositing sales tax worth Rs7.2 billion against payments made to different contractors for civil works done in respect to OLMT.  Both parties have been given 10 days to reply to the show cause notices. According to the Punjab Sales Tax rules, both companies were bound to withhold and deposit the said sales tax amounts from the payments given to different contractors under Section 14 and 19 of the Punjab Sales Tax on Services Act 2012. 

Published in The Express Tribune, January 19^th, 2019.