Punjab · Act · 2020

PUNJAB FINANCE ACT 2020

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THE PUNJAB FINANCE ACT 2020 (VIII of 2020)

TEXT 1THE PUNJAB FINANCE ACT 2020 (VIII of 2020) [29 June 2020] An Act to levy, alter and rationalize certain taxes and duties. It is necessary in public interest to levy, alter and rationalize certain taxes and duties in the Punjab, and to deal with the ancillary matters. Be it enacted by Provincial Assembly of the Punjab as follows:

Section 1. Short title, extent and commencement

(1) This Act may be cited as the Punjab Finance Act 2020.

(2) It extends to whole of the Punjab.

(3) It shall come into force on the first day of July 2020.

Section 2. Amendment in Act II of 1899

In the Stamp Act, 1899 (II of 1899), in Schedule I:

(1) in article 18, in sub-article (a), under the heading “Proper Stamp-duty”, for the word “Five”, the word “One” shall be substituted;

(2) in article 23, in sub-article (a), under the heading “Proper Stamp-duty”, for the word “Five”, the word “One” shall be substituted;

(3) in article 27-A, in sub-article (a), under the heading “Proper Stamp- duty”, for the word “Five”, the word “One” shall be substituted;

(4) in article 31, in sub-article (a), under the heading “Proper Stamp-duty”:

(a) for the word “Five”, the word “One” shall be substituted; and

(b) for the word “two”, the word “One” shall be substituted;

(5) in article 33, in sub-article (a), under the heading “Proper Stamp-duty”:

(a) for the word “Five”, the word “One” shall be substituted; and

(b) for the word “three”, the word “One” shall be substituted;

(6) in article 35, under the heading “Proper Stamp-duty”:

(a) in sub-article (1), in clause (b), in sub-clause (i), for the figure “5.25”, the figure “2” shall be substituted;

(b) in sub-article (1), in clause (c), in sub-clause (i), for the figure “5.25”, the figure “2” shall be substituted;

1This Act was passed by the Provincial Assembly of the Punjab on 26 June 2020; assented to by the Governor of the Punjab on 27 June 2020; and, was published in the Punjab Gazette (Extraordinary), dated: 29 June 2020, pp. 4353-4359.

(d) in sub-article (2), in clause (a), in sub-clause (i), for the figure “5.25”, the figure “2” shall be substituted;

(e) in sub-article (2), in clause (b), in sub-clause (i), for the figure “5.25”, the figure “2” shall be substituted;

(f) in sub-article (3), in clause (a), in sub-clause (i), for the figure “5.25”, the figure “2” shall be substituted; and

(g) in sub-article (3), in clause (b), in sub-clause (i), for the figure “5.25”, the figure “2” shall be substituted;

(7) in article 45, under the heading “Proper Stamp-duty”, for the words “Two percent”, the words “One percent” shall be substituted;

(8) in article 55, in sub-article (i), under the heading “Proper Stamp-duty”, for the word “Five”, the word “One” shall be substituted;

(9) in article 58, under the heading “Proper Stamp-duty”:

(a) in sub-article A, in clauses (i), (ii) and (iii), for the word “Three”, the word “One” shall be substituted; and

(b) in sub-article B, for the word “Two”, the word “One” shall be substituted;

(10) in article 63, in sub-article (i), under the heading “Proper Stamp-duty”, for the word “Five”, the word “One” shall be substituted; and

(11) in article 63-A:

(a) in column 2, paras (i) and (ii) shall be omitted; and

(b) in column 3, for the existing entries, the following shall be substituted:

“One percent of the value of the property.”.

Section 3. Amendment of Act V of 1958

In the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958):

(a) in section 5, after clause (a), the word “and” shall be inserted and clause (b) shall be omitted; and

(b) in section 12, in subsection (3), for the expression “30th day of September”, the expression “31st day of October” shall be substituted.

Section 4. Amendment of Act X of 1958

In the Punjab Entertainment Duty Act, 1958 (X of 1958), in section 3, in subsection (1), for the word “twenty”, the word “five” shall be substituted.

Section 5. Amendments of Act XLII of 2012

In the Punjab Sales Tax on Services Act 2012 (XLII of 2012):

(1) in section 16, in subsection 2, for the words “on his furnishing a tax invoice or declaration of import of goods in his name which bears his National Tax Number”, the words “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” shall be substituted;

(2) for section 16C, the following shall be substituted: “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 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).”;

(3) after section 16C, the following section 16D shall be added: “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.”;

(4) in section 29, for the word “Authority” wherever appears, the word “Commissioner” shall be substituted;

(5) in section 30, for subsections (2) and (3), the following shall be substituted:

“(2) The Authority may, by notification in the official Gazette, specify a format of invoices to be issued 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.”;

(6) in section 31, in subsection (1), for clauses (a), (b) and (c), the following shall be substituted:

“(a) record of services provided, including exempt 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 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 description, quantity and value of goods and the amount of tax paid on imports;

(d) double entry accounts;

(e) bank statements and banking instruments;

(f) inventory records, utility bills, salary and labor bills, rent deeds and agreements;

(g) record required to 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.”;

(7) in section 33, after subsection (3), the following subsection (3a) shall be added:

“(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.”;

(8) in section 35, for subsection (1), the following shall be substituted: “(1) Every registered person shall furnish to the Authority, not later than the due date, a true, correct and properly filled-up return in the form notified by 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.”;

(9) in section 39, in subsection (1):

(a) in clauses (c), (f), (fff) and (g), the words “of the Authority” shall be omitted; and

(b) for clause (ff), the following shall be substituted: “(ff) Audit-cum-Risk Compliance Officer;”;

(10) in section 57, in subsection (1), the expression “not below the rank of an Assistant Commissioner,” shall be omitted;

(11) in section 60:

(a) in subsection (1):

(i) in clause (a), the words “or amount erroneously refunded” shall be omitted;

(ii) for clause (b), the following shall be substituted: “(b) Assistant Commissioner/Deputy Commissioner: Cases where the amount of the tax involved does not exceed ten million rupees;” and

(iii) for clause (c), the following shall be substituted: “(c) Enforcement Officer/Audit-cum-Risk Compliance Officer: Cases where the amount of the tax involved does not exceed five million rupees; and”;

(b) in subsection (2), after the word “him”, the words “or falling in jurisdiction specifically assigned to him by the Authority” shall be inserted; and

“(4) Notwithstanding the provisions of subsection (1), the Authority may assign a case or class of cases to any of its officers involving any amount of tax involved.”;

(12) in section 63, for subsection (4), the following shall be substituted: “(4) An appeal under subsection (1) may be filed manually or electronically as may be specified by the Authority.”;

(13) in section 66:

(a) in subsection (1), for the word “thirty”, the word “sixty” shall be substituted;

(b) in subsection (2):

(i) in clause (b), after the semi colon, the word “and” shall be inserted;

(ii) at the end of clause (c), for the expression “; and”, a full stop shall be substituted; and

(iii) clause (d) shall be omitted; and

(c) in subsection (4), for the expression “clause (d) of subsection (2)” the expression “subsection (1)” shall be substituted.

(14) in section 70, in subsection (1):

(a) in clause (bb), after the word “companies”, the words “including running and demand finance” shall be inserted;

(b) after clause (f), the following clause (g) shall be inserted: “(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.”;

(15) in the Second Schedule:

(a) at Sr.No.1, in column (1) to (4), for the existing entries, the following shall be substituted:

1 “Hotels, motels and guest houses. 9801.1000 (i). Five percent without input tax adjustment for non-corporate, non-franchise, non-chain businesses with less than 20

rooms; and (ii). Sixteen percent for others Marriage halls and lawns (by whatever name called) including pandal and shamiana services. 9801.3000 Five percent without input tax adjustment Clubs including race clubs and their membership services including services, facilities or advantages, for a subscription or any other amount, to their members. 9801.4000 Sixteen percent 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). 9801.5000 Five percent without input tax adjustment”

(b) at Sr.No.7, in column (4), for the existing entry, the following shall be substituted:

“(a) Zero percent without input tax adjustment for health insurance for individuals; and

(b) Sixteen percent of gross premium paid, for others.”;

“(a) Five percent without input tax adjustment where payment against services is received through debit or credit cards; and

(b) Sixteen percent for others.”;

(d) at Sr.No.13, in column (4), for the existing entry, the following shall be substituted:

“(a) Five percent without input tax adjustment for services relating to educational institutions; and

(b) Sixteen percent for others.”;

(e) at Sr.No.14, in column (2), under the heading “Excluding”:

(a) in clause (iii), for the full stop at the end, the expression “; or” shall be substituted; and

(b) after clause (iii) as amended, the following shall be inserted:

“(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.”;

(f) at Sr.No.15:

(a) in column (2) the existing entry shall be substituted with the following:

“Services provided by property developers, builders and promoters (including their allied services); Excluding: Affordable housing services provided under Government sponsored housing programs.”; and

(b) in column (4) the existing entry shall be substituted with the following:

“Rs.100 per square yard for land development and Rs.50 per square feet for building construction.”;

(g) at Sr.No.26, in column (4), for the existing entry, the following shall be substituted:

“(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.”;

(h) at Sr.No.35, in column (4), for the existing entry, the following shall be substituted:

“(a) Five percent without input tax adjustment for services

provided to end consumers; and

(b) Sixteen percent for others.”;

(i) at Sr.No.36, in column (4), for the existing entry, the following shall be substituted:

“(a) Sixteen percent for services provided by companies or authorized dealers; and

(b) Five percent without input tax adjustment, for others.”;

(j) at Sr.No.40, in column (4), for the existing entry, the following shall be substituted:

“(a) Five percent without input tax adjustment for services

provided in respect of agricultural produce; and

(b) Sixteen percent for others.”;

(k) at Sr.No.52, in column (4), for the existing entry, the following shall be substituted:

“(a) Five percent without input tax adjustment for services relating to accountancy, audit, tax or corporate law consultancy; and

(b) Sixteen percent for others.”;

(l) at Sr.No.22, 25, 32, 37, 43, 45, 58, 60, 63, 66 and 67, in column (4), for the existing entry, the following shall be substituted:

“Five percent without input tax adjustment”;

(m) at Sr.No.68, in column (4), for the existing entry, the following shall be substituted:

“Zero percent without input tax adjustment”; and

(n) after Sr.No.68, in columns 1 to 4, the following entry shall be

inserted as Sr.No.69:

“Sr. No Description Classification, if applicable Rate of Tax

(1)

(2)

(3)

(4) 69 Ride-Hailing Services - Four percent without input tax adjustment”

Section 6. Amendment of Act XXX of 2015

In the Punjab Infrastructure Development Cess Act 2015 (XXX of 2015), in section 6, in subsection 3, for the full stop at the end, a colon shall be substituted, and thereafter the following proviso shall be added:

“provided that where the Government considers appropriate and necessary, it may allow exemption from payment of cess from any previous date as may be specified in the notification.”.

Section 7. Special relaxations for financial year 2020-21

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

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

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

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

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

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

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

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

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

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

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CONTENTS 
1. Short title, extent and commencement. 
2. Amendment in Act II of 1899. 
3. Amendment of Act V of 1958. 
4. Amendment of Act X of 1958. 
5. Amendments of Act XLII of 2012. 
6. Amendment of Act XXX of 2015. 
7. Special relaxations for financial year 2020-21.

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Exact source transcription retained, including print layout and extraction artifacts. Text SHA-256: 88fdecbc1643ed43998fc3f03bbfd381743b414e0920c4d00661ff1b529ac588.

THE PUNJAB FINANCE ACT 2020 
(VIII of 2020) 
CONTENTS 
1. Short title, extent and commencement. 
2. Amendment in Act II of 1899. 
3. Amendment of Act V of 1958. 
4. Amendment of Act X of 1958. 
5. Amendments of Act XLII of 2012. 
6. Amendment of Act XXX of 2015. 
7. Special relaxations for financial year 2020-21.  
 
 
TEXT 
1
THE PUNJAB FINANCE ACT 2020 
(VIII of 2020) 
[29 June 2020] 
An 
Act 
to levy, alter and rationalize certain taxes and duties. 
It is necessary in public interest to levy, alter and rationalize certain taxes and duties 
in the Punjab, and to deal with the ancillary matters. 
Be it enacted by Provincial Assembly of the Punjab as follows: 
1. Short title, extent and commencement.– (1) This Act may be cited  as the 
Punjab Finance Act 2020. 
 (2) It extends to whole of the Punjab. 
 (3) It shall come into force on the first day of July 2020. 
2. Amendment in Act II of 1899 .– In the Stamp Act, 1899 (II of 1899), in 
Schedule I: 
(1)  in article 18, in sub -article (a), under the heading “Proper Stamp -duty”, 
for the word “Five”, the word “One” shall be substituted; 
(2)  in article 23, in sub -article (a), under the heading “Proper Stamp -duty”, 
for the word “Five”, the word “One” shall be substituted; 
(3) in article 27-A, in sub -article (a), under the heading “Proper Stamp -
duty”, for the word “Five”, the word “One” shall be substituted; 
(4) in article 31, in sub-article (a), under the heading “Proper Stamp-duty”:  
(a) for the word “Five”, the word “One” shall be substituted; and 
(b) for the word “two”, the word “One” shall be substituted; 
(5) in article 33, in sub-article (a), under the heading “Proper Stamp-duty”: 
(a) for the word “Five”, the word “One” shall be substituted; and 
(b) for the word “three”, the word “One” shall be substituted; 
 (6) in article 35, under the heading “Proper Stamp-duty”: 
(a) in sub -article (1), in clause (b), in sub -clause (i), for the figure 
“5.25”, the figure “2” shall be substituted; 
(b) in sub-article (1), in clause (c), in sub -clause (i), for the figure 
“5.25”, the figure “2” shall be substituted; 
(c) in sub -article (1), in clause (d), in sub -clause (i), for the figure 
“5.25”, the figure “2” shall be substituted; 
                                                 
1This Act was passed by the Provincial Assembly of the Punjab on 26 June 2020; assented to by the Governor of the Punjab on 
27 June 2020; and, was published in the Punjab Gazette (Extraordinary), dated: 29 June 2020, pp. 4353-4359. 
 
 
(d) in sub -article (2), in  clause (a), in sub -clause (i), for the figure 
“5.25”, the figure “2” shall be substituted; 
(e) in sub -article (2), in clause (b), in sub -clause (i), for the figure 
“5.25”, the figure “2” shall be substituted;  
(f) in sub -article (3), in clause (a), in sub -clause (i), for the figure 
“5.25”, the figure “2” shall be substituted; and 
(g) in sub -article (3), in clause (b), in sub -clause (i), for the figure 
“5.25”, the figure “2” shall be substituted; 
(7) in article 45, u nder the heading “Proper Stamp -duty”, for the word s 
“Two percent”, the words “One percent” shall be substituted; 
(8) in article 55, in sub -article (i), under the heading “Proper Stamp-duty”, 
for the word “Five”, the word “One” shall be substituted; 
 (9) in article 58, under the heading “Proper Stamp-duty”:  
(a) in sub-article A, in clauses (i), (ii) and (ii i), for the word  “Three”, 
the word “One” shall be substituted; and 
(b) in sub -article B, for the word “Two”, the word “One” shall be 
substituted; 
(10) in article 63, in sub -article (i), under the heading “Proper Stamp -duty”, 
for the word “Five”, the word “One” shall be substituted; and  
 (11) in article 63-A: 
(a) in column 2, paras (i) and (ii) shall be omitted; and 
(b) in column 3, for the existing entr ies, the following shall be 
substituted: 
 “One percent of the value of the property.”. 
3. Amendment of Act V of 1958 .– In the Punjab Urban Immovable Property 
Tax Act, 1958 (V of 1958): 
(a) in section 5, after clause (a), the word “and ” shall be inserted and 
clause (b) shall be omitted; and 
(b) in section 12, in subsection (3), for the expression “30 th day of 
September”, the expression “31st day of October” shall be substituted. 
4. Amendment of Act X of 1958 .– In the Punjab Entertainment Duty Act, 1958 
(X of 1958), in section 3, in subsection (1), for the word “twenty”, the word “five” shall 
be substituted. 
5. Amendments of Act XLII of 2012.– In the Punjab Sales Tax on Services Act 
2012 (XLII of 2012): 
(1) in section 16, in subsection 2 , for the words “on his furnishing a tax 
invoice or declaration of import of goods in his name which bears his 
National Tax Number ”, the words “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” shall be substituted; 
 
 
(2) for section 16C, the following shall be substituted: 
“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 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).”;  
(3) after section 16C, the following section 16D shall be added: 
“16D. Refunds.– Notwithstanding anything contained in this Act 
and subject to the conditions and restriction s 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.”; 
(4) in section 29, for the word “Authority” wherever appears, the word 
“Commissioner” shall be substituted;  
(5) in s ection 30, for sub sections (2) and (3), the following shall be 
substituted: 
“(2) The Authority may, by notification in the official Gazette, 
specify a format of invoices to be issued 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 cond itions and 
restrictions as the Authority may specify by notification in 
the official Gazette.”; 
(6) in section 31, in subsection (1), for clauses (a), (b) and (c) , the 
following shall be substituted: 
“(a) record of services provided , including exempt 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 ser vices, 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 description, 
quantity and value of goods and the amount of tax paid 
on imports; 
 
 
(d) double entry accounts; 
(e) bank statements and banking instruments; 
(f) inventory records, utility bills, salary and labor bills, rent 
deeds and agreements; 
(g) record required to 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.”;  
(7) in section 33, after subsection (3), the following subsection (3a) shall 
be added: 
  “(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.”; 
(8) in section 35, for subsection (1), the following shall be substituted: 
“(1) Every registered person shall furnish to the Authority, not 
later than the due date, a true, correct and properly filled -up return in 
the form notified by 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.”; 
(9) in section 39, in subsection (1): 
(a) in clauses (c), (f), (fff) and (g), the words “of the Authority” shall 
be omitted; and 
(b)  for clause (ff), the following shall be substituted: 
“(ff) Audit-cum-Risk Compliance Officer;”; 
(10) in section 57, in subsection (1), the expression “not below the rank of 
an Assistant Commissioner,” shall be omitted; 
(11) in section 60:  
 (a) in subsection (1): 
(i) in clause (a), the words “or amount erroneously refunded” 
shall be omitted; 
(ii)  for clause (b), the following shall be substituted: 
“(b) Assistant Commissioner/Deputy Commissioner: 
Cases where the amount of the tax involved does 
not exceed ten million rupees;” and 
(iii)  for clause (c), the following shall be substituted: 
“(c) Enforcement Officer/Audit -cum-Risk Compliance 
Officer: Cases where the amount of the tax 
involved does not exceed five million rupees; and”; 
(b) in subsection (2) , after the word  “him”, the words “or falling in 
jurisdiction specifically assigned to him by the Authority” shall be 
inserted; and 
 
 
(c) after subsection (3) and before the explanation, the following 
subsection (4) shall be added: 
“(4) Notwithstanding the provisions of subsection  (1), the 
Authority may assign a case or class of cases to any of 
its officers involving any amount of tax involved.”; 
(12) in section 63, for subsection (4), the following shall be substituted: 
“(4) An appeal under subsection (1) may be filed manually or 
electronically as may be specified by the Authority.”; 
(13) in section 66: 
(a) in subsection (1), for the word “thirty”, the word “sixty” shall be 
substituted; 
 (b)  in subsection (2): 
(i) in clause (b), after the semi colon, the word “and” shall be 
inserted; 
(ii) at the end of clause (c), for the expression “;  and”, a full 
stop shall be substituted; and 
  (iii) clause (d) shall be omitted; and 
(c) in subsection (4) , for the expression “clause (d) of sub section 
(2)” the expression “subsection (1)” shall be substituted. 
(14) in section 70, in subsection (1): 
(a) in clause (bb) , after the word “companies” , the words “including 
running and demand finance” shall be inserted; 
(b) after clause (f), the following clause (g) shall be inserted: 
“(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.”; 
(c) in the proviso, for the words “twenty five”, the word “ten” shall be 
substituted. 
(15) in the Second Schedule: 
(a)  at Sr.No.1, in column  (1) to (4) , for the existing entries, the 
following shall be substituted:  
 
1 “Hotels, motels  and guest 
houses. 9801.1000 
(i). Five percent 
without input tax 
adjustment for 
non-corporate, 
non-franchise, 
non-chain 
businesses with 
less than 20 
 
 
rooms; and 
(ii). Sixteen 
percent for 
others 
Marriage halls and lawns (by 
whatever name called) 
including pandal and 
shamiana services. 
9801.3000 Five percent 
without input tax 
adjustment 
Clubs including race clubs 
and their membership 
services including services, 
facilities or advantages, for a 
subscription or any other 
amount, to their members. 
9801.4000 Sixteen percent 
Catering services (including  
all ancillary/allied services 
such as floral or other 
decoration, furnishing of 
space whether or not 
involving rental o f equipment 
and accessories). 
9801.5000 Five percent 
without input tax 
adjustment” 
 
(b) at Sr .No.7, in column (4), for the existing entry, the following 
shall be substituted: 
“(a) Zero percent without input tax adjustment for health 
insurance for individuals; and 
(b) Sixteen percent of gross premium paid, for others.”; 
(c) at Sr.No. 11 and 18 , in column (4), for the existing entry, the 
following shall be substituted: 
“(a) Five percent without input tax adjustment where payment 
against services is received through debit or credit cards ; 
and 
(b) Sixteen percent for others.”; 
(d)  at Sr.No. 13, in column (4), for the existing entry, the foll owing 
shall be substituted: 
“(a)  Five percent without input tax adjustment for services 
relating to educational institutions; and 
(b)  Sixteen percent for others.”; 
(e)  at Sr.No.14, in column (2), under the heading “Excluding”: 
(a)  in clause (iii), for the full stop at the end, the expression  “; 
or” shall be substituted; and 
 
 
(b)  after clause (iii) as amended, the following shall be 
inserted: 
“(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.”; 
 (f)  at Sr.No.15: 
(a) in column (2) the existing entry shall be substituted with 
the following: 
“Services provided by property developers, builders  and 
promoters (including their allied services); Excluding: 
Affordable housing services provided under Govern ment 
sponsored housing programs.”; and 
(b)  in column (4)  the existing entry shall be substituted with 
the following: 
“Rs.100 per square yard for land development and Rs.50 
per square feet for building construction.”; 
(g) at Sr.No. 26, in column (4), for the existing entry, the following 
shall be substituted: 
“(a) Five percent without input tax adjustment for services 
where the value of service is fi xed by the Bureau of 
Emigration and Overseas Employment; and 
(b)  Sixteen percent for others.”;   
(h) at Sr.No. 35, in column (4), for the existing entry, the following 
shall be substituted: 
“(a)  Five percent without input tax adjustment for services 
provided to end consumers; and 
   (b)  Sixteen percent for others.”; 
(i) at Sr.No. 36, in column (4), for the existing entry, the following 
shall be substituted: 
“(a)  Sixteen percent for services provided by companies or 
authorized dealers; and 
(b)  Five percent without input tax adjustment, for others.”; 
(j) at Sr.No. 40, in column (4), for the existing entry, the following 
shall be substituted: 
“(a)  Five percent without input tax adjustment for services 
provided in respect of agricultural produce; and 
(b)  Sixteen percent for others.”; 
(k) at Sr.No. 52, in column (4), for the existing entry, the following 
shall be substituted: 
 
 
“(a)  Five percent without input tax adjustment for services 
relating to accountancy, a udit, tax or corporate law 
consultancy; and 
   (b)  Sixteen percent for others.”; 
(l) at Sr.No.22, 25, 32, 37, 43, 45, 58, 60, 63, 66 and 67, in column 
(4), for the existing entry, the following shall be substituted: 
 “Five percent without input tax adjustment”; 
(m) at Sr.No.68, in column (4), for the existing entry, the following 
shall be substituted: 
   “Zero percent without input tax adjustment”; and 
(n) after Sr.No.68, in columns 1 to 4, the following entry shall be 
inserted as Sr.No.69: 
“Sr. 
No Description Classification, 
if applicable Rate of Tax 
(1) (2) (3) (4) 
69 Ride-Hailing Services - 
Four percent 
without input tax 
adjustment” 
 
6. Amendment of Act XXX of 2015.– In the Punjab Infrastructure Development 
Cess Act 2015 (XXX of 2015) , in section 6, in subsection 3, for the full stop at the 
end, a colon shall be substituted, and thereafter the following proviso shall be added: 
 “provided that where the Government considers appropriate and 
necessary, it may  allow exemption from payment of cess  from any 
previous date as may be specified in the notification.”. 
7. Special relaxations for financial year 2020 -21.– (1) Notwithstanding 
anything contained in sections 3 and 12 of the Punjab Urban Immovable Property 
Tax Act, 1958 (V of 1958), for the financial year 2020-21: 
(a) discount equal to five percent of the tax being paid shall be 
allowed on payment of tax through e-payment system; 
(b) a rebate equal to ten per cent of the amount of annual tax shall 
be allowed if the amount of annual tax is paid in lump sum on or 
before the 30th day of September 2020; 
(c) the tax shall be paid on yearly basis or half yearly basis as the 
assessee may choos e or by such later day as the Government 
may by notification determine; and 
(d) the late payment surcharge shall not be imposed for the tax 
amount due. 
(2) Notwithstanding anything contained in  sections 3 and 9 of the Punjab 
Motor Vehicles Taxation Act, 1958 (XXXII of 1958), for the financial year 2020-21: 
 
 
(a) discount equal to five percent of the tax being paid shall be 
allowed on payment of tax through e-payment system; 
(b) a rebate equal to 20 percent of the amount of annual tax shall 
be allowed if the amount of annual tax is paid in lump sum on or 
before the 30th day of September 2020; and 
(c) if a person fails to pay any amount of tax due within the period 
fixed for such payment, he shall not be liable to pay any penalty 
if he pays the same during the financial year 2020-21. 
 (3) This section shall remain in force till 30th day of June 2021.

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PUNJAB SALES TAX ON SERVICES ACT 2012

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235-8250, 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: 1

PUNJAB FINANCE ACT 2020

Section 1. Short title, extent and commencement

Section 2. Amendment in Act II of 1899

Section 3. Amendment of Act V of 1958

Section 4. Amendment of Act X of 1958

Section 5. Amendments of Act XLII of 2012

Section 6. Amendment of Act XXX of 2015

Section 7. Special relaxations for financial year 2020-21

This law in the library

PUNJAB URBAN IMMOVABLE PROPERTY TAX ACT, 1958

PUNJAB MOTOR VEHICLES TAXATION ACT 1958

PUNJAB SALES TAX ON SERVICES ACT 2012

STAMP ACT 1899

PUNJAB INFRASTRUCTURE DEVELOPMENT CESS ACT 2015

PUNJAB URBAN IMMOVABLE PROPERTY TAX ACT, 1958

Section 5

Section 12

Section 3

Section 16

Section 16C

Section 16C

Section 16D

Section 29

Section 31

Section 33

Section 35

Section 39

Section 57

Section 60

Section 63

Section 66

Section 70

Section 6

Stamp Act, 1899

Punjab Urban Immovable Property Tax Act, 1958

Punjab Entertainment Duty Act, 1958

Punjab Sales Tax on Services Act 2012

Punjab Infrastructure Development Cess Act 2015

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