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Tag: Punjab Finance Bill 2020

  • PRA empowered to arrest tax defaulters, imprison for six months

    PRA empowered to arrest tax defaulters, imprison for six months

    LAHORE: Punjab Revenue Authority (PRA) has been empowered to arrest defaulters and imprison for six months for making recovery of outstanding tax.

    The Punjab Finance Bill, 2020 has proposed to empower PRA in certain provisions of Punjab Sales Tax Act, 2012 for making recovery of outstanding tax.

    According to interpretation of Punjab Finance Bill, 2020 by PwC A. F. Ferguson, the bill proposes to empower tax authorities whereby they may also require a financial institution or banking company to make payment of tax due from a registered person out of running and demand finance extended to the registered person.

    By way of insertion of clause (g) to section 70 of the Act, it also empowers the department to arrest a defaulter and imprison him for not more than six months where a tax demand has been upheld by the Appellate Tribunal.

    No action is presently taken where a person deposits at least 25 percent of the tax demand during pendency of an appeal. It is proposed to reduce this limit to 10 percent of the tax demand. This is a positive amendment.

    The amendments relating to administrative and procedural matters are summarized as under:

    — The power of the PRA to de-register a person is proposed to be devolved to the Commissioner.

    — The PRA is being authorized to specify format of invoices to be issued by a registered person or class of registered persons and to prescribe a procedure for authentication of such invoices.

    — The PRA or authorized officer may require any registered person or class of registered persons to issue invoices electronically and transmit such invoices to PRA in the prescribed manner.

    — To streamline audit proceedings, it is proposed to empower officers to conduct audit proceedings electronically through video links or any other facility as may be notified by PRA.

    — It is proposed to empower even officers, below the rank of an Assistant Commissioner, to call for information or documents regarding any enquiry or audit.

    Earlier, only an Assistant Commissioners or Officers with higher ranks may call for such information.

    — To facilitate taxpayers, it is proposed that appeal before the Commissioner (Appeals) may also be filed through electronically.

    — The period of filing an appeal before the appellate tribunal is proposed to enhance from 30 days to 60 days.

  • Punjab enlists records to be maintained by taxpayers

    Punjab enlists records to be maintained by taxpayers

    LAHORE: The service providers falling under the jurisdiction of Punjab Revenue Authority (PRA) are required to maintain records enlisted through provincial Finance Bill, 2020.

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  • Punjab announces tax payment relaxation to property, motor vehicle

    Punjab announces tax payment relaxation to property, motor vehicle

    LAHORE: The Punjab government has announce special relaxation on payment of tax for immovable properties and motor vehicle for financial year 2020/2021.

    According to Punjab Finance Bill, 2020 following special relaxations have been offered for tax payment of immovable properties and motor vehicles:

    Special relaxations for financial year 2020-21.

    (1) Notwithstanding anything contained in sections 3 and 12 of the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958), for the financial year 2020-21:

    (a) discount equal to five percent of the tax being paid shall be allowed on payment of tax through e-payment system;

    (b) a rebate equal to ten per cent of the amount of annual tax shall be allowed if the amount of annual tax is paid in lump sum on or before the 30th day of September 2020;

    (c) the tax shall be paid on yearly basis or half yearly basis as the assessee may choose or by such later day as the Government may by notification determine; and

    (d) the late payment surcharge shall not be imposed for the tax amount due.

    (2) Notwithstanding anything contained in sections 3 and 9 of the Punjab Motor Vehicles Taxation Act, 1958 (XXXII of 1958), for the financial year 2020-21:

    (a) discount equal to five percent of the tax being paid shall be allowed on payment of tax through e-payment system;

    (b) a rebate equal to 20 percent of the amount of annual tax shall be allowed if the amount of annual tax is paid in lump sum on or before the 30th day of September 2020; and

    (c) if a person fails to pay any amount of tax due within the period fixed for such payment, he shall not be liable to pay any penalty if he pays the same during the financial year 2020-21.

    (3) This section shall remain in force till 30th day of June 2021.