Land And Taxation

Land And Taxation

Tax lawyers

GNS Law Associates employs a holistic approach that melds standard compliance processes and tools with an in-depth understanding of tax laws and authorities, coupled with extensive accounting experience. This unique combination provides you with the access, visibility, and control needed for effective tax management. Leveraging proven methodologies, our dedicated team ensures that your direct and indirect tax compliance and reporting obligations are managed efficiently. Our unwavering commitment helps you establish robust compliance foundations, implement effective reporting, and develop sustainable tax strategies to propel your business towards its objectives.

Our services encompass enhancing the efficiency and accuracy of tax compliance and reporting, strategic tax planning, securing necessary tax registrations, preparation and filing of Corporate Income Tax returns and withholding statements, managing advance tax matters, obtaining registrations under the Sales Tax Act, filing periodic sales tax returns, facilitating tax refunds, handling Professional Tax issues, and addressing Customs Act matters.

As a one-stop solution, GNS Law Associates specializes in Tax Consultation, catering to a diverse clientele, including Business Individuals, Salaried Individuals, AOPs, and Companies. Our comprehensive range of services spans from completing tax returns under corporation tax and self-assessment to complex consultancy assignments and strategic tax planning. Our industry-specific knowledge encompasses financial services, leisure, retail, sport, high-growth companies, manufacturing, automotive technology, communications, public sector, and utilities.

In our capacity as a law firm, we handle cases across various legal forums, including Mediations, Arbitrations, Trial Courts, Appellate Tribunals, High Courts, and the Supreme Court. Offering complete legal guidance in accordance with applicable laws, we extend our consultancy services to clients in Pakistan and overseas. Our lawyers possess exclusive expertise in registering public limited companies in Pakistan and provide comprehensive support post-registration.

INCOME TAX

Income tax is a levy imposed on individuals, including self-employed individuals, salaried workers, and non-incorporated firms, based on their earnings. It serves as a significant contributor to government revenue and is governed by Section 4 of the Income Tax Ordinance 2001, applicable to individuals with taxable income during each tax year at government-declared rates.

The tax year spans a twelve-month period from July 1st to June 30th, aligning with the calendar year in which the end date falls.

Taxable income in Pakistan is defined as an individual’s total income calculated within the tax year after deducting applicable allowances, such as Zakat, etc.

Total income is the cumulative amount earned by an individual across various income heads, as per the classifications outlined in the Tax Ordinance 2001. These income heads include income from property, salary, business income, income from other sources, or capital gains on investments.

The taxation structure of a country significantly influences its economic strength. In Pakistan, citizens are obligated to declare their assets, file annual tax returns, and pay taxes promptly. Recent tax reforms aim to simplify and streamline the taxation system, encouraging people to document their tax returns and fulfill their tax obligations in a timely manner.

Contrary to a common misconception that paying taxes is optional, tax evasion is a criminal offense. Those found evading taxes may face penalties for violating the law.

The regulatory framework for tax matters in Pakistan is defined in the Income Tax Ordinance 2001, with the Federal Board of Revenue (FBR) overseeing the country’s taxation system. For the proper documentation of tax returns, individuals are required to have NTN registration.

Income Tax Return Filing Services

Amidst stringent government policies and regulations, absolute compliance with Pakistan’s taxation system has become imperative. GNS Law Associates is a consortium of professional tax consultants in Karachi and tax lawyers in Islamabad. Our expertise extends beyond mere tax consultancy; we actively assist in tax deduction and ensure favorable conditions for you. This allows you to channel your energy and time into core business activities.

Our team of tax lawyers specializes in providing comprehensive tax consultancy services to individuals, salaried individuals, associations, companies, and non-profit organizations (NGOs). We undertake a thorough analysis of your accounting books, prepare your Income Statement, make necessary amendments if required, and finalize the Income Statement. Upon completion of the process, we diligently document the Return of Income after discussions and obtaining approval from the client.

Taxocrat Services

We offer high-quality tax consultancy services to ensure your compliance with tax regulations. Our services include:

  • Development and planning of tax filing strategies.
  • Documentation of tax returns.
  • National Tax Number registration for tax correspondence with FBR.
  • Handling interactions with Taxation Authorities, including seeking clarifications, confirmations, and approvals from FBR.
  • Preparation of wealth statements.
  • Electronic challan payment and preparation.
  • Filing and preparation of other required tax statements.
  • Guidance in FBR audit and conducting tax audits.
  • Advisory services on day-to-day tax issues.
  • Management of appeals and objections.
  • Guidance on tax deduction.
  • Facilitation of income tax refunds from tax authorities.
  • Management of tax exemptions for educational institutions and NGOs.

Sales Tax

The Goods and Services Tax (GST) is levied on the sale and supply of services, goods, and on imported goods within Pakistan. The Federal Government of Pakistan determines the sales tax rates under The Sales Tax Act, 1990. The Pakistani government has imposed taxes on the sales of specific services and goods. Business owners collect a fixed amount of tax from purchasers of services/goods, which is then remitted to the government. It is the responsibility of every business owner to ensure timely tax payment; failure to do so may result in penalties imposed by the government. According to the 2018-2019 budget, the tax on supplies for unregistered individuals is currently set at a rate of 2%, in addition to the standard tax rate of 17%. The Finance Bill proposes an increase in the rate of this additional tax to 3%.

Sales Tax Registration Services

Mandatory tax registration applies to the following categories:

  1. All importers are required to register with the tax department.
  2. Distributors, goods dealers, and wholesalers.
  3. Manufacturers of products, excluding those in the cottage industry. (Cottage industry refers to a sector with an annual turnover below Rs. 5 million and annual utility bills below Rs. 600,000.)
  4. Retailers with a value in goods exceeding 5 million rupees in the tax period over the last year.
  5. Service providers, including hotels/restaurants, shipping, logistics, customs agencies, etc.
  6. Manufacturers of zero-rated supplies.

Sales Tax Returns Filing Services

Taxpayers are required to provide details of financial transactions, including tax liability, within a specific tax period through a document known as the Sales Tax return. This return form includes the taxpayer’s declaration for the designated tax period, outlining both input and output tax details at the prescribed tax rate. If the input tax surpasses the output tax, the return also accounts for claimed refunds or additional input tax.

Taxpayers can file their Tax returns at different intervals, either monthly, annually, or quarterly, as outlined below:

Sales Tax Return Filing – Monthly:

The monthly tax return is submitted on the 15th day of the subsequent month following the period when supplies were generated, following the standard procedure. Tax returns can be paid at branches of the National Bank of Pakistan.

Sales Tax Return Filing – Yearly:

Any public (unlisted or listed) or private company can file the yearly sales return. Companies are required to document the tax return for a financial year by the 30th of September in the subsequent fiscal year.

Sales Tax Return Filing – Quarterly:

Commercial importers, engaged in importing taxable goods for trading purposes without using them for manufacturing, can file tax returns on a quarterly basis.

Are You Looking for Filing Tax Return or Tax Registration?

In striving to meet your taxation needs, GNS Law Associates offers a comprehensive range of tax services, 

including:

  • Registration of Tax (acquiring Sales Tax Registration Number – STRN)
  • Preparation and filing of periodic sales tax returns
  • Monthly Tax Statement Preparation
  • Management of tax records and bookkeeping
  • Assistance and Advisory in the claim for adjustment of output and input taxes
  • Handling tax exemptions
  • Conducting tax audits
  • Representation on the client’s behalf before sales tax authorities
  • Resolution of tax issues and disputes
  • Auditing existing corporate clients’ systems and providing advisory services to prevent penalties and tax assessments
  • Assistance in Tax Refunds
  • Strategy development for client’s tax cost reduction

At GNS Law Associates, our professional tax consultants stay updated on active developments and new regulations in the country’s taxation scheme. Given the complexity of tax laws and reforms, staying informed is crucial to avoid penalties and business losses. Our professional tax consultants guide you through the taxation system, assist in registering with the sales tax department, and take on the responsibility of documenting your periodic tax returns.

Beyond tax registration and return filing, we specialize in National Tax Number Registration and Income tax return filing. Contact us now to consult with our professional tax experts in Karachi for further guidance and excellent tax consultancy services.

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