Becoming active in sales tax with regional revenue authorities such as the Punjab Revenue Authority (PRA), Sindh Revenue Board (SRB), and Khyber Pakhtunkhwa Revenue Authority (KPRA) is essential for businesses offering taxable services in their respective provinces. This process ensures legal compliance, enables input tax adjustments, and protects businesses from penalties.

This article provides a step-by-step guide on how to become active in sales tax with PRA, SRB, and KPRA, the importance of being active, required documents, post-activation obligations, and common compliance challenges.

Understanding Provincial Sales Tax Systems in Pakistan

Under Pakistan’s Constitution (18th Amendment), sales tax on services is a provincial subject. Each province has its own revenue authority that administers and collects sales tax on services.

Punjab: Punjab Revenue Authority (PRA)

Sindh: Sindh Revenue Board (SRB)

Khyber Pakhtunkhwa: Khyber Pakhtunkhwa Revenue Authority (KPRA)

These authorities require service providers to register, file monthly returns, and make timely payments. However, simply obtaining registration is not sufficient. Businesses must also ensure they are marked as active taxpayers to avail of input tax and avoid compliance notices.

Why Is It Important to Be Active in PRA, SRB and KPRA?

Being listed as active in the respective provincial authority’s portal provides multiple benefits:

• Eligibility for input tax credit

• Avoidance of penalties and legal notices

• Compliance with service contracts and government tenders

• Enhanced credibility for clients and vendors

• Ability to generate proper sales tax invoices

• Access to refunds, if applicable

Inactivity, on the other hand, can lead to denial of tax adjustments and inclusion in defaulter lists.

How to Become Active in Punjab Revenue Authority (PRA)

Step 1: Online Registration on PRA Portal

Visit the PRA website at www.pra.punjab.gov.pk and sign up for registration if not already done. Use your NTN and CNIC credentials.

Step 2: File First Sales Tax Return

To become active, simply registering is not enough. You must file your first Sales Tax on Services Return (Form STR) even if it is a nil return. PRA requires at least one return to be submitted to shift a taxpayer to active status.

Step 3: Submission of Withholding Statement (if applicable)

If your business is registered as a withholding agent, submission of the monthly withholding statement is also mandatory.

Step 4: PRA Taxpayer Profile Activation

After filing the initial return and fulfilling your basic profile details, your status will be updated from “inactive” to “active” on the PRA portal. This status is publicly available for verification.

How to Become Active in Sindh Revenue Board (SRB)

Step 1: E-Enrollment on SRB Portal

Go to www.srb.gos.pk and apply for e-enrollment. You will receive login credentials once your application is processed.

Step 2: Login and Update Profile

Once you receive login credentials, fill in the required profile details such as business nature, services offered, address, and contact details.

Step 3: File Monthly Sales Tax Return

Filing of the first SRB Form SST-03 (monthly return) is mandatory to move to active status. This applies even if you had no taxable services in a month.

Step 4: Upload Invoices and Annexures

Annex-C (purchase invoices) and Annex-A (sales invoices) must be uploaded along with the monthly return.

Step 5: SRB System Updates Active Status

Within a few days of return submission, the SRB portal will show your business as active. You can confirm this by checking your taxpayer profile online.

How to Become Active in Khyber Pakhtunkhwa Revenue Authority (KPRA)

Step 1: Registration on KPRA Portal

Visit www.kpra.gov.pk and apply for registration using your NTN and business particulars.

Step 2: Verification and Account Creation

Once KPRA verifies your registration, you will receive login credentials to access the KPRA e-filing system.

Step 3: File Initial Return

File the first KPRA monthly return (Form STR-KP). You must file the return even if there are no taxable services for the month.

Step 4: System Activation

After return submission, the KPRA system will mark your account as active. You can check your status through the online portal or by contacting KPRA support.

Documents Required to Become Active

To ensure smooth registration and activation, prepare the following documents:

• Copy of NTN Certificate

• CNIC of business owner or director

• Utility bill of business premises

• Lease agreement or ownership proof of office

• Bank account maintenance certificate

• Business letterhead and stamp

• List of services offered

• Service agreement copies (for certain sectors)

All documents should be scanned in clear resolution for online uploading.

Activation Timelines for Each Authority

Note: These timelines may vary based on volume of applications and accuracy of submitted information.

How to Check Active Taxpayer Status

Each authority provides a public lookup service to verify taxpayer status:

• PRA: Visit the PRA Active Taxpayer List at pra.punjab.gov.pk

• SRB: Use the “Active Taxpayer List” option from SRB home page

• KPRA: Taxpayer status can be verified by contacting support or through the e-portal dashboard

Being visible as “Active” is crucial to claim input tax and avoid withholding deductions.

What If You’re Still Marked as Inactive?

If you’ve registered but are still listed as inactive, do the following:

1. Confirm return has been submitted.

2. Ensure profile is complete (services selected, address added).

3. File any pending withholding statements or annexures.

4. Contact customer support of the respective authority.

Each authority has a dedicated helpline and complaint email to escalate such issues.

Monthly Compliance Requirements After Activation

Becoming active is only the beginning. Monthly compliance includes:

• Filing monthly returns by the due date (15th of every month)

• Payment of tax through designated banks

• Uploading supporting annexures

• Issuing tax invoices to clients

• Maintaining proper sales and purchase records

Late or missed compliance can revert your status back to inactive and attract penalties.

Common Reasons for Being Marked Inactive Again

• Failure to file monthly returns

• Non-submission of annexures (SRB/PRA)

• Mismatched services selected and invoices issued

• Failure to pay sales tax even when declared

• Withholding non-compliance by registered agents

Tips to Maintain Active Status

• Set reminders for monthly filings

• Use accounting software for invoice tracking

• Engage a tax consultant for return filings

• Maintain digital and hard records of sales/purchase

• Regularly check your status on the authority portal

Penalties for Inactive Status

If a registered person fails to comply and is marked as inactive:

• Cannot claim input tax adjustment

• Client may deduct full tax at source

• May face penalty notices from authority

• Blacklisting in government tenders

• Suspension of registration in extreme cases

Can a Business Be Active in More Than One Authority?

Yes, if your services are being rendered in multiple provinces, you must be registered and active with each relevant authority. For example:

• A Lahore-based IT firm providing services in Karachi must register with both PRA and SRB.

• A contractor working across KP and Punjab must be active in both KPRA and PRA.

Role of Tax Consultants in Managing Activation and Compliance

Given the complexity of portals, annexures, and multiple return forms, businesses are advised to work with experienced tax consultants. A good consultant will:

• Ensure correct classification of services

• File monthly returns on time

• Represent the business in case of notices

• Handle correspondence with PRA, SRB, or KPRA

• Assist in refunds and reconciliations

Conclusion

Becoming and staying active in sales tax with PRA, SRB, and KPRA is not only a legal requirement but also a business necessity. Whether you’re an IT services provider, consultant, contractor, or any service-oriented business, timely activation and regular compliance safeguard your reputation and financial standing. Following the steps above and staying consistent with monthly filings ensures smooth operations and maximizes your tax benefits.