Professional Tax: Punjab Government's Perspective

First Notice

For the assessment of tax under section 3 of Punjab Finance Act 1977, as amended in 1999 and 2000, the assessee is required to provide the following information and documents within the above-mentioned timeframe.

• Date of opening of the office with documentary evidence
• Photocopy of incorporation certificate if it is an incorporated company
• Paid-up capital of the company with documentary evidence i.e. form “A” acknowledged by SECP
• Value of import/export during the years to be taxed with documentary evidence (P-Copy of Income Tax Returns for the said years)
• Year-wise value of work done/Services/Supplied goods to the Federal/Provincial/Semi-Government department or a company or a Factory or a commercial establishment or an autonomous or semi-autonomous or semi-autonomous organization or any local authority, with documentary evidence
• Number of employees
• Ist and last income tax returns acknowledged by Income Tax Department
• Professional Tax receipts if paid any during last years

Second Notice

A reminder of the first notice, which expired on the specified date.

Third Notice

The assessee is reminded of the above two notices and has a final opportunity to be heard. Additionally, some Special Notices are served.

Final Call Notice 

Punjab Profession & Trade Tax Rules 1977, Section 4 (2), gives the Assessing Authority District Excise & Taxation Officer the right to decide a matter exparte on maximum taxation with 100% penalty.

Demand Notice

Under Section 6 of the Punjab Professions and Trade Tax Rules 1977, demand notice is issued against assesses who are already assessed or exparte, within 30 days of serving the notice to the assessee. If the taxpayer fails to pay the assessed tax, the following procedure is adopted under the Land Revenue Act, 1967, via Section 6 of the Punjab Finance Act, 1977. Preliminary notice before arrest warrants or attachments under section 81/82 of the Punjab Land Revenue Act, 1967.

Arrest Warrants  

Attachment orders under the Punjab Land Revenue Act, 1967

The appeal in Case of Objection

Within 30 days of receiving the assessment, the assessee can appeal to the Director Excise & Taxation pursuant to section 4 (3) of the Punjab Profession & Trade Tax Rules, 1977, and the Appellate Authority can order to charge the whole tax or refund it.

Demand Register

Under Section 11 of Punjab Professions & Trade Tax Rules, 1977, all the paid amounts, as well as arrears, are recorded in Form P.F.T-3 in respect of all assessed units.

Taxing Year

According to section 1 (3) of the Punjab Finance Act, 1977, the taxing year runs from 1st July to 30th June (fiscal year).

Payment Duration

Before the 31st day of August of every calendar year, every person liable to pay the tax must provide to the District and Taxation Officer his name, address, occupation, or trade calls.

Crediting of Amount

The tax shall be credited to the nearest treasury in Form P.R.T-2 or the amount shall be sent to the District Excise and Taxation Officer by a postal order or by cheque drawn on State Bank of Pakistan, National Bank of Pakistan, or any other bank having clearing accounts with any of these banks.

Deleting of Demand

Taxpayers who cease to engage in a trade, profession, employment, or calling on which they are liable to pay tax shall notify the District Excise and Taxation Officer, under section 10 of the Punjab Professions & Trade Tax Rules, 1977, within 30 days of discontinuing such trade, profession, employment or calling.

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