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Section 147A Advance Tax (Sales Tax Registered Persons) Income Tax Ordinance, 2001 | Adjustable @ 3%
📊 Tax Impact live
📘 Section 147A Summary

What it is: Advance tax at 3% on turnover declared to provincial revenue authority by PST registered persons. Paid monthly with sales tax return.

Who it applies to: All provincial sales tax registered persons (except those on ATL).

Why it matters: This is an adjustable advance tax – it can be credited against your final annual tax liability. Any excess is refundable.

Reference: Section 147A(1), (5), (7)

⚙️ How This Calculator Works
  1. Input: You provide the monthly turnover declared to provincial revenue authority.
  2. Check conditions: We verify if you are registered and if you are on ATL (exemption).
  3. Rate: 3% (adjusts automatically based on selected tax year.
  4. Calculation: Monthly tax = Turnover × rate. Annual projection = Monthly tax × 12.
  5. Result: Shows monthly liability, annual projection, and explains credit/refund.
📌 Practical Example

Scenario: A retailer in Punjab (PST registered) has monthly turnover of PKR 800,000. Not on ATL. Tax Year 2026.

Calculation: 800,000 × 3% = PKR 24,000 per month. Annual advance tax = 24,000 × 12 = PKR 288,000.

This amount is adjustable against final income tax liability. If final tax is lower, the excess will be refunded under section 170.

⚠️ Key Conditions & Warnings
  • ATL exemption: If your name appears in the Active Taxpayers’ List on 30 June of the previous year, this section does NOT apply. (Sec 147A(8))
  • Monthly payment: Tax must be paid at the same time as the monthly sales tax return. (Sec 147A(2))
  • Adjustable: This is an advance tax – it will be adjusted against your final tax demand. (Sec 147A(3),(5))
  • Refund: Any unused credit is refunded under section 170. (Sec 147A(7))
  • Non‑filing: Failure to pay may attract default provisions (treated as tax due under assessment). (Sec 147A(4))
❓ Frequently Asked Questions
1. What turnover is used for this tax?
The turnover declared before the provincial revenue authority in your monthly sales tax return. (Sec 147A(1))
2. Can I adjust this tax later?
Yes, it is adjustable advance tax. It will be taken into account while computing advance tax under section 147 and also allowed as a tax credit against your final income tax liability. (Sec 147A(3),(5))
3. What if I am on the Active Taxpayers List?
If your name was on ATL on 30 June of the previous tax year, Section 147A does not apply – you are exempt from this advance tax. (Sec 147A(8))
4. Is this tax in addition to sales tax?
Yes, it is an advance income tax, separate from sales tax. It is paid along with your sales tax return but is an income tax liability.
5. What if I overpay?
Any tax credit not fully adjusted against your tax liability for the year will be refunded to you under section 170. (Sec 147A(7))
6. Does this apply to companies?
Yes, if the company is a provincial sales tax registered person. The section applies to all persons (individual, AOP, company) registered under provincial sales tax.
7. How often do I need to pay?
Monthly, at the time of filing your provincial sales tax return. (Sec 147A(2))
8. Where can I find the official rate?
The rate is fixed at 3% by Section 147A(1). Our calculator uses the same rate for all years.
⚖️ Based on Income Tax Ordinance 2001. For guidance only. Consult tax advisor.
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