The Punjab Revenue Authority has issued specific guidelines for aesthetic clinics, spas, beauty salons, parlours, and skin and laser treatment centres operating in Punjab.
According to PRA, services provided by these businesses are subject to Punjab Sales Tax at 5%, and the relevant service providers are required to obtain registration with the Authority. PRA has also clarified that businesses should issue proper digital receipts, while handwritten or temporary receipts are not considered acceptable for this purpose. Customers have also been advised to verify that sales tax is being charged at the applicable rate.
An important accounting and tax point highlighted by PRA is that sales tax collected from customers represents government revenue rather than income of the service provider. Accordingly, businesses operating in these sectors need to maintain a clear distinction between their service revenue and sales tax collected on behalf of the provincial government, while ensuring appropriate registration, documentation and reporting compliance.