Back to Questions
Punjab Sales Tax on Services Act, 2012 QUESTION #2568
Question 1
Under section 13 of the Act, when there is a change in the rate of tax, at what point in time is the applicable rate determined for taxable services?
  • At the time the tax invoice is issued
  • At the time the agreement for service is signed
  • At the time the service is PROVIDED✔️
  • At the time payment is received
Correct Answer Explanation
Section 13 clearly states that if there is a change in the rate of tax, the taxable services shall be charged to tax at such rate as is in force AT THE TIME THE SERVICE IS PROVIDED — not when the invoice is issued or payment received.