Provincial Sales Tax Flashcards
Is input related to below goods/services admissible?
Sales subject to rate less than 16%
Purchases subject to less than 16%
No for both Goods/Services and for both Sales/Purchases
- FBR Registered Seller of goods subject to 17%-services less than 16%: Not allowed
- FBR Registered Seller of goods subject to less than 16%-services less than 16%: Not allowed
- PRA Registered Seller of services subject to 16%-all purchases (goods and services) less than 16%: Not allowed
- PRA Registered Seller of services subject to less than 16%-All Purchases disallowed
What if Federal (FBR) or other Province bar input allowance of services charged under PRA?
Automatically input paid to FBR other province will be disallowed against output under PRA
Is VAT paid on imports allowed as input in Punjab ST
NO
Further/Extra/VAT not allowed
What about provincial input tax paid on franchise fee, technical fee, rights fee
Not allowed as input for PRA
i.e. when preparing return under PRA-input not allowed
What about reverse charge paid under Punjab ST
Not allowed as input
What about withholding of ST under Punjab Sales Tax?
Are there any exceptions
Are there any services where exception of withholding does not apply
100% withhold
If Invoice does not include tax amount, gross up /116*16
Exceptions:
- Active Tax Payer COMPANY (except advertisement services)
- Sectors (Telecom/bank/courier/insurance)
Advertisement services - there is no exception on Withholding
What will be value of supplies for zero rated
- 5th schedule
- exports other than 3rd schedule
- exports 3rd schedule
Why is this important
- 5th schedule - normal value
- exports other than 3rd schedule - normal value
- exports 3rd schedule - Retail Price
This will impact apportionment of input tax
What about export of exempt supplies
Export by manufacturer - Zero rated
Export by commercial importer - exempt
