Low sales tax rate on IT based services in Punjab.

S.

No.

Description

[Classification, if applicable]

Rate of Tax

(1)

(2)

(3)

(4)

[22

[Information technology-enabled or information technology based services including software development, software customization, software maintenance, system support, system assembly, system integration, system designing and architecture, system analysis, system development, system operation, system maintenance, system up-gradation and modification, data warehousing or management, data entry operations, data migration or transfer, system security or protection, web designing, web development, web hosting, network designing, services relating to enterprise resource or management planning (including marketing of products), development and sale of smart phone applications or games, graphics designing, medical transcription, remote monitoring, telemedicine, insurance claim processing, online retrieval and database access or retrieval service.]

9815.6000 [and respective heading]

[Five percent without input tax adjustment]

41

Call centres.

9865.0000

[Sixteen] percent

Source:

  1. S. No. 22, Taxable Services, Second Schedule of the Punjab Sales Tax on Services Act 2012
  2. S. No. 41, Taxable Services, Second Schedule of the Punjab Sales Tax on Services Act 2012

            http://punjablaws.gov.pk/laws/2506.html#_ftn225

Details
Sales Tax applicable on information technology-based services is low, while the sales tax rate in Punjab province for services provided by Call Centers has been reduced to 16%.