Sales tax filing in Pakistan is not only a legal obligation but an essential component in conducting a responsible and established business. The task can be too daunting to many business owners, especially the new ones. It becomes a fairly regular and necessary procedure once you comprehend the necessity and the process and it reinforces your business credibility, financial well-being, and, therefore, long-run viability.
Declaring your sales tax to the Federal Board of Revenue (FBR) enables you to remain abreast to the law, and evades unnecessary fines and legal problems. However, the good things do not end there. Banks, government institutions, suppliers and customers consider a business as reliable when its taxes are filed regularly. Obtaining loans, being involved in tenders, and becoming trustful among stakeholders become less problematic. In addition, the input tax adjustments can be claimed by your business, so you are able to reclaim part of the taxes paid on your purchases and reduce your taxes generally.
The first step in filling sales tax is to ensure your papers related to your business are in satisfactory condition. Tax returns, be it a sole proprietor or a partnership or a registered company, there are records that you need to present to FBR. These are usually your incorporation documents, NTN certificate, national identity cards of the business owners or directors and evidence of business premises.
Apply in case you are operating a business in rented place then, you will have to provide tenancy agreement and property owner or landlord. The document checklist is commonly filled with the most recent utility bills and official company letterheads as well. It is best to have them prepared as it facilitates the filing process.
Depending on the kind and type of business you conduct, sales tax returns are filed. Most of the businesses file monthly returns but there are some sectors such as CNG stations where the procedure is quarterly. An annual return is also required to be filed by some manufacturers and service providers.
When a business closes or it is being deregistered then a final return should be filed to cover any outstanding liabilities. There is a deadline to each of such returns and failure to meet those deadlines may lead to automatic penalties.
The FBR has come up with digital platforms, which make it easy to pay your sales tax without having to go through the tedious process. You may also create a payment challan online on your FBR portal and pay through online system of your bank, its mobile app, ATM or go to its branch. This electronic system will record the payments as fast and precise as it is possible. You should take a note of your paid challans at all times in order to refer at a later time or during audits.
Several companies experience difficulties in filing since they are not organized or cannot calculate the deadlines. It is appropriate to maintain record of all purchases and sales thoroughly and accurately. Rushing to the eleventh hour may result in panic, mistakes or late submission. FBR may issue notices or even carry out an audit due to even the slightest mistakes in filing. Common pitfalls include an incorrectness of amounts entered using outdated information, failure to send the correct documents, or failure to prepare well due to not being informed. When taking it up in-house proves to be stressful it is better to seek professional help.
Even though the sales tax filing process may appear intimidating or time-consuming, you can get the burden off your chest by hiring a professional partner such as TaxJar PK. We are highly experienced in assisting businesses in registration, record keeping, preparation of proper returns and beating deadlines. We can develop a personalized relationship with both startups and functioning companies of any size and in any industry. We can help you to avoid the risk of legal mistakes and unpleasant economic surprises. We make sure that your filings are accurate and on a timely basis, leaving you to concentrate on your livelihood.
Tax compliance is important in every successful business. Submission of sales tax returns on time is not a mere ceremony; it is an indication of how seriously you manage your business. Whether you have been putting off your filing or are not sure how to TaxJar PK get started, this is the best time to do so. TaxJar PK will lead you through the process, make sure your business is fully compliant with all FBR rules, and explain why it is worth it to get there. Contact and ensure a secure future business with the help of reliable services of sales tax returns in Pakistan.
