Income Tax compliance
The compliance services generally include filing of statutory returns and statements, routine attending of the hearings with the income tax department as well as responding to routine income tax notices serviced on the client under the Income Tax Ordinance 2001, and the IT Rules of 2002. We also prepare the taxable income from the audited accounts so that all the allowances, credits ,exemptions and other concessionary benefits permitted under the statutes are properly and legally computed so that only that much tax is paid as is due. This in most cases reduces the tax burden drastically as accounting income is normally different from the taxable income.
Sales & Service Tax Compliance
Sales tax compliance work in Pakistan involves ensuring that businesses are collecting and remitting the appropriate amount of sales & services tax to the Federal Board of Revenue (FBR), Punjab Revenue Authority (PRA) Baluchistan Revenue Authority (BRA) Sind Revenue Board (SRB )( KPRA) KPK revenue authority in accordance with the Federal Sales Tax Act, 1990, PRA Service Act 2012,BRA services tax act 2015 SBR service tax act 2011and KPRA service ta Act 2013
To achieve sales tax compliance, businesses need to register for sales tax with the FBR, PRA, BRA, SRB and KPRA obtain a Sales Tax Registration Number (STRN). Once registered, businesses must file monthly sales tax returns with the FBR and respective service tax authorities and reporting their taxable sales and amount of sales tax collected.
Businesses are required to collect standard sales tax at a rate of 17% on most goods and services sold in Pakistan. Some goods and services are exempt from sales tax, while others may be subject to a reduced rate. It is important for businesses to understand which goods and services are subject to sales tax and at what rate to ensure that they are collecting the correct amount of tax.
Non-compliance with sales tax regulations can result in penalties and fines. Therefore we maintain accurate records of their sales and tax payments and to ensure that they are complying with all relevant laws and regulations.
We also prepare the taxable sales from sales tax record maintained so that all ,exemptions and other reduce rate concessionary benefits permitted under the SRO’ and zero rated are properly and legally computed so that only that much sales tax is paid as is due. This in most cases reduces the sales tax burden drastically.
Appeals and Proceedings
We take appeal as challenge rather than a formality. Mainly, the appeals are made in two forum, viz, the Commissioner/Collectors (Appeals) of Income Tax / Sales Tax and Federal Excise and the Income Tax Appellate Tribunal (ITAT). Before attending any appeal hearing, we carry out extensive study of the relevant provisions of laws and decided cases. Another proof of our strong grounds of appeal and persuasive arguments is that most of the cases that we attend are finalized very soon. Our tax library is kept up-to-date to provide us the relevant information as and when required. The following services are being provided:
i) Preparation and filing of appeal documents with Commissioner of Income Tax (Appeals)/, Sales Tax and Central Excise.
ii) Preparation and filing of appeal documents with Income Tax Appellate Tribunal.
iii) Research, Preparation of written submissions and attendance before the Commissioner/ Collector (Appeals) in order to argue/defend appeal.
iv) Research, Preparation of statements of facts and attendance to argue/ defend appeal before the Income/ Sales Tax Appellate Tribunal.
v) Research, Preparation of statements of facts and attendance to argue/ defend reference application before the Income/Sales Tax Appellate Tribunal.