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Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
Forensic and investigation services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
Mergers and acquisitions
Globalisation and company growth ambitions are driving an increase in M&A activity worldwide. We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer- term strategic goals.
Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery
Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
The International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements. At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
Global audit technology
We apply our global audit methodology through an integrated set of software tools known as the Voyager suite.
Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
Innovation and investment incentives
Dynamic businesses must continually innovate to maintain competitiveness, evolve and grow. Valuable tax reliefs are available to support innovative activities, irrespective of your tax profile.
Private client services
Our solutions include dealing with emigration and tax mitigation on the income and capital growth of overseas assets.
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
Tax policies are constantly evolving and there are a number of complex changes on the horizon that could significantly affect your business.
Indirect tax snapshot
Please click on each section to expand further:
The principal indirect tax in Pakistan is General Sales Tax (GST) charged on taxable goods under Sales Tax Act, 1990 (the Act). GST is a Value Added Tax (VAT) in which the value added component at each stage of business transaction is taxed. GST is collectable from a registered person at import and charged by a registered seller of taxable goods. Tax credit or input tax is allowed when the registered person keeps proper record of claim regarding tax invoice and bill of entry. The goods meant for export were zero-rated. The tax paid on raw materials and other goods purchased in the course of business are deducted automatically while determining the tax liability. The system is based on self-assessment/clearance procedure and payment of tax.
Sales tax on service has also been introduced in Pakistan from 2011. Such tax is being charged, levied and collected by provincial governments in different provinces under their respective provincial legislations. Rate of tax on services varies from 13% to 16% in different provincial jurisdictions.
No pecuniary limit/threshold for registration is here. Every manufacturer, importer, wholesaler, distributor or dealer and retailers making taxable supplies is required to obtain registrationA person required to be registered shall submit an application through the computerised system along with the following documents, namely:
- CNIC of all owners, members, partners or directors, as the case may be, and the representative, if any, and in case of non-residents, their passports
- in case of a company or registered AOP, the Registration or Incorporation Certificate, along with Form III or Form A as prescribed in the Companies Ordinance, 1984 (XLVII of 1984)
- in case of a partnership, the partnership deed
- bank account certificate issued by the bank in the name of the business
- lease or rent agreement, if the premises are rented, along with CNIC of the owner of the premises
- ownership documents of the premises, such as registered sale deed or registered transfer deed
- latest utility bills (electricity, gas, land-line telephone, and post-paid mobile phones, as the case may be)
- list of machinery installed, in case of manufacturer
- distribution certificate from the principal showing distributorship or dealership, in case of distributor or dealer x balance sheet/statement of affairs/equity of the business
- particulars of all branches in case of multiple branches at various locations
- particulars of all franchise holders in case of national or international franchise.
- GPS-tagged photographs of the business premises.
GST returns cover a tax period of one month, ending on the last day of a calendar month. A registered person is required to deposit tax by 15th and the return shall be submitted electronically by the 18th of the next month.
In case of sales tax on goods, a penalty of PKR 10,000 is applicable for delay in submission of return. Default surcharge at the rate 12% is applicable for delay in payment of tax.
For sales tax on services, different rates of penalties and default surcharge are applicable for late submission of returns and payment of tax respectively in different provincial jurisdictions.
In addition to the monthly sales tax return, an annual sales tax return and quarterly reconciliation statements in some of the cases are also required to be submitted.
Yes. A range of penalties are applicable for default of other legal requirements as well.
A GST invoice must show:
- a unique serial number
- seller’s and buyer’s name and address
- seller’s and buyer’s registration number
- date of issue of invoice
- a description and quantity of the goods or services supplied to the customer
- value exclusive of sales tax
- amount of sales tax
- value inclusive of sales tax.
Yes, all the sales tax returns files are uploaded online in the tax authorities portal and no manual submission is effective currently. Tax Authorities review these online submitted returns and issue notices for compliances. In some of the cases notices are also uploaded in this portal for necessary compliances.
For further information on indirect tax in Pakistan please contact:
Kazi Zeeshan Akbar