Notices to Walton, Cantt boards for tax non-payment

LAHORE : Punjab Revenue Authority Wednesday issued show cause notices to Lahore and Walton Cantonment Boards on non-payment of Rs51.870 million and Rs228.995 million Punjab sales tax on services, respectively.

Besides, the PRA has also imposed Rs25,000 fine on each board on non-compliance of the Authority orders. According to the copies of the notices available with The News, the Lahore Cantonment Board (LCB) has constructed Cantonment Board Girls Degree College at the site of Bansi Sagar, Zarar Shaheed Road at estimated cost of Rs150 million, besides provided repair and maintenance services of metalled roads, buildings and sewerage and other services at estimated cost of Rs99.193 million.

The LCB is bound to deduce and submit Punjab Sale Tax on services at 16 percent rate from the service providers. However, it did not submit it to the provincial exchequer. Subsequently, Walton Cantonment Board (WCB) provided various services, including street lights and others on which it did not submit due Punjab Sale Tax on services of amount Rs228.995 million to the PRA accounts.

A spokesperson for the PRA said the show cause notices were issued to LCB and WCB on non-compliance of Punjab Sales Tax rules and non-payment of the due taxes to the provincial exchequer. Both the boards were already issued several notices on non-payment of withholding taxes on which Rs25,000 fine was also imposed on each board too.

The PRA has given several opportunities to both the boards through legal notices for submission of contractual details but it was not provided. Even no reply has ever been submitted by the boards. Additionally, the available record with the PRA revealed that both LCB and WCB received taxable services from various contractors from July 1, 2016 onward, but both failed to withhold/deduct and deposit Punjab sales tax as per Punjab Sales Tax on Services Act 2012.

Thus, the PRA in its notices has ordered both the Boards to provide the details of books of accounts under section 52 of Punjab Sales Tax on Services Act 2012, as well, the spokesperson concluded.