KPRA Registration
Registration for Sales Tax on Services with KPRA is mandatory with Khyber Pakhtunkhwa Revenue Authority in the province of Khyber Pakhtunkhwa.
Pakistan has always been working at its best to improve the taxation system to increase revenue on a national scale as well as increase business accountability. In this regard, tax administration was further categorized on a provincial level so that provinces do their roles in improving the taxation system and expanding the business by regulating the administration. There have been many measures taken to regulate the tax net. Khyber Pakhtunkhwa Revenue Authority (KPRA) is an agency of the Khyber Pakhtunkhwa government which manages taxes, collects taxes, and maintains the record of sales tax on services in the province.
KPRA Registration
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Tax Administration KPRA
The Khyber Pakhtunkhwa Revenue Authority (KPRA) was founded as a corporate entity under the Khyber Pakhtunkhwa Finance Act, 2013. Throughout the province, KPRA is responsible for assessing and collecting sales taxes. To have an interface with the Government, KPRA is governed quite autonomously and placed under the Finance Department. The Council operates as the policy-making body for Khyber Pakhtunkhwa, and it is chaired by the Chief Minister. Council members include Cabinet ministers for Finance, Law, Excise and Taxation, the Chief Secretary, secretaries of the departments of Finance, Law, Excise, Taxation and Narcotics Control, as well as four private sector representatives appointed by the government. In 2017, the Provincial Government not only met its revenue targets but also progressed in its institutional development goals. Under the Finance Act of 2013.
Services in KPK are subject to Sales Tax
Tax administration in Khyber Pakhtunkhwa is fragmented and characterized by a narrow base of taxation and a fragmented revenue administration among several departments including Revenue & Estates and Excise and Taxation. Khyber Pakhtunkhwa Revenue Authority (KPRA) is the largest tax collection authority in the province, generating 31.63% of the provincial-owned receipts and 56.4% of provincial tax receipts in 2016-17.
KPRA was designed to expand fiscal space for social development in the province. Since its formation, the Authority has generated revenues worth Rs. 42 billion.
Since its establishment, KPRA has faced many challenges, including frequent changes in management. Even so, the tax base for services has expanded dramatically, informed compliance has improved, and automated systems and processes have been introduced. Due to the delay in operationalization, the revenue potential was not tapped as desired.
KPRA has also developed several strategies to increase compliance, including elaborate communication strategies. In addition to securing technical assistance from multiple development partners for governance reform, the KPRA transition team also secured the support of the Chamber of Commerce.
KPRA Registration is also problematic as the business persons are not willing to register their business. To overcome this issue seminars and workshops are conducted in every district of the province for tax awareness. The KPRA Registration process is also make more easier.
As a nascent financial institution, KPRA values transparency and organizational integrity. For KPRA to attain its strategic objectives and gain the trust of taxpayers, it has a fully functional financial management system that assures the preparation of financial statements of accounts, revenue statements, regular external and internal audits, management of risks, and continuous monitoring of internal processes.
The KPRA Registration Process:
To complete the KPRA Registration process please follow these steps:
- Visit the official portal of KPRA
- Click on ‘e-registration’
- Click on ‘new registration’
- Enter your NTN
- The system will show the registration particulars in FBR
- Enter image character & press OK
- Form will show pre-filled information fetched from FBR
- Enter your registration particulars
- Enter your representation particulars
- Save the form and proceed to the next section
- Provide directors / shareholders’ data
- Enter your bank account details
- After completing the form, click on ‘verify application’
- Enter CNIC/NTN/PP to verify your application
- After verification, click on ‘submit’
- After submission, you will be allotted a passcode received through email/SMS
- E-enroll at KPRA’s portal to activate your account
TAXOCRATE CAN HELP YOU WITH SALES TAX ON SERVICES
KHYBER PAKHTUNKHWA REVENUE AUTHORITY
With our help, your company can be registered for Sales Tax on Services with Khyber Pakhtunkhwa Revenue Authority. As per the law, we help you register your business with the appropriate government agencies.
During and after the KPRA registration process as well as monthly e-filing, we will ensure that all of your needs are met. Having worked with businesses like yours for over 15 years, you can trust us! Over the past 15 years, we have assisted companies with registering and electronically filing sales tax/services tax and gaining a competitive edge.