What is PRA Tax?
PRA tax refers to the Punjab Sales Tax on Services collected by the Punjab Revenue Authority (PRA) under the Punjab Sales Tax on Services Act, 2012. This tax is applicable to specific services provided or rendered within the province of Punjab.
If you are a service provider operating in Punjab, you may be required to:
- Register with PRA
- Charge sales tax on services
- Deposit PRA tax
- File monthly PRA sales tax returns
PRA tax is different from federal taxes such as GST calculator Pakistan, which applies to goods rather than services.
Our PRA Tax Calculator helps you calculate the exact tax amount according to the latest notified PRA tax rates.
What Does PRA Stand For?
PRA stands for Punjab Revenue Authority.
It is the provincial authority responsible for:
- Levying sales tax on services in Punjab
- Registering service providers
- Collecting and administering PRA sales tax
- Facilitating online tax filing and verification
PRA Sales Tax on Services – Overview
Under PRA law, sales tax is not charged on goods, but on services listed in the Second Schedule of the Punjab Sales Tax on Services Act. Each service category has a specific tax rate, such as:
- 16% standard rate
- 5% reduced rate (without input tax adjustment)
- 0% or fixed-rate services (in specific cases)
These rates vary based on:
- Nature of service
- Mode of payment
- Type of service provider
Your calculator is aligned with these officially notified rates, PRA tax ratecard
.
PRA Tax Rates in Punjab (Common Examples)
Below are some commonly used PRA tax rates applied to services in Punjab:
- Marriage halls & lawns: 5% (without input tax adjustment)
- Hotels, motels & guest houses:
- 5% for small non-corporate businesses
- 16% for others
- Advertising services: 16%
- Consultancy & professional services: 16%
- IT & software services: 5% (without input tax adjustment)
- Restaurants:
- 5% when paid via cards, wallets, or QR scan
- 16% for cash payments
Your PRA tax calculator uses these applicable rates to give accurate results. Businesses may also be subject to federal deductions, which can be estimated using our withholding tax calculator
How PRA Tax Calculator Works
Using our PRA tax calculator is simple:
- Enter the value of taxable service
- Select the relevant PRA tax rate
- The calculator automatically computes:
- PRA sales tax amount
- Total payable amount
This helps businesses, freelancers, and consultants avoid manual calculation errors.
Example of PRA Tax Calculation
Suppose you provided a service worth PKR 100,000 subject to 16% PRA tax.
- Service value: PKR 100,000
- PRA tax @16%: PKR 16,000
- Total payable amount: PKR 116,000
Our calculator instantly shows this result.
Who Should Use PRA Tax Calculator?
This tool is useful for:
- Service providers in Punjab
- Freelancers offering taxable services
- Consultants and professionals
- Advertising agencies
- IT & software companies
- Restaurants and event businesses
If you issue PRA invoices or file PRA returns, this calculator saves time and ensures accuracy. Individuals earning salaries can separately calculate their income deductions using our salary tax calculator Pakistan
PRA Sales Tax Return Filing (Brief Overview)
Registered PRA taxpayers are required to:
- File monthly sales tax returns
- Declare taxable services
- Deposit tax within due dates
Accurate tax calculation is the first step before filing a PRA sales tax return.
Disclaimer
This calculator is for informational purposes only. For legal interpretation or return filing, consult a qualified tax professional or PRA guidelines.