Punjab Revenue Authority (PRA): Services Tax Guide for Businesses

The Punjab Revenue Authority (PRA) is the body that administers sales tax on services in Punjab. If your business provides taxable services in the province, PRA — not FBR — is the authority you deal with for that tax. The standard rate on services in Punjab is 16%, though many specific services carry reduced rates.

This guide covers who must register with the PRA, how the tax works, and what filing involves, so service providers in Punjab know where they stand.

What does the PRA do?

The PRA collects and administers sales tax on services rendered within Punjab. It maintains its own list of taxable services, its own registration process, its own returns, and its own online portal. It operates independently of FBR (which handles federal sales tax on goods) and of the other provincial authorities such as Sindh's SRB.

Who must register with the PRA?

Broadly, a business that provides taxable services in Punjab is expected to register with the PRA. This includes a wide range of service providers — from professional and consultancy firms to hospitality, contractors, and many others named in the province's list of taxable services. If you render services in Punjab, you should check whether your service category is taxable and whether you meet the registration requirement.

Because the list of taxable services and any thresholds are set by law and revised over time, confirm your specific position with the PRA or a tax adviser rather than assuming.

The standard rate and reduced rates

The standard rate for services in Punjab is 16%. However:

• Certain services are taxed at reduced rates set by the PRA;
• Rates and the list of services can change with each provincial Finance Act;
• Conditions sometimes apply to a reduced rate (for example, restrictions on input tax).

So while 16% is the headline figure, always confirm the exact rate for the specific service you provide, and whether any conditions attach to it.

Key point: 16% is Punjab's standard services rate, but many services are taxed at lower rates. Check your specific service and confirm it is current before you invoice.

How PRA fits with FBR and other provinces

It is important to keep the jurisdictions separate:

• Goods you sell are federal — handled by FBR under GST.
• Services you render in Punjab are provincial — handled by the PRA.
• Services you render in another province fall under that province's authority (for example, the SRB in Sindh).

If you work across provincial lines, you may have to register with more than one authority. See our guide on which provincial authority to register with. And because input tax generally cannot move freely between provinces, read cross-province services and input tax too.

Filing PRA returns

Once registered, a business generally has to:

1. Charge the correct PRA rate on taxable services;
2. Issue compliant invoices showing the services tax;
3. File the PRA return on its schedule through the PRA portal;
4. Deposit the tax collected as required.

The PRA return is separate from your FBR sales tax return. If you deal in both goods and services, you will be filing with both authorities, on their own timelines, and your records need to keep the two cleanly apart.

Common pitfalls for Punjab service providers

• Assuming FBR covers services. It does not — services in Punjab are the PRA's domain.
• Using the wrong rate. Applying 16% where a reduced rate is due (or vice versa) leads to errors.
• Mixing goods and services records. Keep federal and provincial streams separate.
• Forgetting multi-province exposure. Services rendered outside Punjab may need another authority's registration.

Frequently asked questions

Is the PRA the same as FBR?

No. FBR handles federal sales tax on goods; the PRA handles sales tax on services rendered in Punjab. They are separate authorities with separate registrations and returns.

Is every service taxed at 16% in Punjab?

No. 16% is the standard rate, but many services carry reduced rates, and rates can change with each Finance Act. Confirm the rate for your specific service with the PRA.

Do I file PRA returns separately from my FBR return?

Yes. The PRA return for services is filed separately from your FBR sales tax return on goods, each on its own schedule and portal.

Iris Accounts supports Punjab services tax, letting you apply PRA rates, issue compliant invoices and keep your provincial records separate from your FBR goods records.