Provide FEE consultation and advice to the client on day to day about Tax Matters;

  • Sales Tax
  • Sales Tax Registration and Change of Particulars.
  • Maintenance of Sales Tax record as per Sales Tax Act.1990.
  • Filing of Monthly/Quarterly Sales Tax Returns.
  • Filing of Monthly/Quarterly/Annually Statement Summary as required under the Sales Tax Act.1990.
  • Filing and Follow up of Refund claims.
  • Finalization of Pre-Audit, Audit, Post Audit and Pre-Refund Audit.
  • Processing reply of Audit Observations, Show Cause notices and Appeals and representation on behalf of respected Clients.
  • De-Registration (ST-3) as per Sales Tax Act.1990.
  • Income Tax
  • Provide Services for filing of the Income Tax Return of:
  • Individuals
  • Partnerships
  • Companies
  • Trusts
  • Other entities
  • Maintenance of Account for Income Tax under Income Tax Ord.2001.
  • Formation of Income Tax Returns.
  • Finalization of Audit.
  • Income Tax Cases/Appeals.

Property Tax

Property Law including Purchases, Sales, Leasing, Lenders, Brokers, Deeds, Liens, Easements, Boundary Disputes, Construction Projects, Contractor Disputes, Disclosures, Permits, Land Use and Government Regulation.

Sale Deed, Wills, Gift Deed, Trust Deed, Inheritance Law, Conflicts, Drafting, Agreement, Memorandum Of Understanding, Beneficiaries.

Sales Tax                             

Liability to Sales Tax

Following sectors are required to get registration for sales tax and charge sales tax on their supplies/ services;

  • Manufacturing
  • Import
  • Services
  • Distribution, Wholesale & Retail stage.

Previously it was being charged at the manufacturing & import stage, and its scope has been extended now to remaining sectors.

Sales Tax is chargeable on all locally produced and imported goods except computer software, poultry feeds, medicines and unprocessed agricultural produce of Pakistan and other goods specified in Sixth Schedule to The Sales Tax Act, 1990.

Registration

Every person in sectors mentioned above, who makes a taxable supply in Pakistan is required to be registered under the Sales Tax Act. However, manufacturers having taxable turnover below five million rupees and also utility bill below Rs. Seven lac during the last twelve months are exempted from registration and payment of sales tax. Similar exemption is also available to retailers having total turnover below Rs. five million in the last twelve months.

The rate for sales tax is 16% of value of supplies. However, there are some items which are chargeable to sales tax at 18.5% or 21% of value of supplies (see SRO 644(I)/2007 as amended by SRO 537(I)/2008 dated 11th June 2008)

The Registration Form(s) are submitted to the Central Registration Office, FBR, or Sales Tax Collectorates/ RTOs for the allotment of a Registration Number by the persons liable to be registered under the Sales Tax Act. The taxpayer is then issued a Certificate of Registration.

Returns

As per law each registered person must file a return by the 15th of each month regarding the sales made in the last month.

All registered persons are required to file returns electronically and in such cases the payment is to be made by the 15th and return can be submitted on FBR’s e-portal by 18th.

Detailed procedure in this respect is given in Sales Tax General Order no. 04 of 2007.

There are some sectors which are required to file returns on quarterly (tri-monthly) basis e.g. retailers including dealers of specified electric goods and CNG dealers.

Maintenance of Records

All registered persons are required to maintain records at their business premises of the goods purchased and supplied made by them. All the records are required to be kept for a period of 5 years.

Refund of Sales Tax

In cases where the Input Tax exceeds the Output Tax due from the registered person in respect of a tax period because of exports or other zero-rated supplies, the excess amount of input is refunded back to the taxpayer within 45 days. In all other cases of excess input tax, the Board can specify the procedure for refund.

Additional Tax

If a registered person does not pay the tax within the specified time or claims a tax credit or refund which is not admissible to him, or incorrectly applies the rate of zero percent to the supplies made by him, he has to pay the additional tax at the following rates;

  • One and half percent of tax due or the part thereof per month.

However, in case of tax fraud, the rate of additional tax shall be two percent per month.

Arrears

The work regarding Arrears gets initiated in the following cases;

  • Late or no submission of the Returns.
  • Amount paid is less than the tax amount payable.
  • A demand rose after an audit/ scrutiny is upheld after adjudication.

Income Tax                         

Taxation according to a person’s ability to pay is universally accepted principle, and income is considered a satisfactory though not a sufficient index of such ability to pay. Income Tax is, therefore, generally recognized as a highly equitable form of taxation. A tax levied on income can nor normally be shifted to others and thus its incidence is on those for whom it is intended. Since income tax is progressive in nature, it tends to reduce economic disparity. Tax rates and method of calculating taxable income varies with fiscal status of the tax payer. Following are the broad categories of taxpayers:

  • Companies
  • Association of Persons (AOP)
  • Non Salaried Individuals
  • Salaried individuals
  • Capital Value Tax

It is payable by individuals, firms and companies which acquire an asset by purchase or a right to use for more than 20 years.

Corporate Asset Tax

It is levied through section 12 of the Finance Act, 1991. This is one time levy payable by a company as defined in Companies Ordinance, 1984, on the value of fixed assets held by the company on the “specified date”.

Federal Excise Duty                        

The Federal Excise Act, 2005, was promulgated with effect from 1st July, 2005, repealing the Central Excises Act, 1944. Following are some of the significant changes brought about by the new Act:

The word “Federal” was used in place of “Central”. Therefore, now the term “Federal Excise Duty” is more appropriate as compared to old “Central Excise Duty” for the duties of excise levied under the 2005 Act.

The system of physical supervision has been entirely done away with and now all clearances will be self-assessed and no prior permission for clearance will be required.

The payment of duty will be on monthly basis and the duty on all clearances during the month will be payable by the 15th of next month. This is in contrast to previous requirement of payment of duty prior to clearance.

No gate passes are required for clearances as in the old system.

Double taxation has been eliminated by allowing adjustment of the excise duty paid on the input goods used directly in the manufacture of excisable goods.

On some services and goods FED is payable in VAT more i.e. in the same manner as provided in the Sales Tax Act, 1990.

Federal Excise duty is payable on;

  • Goods produced or manufactured in Pakistan.
  • Goods imported into Pakistan.
  • Such goods as the Federal Government may, by notification in the official Gazette, specify, as are produced or manufactured in the non-tariff areas and are brought to the tariff areas for sale or consumption therein; and services, provided or rendered in Pakistan.

Special Excise Duty

As part of budgetary measures for the year 2007-08, Special FED at 1% has been levied on goods which are manufactured or are imported in Pakistan. This duty is in addition to FED as prescribed in First Schedule of the Federal Excise Act, 2005. For list of goods excluded from purview of this special duty and other details see SRO 655(I)/2007.

For consultation and further details contact us.