PUNJAB SALES TAX ON SERVICES ACT 2012

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THE PUNJAB SALES TAX ON SERVICES ACT 2012 
(XLII of 2012) 
CONTENTS 
1. Short title, extent and commencement 
2. Definitions 
3. Taxable service 
3A. Tax-free services 
4. Application of principles of origin and reverse charge in certain 
situations 
5. Amendment in Schedule 
6. Economic activity 
7. Value of a taxable service 
8. Open market price 
9. Provision of services over a period of time 
10. Scope of tax and allied matters 
10A. Option to charge tax at standard rate 
11. Person liable to pay tax 
11A. Liability of a registered person 
12. Exemptions 
13. Effect of change in the rate of tax 
14. Special procedure and tax withholding provisions 
14A. Special procedure for collection of tax, etc. 
15. Delegation of power to collect, administer and enforce tax on certain 
services 
16. Deduction and adjustment of tax on inputs to the business  
16A. Certain transactions not admissible 
16B. Tax credit not allowed 
16C. Extent of adjustment of input tax 
16CC. Adjustment of input tax on certain goods and services 
16CCC. Input Tax management through risk-based evaluation system 
16D. Refunds 
17. Collection of excess tax 
18. Time, manner and mode of payment 
19. Joint and several liability of registered persons where tax unpaid 
20. Sales of taxable activity or transfer of ownership 
21. Estate of deceased person 
22. Estate in bankruptcy 
23. Liability for payment of tax in case of private compani es or business 
enterprises 
24. Assessment of tax 
24A. Determination of minimum tax liability 
25. Registration 
26. Voluntary registration 
27. Compulsory registration 
28. Suspension of registration 
29. De-registration 
29A. Restoration of registrations 
30. Issuance of tax invoices 
31. Records 
32. Retention and production of records and documents 
33. Audit proceedings 
34. Special audit by chartered accountants or cost accountants 
35. Return 
36. Special returns 
37. Final return 
38. Return deemed to have been made 
39. Appointment of authorities 
40. Powers 
41. Distribution of powers 
42. Special Judges 
43. Cognizance of offence 
44. Application of the Code of Criminal Procedure, 1898 
45. Exclusive jurisdiction of Special Judge 
46. Place of sitting 
47. Persons who may conduct prosecution 
48. Offences and penalties 
49. Default surcharge 
50. Exemption from penalty and default surcharge 
51. Compounding of offences 
52. Recovery of tax not levied or short-levied 
53. Power to summon persons to give evidence and produce documents 
54. Power to arrest and prosecute 
55. Procedure to be followed on arrest of a person 
56. Authorized officers to have access to premises, stocks, accounts and 
records 
57. Obligation to produce documents and provide information 
58.  Searches under warrants 
59. Posting of an officer to business premises 
59A. Power to Seal the Business Premises 
59B. Monitoring or Tracking by Electronic or other Means 
60. Powers of adjudication 
61. Revision by the Commissioner 
62. Revision by the Authority 
63. Appeals 
64. Procedure in appeal 
65. Decision in appeal 
66. Appeal to the Appellate Tribunal 
67. Disposal of appeals by the Appellate Tribunal 
67A. Reference to the High Court 
68. Deposit of the tax demand while appeal is pending 
69. Alternate dispute resolution 
70. Recovery of arrears of tax 
71. Agent 
72. Liability and obligations of agents 
73. Liability of the registered person for the acts of his agent 
74. Appearance by authorized representative 
75. E-intermediaries to be appointed 
76. Power to make rules and frame regulations 
76A. Power to restrain certain authorities 
77. Computerized system 
78. Service of orders and decisions 
79. Correction of clerical errors 
80. Issuance of duplicate of the tax documents 
81. Power to issue orders, instructions and directions 
82. Officers of the Authority to follow orders 
83. Computation of limitation period 
84. Condonation of time-limit 
85. Bar of suits, prosecution and other legal proceedings 
86. Removal of difficulties 
87. Repeal and savings 
88. Prize schemes to promote tax culture 
89. Reward to whistleblowers 
FIRST SCHEDULE 
SECOND SCHEDULE 
 
TEXT 
1
THE PUNJAB SALES TAX ON SERVICES ACT 2012 
(XLII of 2012) 
[27th June, 2012] 
An 
Act 
to provide for the levy of a tax on services provided, rendered, initiated, received, 
originated, executed or consumed in the Punjab. 
Preamble.– Whereas it is expedient to provide for the levy  of a tax on services 
provided, rendered, initiated , originated, executed , received or consumed in the 
Punjab and to deal with ancillary matters;  
It is enacted as follows:– 
CHAPTER I  
PRELIMINARY 
1. Short title, extent and commencement .– (1) This Act may be cited as the 
Punjab Sales Tax on Services Act 2012. 
 (2) It shall extend to the whole of the Punjab.  
 (3) This Act shall come into force on and from such date as the 
Government may, by a notification in the official Gazette, specify. 
 (4) Notwithstanding sub -section (3), the Government may, by notification 
in the official Gazette, specify services or class or classes of services in respect of 
which tax shall be collected and paid with effect from the date subsequent to and 
different from the date of the commencement of this Act. 
2. Definitions.– In this Act– 
2
[3[(1) “active taxpayer” means a registered person who does not fall in any of 
the following: 
(i) whose registration has been suspended or blacklisted by the 
 Authority; and 
(ii) who has filed to file t he return by the due date  for the last two  
consecutive tax periods;] 
(1A) “Additional Commissioner” means a person appointed as Additional 
Commissioner of the Authority; 
                                                           
1This Act was passed by the Punjab Assembly on 21 Ju ne 2012; assented to by the Governor of the Punjab o n 26 June 2012; 
and published in the Punjab Gazette (Extraordinary), dated 27June 2012, pages 41901-41935. 
2Added by the Punjab Finance Act 2021 (XIX of 2021), published in the Punjab Gazette (Extraordinary), dated: 30 th June 2021, 
pp. 10047-10050 s.5. 
3Substituted by the Punjab Finance Act 2026 (L of 2026), published in the Punjab Gazette (Extraordinary), dated: 1st July 2026, 
pp. 21-24, s.5 (a). 
 
(1B) “Appellate Tribunal” means the Appellate Tribunal established under the 
Punjab Revenue Authority Act 2012 (XLIII of 2012);] 
(2) “arrears”, in relation to a person, shall mean, on any day, the tax due 
and payable by the person under the Act or the rules before that day 
but which has not yet been paid; 
(3) “Assistant Commissioner” means a person appointed as an Assistant 
Commissioner of the Authority; 
(4) “associates” or “associated persons” refer to– 
(a) two persons, where the relationship between them is such that 
one may reasonably be expected to act in accordance with the 
intentions o f the other, or both persons may reasonably be 
expected to act in accordance with the intentions of a third 
person but two persons shall not be associates solely by reason 
of the fact that one person is an employee of the other or both 
persons are employees of a third person; 
(b) without prejudice to the generality of paragraph (a) and subject 
to paragraph (c), the following persons shall always be treated 
as associates:– 
(i) an individual and a relative of that individual; 
(ii) members of an association of persons;  
(iii) a member of an association of persons and the 
association, where the member, either alone or together 
with an associate or associates under another application 
of this section controls fifty per cent or more of the rights 
to income or capital of the association; 
(iv) a shareholder in a company and the company, where the 
shareholder, either alone or together with an associate or 
associates under another application of this section, 
controls either directly or through one or more interposed 
persons– 
a.     fifty per cent or more of the voting power in the 
company; 
b. fifty per cent or more of the rights to dividends; or 
c. fifty per cent or more of the rights to capital; and  
(v) two companies, where a person, either alone or together 
with an associate or associates under another application 
of this section, controls either directly or through one or 
more interposed persons–  
a. fifty per cent or more of the voting power in both 
companies; 
b. fifty per cent or more of the rights to dividends in 
both companies; 
c. fifty per cent or more of the rights to capital in both 
companies; and 
(c) two persons shall not be associates under sub -paragraph (i) or 
(ii) of paragraph (b) where the Commissioner is satisfied that 
neither person may reasonably be expected to act in 
accordance with the intentions of the other. 
Explanation.– The expression 'relative in relation to an individual‟ 
means– 
(i) an ancestor, a descendant of any of the grandparents, or 
an adopted child of the individual or of a spouse of the 
individual; or  
(ii) a spouse of the individual or of any person specified at (i); 
(5) “association of persons” includes a firm, any artificial or juridical person 
and body of persons formed under a foreign law, but does not include a 
company;  
(6) “Authority” means Punjab Re venue Authority established under 
4
[the 
Punjab Revenue Authority Act 2012 (XLIII of 2012)]; 
(7) “banking company”  means a banking company as defined in the 
Banking Companies Ordinance, 1962 (LVII of 1962)  and includes any 
body corporate which transacts the business of banking in the Punjab;  
(8) “Commissioner” means a person appointed as Commissioner of the 
Authority;  
(9) “Commissioner (Appeals)”  means a person appointed as 
Commissioner (Appeals) of the Authority;  
5
[(9A) “commission" includes any consideration in whatever form, received or 
receivable directly or indirectly, by a person acting on behalf of another 
person for services rendered, not being professional services, in the 
course of buying or selling of goods or services or in relation to any 
transaction relating to any asset, valuable article or thing, not being 
securities; 
(9B) “commission agent” means a person who acts for  consideration on 
behalf of another person for sale or purchase of goods or provision or 
receipt of services, and includes any person who, while acting on 
behalf of another person: 
(a) deals with goods, services or documents of title of such goods 
or services;   
                                                           
4Substituted for the words “any law” by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and p ublished in the 
Punjab Gazette (Extraordinary), dated 26.6.2014, pages 4169-4178. 
5Inserted by the Punjab Finance Act 2018 (XXX of 2018), published in the Punjab Gazette (Extraordinary), dated: 29 October 
2018, pp. 805-818, s. 4: it came into force on 1 November 2018. 
(b) collects payment in lieu of such goods or services;  
(c) guarantees for collection or payment for such goods or services; 
or  
(d) undertakes any activity relating to sale or purchase of such 
goods or provision or receipt of  services.] 
(10) “common taxpayer identification number” means the registration 
number or any other number or identification code  allocated to a 
registered person; 
(11) “company” means– 
(a) a company as defined in 
6
[the Companies Act, 2017 (XIX of 
2017);] 
(b) a body corporate formed by or under any law; 
(c) a modaraba and any other Islamic financial institution; 
(d) a body incorporated outside Pakistan;  
(e) a trust, a co -operative society or a finance society or any other 
society established or constituted by or under any law; or 
(f) a foreign association, whether incorporated or not, which the 
Authority has, by  general or special order, declared to be a 
company for purposes of the Act; 
(12) “computerized system” means any comprehensive information 
technology system, including its development, upgradation or updation, 
to be used by the Authority or any other office as may be notified by the 
Authority, for carrying out the purposes of the Act; 
(13) “default surcharge” means the default surcharge levied under the Act;  
(14) “defaulter” means a person and, in the case of company or firm, every 
director of the company or partner of the firm and includes guarantors 
or successors, who fail to pay the arrears of tax under the Act and the 
rules; 
(15) “Deputy Commissioner” means a person appointed as a Deputy 
Commissioner of the Authority; 
(16) “document” includes any electronic data, computer programmes, 
computer tapes, com puter disks, micro -films or any other medium or  
mode for the storage or conveyance of such data;  
(17) “due date” in relation to the furnishing of a return under Chapter VI 
means the 15th day of the month following the end of the tax period, or 
such other date as the Authority may, by notification in the official 
                                                           
6Substituted by the Punjab Finance Act 2021 (XIX of 2021), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2021, pp. 10047-10050 s.5. 
Gazette, specify 
7
[and different dates may be so specified for furnishing 
different parts or annexures of the return;] 
(18) “economic activity” shall have the meaning given to it in section 6; 
(19) “e-intermediary” means a person appointed as e -intermediary under 
the Act; 
(20) “exempt service” means a service which is exempt from the tax under 
section 12; 
(21) “FBR” means the Federal Board of Revenue established under the 
Federal Board of Revenue Act, 2007; 
(22) “financial year” means the period from 1 st July of a year to 30 th June of 
the following year; 
(23) “firm” means the relation between persons who have agreed to share 
the profits of a business carried on by all or any of them acting for all; 
(24) “goods” include every kind of movable property other than actionable 
claims, money, stocks, shares and securities but does not include a 
service defined under the Act;  
(25) “Government” means Government of the Punjab;  
(26) “inter-bank rate” means the  Karachi inter -bank offered rate prevalent 
on the first day of each quarter of a financial year;  
8
[(26A) “non-banking financial institution” includes a company licensed by the 
Securities and Exchange Commission of Pakistan to carry out any one 
or more of the following forms of business: 
(i) investment finance services; 
(ii) leasing; 
(iii) housing finance services; 
(iv) venture capital investment; 
(v) discounting services; 
(vi) investment advisory services; 
(vii) asset management services; and 
(viii) any other form of business which the Federal Government may, 
from time to time, by notification in the official Gazette specify;] 
(27) “officer of the Authority” means any officer of the Authority; 
(28) “open market price” shall have the meaning as given to it in section 8; 
                                                           
7Inserted by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Ex traordinary), dated: 16 June 2017, 
pp. 8235-8250, s.4. 
8Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2015, pages 7361-7368. 
(29) “person” means– 
(a) an individual;  
9
[(aa) an association of persons;] 
(b) a company;  
(c) Federal Government; 
(d) a Provincial Government; 
(e) a local authority or local government; or  
(f) a foreign government, a political subdivision of a forei gn 
government, or public international organization;  
Explanation.– The use of the word “he” in the Act shall be taken to 
refer to any or all mentioned from (a) to (f) as required in the context of 
the relevant provision;  
(30) “place of business” means that a person–  
(a) owns, rents, shares or in any other manner occupies a space in 
the Punjab from where he carries on an economic activity 
whether wholly or partially; or  
10
[(b) carries on an economic activity,  wholly or partially, either 
through any other  person such as an agent, associate, 
franchise, branch, office, or otherwise in the Punjab or through 
virtual presence or a website or a web portal or through any 
other form of e-Commerce by whatever name called or treated;] 
(31) “prescribed” means prescribed by the rules  11[or the regulations made 
or framed under this Act]; 
(32) “registration number” means the number allocated to a registered 
person for purposes of the Act; 
(33) “registered person” means a person who is registered or is liable to be 
registered under the Act but the person liable to be registered and has 
not registered shall not be entitled to any benefit available to a 
registered person under any of the provisions of the Act or the rules;  
12[(33A) “regulations” means the regulations framed under this Act;] 
(34) “return” means any return required to be furnished under Chapter VI of 
the Act; 
(35) “resident” means– 
                                                           
9Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178. 
10Substituted by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16 June 
2017, pp. 8235-8250, s.4. 
11Inserted by the  Punjab Sales Tax on Services (Amendment) Act 2026  (XXXVIII of 2026) , published in the Punjab Gazette 
(Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.2 (a). 
12Inserted by the  Punjab Sales Tax on Services (Amendmen t) Act 2026  (XXXVIII of 2026) , published in the Punjab Gazette 
(Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.2 (b). 
  
(a) an individual who, in a financial year, has– 
(i) a place of business, whole or part thereof, in the Punjab 
in any mode, style or manner; or 
(ii) his permanent address, as listed in the individual‟s 
national identity card, in the Punjab; or 
(iii) a permanent representative to act on his behalf or to 
provide service on his behalf in the Punjab.  
(b) an association of persons or a com pany which, in a financial 
year, has– 
(i) its registered office in the Punjab; or  
(ii) its place of business,  whole or part thereof, in the Punjab 
in any mode, style or manner; 
(iii) a permanent representative to act on its behalf or to 
provide service on its behalf in the Punjab; or 
(iv) the control or management of the affairs of the 
association of persons is situated in the Punjab at any 
time during the financial year; 
(36) “rules” means the rules made under the Act; 
(37) “Schedule” means a Schedule appended to the Act;  
(38) “service” or “services” means anything which is not goods or providing 
of which is not a supply of goods and shall include but not limited to the 
services listed in First 13[or Second] Schedule;   
Explanation.– A service shall remain  and continue to be treated as 
service regardless whether or not rendering thereof involves any use, 
supply 
14
[, disposition] or consumption of any goods either as an 
essential or as an incidental aspect of such rendering; 
(39) “short-paid” means where a re gistered person pays an amount of tax 
less than the tax due owing to miscalculation or incorrect assessment 
of the tax amount due for a tax period;  
(40) “similar service” means any other service which is the same as, or 
closely resembles with, the other s ervice in character, quality, quantity, 
functionality, materials, or reputation;  
(41) “Special Judge” means a Special Judge appointed under section 42; 
15
[(41A) “Standard Rate” means sixteen percent;] 
(42) “tax” means and includes–  
                                                           
13Inserted by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2025, pp. 5437-5449, s.2: it came into force on 1st July 2025. 
14Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178. 
15Inserted by the Punjab Finance Ac t 2021 (XIX of 2021), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2021, pp. 10047-10050 s.5. 
(a) the tax, additional tax, or default surcharge levied under the Act;  
(b) a fine, penalty or fee imposed or charged under the Act; and  
(c) any other sum payable or recoverable under the Act or rules; 
16
[(42A) "taxpayer" means any person who, in the course of an economic 
activity, provides taxable services for consideration;] 
(43) “tax fraud” means knowingly, dishonestly or fraudulently and without 
any lawful excuse–  
(a) doing of any act or causing to do any act; or  
(b) omitting to take any action or causing the omission of a ny 
action, including providing of taxable services without being 
registered under the Act; or  
(c) falsifying or causing falsification of tax invoices or other tax 
documents or records; or 
(d) acting in contravention of the duties or obligations imposed 
under the Act or rules or instructions issued thereunder– 
with the intention of understating or suppressing the tax liability or 
underpaying 
17
[or not paying] the tax liability; 
(44) “tax period” means a period of one month or such other period as the 
Authority may, by notification in the official Gazette, specify; 
(45) “taxable service” shall have the meaning as given to it in section 3; and 
(46) “value of a taxable service”  shall have the meaning as given to it in 
section 7. 
3. Taxable service .– (1) Subject to 18[section 3A, all services are taxable under 
this Act, including but not limited to the services ] listed in Second Schedule, which is 
provided by a person from his office or place of business in the Punjab in the course 
of an economic activity, including the commencement or termination of the activity.  
Explanation.– This sub-section deals with services provided by a person regardless 
whether such services are provided to a resident person or a non-resident person. 
(2) If a service 19[, including but not limited to the services] listed in Second 
Schedule is provided to a resident person by a non -resident person in the course of 
an economic activity, including the commencement or termination of the activity, it 
shall be treated as a taxable service. 
                                                           
16Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2015, pages 7361-7368. 
17Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178. 
18Substituted by the Punjab Finance Act 2025 (LVIII of 2025), published in the Punjab Gazette (Extraordinary), dated: 30th June 
2025, pp. 5437-5449, s.3(a): it came into force on 1st July 2025. 
 
19Added by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2025, pp. 5437-5449, s.3(b): it came into force on 1st July 2025. 
Explanation.– This sub -section deals with services provided by a non -resident 
person to a resident person whether or not the end consumers, if any, of such 
services are identifiable for purposes of this Act or the rules. 
(3) For purposes of sub-section (2), where a person has a registered office 
or place of business in the Punjab and another outside the Punjab, the registered 
office or place of business in the Punjab and that outside the Punjab shall be treated 
as separate legal persons. 
(4) The Authority may, wi th prior approval of the Government, by 
notification in the official Gazette, prescribe rules for determining the conditions 
under which a particular service or class of service shall be considered to have been 
provided by a person from his registered office or place of business in the Punjab. 
(5) For purposes of this Act and  the rules, providing of service shall, 
where the context so requires, include rendering, supply, initiation, origination, 
execution, reception, consumption or termination of a service  whether in whole or in 
part.  
20
[21[(6)* * * * * * * * * *]] 
22[3A. Tax -free serv ices.– Notwithstanding anything contained in this Act and 
subject to any condition and to the extent specified therein; all services mentioned in 
the First Schedule shall be tax-free services under this Act.] 
4. Application of principles of origin and reverse charge in certain 
situations.– (1) Where a person is providing taxable services in a Province other 
than the Punjab but the recipient of such services is resident of the Pun jab or is 
otherwise availing such services in the Punjab and has charged tax accordingly, the 
person providing such services shall pay the amount of tax so charged to the 
Government. 
(2) Where the recipient of a taxable service is a person registered under  
the Act, he shall deduct the whole amount of tax in respect of the service received 
and pay the same with the Government. 
(3) Where a person is providing taxable services in more than one 
Province or territory in Pakistan including the Punjab, such person  shall be liable to 
pay tax to the Government to the extent the tax is charged from a person resident in 
the Punjab or from a person who is otherwise availing such services in the Punjab. 
(4) Where rendering of a taxable service originates from the Punjab but 
terminates outside Pakistan, such person shall be required to pay tax on such 
service to the Government. 
(5) Where a taxable service originates from outside Pakistan but is 
received or terminates in the Punjab, the recipient of such service shall be li able to 
pay the tax to the Government.  
                                                           
20Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2015, pages 7361-7368. 
21Omitted “sub-section (6)” by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette (Extraordinary), 
dated: 30th June 2025, pp. 5437-5449, s.3(c): it came into force on 1st July 2025.  
22Inserted by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab  Gazette (Extraordinary), dated: 30 th June 
2025, pp. 5437-5449, s.4: it came into force on 1st July 2025. 
(6) The persons who are required to pay the tax to the Government in 
terms of sub -sections (1), (2), (3), (4) and (5) shall be liable to registration for 
purposes of this Act and the rules. 
(7) All questions or dispu tes relating to the application of the principle of 
origin given in this section shall be resolved in terms of the already recorded 
understanding between the Federal Government and the Provincial Governments on 
the implementation of reformed General Sales Tax provided that pendency of any 
such question or dispute shall not absolve the concerned person from his obligation 
to deposit the tax. 
(8) The provisions of this section shall apply notwithstanding any other 
provision of this Act or the rules and the Go vernment may specify special procedure 
to regulate the provisions of this section. 
5. Amendment in 23[*] Schedule.– (1) The Government may, by notification in 
the official Gazette, make an amendment in 24[First or ] Second Schedule by 
modifying, adding or deleting any entry or entries with reference to the classification, 
if any, description of any service or class of services and the rate or rates of tax 
chargeable on any service or class of services not exceeding the maximum rate 
prescribed in 25[Serial No. 1 of the Part-I of] Second Schedule. 
(2) A notification issued under sub -section (1) shall be effective from such 
date as may be specified in the notification but such date shall not be prior to the 
date on which the notification is published in the official Gazette.  
(3) The Government shall at the time of presenting the Annual Budget 
Statement for the next financial year, lay before the Provincial Assembly of the 
Punjab all the notifications relating to the amendments in the  26[First or]  Second 
Schedule during the current financial year. 
6. Economic activity.– (1) An economic activity means any activity carried on 
whether continuously, regularly or otherwise by a person that involves or is intended 
to involve the provision of services to another person and includes– 
(a) an activity carried on in the form of a business, including a profession, 
calling, trade, or undertaking of any kind, whether or not the activity is 
undertaken for any consideration or profit; 
(b) the supply of movable  
27
[or immovable]  property by way of lease, 
license or such similar arrangement; and 
(c) a one-time transaction or concern in the nature of a business or trade.  
                                                           
23Omitted the word “Second” by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette (Extraordinary), 
dated: 30th June 2025, pp. 5437-5449, s.5(a): it came into force on 1st July 2025. 
24Inserted by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2025, pp. 5437-5449, s.5(b)(i): it came into force on 1st July 2025. 
25Inserted by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2025, pp. 5437-5449, s.5(b)(ii): it came into force on 1st July 2025. 
26Inserted by the Punjab Finance Act 2026 (L of 2026 ), published in t he Punjab Gazette (Extraordinary), dated: 1st July 2026, 
pp. 21-24, s.5 (b). 
27Inserted by the Punjab Finance Act 2018 (XXX of 2018), published in the Punjab Gazette (Extraordinary), dated: 29 October 
2018, pp. 805-818, s. 4: it came into force on 1 November 2018. 
(2) Anything done or undertaken during the commencement or termination 
of an economic activity shall be construed as part of the economic activity. 
(3) An economic activity does not include– 
(a) the activities of an employee providing services in that capacity to an 
employer; or 
(b) a private recreational pursuit or hobby of an individual. 
7. Value of a taxable service.– (1) The value of a taxable service is the 
28
[gross 
amount of] consideration (by whatever name called such as charges or price) in 
money including all the Federal and the Provincial duties, taxes or charges, if any, 
which the person providing a service receives from the r ecipient of the service but 
does not  include the amount of the tax. 
(2) In case the consideration for a service is in kind or is partly in kind and 
partly in money, the value of the service shall mean the open market price of the 
service as determined under section 8 excluding the amount of the tax. 
(3) In case the person who  provides the service and the recipient of the 
service are associated persons and the service is supplied for no consideration or for 
a consideration which is lower than the price at w hich the person provides the 
service to other persons who are not associated persons, the value of the service 
shall mean the price at which the service is provided to such other persons but does 
not include the tax. 
(4) In case a person provides a service  for no consideration or for a 
consideration which is lower than the price at which such a service is provided by 
such person, the value of the service shall mean the open market price for such a 
service.  
(5) In case of trade discounts, the value of the s ervice shall mean the 
discounted price, excluding the amount of the tax, provided the invoice shows that 
the discounted price and the related tax and the discount allowed is in conformity 
with customary business practice. 
(6) In case there is reason to bel ieve that the value of a service has not 
been correctly declared in the invoice or for any special nature of transaction it is 
difficult to ascertain the value of a service, the value of the service shall be the open 
market price. 
(7) Notwithstanding anything in sub-sections (1) to (6), where the Authority 
deems it necessary, it may, by notification in the official Gazette, fix the value of any 
service or class of services and for that purpose fix different values for different 
classes or descriptions of th e same or similar types of services but if the value at 
which the service is provided is higher than the value fixed by the Authority, the 
value of the service shall, unless otherwise directed by the Authority, be the value at 
which the service is provided.  
Explanation.–  For the purpose of this section, the value of the utilities or facilities, if 
any, ancillary to providing of taxable services shall be included in the value of such 
services. 
                                                           
28Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178. 
(8) The Authority may, by notification in the official Gazette, issue valuation 
rules for any service or class of services for purposes of assessment or 
determination and payment of tax under this Act and prescribe threshold, 
parameters, standards, methods, formula, criteria or bases for the determination of 
value of any taxable service or class of taxable services and the assessment of the 
tax on any service or class of services. 
8. Open market price.– (1) The open market price of a service is– 
(a) the price, the service would fetch in an open market transaction freel y 
entered into between persons who are not associated persons; or 
(b) if it is not possible to determine an amount under paragraph (a), the 
price a similar service would fetch in an open market transaction freely 
made between persons who are not associated  persons, adjusted to 
take account of the differences between the similar service and the 
actual service, 
(c) determined on the basis of the market conditions prevailing at the time 
and place at which the service is provided. 
(2) If the open market price o f a service cannot be determined under sub -
section (1), it may be determined by using any method or formula specified  by the 
Authority for calculating an objective approximation of the price, the service would 
fetch in an open market transaction freely mad e between persons who are not 
associates. 
9. Provision of services over a period of time .– (1) Where a service is 
provided over a period of time and payment for the same is made on a periodic 
basis, the service shall be treated as comprising two or more se parate and distinct 
services each corresponding to the part of the service to which each separate part of 
the consideration relates.  
ILLUSTRATIONS 
(a) Where services  are provided for a two year period and payment is 
made on a semi -annual basis, the provis ion of services for each six 
month period constitutes a separate service. 
(b) Where an insurance company provides an insurance policy over a five 
year period and receives a premium on an annual basis, each premium 
relates to a separate service.  
Note: The above illustrations are merely explanatory and shall not be 
construed as conclusive in any manner whatsoever. 
(2) This section does not apply to services for which payment is made on 
installments basis. 
CHAPTER II 
SCOPE OF TAX 
10. Scope of tax and allied m atters.– (1) Subject to the provisions of this Act 
and the rules, there shall be charged, levied, collected and paid  the tax on the value 
of a taxable service at the rate or rates specified in the Second Schedule. 
(2) The Government may, on the recommendat ion of the Authority and 
subject to such conditions and restrictions as the Government may impose, by 
notification in the official Gazette, declare that in respect of any taxable service 
provided by a registered person or a class of registered persons, the  tax shall be 
charged, levied and collected at such higher, lower, fixed or specific rate or rates as 
may be specified in the said notification. 
(3) Notwithstanding other provisions of this Act, the Authority may, with the 
prior approval of the Government and by notification in the official Gazette and 
subject to the conditions, restrictions, limitations or otherwise, fix the limit or 
threshold of annual turnover of any service or class of services provided by any 
person or class of persons below which such  person or class of persons shall be 
exempt from payment of tax under the Act.  
29
[(4)  * * * * * * * * * * *   ] 
30
[(5)  * * * * * * * * * * *   ] 
31
[10A.  Option to charge tax at standard rate .- (1) Where any service or class of 
services is chargeable at a reduced rate under 32[Part-III of] the Second Schedule, 
any person or class of persons providing such service or services may, with the 
permission of the Authority, opt to charge sales tax at the standard rate subject to 
such conditions, restrictions and limitations as may be specified by the Authority. 
  (2) The permission granted under subsection (1) shall be irrevocable 
except with the permission of the Authority. 
  (3) Where the Authority has reasons to believe that the taxpayer has 
misused the option, t he Authority may withdraw the permission granted under 
subsection (1) at any time after affording an opportunity of being heard.] 
11. Person liable to pay tax .– (1) Where a service is taxable by virtue of sub -
section (1) of section 3, the liability to pay the tax shall be on the registered person 
providing the service. 
(2) Where a service is taxable by virtue of sub -section (2) of section 3, the 
liability to pay the tax shall be on the person receiving the service.  
(3) The Authority may, by notification in  the official Gazette, specify the 
service or services in respect of which the liability to pay tax shall be on any person, 
other than the person providing the taxable service, or the person receiving the 
taxable service. 
(4) Nothing contained in this section shall prevent the collection of tax from 
a different person if that person is made separately or jointly or severally liable for 
the tax under section 19. 
                                                           
29Omitted by the Punjab Finance Act 2016 (XXXV of 2016), published in the Punjab Gaz ette (Extraordinary), dated: 29 June 
2016, pp. 6083-6092, s.8: it came into force on 1 July 2016. 
30Omitted by the Punjab Finance Act 2016 (XXXV of 2016), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2016, pp. 6083-6092, s.8: it came into force on 1 July 2016. 
31Inserted by the Punjab Finance Act 2021 (XIX of 2021), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2021, pp. 10047-10050 s.5. 
32Inserted by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Ga zette (Extraordinary), dated: 30 th June 
2025, pp. 5437-5449, s.6: it came into force on 1st July 2025. 
33
[11A. Liability of a registered person .–Subject to the provisions of subsection (1) 
of section 1 1, where a registered person receiving the taxable service fails to make 
payment of the tax to a service provider within one hundred and eighty days from the 
date of the tax invoice and such service provider has also not made the payment 
thereof within the prescribed due date, the person providing and the person receiving 
taxable service shall, jointly and severally, be liable for payment of such tax. 
Explanation I.– The tax shall include the total amount of the tax and also the tax as 
was liable to be with held or deducted by service recipient as notified under section 
14 of the Act. 
Explanation II .– The registered person shall include a person covered by the 
“withholding agent” as notified under section 14 of the Act.] 
12. Exemptions.– (1) Notwithstanding t he provisions of sections 3 and 10, the 
Authority may, with the approval of the Government and subject to such conditions, 
limitations or restrictions as it may impose, by notification
34
 in the official Gazette, 
exempt– 
(a) taxable service  or services from the whole or any part of the tax; 
(b) taxable service or services  provided by a person or class of persons 
from the whole or any part of the tax; 
(c) recipient or recipients of service or services, including international 
organizations and institutions, f rom the payment of the whole or any 
part of the tax; and 
(d) a class of persons, any area or areas of the Punjab from the whole or 
any part of the tax.  
(2) The exemption under sub -section (1) may be allowed from any 
previous date specified in the notification issued under sub-section (1).  
13. Effect of change in the rate of tax .– If there is a change in the rate of tax, 
the taxable services shall be charged to tax at such rate as is in force at the time the 
service is provided.  
14. Special procedure and tax withholding provisions .– (1) Notwithstanding 
anything contained in this Act, the Authority may, by notification in the official 
Gazette, prescribe a special procedure for the payment of tax, registration, book 
keeping, invoicing or billing  requirements, returns and other related matters  in 
respect of any service or class of services, as may be specified. 
(2) Notwithstanding other provisions of this Act, the Authority may require 
any person or class of persons whether registered or not for the purpose of  this Act 
to withhold full or part of the tax charged from such person or class of persons on the 
provision of any taxable service or class of taxable services and to deposit the tax so 
                                                           
33Inserted by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16 June 2017, 
pp. 8235-8250, s.4. 
34Franchise services in respect of education has been exempted from whole of the tax by the Notification 
No.PRA/Franchise.53/2012, dated 1.7.2015 issued by the Punjab Revenue Authority; and published (Notification No.8 of 2015) 
in the Punjab Gazette (Extraordinary), dated 1.7.2015, page 5 (w.e.f.1.7.2015). 
withheld, with the Government within such time and in such manner as i t may, by 
notification in the official Gazette, specify. 
35
[Explanation.- The word “charged” used in this subsection means and includes the 
tax liable to be charged under this Act or the rules made thereunder.] 
36
[(3) Where a person or class of persons is re quired to withhold or deduct 
full or part of the tax on the provision of any taxable service or class of taxable 
services and either fails to withhold or deduct the tax or having withheld or deducted 
the tax, fails to deposit the tax in the Government trea sury, such person or class of 
persons shall be personally liable to pay the amount of tax to the Government in the 
prescribed manner.] 
37
[14A. Special procedure for collection of tax, etc .– (1) Notwithstanding anything 
contained in this Act, the Authority may require any other person or class of persons, 
not necessarily being a service provider or a service recipient in a particular 
transaction, to collect full or part of the tax charged from another person or class of 
persons on the provision of any taxable  service or class of taxable services and to 
deposit the tax so collected, in the Government treasury within such time and in such 
manner as the Authority may, by notification in the official Gazette, specify. 
(2) For purposes of subsection (1), the specia l procedure prescribed for 
collection and payment of tax may also provide for registration, book keeping, 
invoicing or billing requirements, returns and other related matters in respect of any 
service or class of services, as may be specified. 
 (3) Where a person or class of persons is required to collect full or part of 
the tax on the provision of any taxable service or class of taxable services and either 
fails to collect the tax or having collected the tax, fails to deposit the tax in the 
Government treasury, such person or class of persons shall be personally liable to 
pay the amount of tax to the Government in the prescribed manner.] 
15. Delegation of power to collect, administer and enforce tax on certain 
services.– (1) The Government may, in accordanc e with Article 147 of the 
Constitution of the Islamic Republic of Pakistan, authorize the Federal Board of 
Revenue or any other Federal agency or person to administer, collect and enforce 
the levy of tax on such taxable services as  it may  notify  and  in   such mode   and 
manner and for such period as may be prescribed and subject to such limitations, 
restrictions and conditions as it may deem appropriate.  
(2) The Government may, by notification in the official Gazette, authorize 
any Provincial agency, department, organization or person to administer, collect and 
enforce the levy of tax on such taxable services as it may notify in such mode and 
manner and for such period as it may prescribe and subject to such restrictions and 
conditions as it may impose. 
                                                           
35Added by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette (Extraordinary), dated: 28 June 2019, 
pp. 4105-4114, s. 6. 
36Inserted by the Punjab Finance Act 2016 (XXXV of 2016), published in  the Punjab Gazette (Extraordinary), dated: 29 June 
2016, pp. 6083-6092, s.8: it came into force on 1 July 2016. 
37Inserted by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16 June 2017, 
pp. 8235-8250, s.4. 
(3) At the end of the period prescribed under sub -section (1), the tax on 
taxable services notified under sub -section (1) shall be administered, collected and 
enforced by the Authority in the same mode and manner as all other taxable 
services.  
38
[16. Deduction and adjustment of tax on inputs to the business .– (1) A 
person required to pay tax under this Act shall be entitled to deduct from the payable 
amount, the amount of tax payable or already paid by him on the receipt of taxable 
services exclusively used  in connection with the taxable services he provides, 
subject to the condition that he holds a true and valid tax invoice not older than six 
tax periods, showing the amount of tax charged under the Act on the services so 
received, but the Authority may dis allow or subject to additional conditions may 
restrict such deduction in cases or with respect to taxable services or goods 
specified in section 16A or section 16B or the rules. 
39
[(2) Subject to provisions of section 16A or section 16B or to such 
conditions and restrictions as may be prescribed, the Authority may allow a 
registered person to claim adjustment, deduction, or refund in respect of the tax paid 
or payable under any other law in for any taxable service or goods or class of 
taxable service or good s used in connection with the provision of a taxable service 
by such person, 
40
[if he holds a valid tax invoice or declaration of import of goods not 
older than six tax periods bearing his name and National Tax Number.]] 
(3) For purposes of subsection (2), the Authority may adopt the principles 
or concepts laid down in such other law in respect of adjustments, deductions or 
refunds including zero-rating principle.  
41
[(4) Notwithstanding anything contained in this Act or the rules made 
thereunder, the Authori ty, with the approval of the Government, may, by notification 
in the official Gazette and subject to such conditions, limitations or restrictions as 
may be specified therein, allow a registered person or class of persons to deduct 
such amount of input tax from the output tax as may be specified in the notification.] 
42
[(5) For purposes of subsection (1) or subsection (2), the amount of tax to 
be deducted or adjusted shall not include any amount of additional tax, further tax, 
extra tax, default surcharge, fine, penalty or fee imposed or charged under this Act or 
any other law.] 
43
[16A. Certain transactions not admissible .– (1) Notwithstanding anything 
contained in this Act or any other law for the time being in force, 
44
[payment of 
                                                           
38Substituted by the Punjab Finance Act 2016 (XXXV of 2016), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2016, pp. 6083-6092, s.8: it came into force on 1 July 2016. 
39Substituted by the Punjab Finance Act 2017 (XII of 2017), published  in the Punjab Gazette (Extraordinary), dated: 16 June 
2017, pp. 8235-8250, s.4. 
40Substituted for the words “on his furnishing a tax invoice or declaration of import of goods in his name which bears his 
National Tax Number” by the Punjab Finance Act 2020 ( VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 
29 June 2020, pp. 4353-4359, s. 5. 
41Substituted by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16 June 
2017, pp. 8235-8250, s.4. 
42Inserted by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16 June 2017, 
pp. 8235-8250, s.4. 
43Inserted by the Punjab Finance Act 2016 (XXXV of 2016), published in the Punjab Gazette (Extraordinary), dated : 29 June 
2016, pp. 6083-6092, s.8: it came into force on 1 July 2016. 
amounts of one or more transa ctions made to the same person in one tax period 
where the aggregate of such amounts exceeds fifty thousand rupees including the 
amount of sales tax but excluding any payments made on account of utilities ], shall 
be made by a crossed cheque drawn on a bank  or by crossed bank draft or crossed 
pay order or any other crossed banking instrument showing transfer of the amount of 
the sales tax invoice in favour of the service provider from the business bank 
account of the service recipient. 
(2) Online transfer of  payment from the business account of service 
recipient to the business account of service provider as well as payments through 
credit card shall be treated as transactions through the banking channel, subject to 
the condition that such transactions are ve rifiable from the bank statements of the 
respective service recipient and the service provider. 
(3) The service recipient shall not be entitled to claim input tax credit, 
adjustment or deduction, or refund, repayment or zero -rating of tax under this Act if  
payment for the amount is made otherwise than in the manner prescribed in 
subsection (1), provided that payment in case of a transaction on credit is 
transferred within one hundred and eighty days of issuance of the tax invoice. 
(4) The amount transferred  in terms of this section shall be deposited in 
the business bank account of the service provider; otherwise, the service provider 
shall not be entitled to claim input tax credit, adjustment or deduction, or refund, 
repayment or zero-rating of tax under this Act. 
Explanation.– For purposes of this section, the term “business bank account” 
means a bank account utilized by the registered person for business transactions, 
declared to the Authority in the prescribed manner. 
16B. Tax credit not allowed .– (1) Notwithstanding anything contained in this Act 
or the rules, a registered person shall n ot be entitled to claim input tax adjustment in 
respect of: 
(a) capital goods (plant, machinery, equipment and others) not exclusively 
useable or used in providing taxable services; 
(b) goods and services already in use on which the tax is not paid, or, 
where paid, the input adjustment has been taken before the 
commencement of the Act or where the input related goods and 
services were purchased or acquired before such commencement; 
(c) utility bills not in the name of registered person with reference to his 
registered premises unless evidence of consumption is produced in the 
matter of such claims; 
(d) the tax claimed as input tax on services where such tax amount has 
not been deposited by the supplier or the service provider or where the 
evidence of such payment is not produced; 
(e) carry forward of the input tax adjustment relating to the period prior to 
the commencement of the Act; 
                                                                                                                                                                                     
44Substituted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
(f) goods and services received against false, fake, forged, flyi ng, untrue, 
unreal or unrelated invoices or against purchases from the persons 
black listed or suspended by the Authority or by the Federal Board of 
Revenue or by any other Provincial authority; 
45[(ff) the goods and services received against invoices issue d by the 
persons not appearing in the active taxpayers list of the Authority or 
FBR;] 
(g) goods and services liable to a tax rate lesser than 
46
[fifteen] per cent of 
the charges or to a specific rate of tax not based on value when used 
for providing or rendering any service; 
(h) goods and services used or consumed in a service liable to a rate of 
tax lesser than the 
47
[fifteen] per cent of the charges or to a specific rate 
of tax not based on value; 
(i) vehicles including three and two wheelers; 
(j) food, beverages, garments , fabrics or others and consumption on 
entertainment, amusement, recreation or enjoyment; 
(k) gift and giveaway; 
(l) goods or services used or to be used for any purpose other than for 
taxable supplies made or to be made by him; 
(m) goods and services acquired for per sonal or non -business 
consumption; 
48
[(n) goods and services not related to the taxable supplies made or 
services rendered by the registered person;] 
 49[(nn)    tax  free  services  including  rendering  and  consumption  of  goods or 
  services;] 
(o) goods and services in respect of which input tax adjustment is barred 
 under the respective federal and provincial sales tax law; 
(p) sales tax paid to the Federal Government or any other Provincial 
 Government for supply of goods or provision of services, if t he sales 
 tax law of the Federation or the Province concerned does not allow 
 adjustment of tax paid under this Act; 
                                                           
45Inserted by the Punjab Finance Act  2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), dated: 1st July 2026, 
pp. 21-24, s.5 (c). 
 
46Substituted for the words “sixteen” by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette 
(Extraordinary), dated: 28 June 2019, pp. 4105-4114, s. 6. 
47Substituted for the words “sixteen” by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette 
(Extraordinary), dated: 28 June 2019, pp. 4105-4114, s. 6. 
48Substituted by the Punjab Finance Act 2019 (XV of 2019 ), published in the Punjab Gazette (Extraordinary), dated: 28 June 
2019, pp. 4105-4114, s. 6. 
49Inserted by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2025, pp. 5437-5449, s.7(a): it came into force on 1st July 2025. 
(q) from the date to be notified by the Authority, such goods and services 
 which, at the time of filing of return by the buyer, have not b een 
 declared by the supplier in his return; 
(r) further tax, extra tax and value addition tax levied under the Sales Tax 
 Act, 1990, and the rules or notifications issued thereunder; 
50[51[(rr) an amount of sales tax paid on goods or services exceeding the 
following limits, in case of: 
(i) telecommunication services, nineteen and a half per cent ad 
valorem; 
(ii) carriage of goods by rail or road, fifteen per cent ad valorem; and 
(iii) all other goods or services, sixteen per cent ad valorem.]] 
 (s) goods used in, or permanently attached to, immoveable property, such 
 as building and construction material, paints, electrical and sanitary 
 fittings, pipes, wires, cables, glass products and furniture, furnishings, 
 office equipment, excluding those directly used in the economi c activity 
 of registered persons paying sales tax at a rate of not less than sixteen 
 per cent; and 
(t) such goods or services as are notified or specified by the Authority to 
 be inadmissible for input tax adjustment. 
(2) No person other than a registere d person shall make any deduction or 
reclaim input tax in respect of taxable services made or to be made by him. 
(3) Notwithstanding anything contained in any other law for the time being 
in force or any decision of any court, for purposes of this section,  no input tax credit 
shall be allowed to the persons who paid fixed tax under any provisions of this Act or 
under the respective federal or provincial sales tax law.] 
52
[16C. Extent of adjustment of input tax. – (1) Notwithstanding anything contained 
in this Act, a registered person shall not be allowed to adjust input tax in a tax period 
in excess of 
53
[54[eighty]] percent of the output tax for that tax period. 
(2) The Authority may by notification in the official Gazette exclude any 
person or class of persons from the purview of sub section (1).] 
55[16CC. Adjustment of input tax on certain goods and services .–  
Notwithstanding anything contained in section 16C and subject to section 16B, input 
                                                           
50Inserted by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2025, pp. 5437-5449, s.7(b): it came into force on 1st July 2025. 
51Inserted by the  Punjab Sales Tax on S ervices (Amendment) Act 2026  (XXXVIII of 2026) , published in the Punjab Gazette 
(Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.3. 
52Substituted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353 -4359, s. 5. earlier inserted  by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette 
(Extraordinary), dated: 16 June 2017, pp. 8235-8250, s.4. 
53Substituted for the word “eighty” by the Punjab Finance Act 2022 (IX o f 2022), published in the Punjab Gazette 
(Extraordinary), dated: 24th June 2022, pp. 6339-6345, s.4 
54Substituted for the word "ninety" by the Punjab Finance Act 2026 (L of 2026), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5 (d). 
tax on capital goods, machinery, and fixed assets shall be adjusted aga inst output 
tax in twelve equal monthly installments. 
16CCC. Input Tax management through risk -based evaluation system .– (1) 
Notwithstanding anything contained in this Act or the rules, the Authority  may 
establish, administer, and implement a risk-based evaluation system for the purpose 
of identifying, analyzing, evaluating, and monitoring the risks associated with the 
input tax claims, adjustments, credits, and refunds. 
 (2)  The Authority may, on the basis of risk parameters, data analytics, or 
any other  relevant information, establish and maintain a risk register for the 
categorization and profiling of taxpayers, suppliers, transactions, or classes thereof, 
for the purposes of risk assessment, compliance monitoring, and enforcement under 
this Act. 
 (3) Where any input tax claim or adjustment is identified as carrying risk, 
the Authority may, for the reasons to be recorded in writing and subject to such 
procedure as may be prescribed: 
 (a) defer the admissibility of such claim pending for verification; or 
 (b) disallow input tax credit or adjustment, in whole or in part; or  
(c) require the registered person to furnish additional information or 
evidence; or 
 (d) select the case for audit or investigation. 
 (4) All input tax claims, credits, adjustments, or refunds shall be subject to 
verification, evaluation, and determination through the risk management system 
established by the Authority under this Act. 
 (5) No adverse action under this section shall be taken without providing 
an opportunity of being heard to the person to be affected thereby. 
 (6) The person, aggrieved by the action taken under this section, may 
contest such action by filing application along with relevant documents before the 
Commissioner concerned, who shall decide such application within thirty days. 
 (7) The Authority may prescribe the manner of operation, risk parameters, 
safeguards, and governance framework of the risk management system.] 
56
[16D. Refunds.– Notwithstanding anything contained in this Act and subject to the 
conditions and restrictions as may be prescribed , the Authority or any officer 
authorized by the Authority, may allow a registered person refund of the tax claimed 
to have been paid through inadvertence, error or misconstruction.] 
                                                                                                                                                                                     
55Inserted by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), dated: 1st July 2026, 
pp. 21-24, s.5 (e). 
 
56Added by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordi nary), dated: 29 June 2020, 
pp. 4353-4359, s. 5. 
CHAPTER III 
PAYMENT AND COLLECTION OF TAX ON TAXABLE SERVICES 
17. Collection of excess tax .– (1)  Any person who has collected or collects the 
tax or charge, whether under misapprehension of any provision of this Act or 
otherwise, which was not payable as tax or charge or which was in excess  of the tax 
or charge actually payable and the incidence of which had been passed on to the 
person to whom the service was provided, shall pay the amount of tax or charge so 
collected to the Government. 
(2) Any amount payable to the Government under sub -section (1) shall be 
deemed to be an arrear payable under the Act and shall be recovered accordingly. 
(3) The burden of proof that the incidence of tax or charge referred to in 
sub-section (1) has been or has not been passed to the person to whom the service  
is provided shall be on the person collecting the tax or charge. 
18. Time, manner and mode of payment.– 
57
[(1) Notwithstanding anything to the 
contrary contained in this Act or any other law for the time being in force, tax in 
respect of a taxable service provided during a tax period shall be paid by a person at 
the time of filing the return in respect of that period under Chapter VI.] 
(2) For purposes of sub -section (1), a taxable service shall be considered 
to have been provided in the tax period during which– 
(a) it was provided to the recipient; 
(b) an invoice for the value of the taxable service was issued or was due to 
be issued or sent or due to be sent to the recipient; or 
(c) consideration for the same was received–,  
whichever is earlier. 
(3) Notwithstanding anything contained in sub -section (1), the Authority 
may, by a notification in the official Gazette, direct that the tax in respect of any 
taxable service or such class of taxable services shall be charged, collected and paid 
in any other way, mode, manner or time as may be specified in the notification. 
(4) The tax due on taxable services shall be paid by any of the following 
modes:–  
(a) through deposit in a bank designated by the Authority; or 
(b) through such other mode and manner as may be s pecified by the 
Authority. 
19. Joint and several liability of registered persons where tax unpaid .– (1) 
Where a registered person receiving a taxable service from another registered 
person is in the knowledge of or has reasonable grounds to suspect that so me or all 
of the tax payable in respect of that taxable service provided would go unpaid as 
against the requirements of this Act, such person as well as the person providing the 
taxable service shall be jointly and severally liable for payment of such unpa id 
amount of the tax. 
                                                           
57Substituted by the Punjab Finance Act 2018 (XXX of 2018), published in the Punjab Gazette (Extraordinary), dated: 29 
October 2018, pp. 805-818, s. 4: it came into force on 1 November 2018. 
(2) The Authority may, by notification in the official Gazette, exempt any 
person, service or transaction or class of persons, services or  transactions from the 
provision of sub-section (1).  
20. Sales of taxable activity or transfer of ownership .– (1) Where the 
ownership of any business providing taxable services is sold, transferred or 
otherwise disposed of as an ongoing concern or activity, the fact of such sale, 
transfer or other disposition shall be intimated to the Commissioner within one month 
of the occurrence of such fact by the former owner. 
(2) The tax chargeable on the taxable services provided in the business 
referred to in sub-section (1) shall be accounted for and paid by the person to whom 
sale or other disposition of such business is made or ownership thereof is transferred 
and every such person shall be liable to registration under this Act. 
21. Estate of deceased person .– The tax liability of a deceased registered 
person under this Act shall be the first charge on his estate in the hands of his 
successors. 
22. Estate in bankruptcy .–(1) Where a registered person is declared bankrupt, 
the tax liability under this Act shall pass on to the estate in bankruptcy if it continues 
to operate the business. 
(2) Where the tax liabi lity is incurred by an estate in bankruptcy, the tax 
shall be deemed to be a current expenditure in the operations of the estate in 
bankruptcy and shall be paid before the claims of all other creditors are settled.  
23. Liability for payment of tax in case  of private companies or business 
enterprises.– Where any private company or business enterprise is wound up and 
any tax chargeable on or payable by the company or business enterprise, whether 
before, or in the course, or after its liquidation, in respect of any tax period cannot be 
recovered from the company or business enterprise, every person who was an 
owner of, or partner in, or director of the company or business enterprise during the 
relevant period shall, jointly and severally with such persons be l iable for payment of 
such tax.  
24. Assessment of tax .– (1) Where on the basis of any information acquired 
during an audit, inquiry, inspection or otherwise, an officer of the Authority is of the 
opinion that a registered person has not paid the tax due on  taxable services 
provided by him or has made short payment, the officer shall make an assessment 
of the tax actually payable by that person and shall impose a penalty and charge 
default surcharge in accordance with sections 48 and 49. 
(2) No order under s ub-section (1) shall be made unless a notice to show 
cause is given to the person in default within 
58
[eight] years from the conclusion of the 
tax period to which the assessment relates 
59
[for tax periods ending before 1 st of July 
2022, and within five years  from the end of the financial year in which the tax period 
to which the assessment relates falls for tax periods ending on or after 1 st July 2022] 
                                                           
58Substituted for the word “five” by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), 
dated: 16 June 2017, pp. 8235-8250, s.4. 
59Inserted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24th June 2022, 
pp. 6339-6345, s.4. 
specifying the grounds on which it is intended to proceed against him and the said 
officer shall take into c onsideration the representation made by such person and 
provide him with an opportunity of being heard if the person so desires. 
60
[(3) An order under subsection (1) shall be made within one year from the 
end of the financial year in which the show cause notice is issued.]  
(4) In computing the period specified in sub -section (3), any period during 
which the proceedings are adjourned on account of a stay order or proceedings 
under section 69 
61
[*****] shall be excluded. 
(5) An order passed by an officer under  sub-section (1) may be further 
amended as may be necessary when on the basis of any additional information 
acquired during an audit, inquiry, inspection or otherwise, the officer is satisfied that– 
(a) any tax has been under-assessed or assessed at a low rate; or 
(b) any taxable service provided by the person has escaped assessment.  
(6) The provisions of sub-sections (2), (3) and (4) shall be applicable to an 
order passed under subsection (5). 
62
[24A. Determination of minimum tax liability .– Notwithstanding anything 
contained in section 24, where a registered person fails to file a return, an officer of 
the Authority, shall, subject to such conditions as specified by the Authority, 
determine the minimum tax liability of the registered person.] 
CHAPTER IV  
REGISTRATION 
25. Registration.– (1) A person shall register under this Act, who– 
(a) provides any taxable service from his office or place of business in the 
Punjab; or  
(b) is otherwise required to be registered under any of the provisions of the 
Act or the rules; or 
(c) fulfills any other criteria or requirements which the Authority may 
prescribe under sub-section (2). 
(2) The registration under this section will be regulated in such manner 
and subject to such conditions and restrictions as the Authority may, by notification in 
the official Gazette, prescribe. 
(3) A person who receives a service, which is a taxable service by virtue of 
sub-section (2) of section 3, and is not a registered person shall be deemed to be a 
registered person for the purposes of the tax period in which– 
(a) such person receives the service; 
                                                           
60Substituted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
61Omitted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24th June 2022, 
pp. 6339-6345, s.4. 
62Inserted by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette (Extraordinary), dated: 28 June 2019, 
pp. 4105-4114, s. 6. 
(b) an invoice for the value of the service is issued or  sent to or  received 
by the person; or 
(c) consideration for the service is paid by the person–   
whichever is earlier and all the provis ions of this Act and the rules shall 
be applicable to such person for that particular tax period and any 
matters relating to, arising out of, or concerning that tax period as if that 
person had provided the service.  
(4) The Authority may publish on its we bsite a list of persons registered 
under this Act. 
(5) It shall be reasonable for a person to believe that another person is 
registered under this Act if that other person is on the list placed on the website of 
the Authority.  
63
[Explanation.– Unless otherwise specified, no person shall be absolved of any tax 
liability for want of registration under this Act or the rules.] 
26. Voluntary registration.–(1) A person who carries on an economic activity but 
is not required to be registered may apply for voluntary registration at any time. 
(2) If a person who is not required to be registered applies for voluntary 
registration, the Authority may register the person if the Authority is satisfied that– 
(a) the person is providing, or shall provide a service that is taxable service 
if the person was registered; 
(b) the person has a place of business at which he carries on an economic 
activity; 
(c) there are reasonable grounds to believe that the person shall keep 
proper records and file regular returns as prescribed un der this Act and 
the rules; and 
(d) if the person has commenced carrying on an economic activity, the 
person has– 
(i) kept proper records in relation to his economic activity; and 
(ii) complied with his obligations under other applicable taxation 
laws. 
27. Compulsory registration .–  (1) If the 
64
[Commissioner] is satisfied that a 
person who  is required to be registered and has not applied for registration, the 
65
[Commissioner] shall register the person and shall, not later than fifteen days before 
the day on which the registration takes effect, notify the person of the registration, 
the day on which it takes effect, and the registration number issued to the person. 
                                                           
63Inserted by the Punjab Fin ance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178. 
64Substituted for the word “Authority” by the Punjab Finance Act 2018 (XXX of 2018), published in the Punjab Gazette 
(Extraordinary), dated: 29 October 2018, pp. 805-818, s. 4: it came into force on 1 November 2018. 
65Ibid. 
(2) No person shall be registered compulsorily without being given an 
advance notice and an oppo rtunity of being heard in such manner as the 
66
[Commissioner] may specify. 
67
[(3) 
68
[The Commissioner may, by an order in writing ], authorize any other 
officer to perform any of the functions under this section relating to compulsory 
registration of a person for any of the taxable services.]   
28. Suspension of registration .–  (1) Subject to sub -section (3), the 
69[Commissioner] may temporarily inactivate the registration of a person if 70[he] is 
satisfied that the person– 
(a) is not entitled to be registered; or 
(b) has failed to comply with obligations under this Act or the rules. 
(2) The 71[Commissioner] shall give notice to a registered person stating 
the reasons for temporary inactivation of the person‟s registration and the remedial 
actions required to be ta ken by the person in such time as may be specified in the 
notice. 
(3) In case the 72[Commissioner] is not satisfied with the response of the 
person or the remedial action taken by him or does not receive any response in the 
specified time, the Authority may suspend that person‟s registration. 
(4) The suspension of registration shall be effected by removing the name 
of the person from the list of registered persons published on the Authority‟s website. 
(5) At any time within a period of sixty days of suspensi on, the 
73[Commissioner] may withdraw the suspension if 74[he] is satisfied with the remedial 
actions taken by the person. 
(6) Where, after sixty days, the suspension has not been withdrawn, the 
Authority may–  
(a) institute proceedings against the person in  respect of the alleged non -
compliance under this Act; 
(b) reinstate the person‟s registration; or 
                                                           
66Ibid. 
67Substituted ibid. 
68Substituted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
69Substituted for the word "Authority" by the Punjab Sales Tax on Services (Amendment) Act 2026 (XXXVIII of 2026), published 
in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.4(a).  
70 Substituted for the word "it" by the Punjab Sales Tax on Services (Amendment) Act 2026 (XXXVIII of 2026), published in the 
Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.4(b). 
71Substituted for the word "Authority" by the Punjab Sales Tax on Services (Amendment) Act 2026 (XXXVIII of 2026), published 
in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.4(a).  
72 Substituted for the word "Authority"  by the  Punjab Sales Tax on Services (Amendment) Act 2026  (XXXVIII of 2026) , 
published in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.4(a). 
73 Substituted for the word "Authority"  by the  Punjab Sales Tax on Services (Amendment) Act 2026  (XXXVIII of 2026) , 
published in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.4(a). 
74 Substituted for the word "it" by the Punjab Sales Tax on Services (Amendment) Act 2026 (XXXVIII of 2026), published in the 
Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.4(b). 
(c) if neither of the actions in clauses (a) and (b) is done, cancel the 
person‟s registration.  
(7) No registration shall be cancelled unless the 75[Commissioner] either 
through enquiry, investigation or audit is satisfied that circumstances exist 
necessitating such cancellation and under no circumstances, the cancellation of 
registration shall absolve the person of his other obligations and liabilities under the 
Act or the rules. 
29. De-registration.– (1) The 
76
[Commissioner] may de -register a registered 
person or such class of registered persons not required to be registered under this 
Act. 
(2) Where any person registered under this Act believes that he does n ot 
satisfy the requirements for registration specified in section 25, he may make an 
application to the 
77
[Commissioner] to be de-registered.  
(3) If upon receiving such an application, the 
78
[Commissioner] is satisfied 
that the person is not required to be registered under this Act and has fulfilled the 
obligations under the Act, it shall de-register such person. 
(4) Where the 
79
[Commissioner] receives an application under sub -section 
(2), it shall dispose of the application within a period of three months fr om the date of 
the receipt of the application, or within such extended period, not exceeding sixty 
days, as the 
80
[Commissioner] may, for reasons to be recorded in writing, fix. 
81
[29A. Restoration of registrations .– The Authority may, subject to conditions as 
may be prescribed, reactivate, revive, reinstate or restore any registration which has 
been de -activated, suspended or cancelled for any reason or under any 
circumstances.] 
CHAPTER V 
BOOK KEEPING AND AUDIT PROCEEDINGS 
30. Issuance of tax invoices . – (1) A registered person providing a taxable 
service shall issue a numbered and dated tax invoice containing the following 
particulars:– 
(a) name, address and registration number of the service provider; 
(b) name, address and registration number, if any, of the service recipient; 
                                                           
75 Substituted for the word " Authority" by the  Punjab Sales Tax on Services (Amendment) Act 2026  (XXXVIII of 2026) , 
published in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.4(a). 
76Substituted for the word "Authority" by the Punjab Finance Act 2020 (VIII of  2020), published in the Punjab Gazette 
(Extraordinary), dated: 29 June 2020, pp. 4353-4359, s. 5. 
77Substituted for the word "Authority" by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette 
(Extraordinary), dated: 29 June 2020, pp. 4353-4359, s. 5. 
78Substituted for the word "Authority" by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette 
(Extraordinary), dated: 29 June 2020, pp. 4353-4359, s. 5. 
79Substituted for the word "Authority" by the Punjab Finance A ct 2020 (VIII of 2020), published in the Punjab Gazette 
(Extraordinary), dated: 29 June 2020, pp. 4353-4359, s. 5. 
80Substituted for the word "Authority" by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette 
(Extraordinary), dated: 29 June 2020, pp. 4353-4359, s. 5. 
81Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178. 
(c) description of service or services; 
(d) value exclusive of the tax; 
(e) amount of the tax; and  
(f) value inclusive of the tax. 
82
[(2) The Authority may, by notification in the official Gazette, specify a 
format of invoices to be is sued by a registered person or a class of registered 
persons and prescribe a procedure for authentication of such invoices. 
(3) The Authority or an officer authorized by the Authority in this behalf, 
may require a registered person or a class of registered  persons to issue invoices 
electronically in such manner as may be prescribed, and to transmit such invoices to 
the Authority, subject to such conditions and restrictions as the Authority may specify 
by notification in the official Gazette.] 
31. Records.– (1) A registered person providing taxable service 
83
[or a person 
required to pay tax under this Act or rules]  shall maintain and keep at his business 
premises or registered office in English or Urdu the following records of taxable 
service (including 84[exempt or tax free services]) provided by him or by his agent acting 
on his behalf in such form and manner as would permit ready ascertainment of his 
tax liability during a tax period – 
85
[(a) record of services provided, including 86[exempt or tax free services ], 
indicating the description, quantity and value of service, name, 
registration number and address of the person to whom services were 
rendered and the amount of tax charged; 
(b) record of goods and services received, including exempt goods and 
87[exempt or tax free services], indicating description, quantity and value 
of goods and services, name, address and registration number of the 
service provider or supplier of goods and the amount of the tax 
charged; 
(c) record of goods imported indicating the descri ption, quantity and value 
of goods and the amount of tax paid on imports; 
(d) double entry accounts; 
                                                           
82Substituted by the Punjab Finance Act 2020 (VIII of 202 0), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
83Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178. 
84Substituted for the words “exempt service” by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette 
(Extraordinary), dated: 30th June 2025, pp. 5437-5449, s.8(a)(i): it came into force on 1st July 2025.  
85Substituted by the Punj ab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
86Substituted for the words “exempt services” by the Punjab Finance Act 2025 (LVIII of 2025), published in the Punjab Gazette 
(Extraordinary), dated: 30th June 2025, pp. 5437-5449, s.8(a)(ii): it came into force on 1st July 2025.   
87Substituted for the word “services” by the Punjab Finance Act 202 5 (LVIII of 202 5), published in the Punjab Gazette 
(Extraordinary), dated: 30th June 2025, pp. 5437-5449, s.8(a)(iii): it came into force on 1st July 2025.   
(e) bank statements and banking instruments; 
(f) inventory records, utility bills, salary and labor bills, rent deeds and 
agreements; 
(g) record required t o be maintained and the declarations filed under any 
other law for the time being in force; and 
(h) such other record as may be specified by the Authority.] 
(2) The Authority may, by notification in the official Gazette, require a 
registered person or class of registered persons to declare and use as many number 
of business bank accounts as may be specified by the Authority in such notification 
to make or receive payments on account of providing 
88
[or receiving] services for the 
purpose of this Act and the r ules and to make payment of due tax from such 
accounts. 
(3) The Authority may, by notification in the official Gazette, specify that 
any person or  class of persons registered under this Act shall use such electronic 
fiscal cash registers in such manner as are approved by the Authority. 
(4) The Authority may, by notification in the official Gazette, prescribe the 
procedure or software for electronic invoicing or billing, maintenance of records, filing 
of tax returns and for any other matter or approve any so ftware for electronic 
invoicing or billing,  maintenance of records and filing of returns by a registered 
person or class of such persons under this Act. 
(5) The registered persons, whose accounts are subject to audit under the 
89
[Companies Act, 2017 (XIX of  2017)], shall be required to submit a copy of the 
annual audited accounts, along with a certificate by the auditors certifying the 
payment of the tax due and any deficiency in the tax paid by the registered person.  
32. Retention and production of records  and documents.– (1) A person, who 
is required to maintain any record or documents under this Act, shall retain the 
record and documents for a period of 
90
[eight] years after the end of the tax period to 
which such record or documents relate  
91
[for tax perio ds before July 2022, and six 
years from the end of the financial year to which such record or documents relate for 
tax periods after 1 st July 2022] or till the final decision in any proceedings including 
proceedings for assessment, appeal, revision, refere nce or petition, whichever is 
later. 
(2) A person who is required to maintain any record or documents under 
this Act or any other law shall, as and when required by an officer not below the rank 
of the 92[Enforcement Officer/Audit Officer], produce records or documents which are 
                                                           
88Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178. 
89Substituted for the expression “Companies Ordinance, 1984 (XLVII of 1984)” by the Punjab Finance Act 2018 (XXX of 2018), 
published in the Punjab Gazette (Extraordinary), dated: 29 October 2018, pp. 805 -818, s. 4: it came into force on 1 November 
2018. 
90Substituted ibid., for the word “six”. It was earlier substituted for the word “five” by the Punjab Finance Act 2015 (XXIX of 
2015), w.e.f.1.7.2015, s. 5; and published in the Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368. 
91Inserted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24th June 2022, 
pp. 6339-6345, s.4. 
92Substituted for the expression "Assistant Commissioner"  by the  Punjab Sales Tax on Services (Amendment) Act 2026  
(XXXVIII of 2026), published in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.5.  
in his possession or control or in the possession or control of his agent, and where 
such records or documents have been stored as electronic data, he shall allow to 
such officer full and free access to, and use of, such data of any machine.  
33. Audit proceedings .– (1) An officer authorized by the Authority or the 
Commissioner may, on the basis of the return or returns submitted by a registered 
person or the records maintained 
93
[or obtained]under this Act and the rules, conduct 
an audit of such person. 
(2) In case the Authority or the Commissioner has any information showing 
that any registered person is involved in tax fraud or evasion of tax, it or as the case 
may be, he may authorize an officer not below the rank of the 94[Enforcement 
Officer/Audit Officer], to conduct an inquiry or investigation, which may or may not be 
in addition to any audit carried out for the same period. 
(3) Where the officer is to conduct an audit under sub -section (1), he shall 
issue a notice of audit to the  person informing him of the audit proceedings and 
direct him to produce any records or documents which such officer may require for 
conducting the audit. 
95
[(3a) The officer authorized under subsection (1) may conduct audit 
proceedings electronically through video links or any other facility as may be notified 
by the Authority.] 
(4) The officer shall conduct audit and issue an audit observation or 
observations pointing out the contraventions of this Act or the rules and the amount 
of the tax evaded or short  paid, and the registered person may, within a period of 
twenty one days of the receipt of the audit observation, submit his reply in writing. 
(5) If no reply is received within the specified time or the reply furnished by 
the registered person is found un satisfactory, the officer shall issue an audit report 
specifying the amount of the tax or charge that has not been levied or has been short 
levied or any other violation of any provision of the Act or the rules. 
(6) After completion of the audit under this section or any other provision of 
this Act or the rules, an officer having pecuniary jurisdiction in terms of section 60 
shall, if required, pass an order determining the correct amount of payable tax, 
charging default surcharge and imposing a penalty. 
(7) Notwithstanding the penalties prescribed in section 48– 
(a) if a registered person wishes to deposit the amount of the tax short 
paid or evaded along with default surcharge voluntarily, whenever it 
comes to his notice, he may, before receipt of notice of aud it, file a 
revised return and may deposit the amount of tax short paid or evaded 
along with default surcharge, in which case no penalty shall be 
recovered from him;  
                                                           
93Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2015, pages 7361-7368. 
94Substituted f or the expression "Assistant Commissioner"  by the  Punjab Sales Tax on Services (Amendment) Act 2026  
(XXXVIII of 2026), published in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.6.  
95Added by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 2020, 
pp. 4353-4359, s. 5. 
(b) if a registered person wishes to deposit the amount of the tax short 
paid or evaded along with default surcharge during the audit, or at any 
time before issuance of show cause notice in lieu of the audit report, he 
may file a revised return and may deposit the short paid or evaded 
amount of the tax, default surcharge under section 49 and twenty  per 
cent of the penalty payable under section 48, in which case the show 
cause notice in lieu of the audit report shall not be issued in the matter;  
(c) if a registered person wishes to deposit the amount of tax short paid or 
evaded along with default surcha rge after issuance of show cause 
notice, he may file a revised return and may deposit the short paid or 
evaded amount of the tax, default surcharge under section 49, and fifty 
per cent of the penalty payable under section 48 and, thereafter, the 
show cause notice shall abate.  
34. Special audit by chartered accountants or cost accountants .– 
96
[(1) The 
Authority may, by notification in the official Gazette, appoint a Chartered Accountant 
as defined under Chartered Accountants Ordinance, 1961 (X of 1961)  or a firm of 
Chartered Accountants or a Cost and Management Accountant within the meaning 
of the Cost and Management Accountants Act, 1966 (XIV of 1966), or a firm of Cost 
and Management Accountants or a person or a firm having expertise in forensic 
audit, for conducting a special audit or forensic audit or both of the records of any 
registered person.] 
(2) Notwithstanding that the records of a registered person have been 
audited by an officer appointed under section 39, the  Authority or a Commissioner 
may direc t an auditor appointed under sub -section (1) to audit the records of any 
registered person for the same period. 
(3) An auditor appointed under sub -section (1), shall have such powers of 
an officer as may be conferred by the Authority to such auditor under any of the 
provisions of this Act or the rules. 
97
[(3A) The Authority may require that such officers of the Authority as the 
Authority may nominate, shall be associated in the special audit or the forensic audit 
conducted under subsection (1) and the Author ity may also get the special audit or 
the forensic audit conducted jointly with similar audit of a registered person being 
conducted by FBR or any other provincial administrations of sales tax on services.] 
(4) For purposes of this section or section 33, t he audit of records includes 
audit of the tax affairs of the registered person under this Act and the rules.  
CHAPTER VI 
RETURNS 
35. Return.– 
98
[(1) Every registered person shall furnish to the Authority, not later 
than the due date, a true, correct and pro perly filled-up return in the form notified by 
                                                           
96Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2015, pages 7361-7368. 
97Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2015, pages 7361-7368. 
98Substituted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punj ab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
the Authority, indicating the tax due and paid during a tax period and such other 
information or particulars as may be notified by the Authority.] 
99
[(1A) A statement, in the prescribed manner, filed by a perso n who is only 
obliged to withhold or deduct tax, shall be treated as a return of that person, provided 
that such a statement shall not be a substitute for the return required to be filed by a 
person providing taxable services.] 
(2) Notwithstanding anything  in sub -section (1), the Authority may, by 
notification in the official Gazette, require any registered person or class of registered 
persons to submit returns on a quarterly, six monthly or annual basis in lieu of 
monthly return. 
(3) Notwithstanding anyth ing in sub -section (1), the Authority may, by 
notification in the official Gazette, require any registered person to submit such 
returns, as may be prescribed, on any period  basis in addition to other returns 
required to be filed by such person. 
(4) A return filed electronically on the web or any magnetic media or any 
other computer readable media as may be specified by the Authority shall be 
deemed to be a return for the purpose of sub -sections (1), (2) or (3) and the 
Authority may, by notification in the official Gazette, prescribe the criteria for eligibility 
of the data of such returns and e -intermediaries who shall digitize the data of such 
returns and transmit the same electronically under their digital signatures. 
(5) If there is a change in the rate of the tax during a tax period, a separate 
return in respect of each portion of tax period showing the application of different 
rates of tax shall be furnished. 
(6) 
100
[Subject to rules, a registered person may], after prior permission 
from the Commissioner,  file a revised return within one hundred and twenty days of 
filing a return under sub -sections (1), (2) or (3), to correct any omission or wrong 
declaration made therein and to deposit any amount of the tax not paid or short paid.  
36. Special returns.– In addition to the return or returns specified under section 
35, the Commissioner may require any person, whether registered or not, to furnish 
a return (whether on his own behalf or as an agent or trustee) in a prescribed form 
and such person shall furnish  the return not later than the date specified in this 
regard.  
37. Final return.– If a person applies for de-registration in terms of section 29, he 
shall before such de -registration, furnish a final return to the Authority or the 
Commissioner in the speci fied form in such manner and at such time as may be 
directed by the Authority or the Commissioner. 
38. Return deemed to have been made .– A return purporting to be made on 
behalf of a person by his duly appointed representative or agent shall, for all 
purposes of this Act or the rules, be deemed to have been made by such person or 
under his authority unless proved to the contrary.  
                                                           
99Inserted by the Punjab Finance Act 2016 (XXXV of 2016), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2016, pp. 6083-6092, s.8: it came into force on 1 July 2016. 
100Substituted for the words “A registered person may” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and 
published in the Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368. 
CHAPTER VII 
APPOINTMENT OF AUTHORITIES AND THEIR POWERS 
39. Appointment of authorities.– (1) For purposes of this Act and the ru les, the 
Authority may, 
101
[* * * * *] by notification 
102
[* * * *], appoint 
in relation to any area or cases specified in the notification, any person to be a– 
(a) Commissioner; 
(b) Commissioner (Appeals);  
(c) Additional Commissioner 
103
[***]; 
(d) Deputy Commissioner; 
(e) Assistant Commissioner; 
(f) Audit Officer 
104
[***]; 
105
[
106
[(ff) Audit-cum-Risk Compliance Officer]; 
(fff) Enforcement Officer 
107
[***]] 
(g) Inspector 
108
[***]; or  
(h) An officer of the Authority with any other designation. 
(2) The Commissioner (Appeals) and the Commissioner shall be  
subordinate to the Authority. 
(3) The Additional Commissioners, Deputy Commissioners and the 
Assistant Commissioners shall be subordinate to the Commissioner and unless 
otherwise directed by the Authority or the Commissioner, both the Deputy 
Commissioner and the Assistant Commissioner shall also be subordinate to the 
Additional Commissioner. 
109
[(4) Risk Compliance Officers, Enforcement Officers, Audit Officers, 
Inspectors and other officers of equal or lower designations, if any, shall be 
subordinate to the  Deputy Commissioner or, as the case may be, to the Assistant 
Commissioner or as the Authority may, from time to time, specify.] 
                                                           
101Omitted by the Punjab Finance Act 202 4 (VIII of 202 4) w.e.f. 01.07.2012, published in the Punjab Gazette (Extraordinary), 
dated: 27 June 2024, pp. 4999-5005, s. 7. 
102Omitted by the Punjab Finance Act 202 4 (VIII of 202 4) w.e.f. 01.07.2012, published in the Punjab Gazette (Extraordinary), 
dated: 27 June 2024, pp. 4999-5005, s. 7. 
103Omitted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
104Omitted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette  (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
105Inserted by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16 June 
2017, pp. 8235-8250, s.4. 
106Substituted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
107Omitted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
108Omitted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
109Substituted by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16  June 
2017, pp. 8235-8250, s.4. 
(5) The Authority may designate any Deputy Commissioner supervisory 
incharge of any Assistant Commissioner either by name or by  designation in any of 
its subordinate offices or formations. 
(6) The Authority may distribute the work and related functions amongst 
the above designations in a manner it deems appropriate and make changes in such 
work distribution as and when deemed proper. 
(7) The Authority may, by notification in the official Gazette, prescribe 
uniform including shoulder strips and badges for different classes of the officers or 
officials of the Authority.  
(8) All jurisdictional and competency issues arising under this  Act or the 
rules shall be decided by the Authority in such manner as it thinks fit. 
40. Powers.– (1) An officer appointed under section 39 shall exercise such 
powers and discharge such duties as are conferred on him under this Act and the 
rules and he sha ll also be empowered and competent to exercise all powers and 
discharge all duties or functions conferred upon any officer subordinate to him. 
(2) The Authority may, by general or special order, impose such 
limitations, restrictions or conditions on the exercise of such powers and discharge of 
such duties or functions as it deems fit.  
41. Distribution of powers .– (1) The Authority may, by notification in the official 
Gazette, and subject to such limitations or conditions, empower by name or by  
designation– 
(a) an Additional Commissioner to exercise or perform any of the powers 
or functions of a Commissioner;  
(b) a Deputy Commissioner to exercise or perform any of the powers or 
functions of an Additional Commissioner; 
(c) an Assistant Commissioner to exercise or perform any of the powers or 
functions of a Deputy Commissioner; and 
(d) any other officer to exercise or perform any of the powers or functions 
of an Assistant Commissioner. 
(2) The Authority may confer powers and functions of any officer as 
additional duties to any officer of the same rank or a step senior or junior in rank. 
(3) An officer to whom any powers or functions  are conferred under this 
section shall not assign such powers or functions to any other officer except with the 
prior permission of the Authority.  
42. Special Judges .– (1) The Government may, by notification in the official 
Gazette, appoint any person who is serving or has served as District and Sessions 
Judge for a period of at least five years as Special Judge and, where it appoin ts 
more than one Special Judge, it shall specify in the notification the headquarters of 
each Special Judge and the territorial limits within which he shall exercise jurisdiction 
under this Act and the rules. 
(2) If a Special Judge is, for any reasons, una ble to perform his duties 
under this Act or the rules, the District and Sessions Judge of the District shall 
perform the duties of the Special Judge for the District.  
43. Cognizance of offence .– (1) The Special Judge may, within the limits of his 
jurisdiction, take cognizance of any offence punishable by him upon–    
(a) a report in writing made by an officer, not below the rank of 
110[Enforcement Officer/Audit Officer]  with the approval of the 
Commissioner or by an officer especially authorized in this behalf b y 
the Authority;  
(b) receiving a complaint or information of facts constituting such offence 
made or communicated by any person; or  
(c) his knowledge acquired during any proceedings before him. 
(2) If the Special Judge receives a report under clause (a) of sub -section 
(1), the Special Judge shall proceed with the trial of the accused. 
(3) If the Special Judge receives a complaint or information under clause 
(b) of sub -section (1), on the basis of his own knowledge, the Special Judge shall, 
before issuing a summon or warrant for appearance of the person hold a preliminary 
inquiry for purposes of ascertaining the truth or falsehood of the complaint, 
information or knowledge or direct any Magistrate or any officer to hold such inquiry 
and submit a report, and such Ma gistrate or officer, shall conduct such inquiry and 
make a report accordingly. 
(4) If, after conducting such an inquiry or after considering the report of 
such Magistrate or officer, the Special Judge may dismiss the complaint if there are 
no grounds to pr oceed further, or may decide to proceed against the person in 
accordance with law. 
(5) A Special Judge or a Magistrate or an officer holding an inquiry under 
sub-section (3) may hold such inquiry, as nearly as possible, in accordance with the 
provisions of section 202 of the Code of Criminal Procedure, 1898 (V of 1898).  
44. Application of the Code of Criminal Procedure, 1898 .– (1)  The provisions 
of the Code of Criminal Procedure, 1898 (V of 1898) , so far as they are not 
inconsistent with the provisions of  this Act, shall apply to all proceedings of the court 
of a Special Judge and such court shall be deemed to be a Court of Session for the 
purposes of the said Code and the provisions of Chapter XXII -A of the Code, so far 
as applicable and with necessary mo difications, shall apply to the trial of cases by 
the Special Judge under the Act. 
(2) For purposes of sub-section (1), the Code of Criminal Procedure, 1898 
(V of 1898) shall have effect as if an offence punishable under this Act was one of 
the offences referred to in sub-section (1) of section 337 of the Code.  
45. Exclusive jurisdiction of Special Judge .– No court other than the Special 
Judge having jurisdiction, shall try an offence punishable by the Special Judge under 
this Act.  
                                                           
110 Substituted for the expression "Assistant Commissioner"  by the  Punjab Sales Tax on Services (Amendment) Act 2026  
(XXXVIII of 2026), published in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.7. 
46. Place of sitting .– A Special Judge shall ordinarily hold sittings at his 
headquarters provided that keeping in view the general convenience of the parties or 
the witnesses, he may hold sittings at any other place.  
47. Persons who may conduct prosecution .– (1) An officer not  below the rank 
of an 111[Enforcement Officer/Audit Officer]  shall be competent to conduct 
prosecution before a Special Judge for and on behalf of the Government. 
(2) A prosecution conducted under this Act before the Special Judge may 
only be withdrawn by th e Authority on the direction or after concurrence of the 
Government. 
CHAPTER VIII  
OFFENCES AND PENALTIES 
48. Offences and penalties .– (1) If a person commits any offence described in 
column 2 of the Table below shall, in addition to and not in derogation of any 
punishment to which he may be liable under any other law, be liable to the penalty 
mentioned against that offence in column 3. 
(2) The sections referred to in column 4 of the said Table shall be deemed 
to be meant for illustrative purposes only and the corresponding offence described in 
column 2 may fall and be prosecuted under other sections of this Act as well. 
                                                           
111 Substituted for the expression "Assistant Commissioner" by the Punjab Sales Tax on Services (Amendment) Act 2026 
(XXXVIII of 2026), published in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.8. 
TABLE 
S. No. Offences Penalties Section 
1 2 3 4 
1. Any person who is 
required to apply for 
registration under this 
Act fails to make an 
application for 
registration before 
providing any taxable 
services 
Such person shall be liable to 
pay a penalty of 
112
[fifty 
thousand] rupees or five per 
cent of the amount of the tax he 
would have been liable to pay 
had he been registered, 
whichever is higher.  
In the case of non-compliance of 
compulsory registration, the 
minimum penalty 
113
[for a 
company shall be one hundred 
thousand rupees and for a person, 
other than a company, shall be fifty 
thousand rupees]: 
If such person who is required to 
get himself registered under this 
Act, fails to get registered within 
ninety days of providing taxable 
services, he shall be further 
liable, upon conviction by a 
Special Judge, to imprisonment 
for a term which may extend to 
one year, or with fine which may 
extend to th e amount of the tax 
he would have been liable to 
pay had he been registered, or 
with both. 
114
[25 and 
27] 
2. Where any person fails 
to furnish a return within 
the due date. 
Such person shall be liable to 
pay a penalty of 
115
[ten] thousand 
rupees provided  
116
[further] if a 
return is not filed within fifteen 
35 
                                                           
112Substituted for the words “ten thousand” by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in 
the Punjab Gazette (Extraordinary), dated 26.6.2014, pages 4169-4178. 
113Substituted for the words “shall be ten thousand rupees” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; 
and published in the Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368. 
114Substituted for the figure “ 25” by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the 
Punjab Gazette (Extraordinary), dated 26.6.2015, pages 7361-7368. 
115Substituted for the word “five” by the Punjab Finance Act 2016 (XXXV of 2016), published in the Punjab Gazette 
(Extraordinary), dated: 29 June 2016, pp. 6083-6092, s.8: it came into force on 1 July 2016. 
116Inserted by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette (Extraordinary), dated: 28 June 
2019, pp. 4105-4114, s. 6. 
days of the due date, a penalty 
of 
117
[two hundred] rupees for 
each day of default shall be 
levied. 
3. Where any person fails 
to deposit the amount 
of the tax due or any 
part thereof in the time 
or manner la id down 
under this Act or the 
rules. 
(a) Such person shall be liable 
to pay a penalty of ten thousand 
rupees or five per cent of the tax 
payable for that period, 
whichever is higher 
118
[:] 
119
[Provided that if the amount of 
tax or any part thereof is paid 
within ten days from the due 
date, the defaulter shall pay a 
penalty of five hundred rupees 
for each day of default.] 
(b) If the amount of the tax due 
is not paid even after the expiry 
of a period of sixty days of 
issuance of the notice for such 
payment by an officer, not below 
the rank of 120[Enforcement 
Officer/Audit Officer], the person 
shall be further liable, upon  
conviction 
3, 4, 10, 
11, 17,18 
and 68 
  by a Special Judge, to 
imprisonment for a term which 
may extend to three years, or 
with fine which may extend to the 
amount of the unpaid tax, or with 
both.  
(c) No penalty shall be levied if 
any miscalculation is made for 
the first time during a year. 
 
4. Any person who fails to 
maintain records 
required under the Act 
or the rules. 
121
[Such person shall be li able to 
pay a penalty which may range 
from ten thousand rupees to one 
hundred thousand rupees or five 
30, 31 and 
32 
                                                           
117Substituted for the word “hundred” by the Punjab Finance Act 2016 (XXXV of 2016), published in the Punjab Ga zette 
(Extraordinary), dated: 29 June 2016, pp. 6083-6092, s.8: it came into force on 1 July 2016. 
118Substituted for the “full stop” by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), 
dated: 24th June 2022, pp. 6339-6345, s.4. 
119Inserted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
120 Substituted for the expression "Assistant Commissioner"  by the  Punjab Sales Tax on Services (A mendment) Act 2026  
(XXXVIII of 2026), published in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.9. 
121Substituted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
percent of the total tax payable 
for the period for which he has 
failed to maintain the required 
record, whichever is higher.] 
122
[5. Where a  person, without 
any reasonable cause, 
fails to produce the record 
or information despite 
receipt of a notice from 
the Authority or any officer 
of the Authority directing 
him to produce such 
record or information 
123
[:] 
124
[Provided that if the 
record is not p roduced 
despite issuance of three 
notices, it shall be 
considered as sufficient 
evidence that the person 
has failed to maintain the 
record.] 
125
[126[Such person in case of: 
(a) an individual, shall pay a 
penalty up to one hundred 
thousand rupees for the first 
default and one hundred 
thousand rupees for each 
subsequent default; and 
(b) a company or association 
of persons, shall pay a penalty 
up to five hundred thousand 
rupees for the first default and 
five hundred thousand rupees 
for each subsequent default.] 
30, 32, 53  
and 57] 
                                                           
122Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2015, pages 7361-7368. 
123Substituted for the “full stop” by the Punjab Finance Act 2022 (IX  of 2022), published in the Punjab Gazette (Extraordinary), 
dated: 24th June 2022, pp. 6339-6345, s.4. 
124Added by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 2022, 
pp. 6339-6345, s.4. 
125Substituted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
126Substituted by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), dated: 1st July 
2026, pp. 21-24, s.5f (i). 
6. Any person who 
knowingly or 
fraudulently– 
(a) submits a false or 
forged document to any 
officer of the Authority; 
or  
(b) destroys, alters, 
mutilates or falsifies the 
records; or  
(c) makes a false 
statement, false 
declaration, false 
representation, false 
personification, or gives 
any false information
127
[; 
or] 
128
[(d) fails to pay, 
recover, or deposit the 
actual amount of tax, or 
claims inadmissible tax 
credit or adjustment or 
deduction or refund.] 
 
Such person shall be liable to 
pay a penalty of 
129
[fifty] 
thousand rupees or one 
hundred per cent of the tax 
payable for the tax period to 
which the offence relates, 
whichever is higher.  
Such person shall further be 
liable, upon conviction by a 
Special Judge, to imprisonment 
for a term which may extend to 
five years or with fine which may 
extend to an amount equal to 
the tax payable for the tax 
period to which the offence 
relates, or with both. 
General 
7. Where any person who 
denies or obstructs the 
access of an authorized 
officer to the business 
premises, registered 
office or to any other 
place where records 
are kept, or otherwise 
refuses access to 
accounts or records. 
Such person shall be liable to 
pay a penalty of twenty five 
thousand rupees or one 
hundred per cent of the tax 
payable for the tax perio d to 
which the offence relates, 
whichever is higher.  
Such persons shall, further be 
liable, upon conviction by a 
Special Judge, to imprisonment 
for a term which may extend to 
five years, or with a fine which 
may extend to an amount equal 
to the tax payabl e for the tax 
period to which the offence 
relates, or with both. 
31, 32 and 
56 
                                                           
127Substituted for the “full stop” by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), 
dated: 24th June 2022, pp. 6339-6345, s.4. 
128Added by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24th June 2022, 
pp. 6339-6345, s.4. 
129Substituted for the words “twenty five” by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette 
(Extraordinary), dated: 24th June 2022, pp. 6339-6345, s.4. 
8. Where any person 
commits, causes to 
commit or attempts to 
commit tax fraud, or 
abets or connives in the 
commission of tax fraud 
equal to twenty five 
thousand rupees or 
more. 
Such person shall be liable to 
pay a penalty of up to five 
hundred thousand rupees, but 
not less than twenty five 
thousand rupees, or one 
hundred per cent of the tax 
payable for the tax period to 
which the offence relates, 
whichever is higher.  
Such perso n shall, further be 
liable, upon conviction by a 
Special Judge, to imprisonment 
for a term which may extend to 
five years, or with fine which 
may extend to an amount equal 
to the tax payable for the tax 
period to which the offence 
relates, or with both. 
2(43) 
9. Where any person 
violates any embargo 
placed on providing  of 
service 
130
[or tempers a 
seal placed by an 
officer of the Authority]. 
Such person shall be liable to 
pay a penalty of 
131
[one hundred] 
thousand rupees or 
132
[equal to]  
the amount of the tax sou ght to 
be recovered, whichever is 
higher.  
Such person shall, further be 
liable, upon conviction by a 
Special Judge, to imprisonment 
for a term which may extend to 
one year, or with fine which may 
extend to amount equal to the 
amount of the tax sought to b e 
recovered, or with both. 
70 
10. Where any person 
obstructs any officer of 
the Authority in the 
performance of his 
official duties under this 
Act or the rules. 
Such person shall be liable to 
pay a penalty of 
133
[one hundred 
thousand] rupees or one hundred 
per cent of the tax payable for 
the tax period to which the 
offence relates, whichever is 
higher. 
Such person shall be further 
136
[ General 
and 
section 59 
and 
section 70] 
                                                           
130Substituted for the words “in connection with recovery of the tax” by the Punjab Finance Act 2019 (XV of 2019), published in 
the Punjab Gazette (Extraordinary), dated: 28 June 2019, pp. 4105-4114, s. 6. 
131Substituted for the words “twenty fiv e” by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette 
(Extraordinary), dated: 24th June 2022, pp. 6339-6345, s.4. 
132Substituted for the words “ten percent of” by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gaz ette 
(Extraordinary), dated: 24th June 2022, pp. 6339-6345, s.4. 
133Substituted for the words “twenty five thousand” by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab 
Gazette (Extraordinary), dated: 16 June 2017, pp. 8235-8250, s.4. 
liable, upon conviction by a 
Special Judge, to imprisonment 
for a term which may extend to 
one year or with fine not 
exceeding fifty thousand rupees 
or with both
134
[:] 
135
[Provided that where any 
recipient of a service does not 
pay the amount of tax due to be 
paid to a service provider, such 
recipient shall also be liable to 
action for obstruction under this 
provision.] 
11. Where any person who 
fails to fulfill any of the 
conditions, limitations or 
restrictions prescribed 
in a notification issued 
under any of the 
provisions of the Act or 
the rules. 
Such person shall be liable to 
pay a penalty of  
137
[ten thousand 
rupees or five per cen t of the 
amount of tax involved ], 
whichever is higher. 
General 
12. Where any person who 
contravenes any 
provision of this Act or 
the rules for which no 
penalty has specifically 
been provided in this 
section. 
Such pers on shall be liable to 
pay a penalty of ten thousand 
rupees or 
138
[five] per cent of the 
tax payable for the tax period to 
which the offence relates, 
whichever is higher. 
General 
13. Where any person 
repeats an offence for 
which a penalty is 
provided under this Act.  
Such person shall be liable to 
pay twice the amount of penalty 
provided under the Act for the 
said offence. 
General 
14. Where any person–  
(a) knowingly and 
without lawful 
Such person shall pay a penalty 
of twenty five thous and rupees 
or one hundred per cent of the 
General 
                                                                                                                                                                                     
136Substituted for the words “ General and section 59 ” by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab 
Gazette (Extraordinary), dated: 16 June 201 7, pp. 8235-8250, s.4. It was earlier substituted for the existing entry “General” by 
the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette (Extraordinary), dated 
26.6.2015, pages 7361-7368. 
134Substituted for the “full-stop” by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab 
Gazette (Extraordinary), dated 26.6.2014, pages 4169-4178. 
135Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s .6; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178. 
137Substituted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4.  
138Substituted for the word “three” by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette 
(Extraordinary), dated: 24th June 2022, pp. 6339-6345, s.4. 
authority gains 
access to or 
attempts to gain 
access to the 
computerized 
system; or  
(b) unauthorizedly uses 
or discloses or 
publishes or 
otherwise 
disseminates 
information obtained 
from the 
computerized 
system; or  
(c) falsifies any record 
or information stored 
in the computerized 
system; or  
(d) knowingly or 
dishonestly 
damages or impairs 
the computerized 
system; or  
(e) knowingly or 
dishonestly 
damages or impairs 
any duplicate tape 
or disc or other 
medium on which 
any information 
obtained from the 
computerized 
system is kept or 
stored; or  
(f) unauthorizedly uses 
unique user 
identifier of any 
other registered 
user to authenticate 
a transmission of 
information to the 
computerized 
system; or  
(g) fails to comply with 
or contravenes any 
of the conditions 
amount equal to the loss caused 
to the tax revenue.  
Such person shall further be 
liable, upon conviction by the 
Special Judge, to imprisonment 
for a term which may extend to 
one year, or with fine which may 
extend to an amount equal to 
the loss caused to the tax 
revenue, or with both. 
prescribed for 
security of unique 
user identifier.  
139
[15 Where any person:  
(a) avoids, denies or 
obstructs installation of 
electronic invoice 
monitoring system at a 
business premises; or 
(b) fails to comply with 
the electroni c invoice 
monitoring system or 
issues invoices 
bypassing the system. 
Such person shall be liable to 
pay a penalty of up to one 
140[million] rupees, but not less 
than 141[four hundred]  thousand 
rupees. In case of three acts of 
commission or omission, the 
business premises of such 
person may further be liable to 
be sealed for a period which 
may extend to one month. 
59A 
16 Where any person: 
(a) causes intentional 
damage to or 
intervention in the 
electronic invoice 
monitoring system; or 
(b) impedes or 
obstructs tr ansmission 
of invoice data to the 
Authority. 
Such person shall be liable to 
pay a penalty of 142[five hundred] 
thousand rupees for each act of 
commission. In case of three 
acts of such commission, the 
business premises of such 
person shall be liable to be 
sealed for a period which may 
extend to one month and such 
person shall further be liable, 
upon conviction by a Special 
Judge, to imprisonment for a 
term which may extend to one 
year, or with fine which may 
extend to the amount equal to 
the tax payable for t he tax 
period to which the  offence 
relates, or with both.  
59A] 
143
[17 Where any person fails 
or refuses to issue a tax 
Such person shall be liable to 
pay a penalty of 144[five hundred] 
30 
                                                           
139Inserted by the Punjab Finance Act 2018 (XXX of 2018), published in the Punjab Gazette (Extraordinary), dated: 29 October 
2018, pp. 805-818, s. 4: it came into force on 1 November 2018. 
140Substituted for the words “ hundred thousand ” by the Punjab Finance Act 202 5 (LVIII of 202 5), published in the Punjab 
Gazette (Extraordinary), dated: 30th June 2025, pp. 5437-5449, s.9(a)(i): it came into force on 1st July 2025.  
141Substituted for the words “ twenty five” by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette 
(Extraordinary), dated: 30th June 2025, pp. 5437-5449, s.9(a)(ii): it came into force on 1st July 2025.  
142Substituted for the words one hundred" by the Punjab Finance Act 2026 (L of 2026), published in the Punjab Gazette 
(Extraordinary), dated: 1st July 2026, pp. 21-24, s.5f (ii). 
143Inserted by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette (Extraordinary), dated: 28 June 
2019, pp. 4105-4114, s. 6. 
invoice. thousand rupees on first default 
and 145[one million]  rupees for 
each subsequent default. 
In case of three acts of such 
default, the business premises 
shall be liable to be sealed for a 
period which may extend to one 
month. 
  18 Where any person fails 
to intimate any change 
in particulars of 
registration including 
the particulars relating 
to business address, 
146
[business bank 
account, changes in 
taxable / economic 
activity etc. in 
accordance with the 
requirements 
prescribed under this 
Act and rules made 
thereunder within 
fourteen days of such 
change]. 
147
[Such person sha ll be liable to 
a penalty which may range from 
fifty thousand rupees to one 
hundred thousand rupees.]. 
25 
  19 Where any person fails 
to declare, conceals 
any of business bank 
accounts or gives 
misleading declaration 
or fails to intimate any 
change in bus iness 
bank account within 
fourteen days of such 
change. 
Such person shall be liable to 
pay a penalty which may range 
from one hundred thousand 
rupees to five hundred thousand 
rupees. 
25 
                                                                                                                                                                                     
144Substituted for the word "twenty" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette 
(Extraordinary), dated: 1st July 2026, pp. 21-24, s.5f (iii). 
145Substituted for the words "fifty thousand" by the Punjab Finance Act 2026 (L of 2026 ), publi shed in the Punjab Gazette 
(Extraordinary), dated: 1st July 2026, pp. 21-24, s.5f (iii). 
  
146Substituted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
147Substituted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
  20 Where any person 
either avoids, defies, 
fails to comply with 
electronic invoicing 
system or issues 
invoices bypassing the 
electronic invoicing 
system. 
Such person shall be liable to 
pay a penalty of up to 148[five 
hundred]. 
In case of three consecutive 
defaults, the business premises 
of such person may further be 
liable to sealing for a period 
which may extend to one 
month.] 
149
[59B]] 
150
[21 Where a registered 
person charges sales 
tax in excess to the rate 
provided in the Second 
Schedule 
151
[Such person shall be liable to 
pay a penalty of twenty 
thousand rupees on first defaul t 
and fifty thousand rupees for 
each subsequent default: 
Provided that in case of three 
defaults, the business premises 
of such person may be liable to 
sealing for a period which may 
extend to one month.] 
10] 
152
[22 Where any person 
unauthorizedly issues 
an invoice in which an 
amount of tax is 
specified. 
Such person shall be liable to 
pay a penalty of ten thousand 
rupees per invoice or five 
percent of the amount of tax 
involved, whichever is higher. 
30 
                                                           
148Substituted by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), dated: 1st July 
2026, pp. 21-24, s.5f (iv). 
149For the word “59A” substituted by the Punjab Finance Act 2021 (XIX of 2021), published in the Punjab Gazette 
(Extraordinary), dated: 30th June 2021, pp. 10047-10050 s.5. 
150Added by the Punjab Finance Act 2021 (XIX of 2021), pub lished in the Punjab Gazette (Extraordinary), dated: 30 th June 
2021, pp. 10047-10050 s.5. 
151Substituted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
152Added by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 2022, 
pp. 6339-6345, s.4. 
23 Where a bank fails to 
attach, or delays in 
attaching the bank 
account of a person, 
specified in the notice 
issued by an officer of 
the Authority, from 
whom tax is sought to 
be recovered, or fails to 
pay or delays payment 
of such amount. 
Such bank shall be liable to pay 
a penalty of one hundred 
thousand rupe es or one 
hundred percent of the tax 
sought to be recovered, 
whichever is higher. The 
concerned manager or officer in-
charge of such bank shall 
further be liable, upon conviction 
by a Special Judge, to 
imprisonment, which may 
extend to one year or with fin e, 
which may extend to an amount 
equal to the amount of tax 
sought to be recovered or with 
both. 
70 
24 Where any person 
refuses to receive any 
notice or order issued 
by an officer of the 
Authority. 
Such person shall be liable to 
pay a penalty of fifty tho usand 
rupees or one hundred percent 
of the tax payable for the tax 
period to which the offence 
relates, whichever is higher.  
78] 
153[25 where any person 
refuses to accept 
payments through 
digital means i.e. 
(debit/credit cards, 
mobile wallets or QR 
scanning). 
 
Such person shall be liable to 
pay a penalty of up to one 
million rupees: 
Provided  that  the  penalty shall 
not  be  less  than four  hundred 
thousand  rupees  on  first  and 
three  hundred  thousand 
rupees on each subsequent 
default: 
Provided furthe r that in case of 
three acts of commission or 
omission, the business premises 
of such person may further be 
liable to be sealed for a period 
which may extend to one month. 
 
 
 
 
 
 
General] 
                                                           
153Added by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2025, pp. 5437-5449, s.9(b): it came into force on 1st July 2025. 
49. Default surcharge .– (1) Notwithstanding the provisions of sectio n 24, if a 
registered person does not pay the tax due or any part thereof, whether willfully or 
otherwise, on time or in the manner specified under this Act, rules or notifications or 
procedures issued thereunder, he shall, in addition to the tax due and a ny penalty 
under section 48, pay default surcharge at the rate mentioned below:– 
(a) the person liable to pay any amount of tax or charge shall pay default 
surcharge at the rate of inter-bank rate plus three per cent per annum 
of the amount of the tax due; and 
(b) in case, the default is on account of tax fraud, the person who has 
committed tax fraud shall pay default surcharge at the rate of two per 
cent per month, of the amount of tax evaded, till such time the entire 
liability including the amount of default surcharge is paid.  
(2) For the purpose of calculation of default surcharge, the period of 
default shall be reckoned from the sixteenth day following the due date of the tax 
period to which the default relates, to the day preceding the date on which t he tax 
due is actually paid. 
Explanation.– For purposes of this section, the tax due does not include the amount 
of penalty.  
50. Exemption from penalty and default surcharge.– The Government may, by 
a notification in the official Gazette, exempt any regis tered person or any taxable 
service from payment of the whole or any part of the penalty and default surcharge 
subject to such conditions and limitations as may be specified.   
51. Compounding of offences .– Notwithstanding anything contained in any 
other provision of this Act, where any person has committed any offence warranting 
prosecution under the Act, the Authority may, either before or after the institution of 
any proceedings for the prosecution of such offence, compound the offence and 
terminate the proceedings if such person pays the amount of the tax due along with 
such default surcharge and penalty as is determined by the Authority  under the 
provisions of this Act and the rules.  
52. Recovery of tax not levied or short -levied.– (1) Where by reason of 
inadvertence, error, misconstruction or for any other reason, any tax or charge has 
not been levied or has been short levied, the person liable to pay such amount of the 
tax or charge shall be served with a notice, within 
154
[ 
155
[eight] years] of the relev ant 
tax period 
156
[for periods before 1 st of July 2022 and within five years from the end of 
the financial year in which the relevant tax period falls for tax periods after 1 st July 
2022,] requiring him to show cause for payment of the amount specified in th e 
notice. 
(2) Where by reason of some collusion, abetment, deliberate attempt, mis -
statement, fraud, forgery, false or fake documents– 
                                                           
154Substituted for the words “three years” by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in 
the Punjab Gazette (Extraordinary), dated 26.6.2014, pages 4169-4178. 
155Substituted for the word “five” by the Punjab Finance Act 2018 (XXX of 2018), published in the Punjab Gazette 
(Extraordinary), dated: 29 October 2018, pp. 805-818, s. 4: it came into force on 1 November 2018.  
156Inserted by the Punjab Finance Act 2022 (IX o f 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4.  
(a) any tax or charge has not been paid or is, short paid, the person liable 
to pay such tax shall be served with a notic e within 
157
[eight] years of 
relevant tax period, 
158
[for periods before 1 st of July 2022 and within five 
years from the end of the financial year in which the relevant tax period 
falls for tax periods after 1 st July 2022,] requiring him to show cause for 
non-payment of such tax; and  
(b) any amount of the tax is refunded which is not due, the person 
obtaining such refund shall be served with a notice within  
159
[five years 
from the end of the financial year in which the refund was received ] to 
show cause for recovery of such refund. 
(3) The officer shall, after considering the objections of the person served 
with a notice under sub -sections (1) or (2) or if the objections are not received within 
the stipulated period, determine the amount of the tax or charge paya ble by him and 
such person shall pay the amount so determined.  
160
[(4) Any order under subsection (3) shall be made within one year from the 
end of the financial year in which the show cause notice is issued.] 
(5) In computing the period specified in sub -section (4), any period during 
which the proceedings are adjourned on account of a stay order or proceedings 
under section 69 
161
[*****] shall be excluded.  
53. Power to summon persons to give evidence and produce documents .– 
An officer may summon any person w hose attendance he considers necessary 
either to tender evidence or to produce documents or any other thing in any audit, 
inquiry, investigation or proceedings which such officer is making for any of the 
purposes of this Act and the rules. 
(2) Any person summoned under sub -section (1) shall be bound to attend 
either in person or by an authorized agent, as the officer may direct. 
(3) Notwithstanding anything in sub -sections (1) and (2), a person who is 
exempt from personal appearance in a Court under section s 132 and 133 of the 
Code of Civil Procedure (V of 1908), shall not be required to appear in person. 
(4) Any proceedings under this Act or the rules before an officer shall be 
deemed to be judicial proceedings within the meaning of sections 193 and 228 of the 
Pakistan Penal Code (XLV of 1860). 
54. Power to arrest and prosecute .– (1) An officer authorized by the Authority 
by notification in the official Gazette  in this behalf, who on the basis of material 
evidence has reasonable cause to believe that any person has committed a tax fraud 
                                                           
157Ibid.  
158Inserted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
159Substituted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
160Substituted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary) , dated: 24 th June 
2022, pp. 6339-6345, s.4. 
161Omitted by the Punjab Finance Act 2022 (IX of 2022), published in the Punjab Gazette (Extraordinary), dated: 24 th June 
2022, pp. 6339-6345, s.4. 
or any offence warranting prosecution under this Act, may cause arrest of such 
person.  
(2) All arrests made under this Act shall be carried out in accordance with 
the relevant provisions of the Code of Criminal Procedure, 1898 (V of 1898). 
(3) Where the person suspected of tax fraud or any offence warranting 
prosecution under this Act is a company, every director or officer of that company 
whom the officer has reason to believe is personally responsible for actions of the 
company contributing to the tax fraud or any offence warranting prosecution under 
this Act shall be liable to arrest provided that such arrest shall not absolve the 
company from the liabilities of payment of the tax, default surcharge and any penalty 
imposed or due under this Act.  
55. Procedure to be followed on arrest of a person .– (1) When an officer 
arrests a person under section 54, he shall immediately intimate the fact of arrest of 
that person to the Special Judge who may direct such officer to produce t hat person 
at such time and place and on such date as the Special Judge considers expedient. 
(2) Notwithstanding anything contained in sub -section (1), any person 
arrested under this Act shall be produced before the Special Judge or, if there is no 
Special Judge within a reasonable distance, to the nearest Magistrate within twenty -
four hours of such arrest, excluding the time necessary for the journey from the place 
of arrest to the court of the Special Judge or of the Magistrate.  
(3) When any person is produced under sub-section (2) before the Special 
Judge, the Special Judge may, on the request of such person, after perusing the 
record, if any and after giving the prosecution an opportunity of being heard, admit 
him to bail on his executing a bond, with or without sureties, or refuse to admit him to 
bail and direct his detention at such place as he deems fit. 
(4) Nothing contained herein shall preclude the Special Judge from 
cancelling the bail of any such person at a subsequent stage if, for any reason, h e 
considers such cancellation necessary, but before passing such order he shall afford 
such person an opportunity of being heard, unless for reasons to be recorded he 
considers that the affording of such opportunity shall defeat the purpose of this Act. 
(5) When such person is produced under sub -section (2) before a 
Magistrate, such Magistrate may, after authorizing his detention in such custody at 
such place and for such period as he considers necessary or proper for facilitating 
his earliest production be fore the Special Judge, direct his production before the 
Special Judge on a date and time to be fixed by him or direct such person to be 
forthwith taken to, and produced before the Special Judge and he shall be so taken 
or produced.  
(6) Nothing in sub -sections (2), (3) and (4) shall preclude the Special 
Judge or the Magistrate from remanding any such person to the custody of the 
officer holding an inquiry or investigation  against that person if such officer makes a 
request in writing to that effect, and th e Special Judge or the Magistrate, after 
perusing the record, if any, and hearing such person, is of the opinion that for the 
completion of inquiry or investigation it is necessary to make such order but the total 
period of such custody shall not exceed fourteen days. 
(7) When any person is arrested under this Act, the arresting officer shall 
record the fact of arrest and other relevant particulars in the register specified in sub -
section (11) and shall immediately proceed to inquire into the charge against  such 
person and if he completes the inquiry within twenty -four hours of his arrest, and he 
may, after producing such person before the Special Judge or the Magistrate, make 
a request for his further detention in his custody. 
(8) While holding an inquiry u nder sub -section (7), the officer shall 
exercise the same powers as are conferred upon or exercisable by an officer in 
charge of a police station under the Code of Criminal Procedure, 1898 (V of 1898), 
but such officer shall exercise such powers subject to  the foregoing provisions of this 
section while holding an inquiry under this Act. 
(9) If the officer, after holding an inquiry, is of the opinion that there is no 
sufficient evidence or reasonable ground for suspicion against such person, he shall 
release him on his executing a bond, with or without sureties, and shall direct such 
person to appear, as and when required, before the Special Judge, and make a 
report to the Special Judge for the discharge of such person and shall make a full 
report of the case to his immediate superior. 
(10) The Special Judge to whom a report has been made under sub -section 
(8) may, after the perusal of record of the inquiry, and hearing the prosecution, agree 
with such report and discharge the accused or, if he is of the opini on that there is 
sufficient ground for proceedings against such person, proceed with his trial and 
direct the prosecution to produce evidence. 
(11) The officer holding an inquiry under this section shall maintain a 
register to be called register of arrests  and detentions in the form prescribed by the 
Government in which he shall enter the name and other particulars of every person 
arrested under this Act, together with the time and date of arrest, the details of the 
information received, the details of thin gs, goods or documents, recovered from his 
custody, the name of the witnesses and the explanation, if any, given by him and the 
manner in which the inquiry has been conducted from day to day; and, such register 
or authenticated copies of its entries shall be produced before the Special Judge, 
whenever it is directed by the Special Judge.  
(12) After completing the inquiry, the officer shall, as early as possible, 
submit to the Special Judge a complaint in the same form and manner in which the 
officer in charge of a police station submits a report before a Court.  
(13) Any Magistrate of the first class may record any statement or 
confession during inquiry or investigations under this Act in accordance with the 
provisions of section 164 of the Code of Criminal Procedure, 1898 (V of 1898).  
56. Authorized officers to have access to premises, stocks, accounts and 
records.– (1) Any officer, authorized in this behalf by the 162[Commissioner] 163[* * * * * 
* *], shall have free and full access to the business premises, registered office or any 
other place where any business records or documents required under this Act and 
the rules are kept or maintained by any registered person or a person liable for 
                                                           
162Substituted for the word "Authority" by the Punjab Finance Act 2 026 (L of 2026 ), published in the Punjab Gazette 
(Extraordinary), dated: 1st July 2026, pp. 21-24, s.5 (g). 
163Omitted for the words  "by notification in the official Gazette " by the Punjab Finance Act 2026 (L of 2026 ), published in the 
Punjab Gazette (Extraordinary), dated: 1st July 2026, pp. 21-24, s.5 (g). 
registration or whose business activities are covered under this Act a nd the rules or 
who may be required for any inquiry or investigation in any tax fraud committed by 
him or his agent or any other person; and such officer may, at any time, inspect the 
records, data, documents, correspondence, accounts, statements, utility bills, bank 
statements, information regarding nature and sources of funds or assets with which 
his business is financed, and any other records or documents, including those which 
are required under any other law maintained in any form or mode and may take into 
his custody such records, statements, diskettes or documents, in original or copies, 
in such form as the officer may deem fit against a signed receipt. 
(2) The registered person, his agent or any other person specified in sub -
section (1) shall answer any question or furnish such information or explanation as 
may be asked by the authorized officer.  
(3) All other Government departments, local bodies, autonomous bodies, 
corporations or such other institutions shall supply requisite information and render  
necessary assistance to the authorized officer in the course of inquiry or 
investigation under this section.  
57. Obligation to produce documents and provide information .– (1) 
Notwithstanding anything contained in this Act or any other law, any person req uired 
to maintain any record under this Act and the rules, shall, on demand by an officer, 
164
[****], by notice in writing, as and when specified in the notice– 
(a) produce for examination, such documents or records which the officer 
considers necessary or r elevant to the audit, inquiry or investigation 
under this Act; 
(b) allow the officer to take extracts from or make copies of such 
documents or records; and  
(c) appear before the officer and answer any question put to him 
concerning the documents and recor ds relating to the audit, inquiry or 
investigation referred to in clause (a).  
165
[(2) An officer conducting an audit, enquiry, investigation or otherwise for 
the purposes of the Act or the rules may require in writing any person to furnish any 
information as is held by the person.] 
(3) The Authority may require, in writing, any person, department, 
company or organization, to provide any information or data held by that person, 
department, company or organization, which, in the opinion of the Authority 
166
[or an 
officer authorized by the Authority], is required for purposes of formulation of policy 
or administering or implementing this Act and the rules.  
(4) Every person, department, company or organization shall furnish the 
information requisitioned by the Aut hority or the officer under subsections (2) or (3), 
within the time specified in the notice issued by the Authority. 
                                                           
164Omitted for the words "not below the rank of an Assistant Commissioner," by the Punjab Finance Act 2020 (VIII of 2020), 
published in the Punjab Gazette (Extraordinary), dated: 29 June 2020, pp. 4353-4359, s. 5. 
165Substituted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2015, pages 7361-7368. 
166Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015, s.5; an d published in the Punjab Gazette 
(Extraordinary), dated 26.6.2015, pages 7361-7368. 
58.  Searches under warrants .–(1) Where any officer has reason to believe that 
any documents or things which in his opinion, may be useful for, or relevant to, any 
proceedings under this Act are kept in any place, he may after obtaining a warrant 
from the Magistrate or from the Commissioner, enter that place and cause a search 
to be made at any time.  
(2) All searches made under sub -section ( 1) shall be carried out in 
accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (V 
of 1898). 
59. Posting of an officer to business premises.– (1) Subject to such conditions 
and restrictions as it deems fit to impose, the Authorit y may post an officer to the 
premises of a registered person to monitor the provision 
167
[and receipt] of services by 
such registered person. 
(2) Notwithstanding anything contained in sub -section (1), if a 
Commissioner, on the basis of material evidence, has  reasonable cause to believe 
that a registered person is involved in evasion of the tax or tax fraud, he may, by 
recording the grounds in writing, post an officer of the Authority to the premises of 
such registered person to monitor provision 
168
[and receipt ] of services by such 
person. 
(3) A person to whose premises, an officer of the Authority is posted under 
this section, shall provide on his own cost, all facilities required to meet the 
departmental requirements of such posting as determined by the Author ity or the 
Commissioner. 
169
[59A. Power to Seal the Business Premises .– When an officer of the Authority 
not below the rank of Commissioner has reason to believe that the Act or the rules 
made thereunder are not obeyed and observed at a business premises, he  may by 
an order in writing, seal that premises for a period which may extend to one month 
upon giving a notice in writing to this effect. 
59B. Monitoring or Tracking by Electronic or other Means .– (1) Subject to such 
conditions, restrictions and procedure s, as it deems fit to impose, the Authority may, 
by notification in the official Gazette, determine any registered person or class of 
registered persons or any of the services or class of services in respect of which 
monitoring or tracking of provision of service or services may be enforced through 
electronic or other means. 
 (2) The Authority may, in the prescribed manner, devise and enforce an 
electronic system for monitoring and capturing the transactions recorded or the 
invoices issued by a registered p erson or a class of registered persons or a service 
or services or class of services, and for transferring the electronic information so 
obtained to its computer system at such times as it deems fit. 
                                                           
167Inserted by the Punjab Finance Act 2021 (XIX of 2021), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2021, pp. 10047-10050 s.5. 
168Inserted by the Punja b Finance Act 2021 (XIX of 2021), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2021, pp. 10047-10050 s.5. 
169 Inserted by the Punjab Finance Act 2018 (XXX of 2018), published in the Punjab Gazette (Extraordinary), dated: 29 October 
2018, pp. 805-818, s. 4: it came into force on 1 November 2018. 
 
170
[(2A) The Authority may, in the prescribed manner, dev ise, implement and 
declare mandatory an electronic invoicing system for issuance of tax invoices by a 
registered person or a class of registered persons or a service or a class of 
services.] 
 (3) The Commissioner may order, as and when required, video vigilance of 
the economic activity of a registered person or class of registered persons to monitor 
provision of taxable services including counting of heads of visiting customers, 
occupancy of sitting space and regularity of issuance of invoices. 
 (4) For the  purpose of this section, the Authority shall, in the prescribed 
manner, take measures for the security protection and processing of personal data 
of natural persons. 
 (5) From such date as may be specified by the Authority, the persons 
providing or render ing taxable services shall compulsorily use such electronic 
means, modes or systems, as may be prescribed by the Authority for issuance of tax 
invoice.] 
60. Powers of adjudication .– (1) In respect of cases involving determination of 
tax liability, assessme nt of the tax, charging of default surcharge, imposition of 
penalty and recovery of amount erroneously refunded or any other contravention or 
violation including tax fraud under this Act or the rules, the jurisdiction and powers of 
adjudication of the officers shall be as follows:– 
   (a) Additional Commissioner : Cases without any restriction as to the 
amount of the tax involved 
171
[* * * * * *]; 
172
[(b) Assistant Commissioner/Deputy Commissioner: Cases where the 
amount of the tax involved does not exceed 173[fifty] million rupees;” 
and;] 
174
[(c) Enforcement Officer/Audit -cum-Risk Compliance Officer:  Cases 
where the amount of the tax involved does not exceed 175[twenty-five] 
million rupees; and;] 
176
[(d) Other officers of the Authority: Such cases or class of cases as m ay 
be prescribed by the Authority.] 
(2) The Commissioner may adjudicate any case falling in the jurisdiction 
and powers of any officer subordinate to him  
177
[or falling in jurisdiction specifically 
                                                           
170Inserted by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette (Extraordinary), dated: 28 June 
2019, pp. 4105-4114, s. 6. 
171Omitted for the words "or amount erroneously refun ded," by the Punjab Finance Act 2020 (VIII of 2020), published in the 
Punjab Gazette (Extraordinary), dated: 29 June 2020, pp. 4353-4359, s. 5. 
172Substituted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dat ed: 29 June 
2020, pp. 4353-4359, s. 5. 
173Substituted for the word "ten" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5h (i). 
174Substituted by the Punjab Finance Act 2020 (VIII  of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
175Substituted for the word "five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5h (ii). 
176Substituted by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette (Extraordinary), dated: 28 June 
2019, pp. 4105-4114, s. 6. 
assigned to him by the Authority ] and appeal against the ord er passed by the 
Commissioner in such case shall lie to the Appellate Tribunal. 
(3) The Authority may regulate the system of adjudication including 
transfer of cases and extension of time limit. 
178
[(4) Notwithstanding the provisions of subsection (1), the A uthority may 
assign a case or class of cases to any of its officers involving any amount of tax 
involved.] 
Explanation.– For purposes of this section, the tax means the principal amount of 
the tax other than default surcharge and in case where only default  surcharge is 
involved, the amount of default surcharge. 
61. Revision by the Commissioner .– (1) The Commissioner may, of his own 
motion or on an application made in writing by a registered person for revision, call 
for and examine the record of any proceed ings under this Act in which an order has 
been passed by an officer subordinate to him.  
(2) If after examining the record under sub -section (1), the Commissioner 
is not satisfied with the legality or propriety of any order passed by an officer, the 
Commissioner may make such revision to the order as he may think fit. 
(3) No order imposing or enhancing any penalty or fine requiring payment 
of a greater amount of the tax than the originally levied amount shall be passed 
unless the person affected by such ord er has been given an opportunity of showing 
cause and of being heard. 
(4) The Commissioner shall not revise any order under sub-section (2) if– 
(a) an appeal under section 63 is pending or the matter has been referred 
for resolution under section 69; 
(b) where an appeal against the order lies under section 63, the time within 
which such appeal can be made has not expired or the person has not 
waived in writing his right of appeal; 
(c) in the case of an application made by a person, the application has not 
been made within ninety days of the date on which such order was 
served on the person, unless the Commissioner is satisfied that the 
person was prevented by sufficient cause from making the application 
within the time allowed; and 
(d) in the case where the Commissioner has on his own motion called for 
and examined an order passed by a subordinate officer, more than five 
years have lapsed from the date of the original order. 
(5) No application for revision of an assessment shall be made under sub -
section (1) unless the amount of the tax due under the assessment, as is not in 
dispute, has been paid by the taxpayer.  
                                                                                                                                                                                     
177Inserted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (E xtraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
178Added by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 2020, 
pp. 4353-4359, s. 5. 
62. Revision by the Authority.– (1) The Authority may, of its own motion, call for 
and examine the record of any departmental proceedings under thi s Act or the rules 
for the purpose of satisfying itself as to the legality or propriety of any decision or 
order passed therein by an officer.  
(2) If after examining the record under sub -section (1), the Authority is not 
satisfied with the legality or pro priety of any decision or order passed by an officer, it 
may pass such order as it may think fit. 
(3) No order imposing or enhancing any penalty or fine requiring payment 
of a greater amount of the tax than the originally levied amount shall be passed 
unless the person affected by such order has been given an opportunity of showing 
cause and of being heard. 
(4) No proceeding under this section shall be initiated in a case where an 
appeal under section 66 is pending or the matter has been referred for  resolution 
under section 69. 
(5) No order shall be made under this section after the expiry of five years 
from the date of the original decision or order of the subordinate officer referred to in 
sub-section (1). 
CHAPTER IX  
APPEALS 
63. Appeals.– (1) Any person,  other than the Authority or any of its employees, 
aggrieved by any decision or order passed under section 60 by an officer of the  
Authority other than Commissioner may, within thirty days of the date of receipt of 
such decision or order, prefer an appeal to the Commissioner (Appeals). 
(2) An appeal under sub-section (1) shall– 
(a) be in the prescribed form; 
(b) be verified in the prescribed manner; 
(c) state precisely the grounds upon which the appeal is made;  
(d)  be accompanied by the fee specified in sub-section (3); and  
(e) be lodged with the Commissioner (Appeals) within the time set out in 
sub-section (4).  
(3) The prescribed fee shall be– 
(a) where the appellant is a company, one thousand rupees; or  
(b) where the appellant is not a company, two hundred rupees.  
179
[(4) An appeal under subsection (1) may be filed manually or electronically 
as may be specified by the Authority.] 
(5) The Commissioner (Appeals) may, upon application in writing by the 
appellant, admit an appeal after the expiration of th e period specified in sub -section 
                                                           
179Substituted by the Punjab Finance Act 2020 (VIII of 2 020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
(4) if the Commissioner (Appeals) is satisfied that the appellant was prevented by 
sufficient cause from lodging the appeal within that period.  
64. Procedure in appeal .– (1) The Commissioner (Appeals) shall give notice of  
the day fixed for the hearing of the appeal to the appellant and to the officer of the 
Authority against whose order the appeal has been made.  
(2) The Commissioner (Appeals) may adjourn the hearing of the appeal 
from time to time. 
(3) The Commissioner (A ppeals) may, before the hearing of an appeal, 
allow the appellant to file any new ground of appeal not specified in the grounds of 
appeal already filed by the appellant where the Commissioner (Appeals) is satisfied 
that the omission of the ground from the form of the appeal was not willful or 
unreasonable. 
(4) The Commissioner (Appeals) may stay the recovery of any tax due by 
virtue of the decision or order being appealed against and any such order made by 
the Commissioner (Appeals) shall remain operative f or not more than fifteen days 
during which period a notice shall be issued to the respondent and after hearing the 
parties, the order staying recovery may be confirmed, varied or vacated as the 
Commissioner (Appeals) deems fit but the stay order so confirm ed or varied shall 
remain operative for not more than sixty days, including any period for which the 
recovery may have been stayed prior to the confirmation or variation of the stay 
order. 
(5) The Commissioner (Appeals) may, before disposing of an appeal, call 
for such particulars, documents, records or information as the Commissioner 
(Appeals) may require respecting the matters arising in the appeal or cause further 
inquiry to be made by the officer of the Authority.  
65. Decision in appeal .– (1) In dispos ing of an appeal lodged under section 63, 
the Commissioner (Appeals) may pass such order as he thinks fit, confirming, 
varying, altering, setting aside or annulling the decision or order appealed against.  
(2) In deciding an appeal, the Commissioner (Appea ls) may make such 
further inquiry as may be necessary provided that he shall not remand the case for 
de novo consideration. 
(3) The Commissioner (Appeals) shall not increase the amount of any tax 
payable by the appellant unless the appellant has been given  an opportunity of 
showing cause against such increase. 
(4) The Commissioner (Appeals) shall communicate his order to the 
appellant and the Authority. 
(5) An order passed by the Commissioner (Appeals) under sub -section (1) 
shall be passed not later than on e hundred and twenty days from the date of filing of 
appeal or within such extended period, not exceeding sixty days, as the 
Commissioner (Appeals) may, for reasons to be recorded in writing, fix. 
(6) In computing the aforesaid time period, any period duri ng which the 
proceedings are adjourned on account of a stay order or proceedings under section 
69 or the time taken through adjournments by the appellant shall be excluded.  
180
[* * *] 
(9) For purposes of sub-section (5), any period during which the hearing of 
an appeal is adjourned on the request of the appellant shall be excluded in the 
computation of the period mentioned in the sub-section. 
66. Appeal to the Appellate Tribunal .– 
181
[(1) Any person including an officer of 
the Authority not below the rank of a n Additional Commissioner, aggrieved by any 
order passed by the: 
(a) Commissioner (Appeals) under subsection (4) of section 64 or section 
65; 
(b) Commissioner through adjudication under section 60 or 61; or 
(c) Authority under section 62,  may, within 
182
[sixty] days of the receipt of 
such decision or order, prefer an appeal to the Appellate Tribunal.]  
(2) An appeal under sub-section (1) shall be–  
(a) in the prescribed form; 
(b) verified in the prescribed manner; 
183
[and;] 
(c) accompanied, except in case of an  appeal preferred by an officer by 
the fee specified in sub-section (3)
184
[.] 
(d) 
185
[* * * * * * * * * * * ] 
(3) The fee for an appeal shall be two thousand rupees.  
(4) The Appellate Tribunal may, upon application in writing, admit an 
appeal after the expiration of the period specified in clause (d) of 
186
[subsection (1)] if it 
is satisfied that the person appealing was prevented by sufficient cause from filing 
the appeal within that period.  
67. Disposal of appeals by the Appellate Tribunal .– (1) The Appellate Tribunal 
may, before disposing of an appeal, call for such particulars, documents, records or 
information as it may require in respect of the matters arising from the appeal or 
cause further inquiry to be made by the officer of the Authority. 
(2) The Appellate Tribunal shall afford an opportunity of being heard to the 
parties to the appeal and, in case of default by any of the parties on the date of 
                                                           
180Omitted by the Punjab Finance Act 2021 (XIX of 2021), published in the Punjab Gazette (Extraordinary), dated: 30 th June 
2021, pp. 10047-10050 s.5. 
181Substituted by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette (Extraordinary), dated: 28 June 
2019, pp. 4105-4114, s. 6. 
182Substituted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29  June 
2020, pp. 4353-4359, s. 5. 
183Inserted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
184Substituted by the Punjab Finance Act 2020 (VIII of 2020), published in th e Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
185Omitted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
186Substituted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
hearing, the Tribunal may, if it deems fit, dismiss the appeal in default, or may 
proceed ex-parte to decide the appeal on the basis of the available record but the 
Appellate Tribunal shall decide the appeal within six months from the date of filing of 
the appeal. 
(3) The Appellate Tribunal may stay the recovery of any tax due by virtue 
of the decision or order being appealed against and any such order made by the 
Appellate Tribunal shall remain operative for no more than thirty days during which 
period a notice shall be issued to the respondent and after hearing the parties, the 
order staying recovery may be con firmed, varied or vacated as the Appellate 
Tribunal deems fit but the stay order so confirmed or varied shall remain operative 
for not more than ninety days including any period for which the recovery may have 
been stayed prior to the confirmation or variation of the stay order. 
(4) In deciding the appeal, the Appellate Tribunal may, without prejudice to 
the powers specified in sub-section (2), make an order to– 
(a) affirm, modify or annul the order being appealed against; or 
(b) remand the case to the offi cer or the Commissioner (Appeals) for 
making such inquiry or taking such action as the Tribunal may direct. 
(5) The Appellate Tribunal shall not increase the amount of any tax 
payable, penalty or default surcharge unless the taxpayer has been given a 
reasonable opportunity of showing cause against such increase.  
(6) The Appellate Tribunal shall communicate its order to the taxpayer and 
the Commissioner. 
(7) Save as provided in any other law, the decision of the Appellate 
Tribunal on an appeal shall be final. 
187
[67A. Reference to the High Court .– (1) A reference to the High Court shall lie 
only if a question of law is involved in a case.   
 (2) Notwithstanding anything contained in section 67, a taxpayer or the 
officer not below the rank of Additional Commiss ioner, aggrieved by any decision or 
order of the Appellate Tribunal may, within sixty days of communication of such 
decision or order, prefer a reference, in the prescribed form, along with a statement 
of the facts of the case and the question of law invol ved in that case to the Lahore 
High Court Lahore. 
 (3) The reference under this section shall be heard by a Bench of at least 
two Judges of the High Court and the provisions of section 98 of the Code of Civil 
Procedure 1908 (V of 1908) shall apply mutatis mutandis to such reference.    
 (4) The High Court shall send a copy of its judgment under the seal of the 
Court to the Appellate Tribunal.  
 (5) Notwithstanding a reference preferred in the High Court under this 
section, the tax shall be paid in accordance with the order of the Appellate Tribunal. 
 (6) If the tax liability is reduced by the High Court and the Authority 
decides to seek leave to appeal to the Supreme Court, the Authority may, within 
                                                           
187Inserted by the Punjab Finance Act 2018 (XXX of 2018), published in the Punjab Gazette (Extraordinary), dated: 29 October 
2018, pp. 805-818, s. 4: it came into force on 1 November 2018. 
thirty days of the receipt of the judgment in the reference , apply to the High Court to 
postpone the refund of tax until the decision by the Supreme Court.    
 (7) Section 5 of the Limitation Act 1908 (IX of 1908)  shall apply to a 
reference under this section.    
 (8) A court fee of rupees one thousand shall be pa id for a reference under 
this section except when it is filed by the Authority.] 
68. Deposit of the tax demand while appeal is pending.– Where in any appeal, 
the decision or order appealed against relates to any tax demanded under this Act, 
the person who has filed the appeal shall, pending the appeal, deposit the admitted 
amount of the tax based on the return filed under section 35 or as may be 
determined by the Commissioner (Appeals) or the Appellate Tribunal where such 
return has not been filed.  
69. Alternate dispute resolution .– (1) Notwithstanding any other provisions of 
this Act or the rules, any registered person aggrieved in connection with any dispute 
pertaining to– 
(a) the liability of the tax against the registered person;  
(b) the extent of waiver of default surcharge and penalty;  
(c) relaxation of any procedural or technical irregularities and condonation 
of any prescribed time limitation; and  
(d) any other specific relief required to resolve the dispute, may apply to 
the Authority for the appointment of a co mmittee for the resolution of 
any dispute mentioned in detail in the application.  
(2) Notwithstanding anything contained in sub -section (1), the Authority 
shall not accept an application under sub -section (1) where criminal proceedings 
have been initiated or where the Authority is of the opinion that the interpretation of a 
question of law having a larger impact on revenue or on a number of similar cases is 
involved.  
(3) The Authority may, after examination of the application of a registered 
person, appoi nt a committee of not less than three persons within thirty days of 
receipt of such application, consisting of an officer of the Authority not below the rank 
of an Additional Commissioner and nominees from the notified panel consisting of 
chartered or cost  accountants, advocates, representatives of trade bodies or 
associations, retired officers of the rank of not less than BS-20, retired judges, or any 
other reputable taxpayers, for the resolution of the dispute. 
(4) The committee constituted under sub -section (3) shall examine the 
issue and may, if it deems fit, conduct an inquiry, seek expert opinions, direct any 
officer of the Authority or any other person to conduct an audit and shall make 
recommendations to the Authority within ninety days of its consti tution in respect of 
the dispute.  
(5) If the committee fails to make recommendations within the said period, 
the Authority may dissolve the committee and constitute a new committee which 
shall decide the matter within a further period of ninety days and e ven if after the 
expiry of that period the dispute is not resolved, the matter shall be taken up before 
the appropriate forum provided under this Act for decision. 
(6) The Authority may, on the recommendation of the committee, pass 
such order, as it may de em appropriate within forty -five days of the receipt of the 
recommendations of the committee. 
(7) The registered person may make payment of the tax as determined by 
the Authority in its order under sub -section (6), and such order of the Authority shall 
be submitted before the forum, Appellate Tribunal or the Court where the matter is 
pending adjudication for consideration of orders as deemed appropriate.  
CHAPTER X 
RECOVERY OF ARREARS 
70. Recovery of arrears of tax .– (1) Subject to sub -section (2), where an y 
amount of the tax is due from any person, the officer of the Authority 
188
[appointed 
under section 39] may– 
(a) deduct the amount from any money owing to the person from whom 
such amount is recoverable and which may be at the disposal or in the 
control of such officer or any officer of the Authority; 
(b) require by a notice in writing any person who holds or may 
subsequently hold any money for or on account of the person from 
whom tax is recoverable to pay to such officer the amount specified in 
the notice; 
189
[(bb) require by a notice in writing payment of money owed to a taxpayer by 
any person on account of legally enforceable relations created between 
the taxpayer and the other person including but not limited to purchase 
contracts, contracts with credit or  financial institutions or with banking 
companies 
190
[including running and demand finance] , lease contracts, 
loan agreements, building loan contracts, life insurance contracts, 
employment or work contracts.] 
(c) require by a notice in writing any bank to at tach that person‟s bank 
accounts 
191
[and recover the amount payable or recover such amount without 
attachment]; 
(d) seal the person‟s business premises till such time as the amount of the 
tax is paid or recovered in full; 
(e) attach and sell or sell without attachment any movable or immovable 
property of the person from whom the tax is due; and  
(f) recover such amount by attachment and sale of any movable or 
immovable property of the guarantor, person, company, bank or 
financial institution where a guarantor  or any other person, company, 
                                                           
188Inserted by the Punjab Finance Act 2016 (XXXV of 2016), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2016, pp. 6083-6092, s.8: it came into force on 1 July 2016. 
189Inserted by the Punjab F inance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16 June 
2017, pp. 8235-8250, s.4. 
190Inserted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29 June 
2020, pp. 4353-4359, s. 5. 
191Inserted by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette (Extraordinary), dated: 28 June 
2019, pp. 4105-4114, s. 6. 
bank or financial institution fails to make payment under such 
guarantee, bond or instrument 
192
[:] 
193
[Provided that no action shall be taken against the person during the 
pendency of the appeal, if any, under section 63 of the Act if he 
deposits at least 
194
[ten] per cent the amount of the tax demanded from 
him.] 
195
[(g) arrest or cause to arrest a defaulter and cause his detention in prison 
for a period not exceeding six months subject to the condition that the 
adjudged amount has been upheld by the Appellate Tribunal.] 
(2) If any arrears of tax, default surcharge, penalty or any other amount 
which is payable by any person cannot be recovered in any manner whatsoever,  the 
Authority or the Commissioner if so authorized by the Author ity, may for reasons to 
be recorded in writing write off the arrears or amount in the manner in the prescribed 
manner. 
196
[(3) For the purpose of recovery of tax, penalty or any other demand or 
sum under this Act or the rules, the Authority or the officer of  the Authority may 
exercise the powers of a Civil Court under the Code of Civil Procedure, 1908 ( V of 
1908) for recovery of an amount due under a decree and, in such an eventuality, the 
Authority or the officer of the Authority shall be deemed to be a Civil Court.] 
CHAPTER XI 
AGENTS, REPRESENTATIVES AND E-INTERMEDIARIES 
71. Agent.– (1) For purposes of this Act and subject to sub -sections (2) and (3), 
the expression „agent‟ in respect of a registered person, means– 
(a) where the person is an individual under  a legal disability, the guardian 
or manager who receives or is entitled to receive income, financial 
gains or benefits, funds, money or property on behalf, or for the benefit 
of, the individual; 
(b) where the person is a company (other than a Trust, a Pro vincial 
Government, or local authority in Pakistan), a director or a manager or 
secretary or accountant or any similar officer of the company; 
(c) where the person is a Trust declared by a duly executed instrument in 
writing, whether testamentary or otherwise, any trustee of the trust; 
(d) where the person is a Provincial Government, or local authority in 
Pakistan, any individual responsible for accounting for the receipt and 
                                                           
192Substituted for the “full stop” by the Punjab Finance Act 2017 (XII of 2017), published in the P unjab Gazette (Extraordinary), 
dated: 16 June 2017, pp. 8235-8250, s.4. 
193Inserted by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16 June 
2017, pp. 8235-8250, s.4. 
194Substituted for the words “twenty fiv e” by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette 
(Extraordinary), dated: 29 June 2020, pp. 4353-4359, s. 5. 
195Inserted by the Punjab Finance Act 2020 (VIII of 2020), published in the Punjab Gazette (Extraordinary), dated: 29  June 
2020, pp. 4353-4359, s. 5. 
196Inserted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.6; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178. 
payment of money or funds on behalf of the Provincial Government or 
the local authority; 
(e) where the person is an association of persons, a director or a manager 
or secretary or accountant or any similar officer of the association or, in 
the case of a firm, any partner in the firm; 
(f) where the person is the Federal Government, any i ndividual 
responsible for accounting for the receipt and payment of moneys or 
funds on behalf of the Federal Government; or  
(g) where the person is a public international organization, or a foreign 
government or political sub -division of a foreign governm ent, any 
individual responsible for accounting for the receipt and payment of 
moneys or funds in Pakistan on behalf of the organization, government, 
or political subdivision of the government; or 
(h) when any person is expressly or impliedly authorized by a registered 
person to be his agent for all or any of the purposes of this Act. 
(2) Where Court of Wards, Administrator General, Official Trustee, or any 
receiver or manager appointed by, or under any order of a Court receives or is 
entitled to receive inc ome on behalf, or for the benefit of any person, such Court of 
Wards, Administrator General, Official Trustee, receiver or manager shall be the 
agent of the person for purposes of this Act. 
(3) Notwithstanding anything in this section, any registered perso n may 
expressly or impliedly authorize another person to be his agent for all or any of the 
purposes this Act.  
72. Liability and obligations of agents .– (1) Every agent of a person shall be 
responsible for performing any duties or obligations imposed by or under this Act and 
the rules on the person, including the payment of the tax. 
(2) Subject to sub -section (5) of this section, the tax that by virtue of sub -
section (1), is payable by an agent of a registered person shall be recoverable from 
the agent onl y to the extent of any assets of the registered person that are in the 
possession or under the control of the agent. 
(3) Every agent of a registered person who pays any tax owing to the 
registered person shall be entitled to recover the amount so paid from  the registered 
person or to retain the amount so paid out of any moneys of the registered person 
that are in the agent‟s possession or under the agent‟s control.  
(4) Any agent, or any person who apprehends that he may be assessed as 
an agent, may retain out of any money payable by him to the person on whose 
behalf he is liable to pay the tax (hereinafter in this section referred to as the 
„principal‟), a sum equal to his estimated liability under this Act, and in the event of 
disagreement between the principal and such an agent or a person as to the amount 
to be so retained, such agent or person may obtain from the Commissioner a 
certificate stating the amount to be so retained pending final determination of the tax 
liability and the certificate so obtaine d shall be his conclusive  authority for retaining 
that amount. 
(5) Every agent shall be personally liable for the payment of any tax due 
by the agent if, while the amount remains unpaid, the agent– 
(a) alienates, charges or disposes of any moneys received or accrued in 
respect of which the tax is payable; or  
(b) disposes of or parts with any moneys or funds belonging to the 
registered person that is in the possession of the agent or which comes 
to the agent after the tax is payable, if such tax could legal ly have been 
paid from or out of such moneys or funds.  
(6) Nothing in this section shall relieve any person from performing any 
duties imposed by or under this Act on the person which the agent of the person has 
failed to perform.  
73. Liability of the re gistered person for the acts of his agent. – A registered 
person shall be responsible for any and all acts done by his agent.  
74. Appearance by authorized representative.– A registered person required to 
appear before the Appellate Tribunal or an officer i n connection with any 
proceedings under this Act may, in writing, authorize any person having such 
qualification as may be prescribed by the Authority,  to represent him or appear on 
his behalf.  
75. E-intermediaries to be appointed .– (1) Subject to such co nditions, 
limitations and restrictions as  the Authority may impose, the Authority  may, by a 
notification in the official Gazette, appoint a person as e-intermediary to electronically 
file returns and other electronic documents under this Act and the rules on behalf of 
a registered person. 
(2) A registered person may authorize an e -intermediary to electronically 
file returns or any other documents on his behalf as specified in sub-section (1).  
(3) The return or such other documents filed by an e -intermediary on 
behalf of a registered person shall be deemed to have been filed by that registered 
person. 
(4) Where this Act requires anything to be done by a registered person 
and if such thing is done by an e -intermediary authorized by the registered person 
under sub-section (2), unless the contrary is proved, such thing shall be deemed to 
have been done with the knowledge and consent of the registered person so that in 
any proceedings under this Act, the registered person shall be liable as if the thing 
has been done by him. 
(5) Where an e-intermediary, authorized by a registered person under sub-
section (2) to act on his behalf, knowingly or willfully submits false or incorrect 
information or document or declaration with an intent to avoid payment of the tax due 
or any part thereof, such e -intermediary shall be jointly and severally responsible for 
recovery of the amount of tax short paid as a result of such incorrect or false 
information or document or declaration, without prejudice to any other action that 
may be taken against him  or the registered person  under the relevant provisions of 
the law. 
(6) The Authority may, by notification in the official Gazette, prescribe rules 
for the conduct and transaction of business of e -intermediaries, including their 
appointment, suspension and cancellation of appointment, subject to such conditions 
and restrictions as specified in such rules.  
CHAPTER XII  
GENERAL ADMINISTRATION 
76. Power to make rules197[and frame regulations].– (1) The Authority may, with 
the approval of the  Government and by notification in the official Gazette, make the 
rules for carrying out the purposes of any of the provisions of this Act.  
198[(1A) The Authority may, by notification in the official Gazette, frame 
regulations for carrying out the purposes of this Act.] 
(2) All rules 199[and regulations made or framed under sub-sections (1) and 
(1A)] during a financial year shall be laid in Provincial Assembly of the Punjab at the 
time of presentation of the Annual Budget for the next financial year. 
(3) The r ules 200[and regulations made or framed under]  this Act shall be 
collected, arranged and published along with general orders and departmental 
instructions, directions, notifications and rulings, if any, at appropriate intervals and 
sold to the public at a reasonable price. 
201
[202[76A. Power to restrain certain authorities.– The Authority may, by notification 
in the official Gazette, require that: 
(a) any authority competent to issue or renew a license or to grant 
permission or to issue no objection certificate to an y person to engage 
in an economic activity which is a taxable service, shall not issue or 
renew such license or grant permission or issue no objection certificate 
unless the licensee or the grantee furnishes the evidence that he is a 
duly registered person under the Act and is on the active taxpayers list 
of the Authority; and 
(b) any procuring agency awarding or renewing any contract constituti ng 
taxable services shall not a ward or renew contract, unless the bidder, 
contractor, supplier or consultant is a regi stered person and is also on 
the active taxpayers list under the Act: 
 provided that a newly established business shall be exempt from the 
application of this section for a period of six months from the date of its registration.] 
                                                           
197 Inserted by the Punjab Sales Tax on Services (Amendment) Act 2026 (XXXVIII of 2026), published in the Punjab Gazette 
(Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.10(a). 
198 Inserted by the Punjab Sales Tax on Services (Amendment) Act 2026 (XXXVIII of 2026), published in the Punjab Gazette 
(Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.10(b). 
199 Substituted for the expression "made under sub-section (1)" by the Punjab Sales Tax on Services (Amendment) Act 2026 
(XXXVIII of 2026), published in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.10(c). 
200Substituted for the expression "made under" by the Punjab Sales Tax on Services (Amendment) Act 2026 (XXXVIII of 2026), 
published in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.10(d). 
201Inserted by the Punj ab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16 June 
2017, pp. 8235-8250, s.4. 
202Substituted by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), dated: 1st July 
2026, pp. 21-24, s.5 (i). 
 
77. Computerized syste m.– (1) The Authority may prescribe the use of a 
computerized system for carrying out the purposes of this Act and the rules including 
the receipt of applications for registration, returns and such other declarations or 
information required to be provided under this Act and the rules from such date and 
for such registered persons or class of persons as the Authority may, by notification 
in the official Gazette, specify. 
(2) The Authority may regulate the conduct and transaction of business in 
relation to th e submission of returns or other information to the Authority by the 
persons required to transmit or receive any information through the computerized 
system, including matters such as the grant of authorization, suspension and 
cancellation of authorization  and for security of the information transmitted or 
received through the computerized system.  
(3) The information received in the computerized system from or on behalf 
of any registered person shall, for all official and legal purposes, be deemed to have 
been furnished by and received from such registered person. 
(4) The business information gathered through computerized system shall 
be confidential to be used only for official and legal purposes and no unauthorized 
person shall claim or be provided any access to such information.  
78. Service of orders and decisions .– (1) Subject to this Act, any notice, order 
or requisition required to be served on an individual for the purposes of this Act shall 
be treated as properly served on the individual if– 
(a) personally served on the individual or, in the case of an individual 
under a legal disability the agent of the individual; 
(b) sent by registered post or courier service to the individual‟s usual or 
last known address in Pakistan; or 
(c) served on the individ ual in the manner prescribed for service of a 
summons under the Code of Civil Procedure, 1908 (V of 1908). 
(2) Subject to this Act, any notice order or requisition required to be served 
on any person, other than an individual to whom sub -section (1) applie s, for the 
purposes of this Act, shall be treated as properly served on the person if–   
(a) personally served on the agent of the person; 
(b) sent by registered post or courier service to the person‟s registered 
office or address for service of notices un der this Act in Pakistan or 
where the person does not have such office or address, the notice is 
sent by registered post to any office or place of business of the person 
in Pakistan; or 
(c) served in the manner prescribed for service of a summons under the  
Code of Civil Procedure, 1908 (V of 1908). 
(3) Where an association of persons is dissolved, any notice, order or 
requisition required to be served under this Act, on the association or a member of 
the association may be served on any person who was the p rincipal officer or a 
member of the association immediately before such dissolution. 
(4) Where a business stands discontinued, any notice order or requisition 
required to be served under this Act, on the person discontinuing the business may 
be served on the person personally or on any individual who was the person‟s agent 
at the time of discontinuance. 
(5) The validity of any notice issued under this Act or the validity of any 
service of a notice shall not be called into question after the notice has been 
complied with in any manner. 
(6) Any registered person may indicate, in the manner prescribed by the 
Authority, that he wishes to electronically receive all or specific communications, 
including notifications, orders, assessments and requisitions from the Authority, the 
Appellate Tribunal or any officer of the Authority.  
(7) The Authority may, by notification in the official Gazette, direct that all 
or specific communications, including notifications, orders, assessments and 
requisitions 
203
[including notice s and show cause notices ] from the Authority, the 
Appellate Tribunal or any officer to a specific registered person or class of registered 
persons shall be made electronically.  
(8) For purposes of sub -sections (6) and (7), a registered person shall be 
considered to have received the electronic communication within seventy two hours 
of the sending of the electronic communication by the Authority, Appellate Tribunal 
or the officer of the Authority.  
(9) For purposes of sub -sections (6), (7) and (8), an elect ronic 
communication includes a communication sent by email.  
79. Correction of clerical errors .– (1) Any clerical or arithmetical error in any 
assessment, adjudication order or decision may, at any time, be corrected by the 
officer of the Authority who mad e the assessment or adjudication or passed such 
order or decision or by his successor in office, through an order made under this 
section.  
(2) Before any correction is made under sub -section (1), a notice shall be 
given to the registered person likely to be affected by such correction.  
80. Issuance of duplicate of the tax documents.– An officer of the Authority not 
below the rank of the 204[Enforcement Officer/Audit Officer] may, on payment of one 
hundred rupees, issue an attested copy of any document filed by a registered person 
with the Authority. 
81. Power to issue orders, instructions and directions .–The Authority may 
issue such orders, instructions and directions, not inconsistent with this Act and the 
rules, to all officers of the Authority, as it may deem necessary to implement, 
administer or enforce the provisions of this Act and the rules.  
82. Officers of the Authority to follow orders .– (1) All officers of the Authority 
and other persons employed in the administration of this Act and the rules shal l 
observe and follow the orders, instructions and directions of the Authority. 
                                                           
203Inserted by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16 June 
2017, pp. 8235-8250, s.4. 
204Substituted for the expression "Assistant Commissioner " by the  Punjab Sales Tax on Services  (Amendment) Act 2026  
(XXXVIII of 2026), published in the Punjab Gazette (Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.11. 
 
(2) No such orders, instructions or directions shall be given so as to 
interfere with the powers or discretion of officers of the Authority in the exercise of 
their judicial or quasi-judicial functions.  
CHAPTER XIII 
MISCELLANEOUS 
83. Computation of limitation period .– In computing the period of limitation 
prescribed for any appeal or application under this Act, the day on which the order 
complained of was served and, if the conc erned person was not furnished with a 
copy of the order, the time requisite for obtaining a copy of such order shall be 
excluded.  
84. Condonation of time-limit.– (1) Where any time or period has been specified 
under any of the provisions of the Act or the  rules within which any act or thing, 
including submission of an application, filing of a return or payment of tax, is to be 
done, the Authority may permit such application to be made or such act or thing to 
be done within such time or period as it may consider appropriate. 
205
[Explanation.– The expression “act or thing to be done” includes an act or thing to 
be done by a registered person or by an authority specified in section 39 of the Act.] 
(2) The Authority may, by notification in the official Gazette, a nd subject to 
such limitations or conditions as may be specified therein, empower any 
Commissioner or the officer of the Authority  to exercise the powers under this 
section in any case or class of cases.  
85. Bar of suits, prosecution and other legal proce edings.– (1) No suit shall 
be brought in any civil court to set aside or modify any order passed, any 
assessment made, any tax levied, any penalty or default surcharge imposed or 
collection of any tax made under this Act. 
(2) No suit, prosecution or other legal proceeding shall lie against the 
Government or against any public servant in respect of any order passed in good 
faith under this Act. 
(3) Notwithstanding anything in any other law, no investigation or inquiry 
shall be undertaken or initiated by any government agency against any officer or 
official for anything done in his official capacity under this Act, except with the 
permission of the Authority.  
86. Removal of difficulties .– (1) The Government  may pass such order for 
removing any difficulty or f or bringing the provisions of this Act into effective 
operation direct that provisions of this Act shall, during such period as may be 
specified in the order, have effect subject to such adaptations whether by way of 
modification or addition or omission as it may deem to be necessary or expedient. 
(2) The power under this section shall not be exercised after the expiry of 
two years from the commencement of this Act. 
                                                           
205Added by the Punjab Finance Act 2017 (XII of 2017), published in the Punjab Gazette (Extraordinary), dated: 16 June 2017, 
pp. 8235-8250, s.4. 
87. Repeal and savings.– (1) The Punjab Sales Tax Ordinance, 2000 (II of 2000) 
is hereby repealed. 
(2) Any proceeding under the repealed Ordinance pending on the date 
notified under sub-section (3) of section 1 before any authority, forum or any court by 
way of adjudication, assessment, appeal, reference, revision or prosecution shall be 
continued and disposed of as if this Act has not come into force. 
(3) Where the Government or the Authority takes any action, makes any 
decision or orders, issues any instructions, directions, clarifications or notifications in 
pursuance of or in exercising of pow ers conferred under any provision of any law in 
respect of any matter relating to the tax and allied issues covered under this Act or 
the rules, such actions, decisions, orders, instructions, directions, clarifications and 
notifications shall be deemed to have been validly issued to serve the purposes of 
this Act and the rules. 
(4) Where so directed by the Government,  any tax payable but not paid  
under the Punjab Sales Tax Ordinance, 2000 (II of 2000) may be recovered under 
this Act, but without prejudice t o any action already taken for the recovery of the 
amount under the said Ordinance. 
206
[88. Prize schemes to promote tax culture. – The Authority may, with the 
approval of the Government, prescribe prize schemes to encourage the general 
public to make purchases only from registered persons issuing tax invoices.  
89. Reward to whistleblowers.– (1) The Authority may 207[****] sanction reward to 
a whistleblower. 
(2) The Authority may, by notification, prescribe the procedure in this 
behalf and also specify the appo rtionment of reward sanctioned under this section 
for a whistleblower. 
(3)  The claim for reward by the whistleblower shall be rejected if– 
(a)  the information provided is of no value; 
(b)  the Authority already had the information; 
(c)  the information was available in public records; or 
(d) no collection of tax is made from the information provided by a 
whistleblower. 
(4) Where, after providing an opportunity of being heard, it is found that a 
whistleblower has provided false, misleading or frivolous inf ormation, he shall be 
liable to a penalty of one hundred thousand rupees. 
(5) In this section, „whistleblower‟ means a person who reports 
concealment or evasion of tax or tax fraud leading to detection or collection of the 
tax.] 
                                                           
206Inserted by the Punjab Finance Act 2015 (XXIX of 2015), w.e.f.1.7.2015,s.5; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2015, pages 7361-7368. 
207Omitted by the Punjab Sales Tax on Services (Amendment) Act 2026  (XXXVIII of 2026) , published in the Punjab Gazette 
(Extraordinary), dated: 14 May 2026, pp. 6085-6086, s.12. 
 
208[FIRST SCHEDULE 
Tax Free Services 
(see section 3A) 
Sr. 
No. Description Conditions 
(1) (2) (3) 
1 
Services related to healthcare provided 
by the Federal or Provincial Governments 
or local governments including 
consultation or visit fee of doctors, 
medical practitioners and medical  
specialists, bed or room charges, in 
public sector hospitals.  
None 
2 
Services provided by skin and laser 
clinics, cosmetic and plastic surgeons and 
hair transplant services including 
consultation services.  
Only to the extent of services 
provided to acid or burn victims. 
3 
(i) General   education   services; and 
(ii)    Education provided by the Federal, 
or Provincial Governments or local 
governments   in   public   sector 
educational institutions. 
None 
4 
Public transport service provided by the 
Federal or  Provincial Governments or 
local Governments. 
None 
5 
Postal and courier services provided by 
the Federal or Provincial Governments or 
local governments.  
Only to the extent of services 
provided   to    the    Federal, 
Provincial Government 
Departments or local 
governments. 
6 
Registration services provided by Federal 
or Provincial Governments or local 
governments including passport and 
identity cards services. 
None 
7 
Services relating to religion, art, culture 
and sports provided by the Federal or 
Provincial  Governments or local 
governments  
None 
8 
Services relating to physical fitness, 
entertainment, amusement and learning 
provided by the Federal or Provincial 
None 
                                                           
208Substituted by the Punjab Finance Act 202 5 (LVIII of 2025), published in the Punjab Gazette (Extraordinary), dated: 30 th 
June 2025, pp. 5437-5449, s.10: it came into force on 1st July 2025.  
Governments or local governments, such 
as gymnasiums, sports clubs, 
playgrounds, zoological an d botanical 
gardens, museums, libraries, parks, etc. 
9 
Services provided by property developers, 
builders and promoters, including their 
allied services. 
Only to the extent of  affordable 
housing services provided under 
Government sponsored housing 
programs or any area notified for 
an Affordable Private Housing 
Scheme by the Punjab Housing 
and Town -Planning Agency 
(PHATA) covered under Rule 
2(1)(k), Rule 35 and Rule 36 of 
the Punjab Housing and Town -
Planning Agency (Affordable 
Private Housing Schemes Rules), 
2020. 
10 
Services provided by: 
(i) a religious or charitable institution for 
the benefit of public registered under 
any law for the time being in force;  
(ii) international non -governmental 
organizations (INGOs) approved by 
the Federal Government; and 
(iii)  international agencies. 
Subject to exemption from federal 
taxes by the Federal Board of 
Revenue. 
11 Services provided in respect of insurance. 
Only to the extent of:  
(a) marine insurance for export; 
and 
(b) crop insurance. 
12 
Construction services and serv ices 
provided by contractors of building 
(including water supply, gas supply and 
sanitary works), roads and bridges, 
electrical and mechanical works 
(including air conditioning), horticultural 
works, multi -discipline works (including 
turn-key projects) and similar other works. 
Only to the extent: 
(i)   where the tax is otherwise 
paid by registered persons 
as property developers, 
builders or promoters for 
building construction; or  
(ii)   where the construction work 
is funded under an 
agreement of foreign gr ant-
in-aid or involves 
construction of consular 
buildings; or  
(iii)   residential construction 
projects where the covered 
area does not exceed 10,000 
square feet for a house and 
20,000 square feet for an 
apartment except where 
construction services are 
provided to construct more 
than one house or more than 
one apartment building; or  
(iv)   where the construction 
services are provided to any 
registered person who is 
otherwise liable to pay sales 
tax as a property developer, 
builder and promoter. 
13 
Services provided for personal care by 
beauty parlors, salons, clinics, sliming 
clinics, spas (including saunas, Turkish 
baths and Jacuzzi) and similar other 
services. 
Only to the extent of services 
provided in a parlour, salon or 
clinic where the facility of ai r-
conditioning is not installed or is 
not available in the premises on 
any day of the financial year. 
14 
Services provided by tour operators and 
travel agents including all their allied 
services or facilities.  
Only to the extent of Hajj and 
Umrah purpose s including 
„Ziyarat‟. 
15 
Facilities for travel originating from Punjab 
by Air for domestic and international 
travel.  
Only to the extent of Air travel 
services provided to Hajj or 
Umrah passengers, diplomats and 
supernumerary crew. 
16 
Services provided by warehouses or 
depots for storage or cold storages 
including letting of space for storages. 
Only to the extent of storage of 
agriculture produce for the 
person‟s own consumption. 
17 
Services provided by photography 
studios and event or occasion 
photographers or film-makers. 
Only to the extent of non -
corporate (individual) 
photographers operating from 
small road -side shops declared 
as such by the Authority. 
18 Services provided by diplomatic missions. None 
19 Renting of personal dwellings for 
residential use. None 
20 Services provided by persons engaged in 
contractual execution of works or 
furnishing supplies.  
Only to the extent of services 
related to the contracts involving 
supplies or printing of books. 
21 Advertisement on television and radio or 
advertisement services showcasing of 
Only to the extent of:  
(a)  sponsored by an agency of 
any product or service in video 
programmes, television programmes or 
motion pictures or music albums. 
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). 
22 
Services relating to pathological or 
diagnostic tests exclusively for medical 
treatment purposes. 
None 
23 
Services provided in respect of 
manufacturing or processing on toll or job 
basis (against processing on conversion 
charges) [including industria l and 
commercial packaging services and 
similar outsourcing of industrial or 
commercial processes]. 
None 
24 
Advertisement including classified ads in 
newspapers, magazines, journals and 
periodicals. 
None 
209[* * * * * * * * * * * * * * * * * * * * * * * * * *] 
26 
Services provided by port operators 
(including airports and dry -ports) and 
allied services provided at ports and 
services provided by terminal operators 
including services in respect of public 
bonded warehouses.  
Only to the extent of the amounts 
received by way of fee under any 
law or bye-law.  
 
  
 
 
 
 
 
 
 
 
 
 
                                                           
209"S/N 25" was omitted by the Punjab Finance Act 2026 (L of 2026), published in the Punjab Gazette (Extraordinary), dated: 1st 
July 2026, pp. 21-24, s.5 (j). 
 
 
 
SECOND SCHEDULE 
(Taxable Services) 
(see section 3) 
Part I 
 
Sr. 
No. 
Description Classification Code, if 
Applicable 
Rate of Tax 
(1) (2) (3) (4) 
1 
All services, except those 
specified in serial numbers 2 
and 3 of this Part, Part-II and 
Part-III. 
Respective headings Sixteen percent 
2 
Services provided by persons 
for carriage of goods by rail or 
road. 
98.04 
9804.20009804.9000 
and respective headings  
15% With input 
tax adjustment for 
service pr ovider 
and service 
recipient. 
3 
Telecommunication services:  
(a) telephone services;  
((b) fixed line voice telephone 
service;  
(c) wireless telephone;  
(d) cellular telephone;  
(e) wireless local loop 
telephone;  
(f) video telephone;  
(g) payphone cards;  
(h) pre-paid calling cards;  
(i) voice mail service;  
(j) messaging service;  
(k) short message service 
(SMS);  
(l) multimedia message service 
(MMS);  
(m) bandwidth services used 
for voice and video 
telecommunication 
services:  
(i) copper line based;  
(ii) fiber-optic based;  
(iii) co-axial cable based;  
(iv) microwave based;  
(v) satellite based;  
(n) telegraph;  
(o) telex;  
(p) telefax;  
(q) store and forward fax 
98.12  
[9857.0000, 9858.0000]  
Nineteen and a 
half percent 
services;  
(r) audio-text services;  
(s) tele-text services;  
(t) trunk radio services;  
(u) paging services;  
(v) voice paging services;  
(w) radio paging services;  
(x) vehicle and other tracking 
services; and  
(y) burglar and security alarm 
services;  
(z) (i) internet services, 
whether dialup or 
broadband, including email 
services, data   
 communication network 
services (DCNS) and value 
added data services;  
    (ii)  such charges payable 
on the international 
leased lines or bandwidth 
services used by:  
 (a) software exporting 
firms registered with 
Pakistan Software 
Export Board; and  
 (b) data and internet 
service providers 
licensed by the Pakistan 
Telecommunication 
Authority; and  
    (iii) such charges payable 
on the international 
leased lines used by the 
software exporting firms 
registered with Pakistan 
Software Export Board for 
software exports. 
 
PART II 
FIXED-TAXED SERVICES 
 
The services enumerated below, shall be fixed rate, subject to the conditions, if any, 
specified hereunder: 
Sr. No.      Description Classification        
Code, if 
Applicable 
      Rate of Tax 
(1)                   (2)          (3)                (4) 
1 
Services provided by 
property developers, builders 
and promoters (including 
their allied services);  
9807.0000 
and respective 
sub-headings 
of heading 
98.14  
Rs.100 per square yard 
for land development 
and Rs.50 per square 
feet for building 
construction.  
2 Freight forwarding agents.  9805.3000  Rs. 1000 per bill of 
lading  
 
PART-III 
REDUCED RATE SERVICES 
 
The services enumerated below, shall be reduced rate, s ubject to the conditions, if any, 
specified hereunder: 
                                                           
210Substituted by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), dated: 1st July 
2026, pp. 21-24, s.5k (i) 
211Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii). 
 
Sr. 
No. Description 
Classification 
code, if 
applicable 
Rate of tax 
(1) (2) (3) (5) 
1 Hotels, motels and guest 
houses 9801.1000 
210[(a) eight  percent without 
input tax adjustment 
where payment 
against s ervices is 
received through 
debit or credit cards, 
mobile wallets or QR 
scanning; and 
(b) sixteen percent for  
others.]  
 2 
Marriage halls and lawns (by 
whatever name called) 
including pandal and shamiana 
services. 
 
Catering services (including all 
ancillary/allied services such as 
floral or other decoration, 
furnishing of space whether or 
not involving rental of 
equipment and accessories). 
9801.3000 
9801.5000 
 211[Eight] percent without input 
tax adjustment. 
                                                           
212Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii). 
  
3 
Services provided in respect of 
insurance to a  policy holder by 
an insurer, including a re -
insurer for:  
(a) fire insurance;  
(b) goods insurance;  
(c) health insurance; 
(d) life insurance; 
(e) marine insurance;  
(f) theft insurance; and 
(g) any other insurance.  
98.13 
(a) Zero percent without 
input tax adjustment for 
health insurance for 
individuals; and  
(b)  Five percent for 
insurance agents and 
insurance brokers; 
(c)  Sixteen percent of 
gross premium paid, for 
others. 
4 
Services provided by 
restaurants including cafes, 
food (including ice -cream) 
parlors, coffee houses, coffee 
shops, deras, food huts, 
eateries, resorts and similar 
cooked, prepared or ready -to-
eat food service outlets etc. 
9801.2000 
[9801.9000] 
(a) 212[Eight] percent without 
input tax adjustment 
where payment against 
services is receiv ed 
through debit or credit 
cards , mobile wallets or 
QR scanning; and  
(b)  Sixteen percent for 
others. 
 
5 
Franchise services including 
intellectual property rights and 
licensing 
9823.0000 
9839.0000 
and respective 
headings 
(a) Zero percent without 
input t ax 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.  
 6 
[Construction services and 
services provided by contractors 
of building (including water 
supply, gas supply and sanitary 
works), roads and bridges, 
electrical and mechanical works 
(including air conditioning), 
9824.0000 
and 
9814.2000 
five percent without input tax 
credit or adjustment in respect 
of Government civil works and 
sixteen percent with input tax 
credit or adjustment for 
others. 
 
horticultural works, multi -
discipline works (including turn -
key projects) and similar other 
works) 
 
Explanation: Notwithstanding 
the rate of 5% fixed in column 
4, the following further reduced 
rates shall be applicable:  
(a) one per cent for all 
services sp ecified at 
S.No.14 without input tax 
credit or adjustment to 
the extent of 
Government civil works 
including those of 
cantonment boards 
involved in the ongoing 
development schemes 
and projects launched 
during Financial Year 
2016-17 and funded 
under the Annu al 
Development Plan of the 
Punjab Government or 
funded through foreign 
loans where the 
negotiations were 
finalized after 1st of July 
2016 or funded under 
Public Sector 
Development Program of 
the Federal Government 
or funded by the 
Cantonment Boards; and  
(b) zero per cent for all 
services specified at 
S.No.14 without input tax 
credit/adjustment to the 
extent of Government 
civil works including 
those of cantonment 
boards involved in the 
ongoing development 
schemes and projects 
launched prior to 
Financial Yea r 2016 -17 
and funded under the 
Annual Development 
Plan of the Punjab 
Government or funded 
through foreign loans 
where the negotiations 
were finalized as on 1st 
of July 2016 or funded 
under Public Sector 
Development Program of 
the Federal Government 
or fund ed by 
Cantonment Boards.  
7 
Services provided for personal 
care by beauty parlors, salons, 
clinics, sliming clinics, spas 
(including saunas, Turkish 
baths and Jacuzzi) and similar 
other establishments. 
9810.0000 
9848.0000 
9847.0000 
9821.4000 
9821.5000 
9815.7000 
and 
respective 
headings 
Five percent without input 
tax adjustment.  
8 
Information technology -
enabled or information 
technology based services 
including software 
development, software 
customization, software 
maintenance, system support, 
system assembly, system 
integration, system designing 
and architecture, system 
analysis, system development, 
system operation, system 
maintenance, system up -
gradation and modification, 
data warehousing or 
management, data entry 
operations, data migration or 
transfer, system security or 
protection, web designing, 
web development, web 
hosting, network designing, 
services relating to enterprise 
resource or management 
planning (including marketing 
of products), development and 
sale of smart phone 
9815.6000 
and 
respective 
heading 
(a) Zero percent without 
input tax adjustment for 
services provided by 
software or IT -based 
system development 
persons; and  
(b)Five percent without input 
tax adjustment for  
others.  
                                                           
213Omitted by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gaz ette (Extraordinary), dated: 1st July 2026, 
pp. 21-24, s.5k (iii). 
  
applications or games, 
graphics designing, medical 
transcription, remote 
monitoring, telemedicine, 
insurance claim processing, 
online retrieval and database 
access or retrieval service.] 
[Explanation: This entry 
includes and shall be deemed 
to have always included real 
estate aggregators and 
streaming/over-the-top (OTT) 
services.]  
9 
[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, equip ment, 
accessories and other allied 
services, 213[* * * * * * * * * * * * 
*] valuation services, 
evaluation services (including 
competency and eligibility 
testing services), certification, 
verification and equivalence 
services, market research 
services, marke ting or sales 
services (including marketing 
agencies and on line 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, 
9818.3000, 
9818.2000, 
9819.9300, 
9852.0000, 
9859.0000, 
9825.0000, 
9819.5000, 
9849.0000, 
9818.9000, 
9853.0000, 
9856.0000 
and 
respective 
headings. 
(a) Zero percent without 
input tax adjustment for 
training services related 
to Information 
Technology; and  
(b) Sixteen p ercent for 
others. 
                                                           
214Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii). 
215Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii).  
216Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii). 
10  
Services provided by tour 
operators and travel agents 
including all their allied 
services or facilities. 
9805.5100, 
9805.5000, 
9803.9000. 
214[Eight] percent without 
input tax adjustment. 
11  
Manpower recruitment agents, 
including lab our and 
manpower supplies. 
9805.6000  
(a) Five percent without 
input tax adjustment for 
services where the 
value of service is fixed 
by the Bureau of 
Emigration and 
Overseas Employment; 
and  
(b)  Sixteen percent for 
others.  
12  Services provided by prope rty 
dealers and realtors. 
9806.2000, 
9844.0000. 
215[Eight] percent without 
input tax adjustment. 
13  
Services provided by fashion 
designers, including use of 
brand name, logo or house 
mark (whether or not 
registered) in the 
manufacturing or trading of 
products whether relating to 
textile, leather, jewellery or 
other product regimes 
including allied services such 
as cutting, stitching, printing, 
manufacturing, fabrication, 
assembly, embellishment, 
adornments, display (including 
marketing, packing and 
delivery etc.) 
9834.0000, 
9819.6000, 
9839.0000 
and respective 
headings 
Five percent without input 
tax adjustment. 
14 
Services provided by 
architects, town planners, 
landscapers, landscape 
designers, [interior decorators 
and interior designers. 
9814.1000, 
9814.9000, 
9814.4000 
and 
respective 
216[Eight] percent without 
input tax adjustment. 
 
                                                           
217Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii). 
218Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii). 
219Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii). 
headings. 
15 
Rent-a-car (including renting of 
all categories of vehicles 
meant for transportation of 
persons) 
9819.3000 
and respective 
headings 
(a) 217[Eight] percent without 
input tax adjustment for 
services provided to end 
consumers; and  
(b)  Sixteen percent for 
others. 
16  Car/automobile dealers 9806.3000 
9845.0000 
(a)  Sixteen percent for 
services provided by 
companies or authorized 
dealers; and  
(b) Five percent without 
input tax adjustment, for 
others. 
17 
Brokerage (other than stock) 
and indenting services 
including agents, brokers, 
under-writers and auctioneers 
9829.0000 
9819.1200 
9819.1100 
9819.1300 
9819.9100 
(a) Five percent without 
input tax adjustment for 
services provid ed in 
respect of agricultural 
produce and home 
chefs; and  
(b)  Sixteen percent for 
others.  
18  
Services provided in specified 
fields such as health care, 
gym, physical fitness, indoor 
sports, games, amusement 
parks, arcades and other 
recreation faciliti es, and body 
or sauna massage etc.  
 
9821.1000 
9821.2000 
9821.4000  
218[Eight] percent without 
input tax adjustment.  
19  Services provided by 
Laundries and dry cleaners 9811.0000  
219[Eight] percent without 
input tax adjustment.  
20  Services provided by Cable TV 
operators 9819.9000  Five percent without input 
tax adjustment.  
21  
Services in relation to supply 
of tangible goods including 
machinery, equipment and 
appliances for use, without 
transferring right of 
Respective 
headings  
Five percent without input 
tax adjustment.  
                                                           
220Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii). 
221Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii). 
 
possession and effective 
control of such mach inery, 
equipment and appliances. 
22  
Services provided by 
accountants (including 
practicing chartered or cost 
accountants), auditors, 
actuaries, tax consultants (by 
whatever name called), 
practicing company 
secretaries, receivers, 
liquidators, auctioneers and 
corporate law consultants, 
whether individual or 
otherwise.  
9815.2000  
9815.3000  
9850.0000  
9851.0000 
9855.0000 
and respective 
headings  
(a) 220[Eight] percent without 
input tax adjustme nt for 
services relating to 
accountancy, audit, tax 
or corporate law 
consultancy; and  
(b)  Sixteen percent for 
others.  
23  
Facilities for travel originating 
from Punjab by Air for 
domestic and international 
travel.  
9803.1000  
9803.1100  
Five percent wi thout input 
tax adjustment.  
 24 
Services provided by skin and 
laser clinics, cosmetic and 
plastic surgeons and hair 
transplant services including 
consultation services. 
9847.0000 and 
respective 
headings  
Five percent without input tax 
adjustment. 
 25 
Services provided by 
warehouses or depots for 
storage or cold storages 
including letting of space for 
storages.  
9833.0000 and 
respective 
headings 
 221[Eight] percent without 
input tax adjustment. 
 26 
(i) Medical consultation/visit fee 
exceeding Rs.1500 per 
consultation/visit of doctors, 
medical practitioners and 
medical specialists 
(ii) Bed/Room charges of 
hospitals exceeding 
Rs.6,000/- per day per 
bed/room. 
9815.1000 and 
other 
Respective 
headings 
Zero percent without input tax 
adjustment. 
 27 
Services provided by 
photography studios and 
event or occasion 
9819.7000 and 
respective 
headings 
Five percent without input tax 
adjustment.  
                                                           
222Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii). 
223Substituted for the word "Five" by the Punjab Finance Act 2026 (L of 2026 ), published in the Punjab Gazette (Extraordinary), 
dated: 1st July 2026, pp. 21-24, s.5k (ii). 
 
photographers/film-makers. 
 28 Parking services Respective 
headings 
Five percent without input tax 
adjustment.  
 29 Dress designing  and stitching 
services. 
Respective 
headings 
Five percent without input tax 
adjustment. 
 30 
Rental of bulldozers, 
excavators, cranes, 
construction equipment, 
Scaffolding, framework and 
shuttering, generators, 
storage containers, 
Refrigerator, shelf or rac k 
renting, etc 
Respective 
heading 
222[Eight] percent without input 
tax adjustment. 
 31 
Services in respect of 
treatment of textile, leather but 
not limited to Dyeing services, 
Edging and cutting, cloth 
treating, water proofing, 
Embroidery, Engraving, Fabric 
bleaching, Knitting, Leather 
staining, Leather working, Pre 
shrinking, Colour separation 
services, pattern printing and 
shoe making services. 
Respective 
heading 
Five percent without input tax 
adjustment.  
 32 
Apartment house 
management, real estate 
management and services of 
rent collection. 
Respective 
heading 
223[Eight] percent without input 
tax adjustment.  
 33 
Ride-Hailing Services 
Explanation: This entry 
includes and shall be deemed 
to have always included cab 
aggregators. 
Respective 
heading 
Five percent without input tax 
adjustment.  
 34 Entertainment services 
(including cinemas, theatres, 
concerts, circus, sports events, 
 Zero percent without input tax 
adjustment.] 
 
 
                                                           
224Added by the Punjab Finance Act 2026 (L of 2026), published in the Punjab Gazette (Extraordinary), dated: 1st July 2026, pp. 
21-24, s.5k (iv). 
 
races, film, fashion shows and 
mobile stage shows)  
 
224[35. 
Foreign exchange services  
provided by any person 
including exchange company, 
Forex Dealer and Money 
Changer shall pay the tax 
leviable on the services 
rendered or provided to any 
person in respect of currency 
exchange.  
Respective 
headings 
Three percent without input      
tax adjustment. 
Explanation: rate shall apply 
to the services involving 
consideration of spread 
charges as permitted by the 
State Bank of Pakistan in 
relation to the buying and 
selling of foreign currencies. 
 
   36. 
Event management services 
(whole range and vari ety of 
their services regardless of 
separate or individual 
classification thereof). 
Respective 
headings Eight percent without input 
tax adjustment.]