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.