PRA Transportation STWH Rules

In exercise of the powers conferred under section 76 of the Punjab Sales Tax on Services Act 2012 (XLII of 2012), Punjab Revenue Authority, with the approval of the Government, is pleased to make the following rules:

Short title, application and commencement

These rules shall be cited as the Punjab Sales Tax Special Procedure (Transportation or Carriage of Petroleum Oils through Oil Tankers) Rules 2020.

(2) These rules shall apply to services of carriage of petroleum oils by road classified under Sr. No. 48 of Second Schedule to the Punjab Sales Tax on Services Act, 2012.

(3) These rules shall come into force at once.

Definitions

In the rules:

(a) “Act” means the Punjab Sales Tax on Services Act, 2012 (XLII of 2012);

(b) “non-tariff area” means in relation to inter-province service, the State of Azad Jammu and Kashmir, Gilgit Baltistan, and other similar territories or areas where sales tax on services of inter-city carriage of petroleum oils by road through oil tankers has not been levied under the reverse charge mechanism;

(c) “petroleum oils” means the petroleum oils classified under heading 27.10 of the Pakistan Customs Tariff, as given in the First Schedule to the Customs Act, 1969 (IV of 1969);

(d) “rules” means the Punjab Sales Tax Special Procedure (Transportation or Carriage of Petroleum Oils through Oil Tankers) Rules 2020; and

(e) “withholding rules” means the Punjab Sales Tax on Services (withholding) Rules, 2015.

(2) An expression used but not defined in the rules shall have the same meaning as is assigned to it in the Act or the withholding rules.

Withholding of tax

Notwithstanding anything contained in rule 5 of the withholding rules and in pursuance of the agreement recorded in paragraph 3 of the minutes of the meeting held on 13 September, 2017 circulated under the

Ministry of Energy (Petroleum Division), Islamabad’s letter No. DOM-1(24)/2015-III dated 22 September, 2017 and decision of meeting dated 01-09-2020 as conveyed by the Sindh Revenue Board vide minutes of the meeting dated 02-09-2020 as given in the schedule, a service recipient shall:

(a) where the services originated in any other province and terminated in Punjab, withhold fifty percent of the amount of sales tax and deposit fifty percent of the withheld amount in the Punjab Government’s head of account “B 02385″ in the manner prescribed under the withholding rules. The remaining fifty percent of the withheld amount shall be deposited to the respective province other than non-tariff areas, from where the services were originated, in the manner as may be prescribed by the rules of the respective province or jurisdiction;

(b) where the services originated and terminated in Punjab, withhold the fifty percent of the amount of sales tax and deposit the withheld amount in the Punjab Government’s head of account “B 02385” in the manner prescribed under the withholding rules; and

(c) where the services are provided by a person neither registered under the Act nor in the respective province where the services were originated, shall withhold whole of the amount of sales tax charged or chargeable under the Act and deposit the withheld amount in the Punjab Government’s head of account “B 02385″ in the manner prescribed under the withholding rules.

(2) The provisions of sub-rule 1 shall not apply where the withholding agent fails to ensure that the service provider has duly filed the sales tax returns for the preceding tax period.

Application of other provisions

In relation to a service, all provisions of the rules and notifications issued under the Act shall, mutatis mutandis, apply to the service providers and service recipients covered under the rules, to the extent that they are not inconsistent with the provision of the rules.

Repeal and Saving

The Punjab Sales Tax Special Procedure (Transportation or Carriage of Petroleum Oils through Oil Tankers) Rules 2018 are hereby repealed.

(2) The tax withheld or liable to be withheld or payable under the rules repealed under subsection (1) shall be deemed to have been withheld or liable to be withheld under these rules and shall be paid and dealt with accordingly.

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