Home »Taxation » Pakistan » Sales tax on services: KPRA gives Jan 3rd deadline to wedding halls

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  • Dec 29th, 2018
  • Comments Off on Sales tax on services: KPRA gives Jan 3rd deadline to wedding halls
Khyber Pakhtunkhwa Revenue Authority (KPRA) has asked the wedding halls to deposit sales tax on services and to issue proper sale tax invoices to their clients by 3rd January 2019, otherwise the authority in coordination with local administration will take action against them.

While issuing directions to enforcement team, KPRA Director General Muhammad Tahir Orakzai said that all stake-holders relevant to the wedding halls business be sensitise through these warning notices to not only deposit sales tax on services by 3rd January 2019 but also ensure that proper sales tax invoices are issued to their clients and the practice of issuing 'Kacha receipt' to the consumers is stopped forthwith.

He further added that the defaulters of sales tax should take advantage of this golden opportunity by making themselves voluntarily tax compliant. In case of any default on their part, the law will set in motion and the Authority in coordination with district administration/police will seal the business premises of such defaulters from 4th of January 2019.

DG KPRA further said that sealing of business premises will not be limited only to hospitality sector or Peshawar region but the same will gradually be extended to other sectors and regions as well adding that so far final compulsory registration notices to 167 property dealers, 53 housing societies, and 20 beauty salons have been issued.

The DG highlighted that the business entities associated with provision of services should play their vibrant role in enhancing the revenue and development of the province by cooperating with the Authority.

Earlier, a team of Khyber Pakhtunkhwa Revenue Authority (KPRA), led by additional collector Rashid Javaid Rana carried out an intensive inspection of the wedding halls in the areas of Old Jamrud Road, University Road, Hayatabad, Faqeer Abad and many other areas of inner city of Peshawar.

Reportedly these marriage halls are non-compliant towards registration with KPRA and hence not been paying sales tax on services. The Authority's enforcement team while giving briefing to the Director General told that under the provision of KP Finance Act 2013 and the relevant Rules, the owners of these marriage halls have already been issued warning notices as these entities are not showing seriousness by depositing the sales tax on services to government.

Furthermore, the team informed DG KPRA that in order to create awareness among the respective businesses, proper standees, backdrops as well as leaflets with tax awareness messages were also distributed amongst them.

Copyright Business Recorder, 2018


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