The Punjab Revenue Authority (PRA) is taking steps to expand its tax net by targeting unregistered architect firms in Lahore. This initiative aims to bring these businesses into compliance with tax regulations.

PRA’s Outreach Efforts:

Following directives from Commissioner Misbah Nawaz, the PRA has initiated outreach meetings with representatives of architect firms. These meetings involve collaboration with the Institute of Architects Pakistan (IAP).

Virtual Meeting Focuses on Compliance:

The first meeting, held on Zoom, saw the participation of enforcement officers, IAP Chairman of the Board of Architect Education Umar Saeed, other executive members, and around 40 architects.

Meeting Highlights:

• Tax Law Awareness: The meeting aimed to educate participants on their obligations under the Punjab Sales Tax on Services Act, 2012 (PSTSA).
• Registration Guidance: Unregistered architects received guidance on the registration process with the PRA to ensure they comply with tax regulations.
• Tax Return Filing: The session also covered the importance of timely submission of tax returns, a crucial aspect of tax compliance.

Potential Service Tax Rates for Architects:

It’s important to note that the exact service tax rate for architects can vary depending on the specific services offered and the total value of these services. However, architects likely fall under the category of “Information technology-enabled or information technology-based services” as defined in the PSTSA. If so, they may benefit from a reduced service tax rate of 5% without input tax adjustment.

Significance of the Initiative:

The PRA’s initiative signifies their commitment to expanding the tax base in Punjab. By bringing unregistered architects into the tax net, the authority aims to ensure a fairer and more robust tax system.

Recommendations for Architects:

Architects in Lahore, particularly those who are unregistered, are advised to:

• Contact the PRA: For the most up-to-date information on service tax rates and the registration process, architects should directly contact the Punjab Revenue Authority.
• Consult a Tax Advisor: Seeking professional guidance from a tax advisor can be beneficial in understanding specific tax obligations and ensuring proper tax filing procedures.

By taking these steps, architects can ensure they are compliant with tax regulations and operate their businesses within a legal framework.