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Punjab Sales Tax on Services Act, 2012 QUESTION #2564
Question 1
Under section 11A, where a registered person receiving a taxable service fails to pay the tax to the service provider within how many days from the date of the tax invoice, and the provider has also not paid within the due date, both parties become jointly and severally liable?
  • Ninety days
  • One hundred and twenty days
  • One hundred and eighty days✔️
  • Two hundred and forty days
Correct Answer Explanation
Section 11A clearly states that where a registered person receiving the taxable service fails to make payment of the tax to a service provider within ONE HUNDRED AND EIGHTY days from the date of the tax invoice, and such service provider has also not made payment within the prescribed due date, both parties shall jointly and severally be liable.