Sales tax in Pakistan is a multi-tiered system administered at the federal level (by FBR under the Sales Tax Act 1990) for goods and certain services, and at the provincial level by Punjab Revenue Authority (PRA), Sindh Revenue Board (SRB), Khyber Pakhtunkhwa Revenue Authority (KPRA), and Balochistan Revenue Authority (BRA) for services. Any business with annual turnover exceeding the mandatory registration threshold must register for sales tax, charge it on taxable supplies, claim input tax adjustments on purchases, and file monthly returns — with non-compliance attracting automatic surcharges and penalties.
Ayesha Khalid Law Associates provides comprehensive sales tax services covering registration on the IRIS portal, monthly return preparation and filing, input-output reconciliation, adjustment of excess input tax, and formal refund applications for exporters and other eligible categories. We also advise on the distinction between zero-rated and exempt supplies — a nuanced area where misclassification can lead to significant tax liability — and on the correct treatment of sales tax on imported goods and services.
For businesses receiving sales tax show-cause notices or facing sales tax audits, our lawyers prepare detailed legal replies, appear before the Sales Tax Department at the audit stage, and represent clients in formal adjudication proceedings and appeals. Sales tax litigation requires both legal and accounting expertise — a combination that our team uniquely provides. We also advise on the integration of FBR's e-invoicing requirements and the Track and Trace scheme, helping businesses avoid technical compliance failures that attract disproportionate penalties.