Brief Introduction :
Tax compliance refers to the process of paying taxes in accordance with the laws and regulations of a given jurisdiction. This includes accurately reporting income, calculating and paying taxes owed, and keeping accurate records according to the rules, regulations, acts, ordinances by the government/ regulatory authorities.
Failure to comply with tax laws can result in fines, penalties, and other consequences, such as criminal charges
It is important for individuals and businesses to understand their tax obligations and ensure that they are in compliance with the laws and regulations in their jurisdiction.
Like the other countries, in Pakistan businesses are required to register for taxes and file tax returns on a regular basis.
There are the following returns which needs to filed by every type of individual and business (Sole proprietorship, Partnership & Company) depending upon the certain criteria and eligibility.
Income Tax return :
According Income tax ordinance 2001, under the section 114 & 116 every eligible person needs to file income statement (showing all the income and taxes paid or owed detail) and Wealth statement (showing detail of expenses, Asset/Liabilities detail along the reconciliation of Opening, Closing Net & increase/decrease of value ) every year along with the due taxes with in due dates.
Documents required for the filing of Income tax returns.
- Salary Tax certificate, or any other source income certificate or detail
- All the Income/sales detail along with expenses detail
- Any other tax certificate on which you have paid tax like mobile, Internet, Car etc
- All bank account Statements for the mentioned period
- Any purchase/Sale/Change in assets
- Any loan taken or paid off
- Gp Fund Balance or any fund as of June 30, 2021 & 2022
- Estimated Personal annual/Monthly expense of Rent, Car, Education, utility (Electricity,Gas, Water),mobile, Kitchen & Other Miscs.
- Asset/Liabilities status as of June 30
Goods/Services Sales Tax return :
Whenever a person sales specific goods or provide certain services to another person, it is liable to collect after charging sales tax and deposit it to the Government.
In Pakistan, sales tax is charged by the seller to the end consumer and deposited to the relevant regulatory authority.
Goods/Supplies Sales Tax return :
All types of sales tax on goods throughout the Pakistan (Excluding exempt areas) is dealt by the FBR through the Sales Tax Act 1990.
A Sales tax return for goods or supplies needs to be filed along the due taxes (Declaring all the purchases, Sales, Closing stock) every month and annually to FBR.
Services Sales Tax return :
After the 18th Amendment to the constitution of Pakistan, the right to charge and collect the sales tax on services transferred to provinces and federal according to their respective territory.
So Every month a sales tax return on services needed to filed along with due taxes within due date to relevant authority. In Pakistan, right now a separates sales tax return on services needed to be filed to the following relevant authorities.
- FBR for Capital Area Services.
- PRA for Punjab Area Services.
- KPRA for Khyber Pakhtunkhwa Area Services.
- BRA for Punjab Balochistan Area Services.
- SRB for SINDH Area Services.
Withholding Tax Preparation & Filings :
Every eligible business person while making payment for expenses needed to deduct a certain amount in respect of tax on the from person receiving the amount and deposit that amount to the Government (FBR) within a stipulated time according to the law.
Further, every quarter and annually a statement need to be filed including the detail of payment made in respect of expenses and tax deducted and deposited there on called withholding statement.
Advance Tax Preparation & Filings :
Every eligible business person, needs to pay tax in advance quarterly on a certain critera.
That advance tax needs to be calculated, paid and statement filed according to the correct category of business for Individuals, Aop/Firms and companies.
Revision of the Returns :
As the Income tax and sales tax returns needed to be filed regularly, there are chances of omission, error and any other mistakes. Which needs to be communicated and corrected timely.
So whenever a taxpayer finds or discovers any omission and error, A revised return need to be filed timely along the adjustment of tax over or less paid.
Our services :
Properly, accurately filing of all the needed return and statements mentioned above on the behalf of the tax payer and taking care of any need thereof.