Operating a business in Punjab requires compliance with various regulations, including Sales Tax registration with the Punjab Revenue Authority (PRA). However, there might be situations where deregistration from Sales Tax becomes necessary. This article explains the process and documents required for deregistration in Punjab.
Reasons for Deregistration:
- Your business no longer fulfills the criteria for mandatory Sales Tax registration (e.g., annual turnover falls below the threshold).
- You cease business operations altogether.
- You switch to a business model exempt from Sales Tax.
Two Ways to Deregister:
1. Automatic Deregistration:
- The PRA may automatically deregister you if they determine you no longer meet the registration requirements.
2. Voluntary Deregistration:
- You can submit a deregistration application to the PRA if you believe you qualify.
Required Documents (Voluntary Deregistration):
- Application Form: Obtain the “Application for De-registration” form from the PRA website or office.
- Proof of Identity: Provide your CNIC (Computerized National Identity Card) copy.
- Business Details:
- Company registration certificate (if applicable).
- Business address proof (e.g., utility bill, rent agreement).
- Proof of business closure (if applicable).
- Financial Documents:
- Latest bank statement reflecting your business income.
- Sales Tax returns filed for the past year.
- Clearance certificate from PRA confirming no outstanding taxes.
- Reason for Deregistration: State the specific reason for seeking deregistration.
Additional Notes:
- Ensure all documents are clear and legible copies.
- Submit complete and accurate information to avoid delays.
- Keep copies of all submitted documents for your records.
- Deregistration may take up to three months, with potential extensions.
- Consult a tax advisor for personalized guidance and ensure compliance.
Remember, deregistration does not absolve you of any outstanding tax liabilities. Ensure you have settled all dues before applying. By understanding the process and preparing the necessary documents, you can navigate your Sales Tax deregistration in Punjab smoothly.
