Notification (Withholding Agents as Collecting Agent_241018_143718
OFFICE MEMORANDUM
Subject: Withholding Agents
In exercise of the powers conferred under section 14A of the Punjab Sales Tax on Services Act, 2012 (Act XLII of 2012), Punjab Revenue Authority is pleased to specify and declare all Withholding agents defined under Rule 2(f)(i, ii, iii,) of The Punjab Sales Tax on Services (Withholding) Rules, 2015 as “Collecting Agent” for the purposes of collection of tax and deposit into Government treasury under the Act XLII of 2012, read with rules made thereunder, regarding taxable services provided by persons or class of persons in the course of an economic activity as mentioned in Column 1 at an applicable rate mentioned in Column 3, of the below mentioned Table I:
TABLE I
| Entry No. of Taxable Services mentioned in Second Schedule of the Act XLII of 2012 | Description Taxable Services | Classification | Rate of tax |
|---|---|---|---|
| 2 | Advertisement on television and radio or advertisement services showcasing of any product or service in video programmes, television programmes or motion pictures or music albums, excluding advertisements: (a) sponsored by an agency of the Federal or Provincial Government for health education; or (b) financed out of funds provided by a Government under an agreement of foreign grant-in-aid; or (c) conveying public service message, if telecast on television by the World Wide Fund for Nature (WWF) or United Nations Children’s Fund (UNICEF). | [9802.1000, 9802.2000 and respective headings] | Sixteen percent |
| 12 | All kinds of advertisement services including advertisements on hoarding boards, pole signs and sign boards and on closed circuit TV, websites or internet, advertisements through brand activation in any mode, advertisement on moving vehicles, aerial advertising, advertisement through provision of space or time, or on bill-boards, public places, buildings, conveyances, cell phones, automated teller machines, or through offering product exclusivity in any manner. | [9802.3000, 9802.6000, 9802.7000 and 9802.9000] [9802.3000, 9802.5000, 9802.9000 and respective headings.] | Sixteen percent |
| Entry No. of Taxable Services mentioned in Second Schedule of the Act XLII of 2012 | Description Taxable Services | Classification | Rate of tax |
|---|---|---|---|
| 13 | Franchise service [including intellectual property rights services [and licensing services]]. | [9823.0000, 9839.0000 and respective headings] | (a) Zero percent without input tax adjustment for services relating to educational institutions for information technology; and (b) Five percent without input tax adjustment for services relating to educational institutions other than educational institutions for information technology; and (c) Sixteen percent for others. |
| 24 | Services provided by other consultants (by whatever name called or treated, whether as consultant or otherwise) including human resource and personnel development services, exhibition or convention services [including provision of space, equipment, accessories and other allied services], event management services (whole range and variety of their services regardless of separate or individual classification thereof), valuation services, evaluation services (including competency and eligibility testing services), certification, verification and equivalence services, market research services, marketing or sales services (including marketing agencies and online marketing or sales services), surveyors services, training or coaching services (other than general education services) and credit rating services. | 9815.9000 [9832.0000, 9827.0000, 9813.3000, 9818.2000, 9818.9300, 9852.0000, 9859.0000[. 9825.0000, 9819.5000, 9849.0000, 9818.9000, 9819.0000, 9853.0000, 9856.0000 and respective headings] | (a) Zero percent without input tax adjustment for training services related to Information Technology; and (b) Sixteen percent for others. |
| 29 | Services provided by advertising agents | 9805.7000 | Sixteen percent |
| 40 | Brokerage (other than stock) and indenting services including | 9829.0000, 9819.1200, | (a) Five percent without input tax |
| Entry No. of Taxable Services mentioned in Second Schedule of the Act XLII of 2012 | Description Taxable Services | Classification | Rate of tax |
|---|---|---|---|
| 42 | commission agents, under-writers and auctioneers. | 9819.1100, 9819.1300 and 9819.9100 | adjustment for services provided in respect of agricultural produce [and home chefs]; and (b) Sixteen percent for others. |
| 43 | Services provided in specified fields such as health care, gym, physical fitness, indoor sports, games, [amusement parks, arcades and other recreation facilities,] and body or sauna massage etc. | 9821.1000 and 9821.2000 9821.4000 | [Five percent without input tax adjustment] |
| 56 | Debt Collection, rent collection and similar other recovery or collection services including right to collect the toll or fee or regulatory fee or duty or any other similar collection. | 9863.0000 | Sixteen percent |
| 63 | Parking services. | Respective headings | Five percent without input tax adjustment |
2. A word and expression used in this notification shall have the meanings as are assigned to them under the Act XLII of 2012, and rules made thereunder.
3. The matters relating to payment of tax, assessment of tax, recovery of tax not levied or short levied, records and its insertions, and recovery of arrears of tax, payable under this notification shall be dealt with in accordance with the provisions of Act XLII of 2012 and rules made thereunder.
4. Any change/amendment in entries referred in the above table shall be communicated to the Collecting Agent, at the earliest.
