KARACHI, July 19: The Punjab Revenue Authority (PRA) has started collection of sales tax on services, in line with the framework laid down under newly enacted Punjab Sales Tax on Services Act 2012 (PSTSA), from July 1, 2012.

PRA Chairman Iftikar Qutub speaking at a seminar held here on Thursday on ‘Punjab Sales Tax Laws 2012’, also dealt upon the agreements reached between the provinces and the federal government for imposition of sales tax.

Qutab said that after waiting for a year for the resolution of its concerns vis-à-vis share of the Punjab in service tax the government of Punjab had now initiated to collect sales tax on services from the beginning of this fiscal year.

He was optimistic that the collection of sales tax would yield much needed fiscal space for the province to undertake socio-economic development projects.

Adnan Mufti, a tax consultant, deliberating upon the newly enacted PSTSA focused on allied rules and issues likely to emerge in due course.

He also presented a comparison of federal, Punjab and Sindh sales tax laws through examples and informed the participants that the principles of origin laid down in PSTSA need to be resolved among FBR, SRB and PRA failing which he cautioned the tax authorities would be standing before court of law.