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Punjab Sales Tax on Services Act, 2012 QUESTION #2570
Question 1
Under section 16B(1)(s), goods used in or permanently attached to immoveable property such as building and construction material, paints, electrical and sanitary fittings etc. are NOT eligible for input tax credit UNLESS they are directly used in the economic activity of registered persons paying sales tax at a rate of not less than:
  • Twelve percent
  • Fourteen percent
  • Fifteen percent
  • Sixteen percent✔️
Correct Answer Explanation
Section 16B(1)(s) provides an exception for goods permanently attached to immoveable property — they qualify for input tax if directly used in economic activity of registered persons paying sales tax at a rate of not less than SIXTEEN PERCENT.