Punjab Sales Tax on Services Rules Courier services are liable to ST

RECORDER REPORT ISLAMABAD: The courier services provided by airlines, post offices, railways and road passengers or c
22 Jul, 2012

ISLAMABAD: The courier services provided by airlines, post offices, railways and road passengers or cargo transport businesses will be liable to sales tax to be collected by Punjab government.  According to the draft of the Punjab Sales Tax on Services (Specific Provisions) Rules, 2012, sales tax shall be payable on every booking (consignment booked) in the territory of Punjab.

The rules explained that a person providing courier services only in the Punjab shall get registration in the name of his headquarter office. Every such person as is providing courier service within as well as outside the Punjab shall designate its regional office in Punjab for the purposes of carrying out its obligations under the Act and rules made there under in respect of the services chargeable to sales tax.

The person providing courier services shall intimate to the Authority within one month of the commencement of these rules or of his registration as the case may be, the particulars of his all service outlets in the Province of Punjab. Where one courier agency utilizes the service of another company for in-transit movement of documents, goods, articles or cargo etc, the service provided by the co-loader shall not be charged to tax if charges thereof are included in the charges billed by the courier agency to the concerned customers.

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