LAHORE: The Punjab Revenue Authority (PRA) extended its scope against tax evaders to the services sector on Thursday by taking action against renowned fashion designers and sealing 13 outlets in Gulberg and the Defence Housing Authority against non-compliance of sales tax.

The estimated tax recovery from the sealed outlets of non-compliant fashion designers (FDs) is Rs80 million.

An enforcement team led by Additional Commissioner Ayesha Ranjha and Assistant Commissioner Sumaira Ambreen paid a visit to B-Block DHA and MM Alam Road and sealed outlets in shopping malls.

Fashion designers such as Zara Shahjahan, Muse, Mini Bindra, Sania Maskatiya, Nida Azwer, Ayesha Imran, Shirin Hassan and Ammar Bilal were included in 13 outlets which were sealed.

Ayesha Ranjha told Dawn that the PRA had been in contact with the 13 fashion designers for the last one year or so regarding tax collection on their services.

“A regular three-month correspondence with the violators failed to make them comply with the tax and we have decided to seal the violators,” she said.

She said one of the sealed fashion designers – Mini Bindra – was an Indian designer and not registered with the Punjab Sales Tax on Services Act. She said almost 100 fashion designers fell in the category of violators but a survey to identify exact number of fashion designers in the provincial capital was in progress. She said the fashion designers whose outlets were sealed would meet the PRA officials on Friday (today) for business evaluation and payment of ST to resume business.

The official said Rs80 million were an expected tax recovery from 13 FDs but exact calculation would be made after business evaluation.

Correction: An earlier version of this story incorrectly stated Muse is owned by Khadija Shah. The error is regretted.

Published in Dawn, September 4th, 2015

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