Filing taxes is a very important responsibility for companies operating in Pakistan. It remains essential for continued compliance with the country’s legal and financial policies, ultimately increasing national revenue and promoting economic growth.
The FBR oversees the department of GST and ITR filing. It requires all companies to file GST and income tax returns annually. Suppose companies fail to adhere to these tax filing requirements. They must pay heavy fines, penalties, and legal cases in that case.
Understanding GST and Income Tax Returns
GST is a Consumption Tax that applies to both goods and services. Income tax is applied to the income and profits earned by a business. Businesses have to submit these taxes to stay compliant with the government.
The government uses GST returns to trace taxable sales, whereas income tax returns showcase the income and deductions of the company. Ignoring these might result in serious fines, audits, and may even lead to legal action.
Here’s How to File the GST Return
- GST Registration: Companies must register with FBR after logging onto their IRIS portal and submitting the appropriate forms. This would ultimately leave with an NTN along with a GST registration certificate.
- GST E-Filing Process: The procedure for filing GST online is as follows. One must log in to the IRIS portal using his login credentials. After that, go to the section indicated as “Sales Tax Return. Then, sales and purchase details are entered into the concerned column, and an applicable tax is declared. This return is to be submitted every month. Tax can be submitted using Internet banking or deposited at the mentioned branch.
- Common Mistakes to Avoid: These include accrual of errors due to tax miscalculations, missing documents, or file submission after deadlines, for which penalties are imposed. Proper bookkeeping and data verification before filing are essential.
This is a simplified GST filing guide that also prevents costly mistakes for the business. File sales tax now to be on the taxpayers list.
How to File Income Tax Returns in Pakistan
FBR Iris portal is used to file the FBR tax returns in Pakistan. Below are the steps mentioned for the process.
- Sign up on Iris: Log on to the Iris portal. First-time users must sign up using CNIC and generate a national tax number (NTN).
- Login and Fill the Form: After logging in choose the relevant form according to your income type, such as salaried or business income. Ensure that you declare your total income and applicable deductions.
- Attach all necessary documents, such as bank statements and details of assets.
- Review and submit the return electronically on the portal.
This is how income tax filing is done. Make sure to do your’s to be compliant with the government.
Common Challenges Faced by Companies
Most businesses in Pakistan face compliance issues when they file GST and income tax returns. Getting through the confusing turnover taxes, interpreting tax credits that apply, and keeping up with the financial records can be very difficult. Furthermore, improper filing or failure to submit by the deadline can incur extreme penalties, audits, or even legal cases.
Timely submission is the only way to avoid such problems. Firms must implement serious tax management systems to ensure compliance and decrease the possibility of penalties from the FBR.
How Sidekick Simplifies Tax Filing for Companies
Sidekick offers comprehensive tax services, which help companies file GST and income tax returns without hassle. The professionals handling the company’s tax needs ensure that FBR regulations are adhered to, claim the correct amount of tax credits for the business, and smooth all the complicated details of the tax filing process.
Sidekick contributes to timely submission by reducing errors and avoiding penalties and fines. With hassle-free and efficient tax filing, businesses can rely on Sidekick to manage their financial compliance needs.
Conclusion
It is essential to file GST and income tax return in Pakistan to stay compliant. So, if you need professional support, Sidekick will guide you through the whole process easily, ensuring that it reaches the concerned authorities on time with no penalties involved.