The Punjab Revenue Authority (PRA) has revealed a significant non-payment of sales tax by major public and private entities acting as Withholding Agents. These entities, responsible for withholding billions of sales tax on services, failed to deposit a substantial portion of the amount into the government exchequer, violating tax regulations.
An intensive data analysis, directed by the chairperson of PRA, exposed the non-deposit of a staggering amount, estimated at around Rs40 billion, by these entities. While the spokesperson did not disclose specific organisations, top entities have already received show-cause notices from relevant Commissionerate.
To address future tax payment compliance, PRA implemented a check in its e-filing system that disallows tax claims based on previous withholding declarations not paid into the government treasury, making it part of the entities’ personal liabilities. Taxpayers are urged to obtain the prescribed tax deduction certificates.
The spokesperson emphasised that, moving forward, taxpayers won’t receive credit for withheld sales tax until their Withholding Agents deposit the specified amount in the government treasury against their NTN/Registration number.
Published in The Express Tribune, November 21st, 2023.
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