January 10, 2024
Taxes make up a large percentage of the government’s total revenue to run the country. Almost every citizen is liable to pay taxes. This tax can be of any type and impose any service or good. Pakistan is the fifth most populous country, with a population of about 23 million. Collecting taxes from a large population and ensuring that no one evades tax is difficult to manage.
Moreover, all provinces of Pakistan have drastic differences in population. Some provinces, such as Punjab, are good in agriculture. Other provinces, such as Khyber Pakhtunkhwa and Gilgit Baltistan, have high tourism. Therefore, collecting agricultural taxes from other provinces with minimum to no agriculture would be unfair. Therefore, the government introduced provincial tax collection authorities to make the collection of taxes easy and to bring uniformity.
The ex-president of Pakistan, General Pervez Musharraf, introduced the Income Tax Ordinance of 2001. It led to the creation of the Punjab Revenue Authority. The income tax ordinance of 2001 talked in detail about the collection of taxes and the method of doing so. It forced a final iron nail in the structure of tax collection.
Under this ordinance, the government granted cultivators and agriculturalists an exemption from paying agricultural tax to the federal government. Instead, they were to pay these taxes to their provincial tax collection authorities, the Punjab Revenue Authority (PRA), in the case of Punjab.
This strengthening of the tax system and several other reforms related to tax collection brought economic stability to Pakistan. There’s much more to the Punjab Revenue Authority and how to register with it. We will be covering all of it and other relevant points in the article below:
In recent years, Pakistan’s economic situation hasn’t improved, let alone made significant leaps. This led to an increase in inflation and, subsequently, unemployment. With the increase in education fees, many people in Pakistan who live below the poverty line can now not get any education. At the same time, it’s been very hard for the middle class to get professional degrees from significant or influential universities and colleges.
In this scenario, many individuals who have at least graduated can still seek government jobs. One fine example is to become a tax filer in the Punjab Revenue Authority. The good thing about it is that it doesn’t demand a lot of experience or professional degrees.
You can do any other job or business alongside being a tax filer at Punjab Revenue Authority. The question here arises: How to register yourself at the Punjab Revenue Authority? Worry not. We have explained all of it below.
What is the Punjab Revenue Authority?
Punjab Revenue Authority is a lawful authority that overlooks tax collection on all services and goods. Punjab Revenue Authority was formed under the Income Tax Ordinance of 2001 by General Pervez Musharraf and is only responsible for tax collection at the provincial level, i.e., in Punjab. It oversees sales tax on services and ensures no tax evasion.
There are some taxes that the Federal Board of Revenue cannot collect to bring uniformity in local tax collection, such as agricultural income tax, tax on imports, etc. For this purpose, the Punjab Revenue Authority was brought into existence. If a person is found selling goods or services, then he is bound by the law to pay sales tax to the Punjab Revenue Authority.
In case the person has already registered with the Federal Board of Revenue (FBR), the federal tax collection authority. He does not need to get registered with the Punjab Revenue Authority. One can apply for sales tax registration in the Punjab Revenue Authority through electronic request or by manually filling out the application.
How do you register with the Punjab Revenue Authority?
According to the law, any person selling services or goods must be registered with the respected tax collection authority. No person is exempted from tax collection and registration with the provincial tax collection authority except if he’s already registered with the Federal Board of Revenue.
The Services Act of 2012 further implies that. However, the taxpayers’ taxes may differ by their annual revenue and sales. Any commercial activities other than the supply of goods come under the term services. Hotels, restaurants, catering, advertising on TV and radio, banking organizations, news channels, clubs, constructors, courier services, stoke brokers, mechanical repairing, etc., are different types of services.
If you offer these services, you’re liable to pay sales tax by registering yourself with the Punjab Revenue Authority. The process is simple; but consists of two types: Voluntary PRA Registration and Compulsory PRA Registration.
The procedure is pretty simple, but you need to understand it well for it to succeed. That’s why we have broken it down into simpler steps to make it easier for you to understand.
The first step involves you submitting the application form. You can find one online at the official website of the Punjab Revenue Authority and fill it out with relevant information. Alternatively, you can go to PRA’s office and manually fill and submit the form.
The second step involves the verification of information and documents that you submitted for Punjab Revenue Authority registration. This step is extremely important for the registration process to proceed further. Ensure you entered the correct information in the application form in the first step.
If your information and documents are correct and verified, the Punjab Revenue Authority will issue you the registration certificate.
If the Punjab Revenue Authority finds any error in the registration process or if there is any other exception, then your registration will be rejected. In case of rejection, they will provide you with the reason for rejecting your registration form within 30 days.
Compulsory Registration in Punjab Revenue Authority
There are certain circumstances where you immediately don’t register with the Punjab Revenue Authority. For example, you might not be eligible at the time of application. PRA stores the records of information that applicants enter when applying for registration.
In case you were not eligible back then but are now eligible. After further verification, if your records satisfy the Punjab Revenue Authority, they may contact you within 15 days. They will issue you the registration number. This type of registration goes by the name of Compulsory Registration. In this type, every citizen has the right to be heard.
However, no citizen is registered before giving advance notice or applying for registration.
Documents Required for Punjab Revenue Authority Registration
There are several documents that you need for Punjab Revenue Authority registration. Sometimes, the applicant fails to tally all the documents required for registration, and these missing documents then cause problems in the registration process or even delay it. Also, different types of businesses and individuals register with the Punjab Revenue Authority, and they use different types of documents. We have categorized it below.
If you want to register your business with the Punjab Revenue Authority, then you should have the PST 01 form. You’ll also need a copy of your NTN, CNIC, paid electricity bill, mobile number, and email. Don’t forget the bank maintenance certificate, tenancy agreement, and the CNIC of the owner or ownership documents.
Suppose you’re opting out of the registration of a partnership firm in the Punjab Revenue Authority. In that case, you are required to have the PST 01 form, a copy of your firm’s NTN, a copy of the CNIC of partners, Form C, mobile number, and email address, paid electricity bill, partnership deed, bank maintenance certificate, and tenancy agreement along with owner’s CNIC.
In a third scenario, if you are aiming to register a company in the Punjab Revenue Authority, then you are obligated to have the following information and documents: PST 01 form, copy of the company’s NTN, copy of CNIC of partners, form II, incorporate certificate, email address and mobile number, paid electricity bill, AOA, MOA, bank maintenance certificate and tenancy agreement along with the owner’s CNIC.
In conclusion, we have discussed the complete process of getting your business or company registered with the Punjab Revenue Authority. We have explained the whole process along with the tiniest of details. This will help you not face any hurdles during the registration process.
The process is easy. Therefore, now there’s no reason left for you not to register your business with the Punjab Revenue Authority yet. Being a responsible citizen who cares for the state, you should not wait further to register with Punjab Revenue Authority.
Good luck with securing your firm a spot in the Punjab Revenue Authority by having it provide a registration number!
A highly skilled tax consultant specializing in Pakistan’s intricate tax laws and regulations. With over a decade of experience in the field, he has helped countless individuals and businesses navigate the complexities of taxation. His expertise lies in optimizing tax strategies, ensuring compliance, and maximizing returns for his clients. John’s in-depth knowledge of Pakistan’s tax system and dedication to staying up-to-date with ever-changing laws make him a reliable and sought-after advisor. Whether it’s tax planning, filing, or resolving tax-related issues, clients trust John’s proficiency and commitment to achieving financial success while remaining fully compliant with the law.